Li-Cycle Holdings Corp. ( (LICYF) ) has released its Q4 earnings. Here is a breakdown of the information Li-Cycle Holdings Corp. presented to its investors.
Li-Cycle Holdings Corp. is a global leader in lithium-ion battery resource recovery, utilizing its innovative Spoke & Hub Technologies™ to recycle various types of batteries and support a sustainable energy future. The company recently reported its financial results for 2024, highlighting a significant 53% increase in total revenue to $28.0 million and a reduction in total expenses by 13% year-over-year, thanks to cash preservation initiatives. Despite these improvements, Li-Cycle faces challenges, including the need for additional financing to meet its obligations and the evaluation of strategic alternatives by a special committee.
Key financial metrics from the report include a 16% rise in revenue from product sales and recycling services, driven by new service contracts and increased volumes. Cost of sales decreased by 6.4%, and SG&A expenses were reduced by 19% due to restructuring activities and cost-cutting measures. However, the company reported a net loss of approximately $137.7 million, consistent with the previous year, and an improved adjusted EBITDA loss of $90.5 million, reflecting higher revenue and lower costs.
Strategically, Li-Cycle secured a $475 million loan from the U.S. Department of Energy to finance its Rochester Hub project, aligning with U.S. energy priorities. The company is also exploring potential transactions, including interest from Glencore, although no assurance can be given regarding the outcome. The company’s cash position stands at $22.6 million, with significant reductions in capital expenditures due to project pauses.
Looking ahead, Li-Cycle remains focused on optimizing its operations and managing its financial position while considering strategic opportunities. The management’s outlook emphasizes the importance of aligning with energy supply chain priorities and exploring financial and strategic alternatives to ensure the company’s sustainability.