Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported August 12, 2026
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Westwater's progress on the Kellyton graphite plant and the EXIM loan approval underscore the growing federal support for domestic critical mineral processing, which is essential for the AI infrastructure buildout's energy storage and EV supply chains. The company's ability to secure nondilutive capital and advance permitting could help de-risk the U.S. graphite supply chain, a key bottleneck for battery manufacturing.
Westwater reported a Q2 2026 net loss of $4.3 million, or $0.03 per share, compared to a $3.9 million loss in the prior year, driven by higher Coosa permitting costs, stock-based compensation, and product development expenses. The company received EXIM approval for a $25 million loan to advance Kellyton, and submitted its Section 404 permit application for Coosa, which received FAST-41 designation. The qualification line produced over 1 metric ton of CSPG samples for customer evaluation, and management noted ongoing offtake discussions with EV and battery storage customers. Cash stood at $38.2 million at quarter end.
Management reiterated that Kellyton remains on track for commercial production as soon as 2027, contingent on securing the remaining Phase 1 funding. The EXIM loan is one component of a broader financing strategy; three other government funding initiatives are still in progress, and management expects to secure additional nondilutive or low-cost capital. Coosa permitting is expected to complete by June 2027, with the mine potentially operational by end of 2028 to early 2029. Management expressed confidence in advancing Kellyton at a measured pace as additional capital is secured, and highlighted a 3- to 5-year first-mover advantage in U.S. battery-grade natural graphite production. The tone was optimistic, emphasizing strong government support and customer interest.
“The EXIM approval we received this week is a direct reflection of that ongoing effort.”
on Financing milestone
“We are focused on nondilutive and lower cost capital where available.”
on Capital strategy
“The fact remains that if you want anode material produced here in the United States in '27, 2028 or 2029, Westwater is really the only source that you have.”
on Customer demand
With costs at Kellyton, can you name which, if anything, still give you a bit of a headache related to pricing maybe?
Frank Bakker noted that the project has sufficient contingency and escalation built into the $245 million forecast, with some items fixed-priced, some on unit rates, and some already delivered, so he is comfortable completing within budget.
Can you use any of the EXIM funding for Coosa?
Steve Cates confirmed the $25 million is earmarked for Phase 1 of Kellyton only.
How should we think about the timeline to production and when full Phase 1 funding needs to be in place?
Steve Cates said the EXIM loan allows them to maintain the 12-month timeline once funding is complete, and they will continue advancing Kellyton as additional capital is secured, with the goal of commercial production in 2027.