Shares in Itaconix (ITX:AIM) jumped after the specialty polymers innovator delivered record annual revenues. Sales rocketed 61% higher to top $10 million for the first time in FY25.
Guided by CEO John R. Shaw, the group’s FY25 adjusted EBITDA loss improved from $1.8 million to $600,000.
And Itaconix remains confident of delivering positive adjusted EBITDA for the first time in FY26. Analysts are forecasting earnings of $300,000 on $13.3 million of revenue.
Encouragingly, Itaconix entered 2026 with ‘strong order momentum’ as well as a growing pipeline of projects.
Sustainable growth
Itaconix is a sustainable ingredients and additives company, making polymers and other derivatives of itaconic acid.
The US-based company sells specialty ingredients that improve the safety, performance and sustainability of consumer products.
Itaconix is currently focused on the enormous consumer laundry and dishwashing detergent markets. However, the market opportunity is far broader. For example, the company’s products address odour control in hygiene and also provide weightless hair styling in beauty.
Losses narrow
Sales grew 61% to $10.5 million in FY25. North America revenues rose 44%, EMEA sales were up 104% and there was positive progress across Rest of World markets. In addition, the adjusted EBITDA loss narrowed from $1.8 million to $600,000.
Major milestone
Shaw said achieving $10.5 million in sales represents ‘a major milestone towards our goal of developing a large, highly profitable, capital efficient specialty ingredient company.’
Following the results, Canaccord Genuity reiterated its ‘buy’ stance on Itaconix.
The broker continues to expect positive free cash flow as early as 2027. This forecast is based on rapid adoption of Itaconix’s unique ingredients across existing and new customers alike.
There is a large global addressable market for Itaconix’s polymers and we think the shares should interest risk-tolerant investors. As a major shareholder, Shaw is highly motivated to succeed and the firm is also well-funded. Canaccord Genuity’s 325p price target implies 170% upside from current levels.
Read the press release here: https://itaconix.com/investors/regulatory-announcements
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