Disseminated on behalf of: CHARBONE Corp.
Benoit Veilleux, Chief Financial Officer of CHARBONE Corp. (TSXV: CH | OTCQB: CHHYF | FSE: K47), discusses the industrial gas company’s preliminary third-quarter results, which he describes as its strongest quarter to date. Gas income rose about 21% from the second quarter while the company expanded its customer base, supply hubs and delivery network for ultra-high purity hydrogen and other strategic industrial gases, positioning it to capture growing demand from industrial customers in Canada and the U.S.
CHARBONE’s integrated hydrogen supply model
Unlike many industrial gas distributors, CHARBONE produces its own hydrogen and sells directly to industrial customers. At Sorel-Tracy, its Phase 1A plant runs on renewable power from Hydro-Québec and can produce ultra-high purity hydrogen around the clock, with purity tested on site by the company’s own lab technician. According to Veilleux, “We’ve also brought hydrogen and helium cylinder filling in-house, which supports margin improvement and gives us more control over quality and delivery times.” Keeping production, testing and filling within its own operations gives the company tighter control over cost and reliability. The company believes this integrated model suits customers that depend on consistent, locally supplied ultra-high purity gases.
Industrial gas demand drives customer growth
With demand for ultra-high purity gases remaining strong, CHARBONE is positioned to serve industrial customers that need reliable regional supply. Since the end of Q1 2026, active customers have grown from three to 28, multi-year supply agreements have doubled from two to four, and monthly deliveries have risen from about two to about 12. The company now operates from four regional supply hubs in Québec, Ontario, Nova Scotia and New York State, supported by a trailer fleet that has grown from two to 11. By focusing on direct supply to industrial customers, the company aims to give investors exposure to a growing, recurring revenue base in industrial gases.
Preliminary Q3 results and next milestones
Recent milestones include preliminary, unaudited third-quarter gas income of approximately C$553,000 and year-to-date gas income of nearly C$1.2 million. On Phase 1B at Sorel-Tracy, Veilleux says, “The electrolyzer is being installed, civil work is done, and we remain on track for a fall 2026 launch.” These steps support the company’s plan to increase hydrogen production capacity at Sorel-Tracy. Looking ahead, CHARBONE is targeting reinstallation of the generator at its Wolf River hydroelectric project in Wisconsin in December.
CHARBONE positioned for disciplined growth
As CHARBONE continues to expand its supply network, it stands at the intersection of industrial demand for ultra-high purity gases and the need for reliable supply. With a growing customer base and Phase 1B capacity on the way, the company is positioned to deliver disciplined growth in industrial gases.
CHARBONE Q3 2026 results webinar
CHARBONE will host a webinar on December 1, 2026, at 11 a.m. ET, where management will present an overview of its Q3 2026 results, recent operational achievements and upcoming milestones, with time for Q&A. Questions can be submitted beforehand through the registration form or live during the webinar.
Register for the webinar: https://info.rbmilestone.com/charbone-q3-2026
Transcript
Transcript lightly edited for clarity
Benoit Veilleux: I’m Benoit Veilleux, Chief Financial Officer of CHARBONE Corporation. CHARBONE produces, distributes, and stores ultra-high purity hydrogen and other strategic industrial gases. And we sell directly to industrial customers. Our first hydrogen production plant is in Sorel-Tracy, Québec, and it runs on renewable power from Hydro-Québec.
On October 28th, we released preliminary third-quarter results. Gas income for the quarter was approximately C$553,000, up about 21% from the second quarter, and more than three times what we did in the first quarter. It’s our strongest quarter to date. To the end of September, gas income this year was nearly $1.2 million. These third-quarter and year-to-date figures are preliminary and unaudited.
The business has also grown in size since the end of the first quarter. Active customers went from three to 28, and our trailer fleet went from two to 11. Multi-year supply agreements doubled from two to four, and deliveries went from about two a month to about 12. We now operate from four regional supply hubs in Québec, Ontario, Nova Scotia, and New York State. And our team has grown from nine to 15 people.
At Sorel-Tracy, our Phase 1A plant can produce UHP hydrogen 24 hours a day, seven days a week. And we test purity on site with our own lab technician and quality control equipment. For Phase 1B, the next step is increasing our production capacity. The electrolyzer is being installed, civil work is done, and we remain on track for a fall 2026 launch.
We’ve also brought hydrogen and helium cylinder filling in-house, which supports margin improvement and gives us more control over quality and delivery times. In Wisconsin, at our Wolf River hydroelectric project, we’re targeting reinstallation of the generator this December.
Our full third-quarter results will be released once they’re finalized, and we’ll go through them at our Q3 2026 results webinar on December 1st at 11:00 a.m. Eastern time. You can register through the link in our October 28th announcement. Thank you for your interest in CHARBONE.
About CHARBONE Corp.
CHARBONE Corp. (TSXV: CH | OTCQB: CHHYF | FSE: K47) is a vertically integrated industrial gases company focused on developing and operating a network of supply hubs for the production, storage, and distribution of Ultra-High Purity (UHP) strategic industrial gases.
Learn more at charbone.com.
