Scandinavian Enviro Systems (Enviro) reported net revenues of SEK 0.02 million and a loss after tax of SEK 37.3 million for the third quarter of 2026 as the tire pyrolysis technology company continued its court-supervised reorganization, secured additional financing and advanced a next-generation plant concept. For the first nine months of 2026, net revenues fell to SEK 7.6 million from SEK 28.9 million a year earlier, while the loss after tax widened to SEK 144.9 million from SEK 69.9 million. Cash and cash equivalents stood at SEK 3.1 million at the end of September, compared with SEK 133.8 million a year earlier, and Enviro said continued operations depend on successful completion of the reorganization and additional financing. During the quarter, the company secured financing commitments totaling SEK 130 million through Alumni Capital and Nordic Restructuring and Growth Capital, while continuing business development discussions in North America and Brazil and further developing its tire pyrolysis technology and plant concept. Enviro also said arbitration with former joint venture partner Infiniteria remains ongoing, with a final award not expected before the second quarter of 2028.

Q3 revenue falls to SEK 0.02 million

Enviro reported third-quarter net revenues of SEK 0.02 million, down from SEK 1.6 million in the corresponding period of 2025. The operating loss was SEK 37.3 million compared with SEK 25.7 million a year earlier, while the loss after tax widened to SEK 37.3 million from SEK 25.4 million.

Cash flow after investments improved to negative SEK 19.1 million from negative SEK 52.4 million in the third quarter of 2025.

Nine-month loss widens to SEK 144.9 million

For January through September 2026, Enviro recorded net revenues of SEK 7.6 million, compared with SEK 28.9 million during the same period of 2025.

The loss after tax increased to SEK 144.9 million from SEK 69.9 million, while earnings per share before dilution were negative SEK 0.13 compared with negative SEK 0.08 a year earlier.

Cash flow after investments for the nine-month period was negative SEK 79.0 million, compared with negative SEK 145.8 million in the corresponding period of 2025.

Legal and restructuring costs weigh on Q3 results

Enviro said the SEK 11.9 million deterioration in third-quarter earnings compared with the previous year was mainly caused by a SEK 20.8 million increase in other external expenses.

The increase primarily reflected a provision for potential financial obligations arising from ongoing legal proceedings, together with higher consultancy costs associated with the company reorganization and legal disputes.

Personnel expenses decreased by SEK 5.4 million, mainly following the bankruptcy of subsidiary Tyre Recycling in Sweden AB.

Cash position falls to SEK 3.1 million

Cash and cash equivalents amounted to SEK 3.1 million at September 30, 2026, compared with SEK 133.8 million at the same point a year earlier.

Enviro said funding of continued operations depends on additional capital contributions, including financing available under agreements signed during the year.

The group’s equity-to-assets ratio declined to 64% from 90% a year earlier.

Company reorganization extended until November 27

During the third quarter, the Gothenburg District Court approved a further three-month extension of Enviro’s company reorganization, allowing the process to continue until November 27, 2026 unless otherwise decided.

Enviro and its appointed administrator presented a draft reorganization plan in August setting out a proposed group structure and debt settlement arrangement.

The proposal includes an initial payment corresponding to 30% of creditors’ claims, with the possibility of an additional payment of up to 70% in a potential second installment.

Updated reorganization plan expected in November

CEO Fredrik Aaben said Enviro expected to present an updated reorganization plan to relevant parties in early November.

The company cautioned that completion of the process remains uncertain and depends on creditor responses, financing and fulfillment of other requirements.

Enviro secures SEK 130 million in financing commitments

Enviro secured financing arrangements totaling SEK 130 million during the third quarter through Alumni Capital Limited and Nordic Restructuring and Growth Capital 1.

The existing Alumni Capital equity facility was increased from SEK 50 million to SEK 80 million. The facility can be drawn in tranches according to Enviro’s capital requirements and is intended for general corporate purposes.

At September 30, approximately SEK 73.9 million remained available under the Alumni agreement.

NRGC provides up to SEK 100 million in convertible loans

The agreement with Nordic Restructuring and Growth Capital provides for interest-free convertible loans totaling up to SEK 100 million.

Facility I amounts to SEK 35 million and is primarily intended to finance the proposed creditor settlement. Facility II provides another SEK 65 million for general corporate purposes.

The facilities were originally conditional on Enviro’s reorganization plan becoming legally binding and the reorganization being concluded.

