Intuitive Machines Reports Fourth Quarter and Full-Year 2024 Financial Results
Intuitive Machines CEO Steve Altemus said, 'Just two years ago, we became a public company with a bold vision for the future. Over the past year, we've deliberately positioned ourselves for long-term success by expanding our technical capabilities, opening new revenue streams, and fortifying our financial position. Today, we stand stronger than ever— financially secure, debt-free, and ready to take the next leap.'
Highlights
Executed southernmost ever lunar landing on the South pole region of the Moon and accelerated payload operations for NASA's PRIME-1 drill suite, Nokia's Lunar Surface Communications System, Intuitive Machines' Micro Nova Hopper, and several commercial payloads including a data center and a Japanese micro-rover (Q1 2025)
Awarded additional contracts for NASA's Near Space Network ('NSN') for Direct-to-Earth ('DTE') services to regions around the Moon and beyond the Moon
Continued customer diversification through a contract to adapt our current technologies from our lunar delivery missions to create new capabilities, specifically an in-space orbital transfer vehicle 'OTV' for a government customer (Q1 2025)
Completed an upsized $125 million offering of Class A common stock and concurrent private placement with Boryung Corporation, a leading South Korean pharmaceutical company and strategic investor and partner for critical infrastructure opportunities in space
Reported record backlog of $328.3 million, a 22% increase year-over-year and the highest quarter-ending backlog in Company history
Achieved $54.7 million of revenue in Q4, up 79% year-over-year; $228.0 million for the year, nearly three times 2023 revenue
Continued drive towards profitability with positive gross margin in Q4 and full year, our second consecutive quarter of positive gross margin
Ended 2024 with $207.6 million in cash; as of March 10th our cash balance was $385 million following the completion of the warrant redemption process, streamlining the Company's capital structure while substantially reducing the overhang from derivative securities
Mr. Altemus continued, 'Now, with a fortress-like balance sheet, we're seeking the highest-return opportunities, whether that's through internal innovation or strategic acquisitions. Our proven technologies and expertise are propelling us beyond NASA and cislunar space, expanding our reach into new markets and customers. This year is not just about growth—it's about defining the future of our company and the industry itself.'
2025 Outlook
Full-year 2025 revenue outlook of $250 - $300 million
Positive run-rate Adjusted EBITDA by the end of 2025; positive Adjusted EBITDA in 2026
Conference Call Information
Intuitive Machines will host a conference call today, March 24, 2025, at 8:30 am Eastern Time to discuss these results. A link to the live webcast of the earnings conference call will be made available on the investors portion of the Intuitive Machines' website at https://investors.intuitivemachines.com.
Following the conference call, a webcast replay will be available through the same link on the investors portion of the Intuitive Machines' website at https://investors.intuitivemachines.com.
Key Business Metrics and Non-GAAP Financial Measures
In addition to the GAAP financial measures set forth in this press release, the Company has included certain financial measures that have not been prepared in accordance with generally accepted accounting principles ('GAAP') and constitute 'non-GAAP financial measures' as defined by the SEC. This includes adjusted EBITDA ('Adjusted EBITDA').
Adjusted EBITDA is a key performance measure that our management team uses to assess the Company's operating performance and is calculated as net income (loss) excluding results from non-operating sources including interest income, interest expense, gain on extinguishing of debt, share based compensation, change in fair value instruments, depreciation, and provision for income taxes. Intuitive Machines has included Adjusted EBITDA because we believe it is helpful in highlighting trends in the Company's operating results and because it is frequently used by analysts, investors, and other interested parties to evaluate companies in our industry.
Adjusted EBITDA has limitations as an analytical measure, and investors should not consider it in isolation or as a substitute for analysis of the Company's results as reported under GAAP. Other companies, including companies in Intuitive Machines' industry, may calculate Adjusted EBITDA differently, which reduces its usefulness as a comparative measure. Because of these limitations, you should consider Adjusted EBITDA alongside other financial performance measures, including various cash flow metrics, net income (loss) and our other GAAP results. A reconciliation of Adjusted EBITDA to the most directly comparable GAAP financial measure is included below under the heading 'Reconciliation of GAAP to Non-GAAP Financial Measure.'
