5N Plus just delivered an “exceptional” quarter, this analyst says

5N Plus (5N Plus Stock Quote, Chart, News, Analysts, Financials TSX:VNP) blew past expectations in the first quarter of 2025, delivering record revenue and EBITDA, prompting Ventum Capital Markets analyst Amr Ezzat to reaffirm his “Buy” rating and $10.00 target, calling it “the strongest in company history” and a clear signal of the company’s growing strategic role in global supply chains.

Ezzat said in a First Look note on May 7 that the company delivered a blockbuster quarter, with a material beat on sales and EBITDA. Guidance was maintained, but the Q1 print reinforces upside potential.

“We thought it would be good — but not that good,” Ezzat said. “This was a clean, exceptional quarter — the strongest in company history, with record revenue, gross margins, and EBITDA. Demand remains robust across solar, space, and health as customers move decisively to secure non-China sources for critical materials. While this will be confirmed on tomorrow’s call, our mosaic theory — based on the drop in backlog and an exceptionally strong demand environment — suggests some Q2 volumes were likely pulled into Q1, turning a strong quarter into a blockbuster.

“That said, the broader trend is clear: 5N is capturing structural demand, not relying on timing noise.”

5N Plus’s quarterly revenue rose 36.7% year over year to $88.9-million, beating both Ventum’s $70.6-million and the Street’s $73.6-million estimates. Backlog grew 27.2% to $260.9-million, while bookings surged 57.0% to $97.0-million.

Specialty Semiconductors drove results with $62.8-million in revenue, up 39.1% year over year, and bookings of $77.5-million, up 77.5%. Performance Materials revenue rose 31.3% to $ 26.1 million.

Adjusted gross margin hit 34.2%, up from 30.9% last year. Adjusted EBITDA climbed 77.1% to $ 20.8 million, ahead of expectations, with a margin of 23.4%, up from 18.1% a year ago, driven by volume growth and pricing gains. Free cash flow (ex-M&A) was $1.9-million, or $11.7-million excluding working capital. Net debt stood at $92.3-million.

“This quarter is a clear validation of our investment thesis,” Ezzat said. “5N Plus has evolved into a strategic supplier at the heart of Western supply chain realignment, with growing relevance across solar, space, and health. The moat is widening, the margin profile has structurally reset, and the business is increasingly indispensable. In the global realignment of clean energy and semiconductors, 5N is in the slipstream — not on the sidelines.”

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