PCT Model Update and Reaffirming Thesis. Good Entry Point, in our View - Cantor's Take

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PCT Model Update and Reaffirming Thesis. Good Entry Point, in our View - Cantor's Take

June 26, 2026

Positive Resolution in New Jersey - Material. On 5/14, the company

reported that the New Jersey Department of Environmental Protection

(NJDEP) designated that PCT's PureFive resin can now be recognized as

“postconsumer recycled content” (PCR) under NJ's state Recycled Content

Law (N.J.S.A. 13:1E-99.135 et seq.). More importantly, we view this as

material, since management now expects to unlock an additional 25-50M

lbs of incremental demand from NJ, which we expect will begin to ramp

up in the second-half of this year. Additionally, management believes this

positive resolution can also result in an incremental ~300M lbs of demand

over a longer time period. The resolution consists of a one-year conditional

approval, and PCT plans to continue to work with NJDEP towards "a

permanent approval over the next 12 months." Additionally, PCT secured

>10.5M lbs. of post-consumer recycled plastic from NJ (highest across all

states), and management expects volumes to increase further in 2026 as

Ironton continues to ramp up. Overall, we see this as a material catalyst

that had previously caused bottlenecks in revenues generated. We are

encouraged by the 25-50M lbs of demand unlocked in NJ, and the potential

300M lbs of incremental demand over the longer term.

Manufacturing Refresher: Thailand On-Track for Completion in 2027,

with Antwerp to Follow in Late-2028. PCT previously announced plans

to build a new polypropylene (PP) recycling facility in Rayong, Thailand,

which will have an annual production capacity of 130M pounds. On its

1Q call, management reaffirmed that groundbreaking is targeted for 2H26,

and mechanical completion and operational use is on-track for 2027 (we