We define free cash flow as net cash (used in) provided by operating activities less purchases of property and equipment. We believe that free cash flow is a meaningful indicator of liquidity that provides information to management and investors about the amount of cash generated from operations that, after purchases of property and equipment, can be used for strategic initiatives, including continuous investment in our business and strengthening our balance sheet. Free Cash Flow has limitations as a liquidity measure, and you should not consider it in isolation or as a substitute for analysis of our cash flows as reported under GAAP. Some of these limitations are:Free Cash Flow is not a measure calculated in accordance with GAAP and should not be considered in isolation from, or as a substitute for financial information prepared in accordance with GAAP; Free Cash Flow may not be comparable to similarly titled metrics of other companies due to differences among methods of calculation; and Free Cash Flow may be affected in the near to medium term by the timing of capital investments, fluctuations in our growth and the effect of such fluctuations on working capital and changes in our cash conversion cycle. A reconciliation of Free Cash Flow to the most directly comparable GAAP financial measure is included below under the heading 'Reconciliation of GAAP to Non-GAAP Financial Measure.'
The Company has also included contracted backlog, which is defined as the total estimate of the revenue the Company expects to realize in the future as a result of performing work on awarded contracts, less the amount of revenue the Company has previously recognized. Intuitive Machines monitors its backlog because we believe it is a forward-looking indicator of potential sales which can be helpful to investors in evaluating the performance of its business and identifying trends over time.
About Intuitive Machines
Intuitive Machines is a diversified space technology, infrastructure, and services company focused on fundamentally disrupting lunar access economics. In 2024, Intuitive Machines successfully soft-landed the Company's Nova-C class lunar lander, on the Moon, returning the United States to the lunar surface for the first time since 1972. In 2025, Intuitive Machines returned to the lunar south pole with a second lander. The Company's products and services are focused through three pillars of space commercialization: Delivery Services, Data Transmission Services, and Infrastructure as a Service. For more information, please visit intuitivemachines.com.
Forward-Looking Statements
This press release includes 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These statements that do not relate to matters of historical fact should be considered forward-looking. These forward-looking statements generally are identified by the words such as 'anticipate,' 'believe,' 'continue,' 'could,' 'estimate,' 'expect,' 'intend,' 'may,' 'might,' 'plan,' 'possible,' 'potential,' 'predict,' 'project,' 'should,' 'strive,' 'would,' 'strategy,' 'outlook,' the negative of these words or other similar expressions, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include but are not limited to statements regarding: our expectations and plans relating to our missions to the Moon, including the expected timing of launch and our progress in preparation thereof; our expectations with respect to, among other things, demand for our product portfolio, our submission of bids for contracts including LTV, NSNS and CP-22; our expectations regarding revenue for government contracts awarded to us; our operations, our financial performance and our industry; our business strategy, business plan, and plans to drive long-term sustainable shareholder value; our expectations on revenue generation. These forward-looking statements reflect the Company's predictions, projections, or expectations based upon currently available information and data. Our actual results, performance or achievements may differ materially from those expressed or implied by the forward-looking statements, and you are cautioned not to place undue reliance on these forward looking statements. The following important factors and uncertainties, among others, could cause actual outcomes or results to differ materially from those indicated by the forward-looking statements in this presentation: our reliance upon the efforts of our Board and key personnel to be successful; our limited operating history; our failure to manage our growth effectively; competition from existing or new companies; unsatisfactory safety performance of our spaceflight systems or security incidents at our facilities; failure of the market for commercial spaceflight to achieve the growth potential we expect; any delayed launches, launch failures, failure of our satellites or lunar landers to reach their planned orbital locations, significant increases in the costs related to launches of satellites and lunar landers, and insufficient capacity available from satellite and lunar lander launch providers; our customer concentration; risks associated with commercial spaceflight, including any accident on launch or during the journey into space; risks associated with the handling, production and disposition of potentially explosive and ignitable energetic materials and other dangerous chemicals in our operations; our reliance on a limited number of suppliers for certain materials and supplied components; failure of our products to operate in the expected manner or defects in our products; counterparty risks on contracts entered into with our customers and failure of our prime contractors to maintain their relationships with their counterparties and fulfill their contractual obligations; failure to successfully defend protest from other bidders for government contracts; failure to comply with various laws and regulations relating to various aspects of our business and any changes in the funding levels of various governmental entities with which we do business; our failure to protect the confidentiality of our trade secrets and know how; our failure to comply with the terms of third-party open source software our systems utilize; our ability to maintain an effective system of internal control over financial reporting, and to address and remediate material weaknesses in our internal control over financial reporting; the U.S. government's budget deficit and the national debt, as well as any inability of the U.S. government to complete its budget process for any government fiscal year, and our dependence on U.S. government contracts and funding by the government for the government contracts; our failure to comply with U.S. export and import control laws and regulations and U.S. economic sanctions and trade control laws and regulations; uncertain global macro-economic and political conditions (including as a result of a failure to raise the 'debt ceiling') and rising inflation; our history of losses and failure to achieve profitability and our need for substantial additional capital to fund our operations; the fact that our financial results may fluctuate significantly from quarter to quarter; our holding company status; the risk that our business and operations could be significantly affected if it becomes subject to any securities litigation or stockholder activism; our public securities' potential liquidity and trading; and other public filings and press releases other factors detailed under the section titled Part I, Item 1A. Risk Factors of our Annual Report on Form 10-K filed with the Securities and Exchange Commission (the 'SEC'), the section titled Part I, Item 2, Management's Discussion and Analysis of Financial Condition and Results of Operations and the section titled Part II. Item 1A. 'Risk Factors' in our most recently filed Quarterly Report on Form 10-Q, and in our subsequent filings with the SEC, which are accessible on the SEC's website at www.sec.gov and the Investors section of our website at www.investors.intuitivemachines.com.