First SEK 5 million NRGC drawdown completed after quarter-end

After the end of the reporting period, NRGC waived certain conditions and allowed Enviro to make an initial SEK 5 million drawdown from Facility II.

NRGC subsequently requested conversion of the entire loan, after which Enviro resolved on a directed issue of 62.5 million shares and 2.5 million warrants.

Alumni financing results in additional share issues

During the third quarter, Enviro completed two drawdowns under its equity financing arrangement with Alumni Capital.

The transactions resulted in directed issues totaling 42,222,222 shares and 3,554,887 warrants and raised approximately SEK 6.1 million before transaction costs.

After the quarter, Enviro also issued another 10 million shares and 520,731 warrants to Alumni Capital, raising approximately SEK 0.75 million before costs.

Enviro says liquidity remains challenging

Despite the new financing facilities, Enviro said its liquidity position remains challenging and that strict financial discipline remains a priority.

The company has introduced measures to reduce costs and preserve cash while continuing to evaluate additional financing alternatives.

Enviro states that its ability to continue as a going concern depends on successful completion of the reorganization and obtaining sufficient additional financing within the required timeframes.

Arbitration with Infiniteria continues

Arbitration proceedings involving Infiniteria remain ongoing. Enviro spent part of the third quarter preparing its statement of defense and said it continues to dispute the claims against the company.

Enviro expects the arbitration process to continue for an extended period, with a final award currently not expected until the second quarter of 2028.

The company also expects the costs associated with the arbitration to exceed previous estimates but said it is too early to determine the final amount.

Enviro contests Infiniteria claims before Patent and Market Court

In a separate proceeding, Infiniteria has brought a declaratory action before the Patent and Market Court concerning the consequences of Enviro’s termination of the companies’ license agreement.

Enviro maintains that termination was carried out in accordance with applicable law and that Infiniteria’s license consequently became non-exclusive.

On October 22, Enviro submitted its defense and requested dismissal of Infiniteria’s claims, arguing among other things that the dispute is contractual and should be dealt with under the arbitration provisions of the license agreement.

North American and Brazilian licensing discussions advance

Enviro said its previously announced business development initiatives in North America and Brazil continued to progress during the quarter.

The company is currently engaged in discussions concerning potential commercial agreements, although it emphasized that the outcome remains uncertain.

Enviro had previously signed letters of intent relating to potential licensing of its proprietary tire pyrolysis technology for one or more plants in North America and Brazil.

Additional projects remain undisclosed

Enviro said it is also working on several other projects that have not yet been publicly announced.

The company did not disclose locations, partners or potential capacities but said more information may be provided as the projects reach relevant milestones.

Next-generation tire pyrolysis technology under development

Since the end of June, Enviro’s engineering team has been working on further development of the company’s technology and optimization of its plant concept.

Enviro said feedback from potential customers in different regions has been incorporated into the development process and has led to what the company describes as significant improvements to both the technology and plant concept.

The company sees the next-generation design as an important part of its strategy to support broader international commercialization of its tire pyrolysis technology.

Nordic fully owned plant remains part of strategy

Earlier in 2026, Enviro submitted an environmental permit application and secured an exclusive option to acquire property intended for its first fully owned full-scale tire pyrolysis plant in the Nordic region.

The Q3 report does not provide a revised construction or commissioning timetable for that project.

Uddevalla timetable remains unresolved

During the first nine months of 2026, Enviro announced that the previously communicated schedule for the Uddevalla tire recycling plant would not be met and said it was unable at that time to provide a revised timetable.

The development occurred alongside the breakdown of Enviro’s former joint venture relationship with Infiniteria and the subsequent restructuring and legal disputes between the companies.

Tyre Recycling in Sweden bankruptcy affects group structure

Enviro’s subsidiary Tyre Recycling in Sweden AB was declared bankrupt earlier in 2026 following its own bankruptcy petition.

The bankruptcy resulted in an impairment loss of SEK 80.8 million in Enviro’s parent company and also contributed to lower personnel costs during the third quarter.

Enviro remains focused on commercializing tire pyrolysis technology

Enviro continues to position its patented technology around recovery of valuable materials from end-of-life tires, including recovered carbon black and tire-derived oil.

The company says carbon black recovered using its process can reduce carbon dioxide emissions by up to 93% compared with virgin carbon black when used in new tire production.

For the remainder of 2026, Enviro identifies completion of the company reorganization, liquidity management, further financing and conversion of international business development opportunities into commercial agreements as its immediate priorities.

Original report: Scandinavian Enviro Systems Q3 2026 report.