Largo Inc. (TSX: LGO) (NASDAQ: LGO) has reported a significant financial uptick for the second quarter of 2026, with revenue climbing 68.5% to $44 million from $26.1 million in the same period last year. The company's vanadium pentoxide production increased 28.5% to 2,900 tonnes, while sales rose 53.5% to 2,773 tonnes, reflecting robust demand and operational improvements. Adjusted EBITDA surged to $2.7 million from $34,000, and Mining Operations Adjusted EBITDA jumped 64.8% to $4.4 million. Despite a net loss of $22.7 million, which the company attributes to noncash items and higher costs, Largo ended the quarter with $5.1 million in cash and $114.2 million in debt.
Largo 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, the company secured a $60.1 million delivery order from the U.S. Defense Logistics Agency Strategic Materials, underscoring 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, following 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, creating a new revenue stream leveraging existing infrastructure.
The vanadium market has shown strength, with the average U.S. ferrovanadium benchmark price increasing 45.8% from a year earlier, a positive indicator for Largo's revenue prospects. Largo's strategic investments and operational expansions position it to capitalize on growing demand for critical materials in steel, aerospace, defense, chemical, and energy storage sectors. The company's 37.4% ownership in Storion Energy, a joint venture with Stryten Energy, focuses on scalable domestic electrolyte production for utility-scale vanadium flow battery long-duration energy storage solutions in the U.S., aligning with the global push for clean energy storage.
Largo also holds a 100% interest in the Northern Dancer Tungsten-Molybdenum property in Canada and the Currais Novos Tungsten Tailing Project in Brazil, with preliminary economic assessments completed in 2011. These assets provide additional growth optionality. The company's common shares trade on both the Nasdaq Stock Market and the Toronto Stock Exchange under the symbol "LGO". The recent developments and financial results highlight Largo's commitment to delivering value through operational excellence and strategic expansion, positioning it as a key player in the critical minerals market.