These forward-looking statements are based on information available as of the date of this press release and current expectations, forecasts, and assumptions, and involve a number of judgments, risks, and uncertainties. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and we do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities laws.
Contacts
For investor inquiries:investors@intuitivemachines.com
For media inquiries:press@intuitivemachines.com
INTUITIVE MACHINES, INC.Consolidated Balance Sheets(In thousands)(Unaudited)
December 31,2024
December 31,2023
ASSETS
Current assets
Cash and cash equivalents
$
207,607
$
4,498
Restricted cash
2,042
62
Trade accounts receivable
44,759
16,881
Contract assets
34,592
7,126
Prepaid and other current assets
4,161
3,044
Total current assets
293,161
31,611
Property and equipment, net
23,364
18,349
Operating lease right-of-use assets
38,765
35,853
Finance lease right-of-use assets
114
95
Total assets
$
355,404
$
85,908
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' DEFICIT
Current liabilities
Accounts payable and accrued expenses
$
17,350
$
16,771
Accounts payable - affiliated companies
2,750
5,786
Current maturities of long-term debt
—
8,000
Contract liabilities, current
65,184
41,371
Operating lease liabilities, current
2,021
4,833
Finance lease liabilities, current
37
25
Other current liabilities
11,489
4,747
Total current liabilities
98,831
81,533
Contract liabilities, non-current
14,334
—
Operating lease liabilities, non-current
35,259
30,550
Finance lease liabilities, non-current
63
67
Earn-out liabilities
134,156
14,032
Warrant liabilities
68,778
11,294
Other long-term liabilities
62
4
Total liabilities
351,483
137,480
Commitments and contingencies
MEZZANINE EQUITY
Series A preferred stock subject to possible redemption
5,990
28,201
Redeemable noncontrolling interests
1,005,965
181,662
SHAREHOLDERS' DEFICIT
Class A common stock
10
2
Class B common stock
—
—
Class C common stock
6
7
Treasury Stock
(12,825
)
(12,825
)
Paid-in capital
—
—
Accumulated deficit
(996,453
)
(248,619
)
Total shareholders' deficit attributable to the Company
(1,009,262
)
(261,435
)
Noncontrolling interests
1,228
—
Total shareholders' deficit
(1,008,034
)
(261,435
)
Total liabilities, mezzanine equity and shareholders' deficit
$
355,404
$
85,908
INTUITIVE MACHINES, INC.Consolidated Statements of Operations(In thousands)(Unaudited)
Three Months Ended December 31,
Year Ended December 31,
2024
20231
20241
20231
Revenue
$
54,662
$
30,591
$
228,000
$
79,551
Operating expenses:
Cost of revenue (excluding depreciation)
46,228
27,356
190,369
101,044
Cost of revenue (excluding depreciation) - affiliated companies
7,755
2,949
34,862
2,949
Depreciation
540
432
1,859
1,376
Impairment of property and equipment
—
964
5,044
964
General and administrative expense (excluding depreciation)
13,536
6,381
53,262
34,337
Total operating expenses
68,059
38,082
285,396
140,670
Operating loss
(13,397
)
(7,491
)
(57,396
)
(61,119
)
Other income (expense), net:
Interest income (expense), net
149
(42
)
180
(823
)
Change in fair value of earn-out liabilities
(86,308
)
5,186
(120,124
)
66,252
Change in fair value of warrant liabilities
(41,010
)
5,176
(77,651
)
15,435
Change in fair value of SAFE Agreements
—
—
—
(2,353
)
Loss on issuance of securities
(25,056
)
—
(93,136
)
(6,729
)
Other income (expense), net
474
(104
)
1,242
(483
)
Total other income (expense), net
(151,751
)
10,216
(289,489
)
71,299
