Charbone Corporation (TSXV: CH; OTCQB: CHHYF; FSE: K47), a vertically integrated industrial gases company focused on clean ultra-high purity (UHP) hydrogen and other strategic gases, reported its first quarter 2026 financial results for the period ending March 31, 2026. The company posted a 4,731% increase in total income to $244,778, compared to $5,067 in Q1 2025, driven by initial commercial production and sales of clean UHP hydrogen from its Sorel-Tracy plant Phase 1A, which commenced production in December 2025.
The net loss improved by 11% to $1,059,718 from $1,187,786 in the prior year, reflecting disciplined general and administrative expenses. As of March 31, 2026, Charbone held a cash balance of $2,762,342. Subsequently, on April 29, 2026, the company drew down $3,000,000 as the first tranche of a new $10 million secured convertible loan facility, with additional optional drawdowns available.
Demand for the company's UHP gases accelerated in Q1 2026, prompting Charbone to advance Phase 1B to increase hydrogen production capacity, anticipated in the second half of 2026. The company confirmed multiple industrial gas sales into both U.S. and Canadian markets, including clean UHP hydrogen from its Sorel-Tracy plant, as well as UHP helium and UHP oxygen sourced through partners. Charbone continues to expand its full-stack platform covering production, purification, compression, storage, and last-mile delivery to serve customers with UHP-specification gases on both sides of the border.
“CHARBONE’s diversification is central to the platform thesis. Opportunities to invest in a vertically integrated UHP industrial gases platform at this stage of growth are rare, and the build-out we’re executing is designed to reflect that,” said Benoit Veilleux, Chief Financial Officer and Corporate Secretary of CHARBONE. “We’re not asking investors to bet on a future state of the world. We’re building a business in a market that exists, backed by a capital-disciplined model designed to scale with demand.”
The company serves customers across sectors including semiconductors, artificial intelligence and data centers, advanced pharmaceuticals, and aerospace and defense technologies, where UHP gases are critical for high-precision manufacturing processes and operational performance. Charbone's modular, decentralized, and demand-driven approach, combined with its integrated storage and distribution platform for all UHP gases, supports scalable growth, enhances operational flexibility, and enables more stable and diversified revenue generation. This model allows Charbone to efficiently serve mid-tier industrial gas customers with a reliable supply of UHP gases, including hydrogen, helium, oxygen, and other high-demand gases that are often difficult to source.
Charbone will host a webinar on Friday, May 29, 2026 at 11:00am EDT to discuss its Q1 2026 results and corporate update. Interested parties can register at https://info.rbmilestone.com/charbone-q1-2026.
