Largo Inc. (TSX: LGO) (NASDAQ: LGO) reported second-quarter 2026 revenue of $44 million, a 68.5% increase from $26.1 million in the same period last year, driven by higher vanadium production and sales. Vanadium pentoxide production rose 28.5% to 2,900 tonnes, while sales increased 53.5% to 2,773 tonnes. Adjusted EBITDA improved to $2.7 million from $34,000, and Mining Operations Adjusted EBITDA grew 64.8% to $4.4 million. The company recorded a net loss of $22.7 million, largely due to noncash items and higher costs, and 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, a significant contract that underscores the strategic importance of vanadium in defense applications. Additionally, Largo began full-scale copper-platinum group metals (PGM) concentrate production at its Maracás Menchen Mine in Brazil after receiving regulatory approval. The company expects to produce approximately 300 to 380 tonnes of copper-PGM concentrate per month, with an average grade of about 15% copper and 41 grams per tonne of PGMs. This new production line adds a potential revenue stream using existing infrastructure, diversifying Largo's product portfolio beyond vanadium.
Vanadium pricing also strengthened during the quarter, with the average U.S. ferrovanadium benchmark price up 45.8% year-over-year, reflecting robust demand in steel and other industries. Largo is the world's largest primary vanadium producer, sourcing high-quality vanadium from its Maracás Menchen Mine. The company supplies critical materials to sectors including steel, aerospace, defense, chemical, and energy storage. Largo also holds a 37.4% stake in Storion Energy, a joint venture with Stryten Energy focusing on electrolyte production for vanadium flow batteries, which are key to long-duration energy storage solutions in the U.S. Additionally, Largo owns the Northern Dancer Tungsten-Molybdenum property in Canada and the Currais Novos Tungsten Tailing Project in Brazil, both with completed preliminary economic assessments.
These developments are important because they position Largo to capitalize on growing demand for vanadium in defense and clean energy applications, while also diversifying revenue through copper and PGM production. The U.S. Defense Logistics Agency order highlights the strategic role of vanadium in national security, and the expansion into copper-PGM concentrates could provide additional financial stability. With strong production and sales growth, Largo appears well-positioned to meet its 2026 targets and strengthen its market presence.