Income (loss) before income taxes
(165,148
)
2,725
(346,885
)
10,180
Income tax expense
13
252
(37
)
(40
)
Net income (loss)
(165,135
)
2,977
(346,922
)
10,140
Net loss attributable to Intuitive Machines, LLC prior to the Business Combination
—
—
—
(6,481
)
Net income (loss) (post Business Combination)
(165,135
)
2,977
(346,922
)
16,621
Net loss attributable to redeemable noncontrolling interest
(17,003
)
(5,450
)
(67,004
)
(45,141
)
Net income attributable to noncontrolling interest
1,066
—
3,495
—
Net income (loss) attributable to the Company
(149,198
)
8,427
(283,413
)
61,762
Less: Preferred dividends
(145
)
(686
)
(896
)
(2,343
)
Net income (loss) attributable to Class A common shareholders
$
(149,343
)
$
7,741
$
(284,309
)
$
59,419
________________________1 Reflects immaterial, non-cash corrections primarily related to historical estimated contract losses on certain lunar payload services contracts; see our December 31, 2024 Form 10-K for further information.INTUITIVE MACHINES, INC.Consolidated Statements of Cash Flows(In thousands)(Unaudited)
Year Ended December 31,
2024
2023
Cash flows from operating activities:
Net income (loss)
$
(346,922
)
$
10,140
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation
1,859
1,376
Bad debt expense (recovery)
440
(836
)
Impairment of property and equipment
5,044
964
Share-based compensation expense
8,798
4,273
Change in fair value of SAFE Agreements
—
2,353
Change in fair value of earn-out liabilities
120,124
(66,252
)
Change in fair value of warrant liabilities
77,651
(15,435
)
Loss on issuance of securities
93,136
6,729
Deferred income taxes
—
7
Other
58
43
Changes in operating assets and liabilities:
Trade accounts receivable, net
(28,319
)
(14,743
)
Contract assets
(28,102
)
490
Prepaid expenses
(481
)
(1,435
)
Other assets, net
1,334
1,165
Accounts payable and accrued expenses
(1,228
)
14,091
Accounts payable – affiliated companies
(3,036
)
4,441
Contract liabilities – current and long-term
38,147
(9,841
)
Other liabilities
3,910
17,191
Net cash used in operating activities
(57,587
)
(45,279
)
Cash flows from investing activities:
Purchase of property and equipment
(10,111
)
(29,911
)
Net cash used in investing activities
(10,111
)
(29,911
)
Cash flows from financing activities:
Proceeds from Business Combination
—
8,055
Proceeds from issuance of Series A Preferred Stock
—
26,000
Transaction costs
(9,370
)
(9,371
)
Proceeds from borrowings
10,000
—
Repayment of loans
(18,000
)
(12,000
)
Proceeds from issuance of securities
233,392
20,000
Member distributions
—
(7,952
)
Stock option exercises
300
—
Forward purchase agreement termination
—
12,730
Warrants exercised
61,261
16,124
Contributions from (distributions to) noncontrolling interests
(2,267
)
686
Payment of withholding taxes from share-based awards
(2,529
)
(348
)
Net cash provided by financing activities
272,787
53,924
Net increase (decrease) in cash, cash equivalents and restricted cash
205,089
(21,266
)
Cash, cash equivalents and restricted cash at beginning of the period
4,560
25,826
Cash, cash equivalents and restricted cash at end of the period
209,649
4,560
Less: restricted cash
2,042
62
Cash and cash equivalents at end of the period
$
207,607
$
4,498
INTUITIVE MACHINES, INC.Reconciliation of GAAP to Non-GAAP Financial Measure
Adjusted EBITDA
The following table presents a reconciliation of net loss, the most directly comparable financial measure presented in accordance with GAAP, to Adjusted EBITDA.
