Largo Inc. (TSX: LGO) (NASDAQ: LGO) reported a 68.5% increase in second-quarter 2026 revenue to $44 million, up from $26.1 million in the same period last year. The company's vanadium pentoxide production rose 28.5% to 2,900 tonnes, and sales increased 53.5% to 2,773 tonnes. Adjusted EBITDA improved to $2.7 million from $34,000, while Mining Operations Adjusted EBITDA grew 64.8% to $4.4 million. Despite these gains, the company recorded a net loss of $22.7 million, largely due to noncash items and higher costs. Largo ended the quarter with $5.1 million in cash and $114.2 million in debt.
The company reiterated its 2026 guidance for V2O5 equivalent production of 10,500 to 12,000 tonnes and sales of 7,500 to 9,500 tonnes. Subsequent to the quarter, Largo secured a $60.1 million delivery order from the U.S. Defense Logistics Agency Strategic Materials and began full-scale copper-platinum group metals (PGM) concentrate production at its Maracás Menchen Mine following Brazilian regulatory approval. Largo expects copper-PGM concentrate production of approximately 300 to 380 tonnes per month, with an average grade of approximately 15% copper and 41 grams per tonne of PGMs, creating an additional potential revenue stream using existing infrastructure.
The company also reported stronger vanadium pricing during the quarter, including a 45.8% increase in the average U.S. ferrovanadium benchmark price from a year earlier. This pricing strength, combined with operational expansions, positions Largo to capitalize on growing demand for vanadium in steel, aerospace, defense, and energy storage sectors.
As the world's largest primary vanadium producer, Largo leverages its vertical integration to ensure reliable supply and quality. The company is also invested in clean energy storage through its 37.4% ownership of Storion Energy, a joint venture with Stryten Energy focused on scalable domestic electrolyte production for utility-scale vanadium flow battery long-duration energy storage solutions in the U.S. Additionally, Largo holds a 100% interest in the Northern Dancer Tungsten-Molybdenum property in Yukon, Canada, and a 100% interest in the Currais Novos Tungsten Tailing Project in Brazil.
These developments underscore Largo's strategic focus on expanding its product portfolio and securing long-term growth opportunities. The U.S. defense order highlights the company's role in supplying critical materials for national security applications, while the copper-PGM production diversifies its revenue streams and enhances operational efficiency. With stronger vanadium pricing and increased production, Largo is well-positioned to improve its financial performance in the coming quarters.
