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. The growth was driven by a 28.5% rise in vanadium pentoxide production to 2,900 tonnes and a 53.5% increase in sales to 2,773 tonnes. Adjusted EBITDA improved to $2.7 million from $34,000, while Mining Operations Adjusted EBITDA rose 64.8% to $4.4 million. The company recorded a net loss of $22.7 million, primarily due to noncash items and higher costs, and 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 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 about 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 increased production and sales, underscores the robust demand for vanadium in steel, aerospace, defense, chemical, and energy storage sectors.
For business leaders, these results highlight Largo's operational efficiency and strategic diversification. The new copper-PGM concentrate production represents a significant opportunity to leverage existing assets for additional revenue, potentially improving profitability and reducing reliance on vanadium prices alone. The U.S. Defense Logistics Agency order also positions Largo as a key supplier for strategic materials, which could lead to more government contracts.
Largo's focus on sustainability and vertical integration, including its investment in Storion Energy for vanadium flow battery energy storage, aligns with the growing demand for long-duration energy storage solutions. The company's 37.4% ownership in Storion Energy, a joint venture with Stryten Energy, is aimed at scalable domestic electrolyte production for utility-scale vanadium flow batteries in the U.S., a market poised for growth as renewable energy adoption increases.
Despite the net loss, which was largely noncash, Largo's operational metrics and strategic initiatives suggest a positive trajectory. The company's ability to increase production and sales while expanding into new revenue streams indicates resilience in a volatile commodity market. For the industry, Largo's performance could signal a strengthening vanadium market, with implications for steelmakers and battery manufacturers that rely on this critical material.
As Largo continues to execute its growth strategy, it remains a key player in the vanadium market, with potential to benefit from both traditional industrial uses and emerging energy storage applications. The company's common shares trade on the Nasdaq Stock Market and the Toronto Stock Exchange under the symbol "LGO".