Three Months Ended December 31,
Year Ended December 31,
(in thousands)
2024
2023
2024
2023
Net income (loss)
$
(165,135
)
$
2,977
$
(346,922
)
$
10,140
Adjusted to exclude the following:
Income tax expense
(13
)
(252
)
37
40
Depreciation
540
432
1,859
1,376
Impairment on property and equipment
—
964
5,044
964
Interest (income) expense, net
(149
)
42
(180
)
823
Share-based compensation expense
1,618
1,525
8,798
4,273
Change in fair value of earn-out liabilities
86,308
(5,186
)
120,124
(66,252
)
Change in fair value of warrant liabilities
41,010
(5,176
)
77,651
(15,435
)
Change in fair value of SAFE Agreements
—
—
—
2,353
Loss on issuance of securities
25,056
—
93,136
6,729
Other (income) expense, net
(474
)
104
(1,242
)
483
Adjusted EBITDA
$
(11,239
)
$
(4,570
)
$
(41,695
)
$
(54,506
)
Free Cash Flow
We define free cash flow as net cash (used in) provided by operating activities less purchases of property and equipment. We believe that free cash flow is a meaningful indicator of liquidity that provides information to management and investors about the amount of cash generated from operations that, after purchases of property and equipment, can be used for strategic initiatives, including continuous investment in our business and strengthening our balance sheet.
Free Cash Flow has limitations as a liquidity measure, and you should not consider it in isolation or as a substitute for analysis of our cash flows as reported under GAAP. Some of these limitations are:
Free Cash Flow is not a measure calculated in accordance with GAAP and should not be considered in isolation from, or as a substitute for financial information prepared in accordance with GAAP.
Free Cash Flow may not be comparable to similarly titled metrics of other companies due to differences among methods of calculation.
Free Cash Flow may be affected in the near to medium term by the timing of capital investments, fluctuations in our growth and the effect of such fluctuations on working capital and changes in our cash conversion cycle.
The following table presents a reconciliation of net cash used in operating activities, the most directly comparable financial measure presented in accordance with GAAP, to free cash flow:
Year Ended December 31,
(in thousands)
2024
2023
Net cash used in operating activities
(57,587
)
(45,279
)
Purchases of property and equipment
(10,111
)
(29,911
)
Free cash flow
(67,698
)
(75,190
)
Backlog
The following table presents our backlog as of the periods indicated:
(in thousands)
December 31, 2024
December 31, 2023
Backlog
$
328,345
$
268,566
Backlog increased by $59.8 million as of December 31, 2024 compared to December 31, 2023, due to $303.7 million in new awards primarily associated with the IM-4 CLPS, NSN, and LTV contracts awarded from NASA, and task order modifications to the existing IM-2 CLPS, IM-3 CLPS and OMES III contracts. These increases are partially offset by continued performance on existing contracts of $228.0 million and decreases related to contract value adjustments of $15.9 million mostly related to various fixed price contracts.
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Largo Reports Q2 2025 Financial Results; Delivering Cost Reductions and Efficiency Improvements Aiming to Offset Current Vanadium Price Weakness
TORONTO--(BUSINESS WIRE)--Largo Inc. (" Largo" or the " Company") (TSX: LGO) (NASDAQ: LGO) today released financial results for the three months and six ended June 30, 2025. The Company reported quarterly vanadium pentoxide (' V 2 O 5 ') equivalent sales of 1,807 tonnes at an adjusted cash operating cost excluding royalties per pound 5 sold of $3.18. Daniel Tellechea, Director and Interim CEO of Largo commented: "In Q2 2025, we continued to make meaningful progress in realigning our operations and cost structure, delivering a 17% reduction in total operating costs year-over-year. These improvements reflect the impact of our disciplined cost containment measures and operational stabilization efforts at the Maracás Menchen Mine.' He continued: 'While vanadium market conditions remain subdued, we are taking proactive steps to strengthen our liquidity position. The $6 million secured loan provides near-term working capital support, and we continue to evaluate a range of options to enhance financial flexibility as we navigate this environment.' He concluded: 'With production steadily normalizing and additional cost efficiencies being realized, we remain focused on optimizing performance and positioning Largo to respond effectively to both market recovery and evolving trade dynamics in key jurisdictions.' Financial and Operating Results – Highlights Key Highlights The Company reported a net loss of $5.8 million for Q2 2025, which represents a 60% improvement compared to the net loss of $14.5 million for Q2 2024. This is the lowest net loss the Company has recorded since Q1 2023 and is primarily a reduction in operating costs and expenses and offset by an increase in foreign exchange gain for the quarter. Operating costs improved to $30.1 million in Q2 2025 from $36.4 million in Q2 2024, which was primarily driven by a 26% reduction in direct mine and production costs, which also reflects a 9% decrease in vanadium sold and the positive impact of the Company's previously announced initiatives to reduce production costs and improve productivity at the Maracás Menchen Mine. The Company expects to continue seeing the benefits of these initiatives in its financial results going forward. Adjusted cash operating costs excluding