Scandinavian Enviro Systems reported net revenues of MSEK 7.6 for January to June 2026, compared with MSEK 27.3 in the same period last year, while earnings after tax amounted to MSEK -107.6. The tire recycling technology company said the first half of the year was marked by its ongoing company reorganization, leadership changes, financing arrangements, legal disputes related to the Infiniteria joint venture and continued work on future pyrolysis projects. During the second quarter, Enviro submitted an environmental permit application and secured an option for a property intended for its first wholly owned full-scale Nordic pyrolysis plant. The company also entered into an equity-related financing arrangement with Alumni Capital Limited for up to SEK 50 million and signed letters of intent related to technology licensing in Brazil and North America.

Second quarter revenues declined

For the second quarter of 2026, Enviro reported net revenues of MSEK 0.3, compared with MSEK 19.9 in the corresponding period of 2025. Earnings after tax for the quarter amounted to MSEK -27.1, compared with MSEK -21.2 a year earlier. Earnings per share before dilution were SEK -0.02, unchanged from the corresponding period last year. Cash flow after investments for the quarter was MSEK -21.6, compared with MSEK -49.6 in the second quarter of 2025.

First-half loss widened

For January to June 2026, net revenues amounted to MSEK 7.6, compared with MSEK 27.3 during the same period in 2025. Earnings after tax were MSEK -107.6, compared with MSEK -44.5 a year earlier. Earnings per share before dilution were SEK -0.10, compared with SEK -0.05 in the first half of 2025. Cash flow after investments amounted to MSEK -59.9, compared with MSEK -93.4 in the previous year’s first half.

Company reorganization continues

Enviro applied for company reorganization earlier in 2026 and later received approval for an extension of the process. The company said the Gothenburg District Court ruled that the reorganization should continue after Enviro responded to a request from Infiniteria to terminate the reorganization. Enviro also said it applied for and was granted an extension of the company reorganization and provided an update on expected liquid funds.

The reorganization process has included several actions intended to address the company’s financial position and future structure. Enviro said it filed for bankruptcy of its subsidiary Tyre Recycling in Sweden AB, which resulted in an impairment loss of MSEK 80.8 in the parent company. The company also terminated agreements related to the Infiniteria joint venture collaboration as part of the ongoing corporate reorganization.

Infiniteria-related disputes continue

Enviro said its representatives stepped down from the Board of Directors of the joint venture Infiniteria during the second quarter. The company also reported that Infiniteria intended to request termination of Enviro’s company reorganization and disputed the termination of joint venture agreements, while announcing damage claims.

During the first half of the year, Enviro also received a request for arbitration from Infiniteria. In addition, the company said it received notice from Infiniteria of a declaratory action before the Patent and Market Court concerning the exclusivity of a licence.

Nordic pyrolysis plant plans continue

During the second quarter, Enviro submitted an environmental permit application and secured an option regarding a property for its first wholly owned full-scale Nordic pyrolysis plant. The project is part of the company’s work to develop tire recycling and pyrolysis capacity for the recovery of valuable raw materials from end-of-life tires.

Enviro also said the previously communicated timeline for the Uddevalla plant will not be met. Given the prevailing uncertainty, the company said it is currently not possible to establish a revised timetable.

Financing arrangement signed with Alumni Capital

Enviro entered into an equity-related financing arrangement with Alumni Capital Limited for up to SEK 50 million. As consideration for the financing facility, the company resolved on an initial directed issue of 22,222,222 shares and 25,000,000 warrants to Alumni Capital Limited.

After the end of the reporting period, Enviro also resolved on a directed issue of shares and warrants to Alumni Capital Limited. The issue raised SEK 3.57 million before transaction costs and comprised 20,000,000 shares and 1,785,000 warrants.

Technology licensing discussions advance

During the first half of 2026, Enviro signed a letter of intent for technology licensing in North America. The company also signed a letter of intent regarding the licensing of technology for the construction of pyrolysis plants in Brazil.

These agreements relate to Enviro’s patented technology for recovering materials from end-of-life products, including tires. The company’s tire pyrolysis process is linked to recovered carbon black and other materials that can support tire recycling, rubber recycling and circular economy applications.

Leadership and board changes reported

Enviro announced a leadership transition during the first half of the year, appointing Fredrik Aaben as CEO and Maria Ljungstrand as CFO. The company also reported that one board member resigned at her own request.

At Enviro’s Annual General Meeting, all remaining board members were re-elected. The board consists of Ewa Björling, who was also elected Chair of the Board, Fabien Gaboriaud, Magnus Jakobson, Peter Möller and Björn Olausson.

Enviro develops technology for recovered materials from tires

Scandinavian Enviro Systems develops patented technology for recovering valuable raw materials from scrapped and end-of-life products, including tires. According to the company, producing new tires using carbon black recovered with Enviro’s technology can reduce carbon dioxide emissions by up to 93% compared with virgin carbon black.

The company is headquartered in Gothenburg, Sweden, and was founded in 2001. Enviro is listed on Nasdaq First North Growth Market, with FNCA Sweden AB serving as Certified Advisor.

Article source: Enviro.