CHARBONE CORPORATION (TSXV: CH; OTCQB: CHHYF; FSE: K47), a vertically integrated industrial gases company, announced its first quarter 2026 financial and operational results for the three-month period ending March 31, 2026. The company reported total income of $244,778, a 4,731% increase compared to $5,067 in Q1 2025, driven by initial revenues from commercial production at its Sorel-Tracy plant Phase 1A, which commenced in December 2025. The company also recognized revenues from sales of ultra-high purity (UHP) hydrogen, helium, and oxygen into both U.S. and Canadian markets.
Despite the significant revenue growth, the company reported a net loss of $1,059,718, an 11% improvement from the $1,187,786 loss in Q1 2025, reflecting disciplined management of 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 during the term.
Demand for UHP hydrogen accelerated throughout Q1 2026, prompting the company to advance Phase 1B of the Sorel-Tracy facility to increase hydrogen production capacity, anticipated in the second half of 2026. 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. The company serves 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.
Benoit Veilleux, Chief Financial Officer and Corporate Secretary of CHARBONE, stated, “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. 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.”
CHARBONE will host a webinar on Friday, May 29, 2026, at 11:00 am ET to discuss the Q1 2026 results and provide a corporate update. Interested parties can register at https://info.rbmilestone.com/charbone-q1-2026. The company’s detailed financial results are available in two parts: Part 1 and Part 2.
These results highlight the growing demand for clean UHP hydrogen and other industrial gases, as industries such as semiconductors and AI data centers require high-purity gases for manufacturing. CHARBONE’s modular, decentralized, and demand-driven approach aims to address supply gaps for mid-tier industrial customers, supporting the global transition to a lower-carbon economy by providing accessible clean hydrogen and specialty gases. The company’s ability to scale production and distribution positions it to capture a larger share of the expanding market for UHP gases.