royalties 3 reduced by 24% to $3.18 per lb sold in Q2 2025 over Q2 2024 ($4.20 per lb sold) primarily due to the positive results of the Company's operational turnaround plan and cost optimization initiatives previously announced, which includes the strengthening cost management through rigorous monitoring and control processes to ensure operating expenses remain within targeted budget levels. This is evidenced in the improved global recovery 5 rates seen in Q2 2025 (84.9%), an increase of 14.3% from the 74.3% achieved in Q2 2024 and 9.1% higher than the 77.8% achieved in Q1 2025. Professional, consulting and management fees of 1.8 million in Q2 2025 decreased from Q2 2024 by 34%, which was primarily attributable to the Company's focus on reducing costs, including reduced insurance costs at Corporate, as well as minimal activity at Largo Clean Energy Corp. ('LCE') during the quarter. Technology start-up costs in Q2 2025 also decreased from Q2 2024 by 66% to $0.2 million, which is primarily attributable to a decrease in activities at LCE. The foreign exchange gain in Q2 2025 of $4.7 million (Q2 2024 - loss of $4.1 million) is primarily attributable to a weakening of the U.S. dollar against the Brazilian real. The U.S dollar to Brazilian real exchange rate decreased by approximately 5% for Q2 2025 in comparison to Q1 2025. Subsequent to Q2 2025, production and sales were 856 tonnes and 852 tonnes of V 2 O 5 equivalent, respectively, in July 2025, with 4,309 tonnes of ilmenite concentrate being produced during this period and 1,903 dry tonnes of ilmenite being sold. The information provided within this release should be read in conjunction with Largo's unaudited condensed interim consolidated financial statements for the three and six months ended June 30, 2025 and 2024 and its management's discussion and analysis (' MD&A ') for the three and six months ended June 30, 2025 which are available on our website at or on the Company's respective profiles at and About Largo Largo is a globally recognized supplier of high-quality vanadium and ilmenite products, sourced from its world-class Maracás Menchen Mine in Brazil. As one of the world's largest primary vanadium producers, Largo produces critical materials that empower global industries, including steel, aerospace, defense, chemical, and energy storage sectors. The Company is committed to operational excellence and sustainability, leveraging its vertical integration to ensure reliable supply and quality for its customers. Largo is also strategically invested in the long-duration energy storage sector through its 50% 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. Largo's common shares trade on the Nasdaq Stock Market and on the Toronto Stock Exchange under the symbol "LGO". For more information on the Company, please visit Cautionary Statement Regarding Forward-looking Information: This press release contains 'forward-looking information' and 'forward-looking statements' within the meaning of applicable Canadian and United States securities legislation. Forward‐looking information in this press release includes, but is not limited to, statements with respect to the timing and amount of estimated future production and sales; the future price of commodities; costs of future activities and operations; the expected use of proceeds of the Facility and their expected impact on the Company's liquidity position and ability to improve its operations; the Company's transition from turnaround execution to steady-state operations; the Company's ability to meet its set targets for the year; and the extent of capital and operating expenditures. The following are some of the assumptions upon which forward-looking information is based: that general business and economic conditions will not change in a material adverse manner; demand for, and stable prices of V2O5 and other vanadium products, ilmenite and titanium dioxide pigment; receipt of regulatory and governmental approvals, permits and renewals in a timely manner; that the Company will not experience any material accident, labour dispute or failure of plant or equipment or other material disruption in the Company's operations at the Maracás Menchen Mine or relating to Largo Clean Energy, especially in respect of the installation and commissioning of the EGPE project; the availability of financing for operations and development; the availability of funding for future capital expenditures; the ability to replace current funding on terms satisfactory to the Company; the ability to mitigate the impact of heavy rainfall; the reliability of production, including, without limitation, access to massive ore, the Company's ability to procure equipment, services and operating supplies in sufficient quantities and on a timely basis; that the estimates of the resources and reserves at the Maracás Menchen Mine are within reasonable bounds of accuracy (including with respect to size, grade and recovery and the operational and price assumptions on which such estimates are based); the accuracy of the Company's mine plan at the Maracás Menchen Mine; that the Company's current plans for ilmenite can be achieved; the Company's ability to protect and develop its technology; the Company's ability to maintain its IP; the competitiveness of the Company's product in an evolving market; the Company's ability to attract and retain skilled personnel and directors; the ability of management to execute strategic goals; that the Company will enter into agreements for the sales of