Key highlights

Thanks to a refocused and rigorously executed cost-saving plan during the first half of 2025, the Company reports a solid cash position of €72 million as of June 30, 2025, providing a cash horizon of more than 12 months. The Group continues its efforts to reduce operational expenses.

2. Regulatory environment developments in France

On September 7, 2025, France published a new decree under the “Environmental Code” (Article L. 541-10-3) related to financial incentives (bonus) provided for the incorporation of recycled material on products and for discourage the use of materials that hinder recycling (the “Decree”). This decree represents a powerful new lever to accelerate customer adoption of CARBIOS’ technology as it enables them to benefit from a €1,000/ton bonus for including biorecycled plastics derived from hard-to-recycle waste into sensitive-contact packaging (e.g. food packaging). CARBIOS will thus be able to supply its packaging clients, selling on the French market, with recycled PET (r-PET) with a quality equivalent to virgin PET (free of contaminants, transparent, and with excellent material properties), offering significantly superior characteristics compared to mechanically recycled products, at a comparable net price, while processing complex waste that is currently not recycled.

The resumption of construction is expected before end of 2025, subject to securing the necessary additional funding.

Pre-sales of products from the future Longlaville plant are progressing, supported by a favorable regulatory environment.

In addition, the Company has secured a significant portion of its raw material supply and signed polymerization contracts, strengthening the industrial foundations of the project.

Plant financing update

CARBIOS plans to finance the Longlaville plant through:

+++   €42.5 million in public funding, including a €30 million grant for which an agreement already has been signed with ADEME, that will allow disbursements to begin once the project resumes, and €12.5 million in regional aid, for which the European Commission has approved the chemical recycling aid scheme. The publication in the Official Journal of the European Union is expected shortly, which will remove the final barrier to receiving this aid. It is specified that these amounts have not yet been received and are therefore not included in the available cash.

+++   Additional funding, notably non-dilutive, is currently under discussion. Based on a detailed study of the project, many private investors, , have expressed strong interest and given agreement on principle for the required investment amounts, mainly subject to the pre-sale of a significant portion of the plant’s capacity, a level not yet reached by CARBIOS. The Company has selected two lead banks to drive this process.

+++   A portion of its available cash (€72 million as of June 30, 2025).

With the support of the new Decree announced in September, the Company is therefore working to further advance the pre-sale of products from the plant in order to reach a sufficient level that would secure the necessary funding for the project to resume before the end of 2025, with production expected to start in the second half of 2027.

4. Licensing update

In parallel, the technological maturity, engineering documentation, and ongoing negotiations with various partners, allow CARBIOS to remain fully committed to the commercialization of licenses for its technology.

"Our well-controlled expenses and our solid cash position allows us to move forward with confidence. Recent favorable developments, both in terms of regulation and in our discussions with financial and industrial partners, provide us additional comfort about the strength of our plan. We approach this next phase with determination and confidence, driven by our clients’ recognition of the value of our technology, the soundness of our business model, and the commitment of our team", said Vincent Kamel, Chief Executive Officer of CARBIOS

As of June 30, 2025, current operating income stood at (-€17.6 million), in progress of €2.4 million compared to the (-€20 million) loss as of June 30, 2024. This improvement is mainly due to the execution of the cost reduction plan announced at the end of 2024 and revenues from ordinary activities for a cumulated total amount of €6.2 million, offset by exceptional items such as costs and provisions for the restructuring and workforce reduction (‘PSE’) plan (-€3 million), as well as financing related costs (-€0.8 million).

Apart from these exceptional one-off items, the decrease in current operating expenses related to R&D expenses, sales and marketing expenses, and general and administrative expenses.

The current operating income of (-€17.6 million) reflects the Group’s efforts to reduce expenses and ensure tight control over spending, to pursue financing discussions with public and private partners for the Longlaville plant project without liquidity pressure.

To facilitate the restart of the Longlaville project and limit the financial impact of the postponement, the Company implemented protocols with its main suppliers when the delay was announced. Nevertheless, following the non-renewal of one of these protocols and in the absence of an agreement with one supplier to date, the Company recognized, as a precautionary measure, an impairment loss of €7.3 million on one asset of the Longlaville plant, which brings back the half-year operational income to (-€24.9 million).

Net financial income of €1.4 million is mainly due to financial income from cash investments and capitalization of borrowing costs. It is down by (-€1.9 million) compared to the first half of 2024, due to lower interest rates and the level of cash investments.

The Group’s net loss for the period stood at €23.5 million at the end of June 2025, compared to €18.1 million at the end of June 2024.

The Group has a cash reach of more than twelve months, based on a cash position of €72 million as of June 30, 2025, compared to a financial reserve of €109 million as of December 31, 2024, which included €89 million in cash and €19 million in financial assets, which were reclassified as cash in the first half of 2025.

Net cash consumption amounted to €18.1 million during the period, compared to €102.1 million for the year 2024. This cash consumption of €18.1 million includes -€20 million in payments to suppliers associated to the Longlaville project, in accordance with commitments already made when the project delay was announced, -€17.1 million of cash for current business activities, partially offset by +€19 million in financial assets reclassified as available cash.