vanadium, ilmenite and TiO2 products on favourable terms and for the sale of substantially all of its annual production capacity; and receipt of regulatory and governmental approvals, permits and renewals in a timely manner. Forward-looking statements can be identified by the use of forward-looking terminology such as 'plans', 'expects' or 'does not expect', 'is expected', 'budget', 'scheduled', 'estimates', 'forecasts', 'intends', 'anticipates' or 'does not anticipate', or 'believes', or variations of such words and phrases or statements that certain actions, events or results 'may', 'could', 'would', 'might' or 'will be taken', 'occur' or 'be achieved', although not all forward-looking statements include those words or phrases. In addition, any statements that refer to expectations, intentions, projections, guidance, potential or other characterizations of future events or circumstances contain forward-looking information. Forward-looking statements are not historical facts nor assurances of future performance but instead represent management's expectations, estimates and projections regarding future events or circumstances. Forward-looking statements are based on our opinions, estimates and assumptions that we considered appropriate and reasonable as of the date such information is stated, subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Largo to be materially different from those expressed or implied by such forward-looking statements, including but not limited to those risks described in the annual information form of Largo and in its public documents filed on and available on from time to time. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Although management of Largo has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Largo does not undertake to update any forward-looking statements, except in accordance with applicable securities laws. Readers should also review the risks and uncertainties sections of Largo's annual and interim MD&A which also apply. Trademarks are owned by Largo Inc. Non-GAAP Measures The Company uses certain non-GAAP measures in its press release, which are described in the following section. Non-GAAP financial measures and non-GAAP ratios are not standardized financial measures under IFRS, the Company's GAAP, and might not be comparable to similar financial measures disclosed by other issuers. These measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Management believes that non-IFRS financial measures, when supplementing measures determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company. Revenues Per Pound The Company's press release refers to revenues per pound sold, V 2 O 5 revenues per pound of V 2 O 5 sold, V 2 O 3 revenues per pound of V 2 O 3 sold and FeV revenues per kg of FeV sold, which are non-GAAP financial measures that are used to provide investors with information about a key measure used by management to monitor performance of the Company. These measures, along with cash operating costs, are considered to be key indicators of the Company's ability to generate operating earnings and cash flow from its Maracás Menchen Mine and sales activities. These measures differ from measures determined in accordance with IFRS, and are not necessarily indicative of net earnings or cash flow from operating activities as determined under IFRS. The following table provides a reconciliation of revenues per pound sold, V 2 O 5 revenues per pound of V 2 O 5 sold, V 2 O 3 revenues per pound of V 2 O 3 sold and FeV revenues per kg of FeV sold to revenues and the revenue information presented in note 23 as per the Q1 2025 unaudited condensed interim consolidated financial statements. As per note 19 of the Company's Q2 2025 unaudited condensed interim consolidated financial statements. Cash Operating Costs Excluding Royalties Per Pound The Company's press release refers to cash operating costs per pound, cash operating costs excluding royalties per pound and adjusted cash operating costs excluding royalties per pound, which are non-GAAP ratios based on cash operating costs, cash operating costs excluding royalties and adjusted cash operating costs excluding royalties, which are non-GAAP financial measures, in order to provide investors with information about a key measure used by management to monitor performance. This information is used to assess how well the Maracás Menchen Mine is performing compared to its plan and prior periods, and to also to assess its overall effectiveness and efficiency. Cash operating costs includes mine site operating costs such as mining costs, plant and maintenance costs, sustainability costs, mine and plant administration costs, royalties and sales, general and administrative costs (all for the Mine properties segment), but excludes depreciation and amortization, share-based payments, foreign exchange gains or losses, commissions, reclamation, capital expenditures and exploration and evaluation costs. Operating costs not attributable to the Mine properties segment are also excluded, including conversion costs, product acquisition costs, distribution costs and inventory write-downs. Cash operating costs excluding royalties is calculated as cash operating costs less royalties. Adjusted cash operating costs excluding royalties is calculated as cash operating costs excluding royalties less write-downs of produced products. Cash operating costs per pound, cash operating costs excluding royalties per pound and adjusted cash operating costs excluding royalties per pound are obtained by dividing cash operating costs, cash operating costs excluding royalties and adjusted cash operating costs excluding royalties, respectively, by the pounds of vanadium equivalent sold that were produced by the Maracás Menchen Mine. Cash operating costs, cash operating costs excluding royalties, adjusted cash operating costs excluding royalties, cash operating costs per pound, cash operating costs excluding royalties per pound and adjusted cash operating costs excluding royalties per pound, along with revenues, are considered to be key indicators of the Company's ability to generate operating earnings and cash flow from its Maracás Menchen Mine. These measures differ from measures determined in accordance with IFRS, and are not necessarily indicative of net earnings or cash flow from operating activities as determined under IFRS. The following table provides a reconciliation of cash operating costs, cash operating costs excluding royalties, adjusted cash operating costs excluding royalties, cash operating costs per pound, cash operating costs excluding royalties per pound and adjusted cash operating costs excluding royalties per pound for the Maracás Menchen Mine to operating costs as per the Q1 2025 unaudited condensed interim consolidated financial statements. As per note 20 of the Company's Q2 2025 unaudited condensed interim consolidated financial statements. As per the Mine properties segment in note 16 of the Company's Q2 2025 unaudited condensed interim consolidated financial statements. As per the Mine properties segment in note 16 less the increase in legal provisions of $0.2 million (for the six months ended June 30, 2025) as noted in the "other general and administrative expenses" of the Company's Q2 2025 management's discussion and analysis. As per note 5 of the Company's Q2 2025 unaudited condensed interim consolidated financial statements for ilmenite finished products and warehouse supplies, and including a write-down of vanadium purchased products of $nil (Q2 2025) and $0.01 million (for the six months ended June 30, 2025) (write-down reversal of $0.3 million in Q2 2024 and $nil for the six months ended June 30, 2024). As per note 5 of the Company's Q2 2025 unaudited condensed interim consolidated financial statements for vanadium finished products, excluding amounts in note 4 above for vanadium purchased products. EBITDA and Adjusted EBITDA The Company's press release refers to earnings before interest, tax, depreciation and amortization, or "EBITDA", and adjusted EBITDA, which are non-GAAP financial measures, in order to provide investors with information about key measures used by management to monitor performance. EBITDA is used as an indicator of the Company's ability to generate liquidity by producing operating cash flow to fund working capital needs, service debt obligations, and fund capital expenditures. Adjusted EBITDA removes the effect of inventory write-downs, impairment charges (including write-downs of vanadium assets), insurance proceeds received, movements in legal provisions, non-recurring employee settlements and other expense adjustments that are considered to be non-recurring for the Company. The Company believes that by excluding these amounts, which are not indicative of the performance of the core business and do not necessarily reflect the underlying operating results for the periods presented, it will assist analysts, investors and other stakeholders of the Company in better understanding the Company's ability to generate liquidity from its core business activities. EBITDA and adjusted EBITDA are intended to provide additional information to analysts, investors and other stakeholders of the Company and do not have any standardized definition under IFRS. These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures exclude the impact of depreciation, costs of financing activities and taxes, and the effects of changes in operating working capital balances, and therefore are not necessarily indicative of operating profit or cash flow from operating activities as determined under IFRS. Other companies may calculate EBITDA and adjusted EBITDA differently. The following table provides a reconciliation of EBITDA and adjusted EBITDA to net income (loss) as per the Q1 2025 unaudited condensed interim consolidated financial statements. As per the consolidated statements of cash flows of the Company's Q2 2025 unaudited condensed interim consolidated financial statements. As per note 5 of the Company's Q2 2025 unaudited condensed interim consolidated financial statements. As per the "non-recurring items" section on page 7 of the Company's Q2 2025 management's discussion and analysis. ___________________________________________________________________ Expand 1 Conversion of tonnes to pounds, 1 tonne = 2,204.62 pounds or lbs. 2 Fastmarkets Metal Bulletin. 3 The cash operating costs excluding royalties, adjusted cash operating costs excluding royalties, Adjusted EBITDA, Mining operations adjusted EBITDA, revenues per pound per pound sold are reported on a non-GAAP basis. Refer to the 'Non-GAAP Measures' section of this press release. Revenues per pound sold are calculated based on the quantity of V2O5 sold during the stated period. 4 Effective grade represents the percentage of magnetic material mined multiplied by the percentage of V2O5 in the magnetic concentrate 5 Global recovery is the product of crushing recovery, milling recovery, kiln recovery, leaching recovery and chemical plant recovery.
