MyCelx trading update: $3.9 million Permian delivery supports 2026 outlook

What has MyCelx announced?

MyCelx Technologies Corporation has reported approximately $2.1 million of revenue for the six months ended 30 June 2026, up from $1.7 million in the comparable period of 2025.

That represents growth of roughly 24%, primarily driven by paid trials, equipment leases and recurring sales of filter media. Filter media are the replaceable materials used within treatment systems to remove contaminants from water.

The more important message, however, concerns the second half. MyCelx expects performance to strengthen significantly as major projects reach delivery milestones and recurring lease and media revenue continues to increase.

Management said the company remains on track to meet market expectations for full-year revenue of $11.0 million. Approximately 80% of that forecast is either booked, contracted or expected through recurring lease and media sales.

Investors can read the original company announcement for the full statement.

MyCelx's key figures

Metric	Latest update	Comparison or context
H1 2026 revenue	Approximately $2.1 million	$1.7 million in H1 2025
Expected Q3 Permian revenue	$3.9 million	Linked to delivery of a REGEN system
FY2026 revenue expectation	$11.0 million	Company says it remains on track
Revenue covered or recurring	Approximately 80%	Booked, contracted or expected from recurring sales
Cash at 30 June 2026	Approximately $500,000	Unaudited figure
Customer payments received in July	$1.1 million	Received after the period end

Profit, operating cash flow and net debt figures for the first half were not disclosed. MyCelx expects to publish its final unaudited H1 2026 results in September 2026.

The Permian project changes the shape of the year

The largest disclosed second-half contribution is $3.9 million of revenue expected to be recognised during the third quarter. This relates to a REGEN produced water treatment system for a project in the Permian Basin.

Produced water is water brought to the surface during oil and gas extraction. It needs to be treated before it can be reused, disposed of or discharged in line with applicable requirements.

The customer is described as a major midstream operating company providing water management services to large producers in the region. Its identity was not disclosed.

This delivery matters for two reasons. First, the expected $3.9 million is substantial relative to the $2.1 million generated during the whole first half. Second, management hopes the installation will become a reference site that demonstrates the technology and its oil recovery capability to other potential customers in the Permian Basin.

MyCelx is already involved in several material bids and business development discussions with water midstream companies, supermajors and mid-tier producers. No values or expected award dates were disclosed for those opportunities.

Recurring revenue is becoming more important

MyCelx is trying to build a more resilient revenue mix through equipment leases and recurring media sales, rather than relying entirely on individual system deliveries.

That shift could improve visibility because installed equipment can generate follow-on demand for replacement treatment media. It may also reduce some of the volatility associated with large project milestones, although the company remains materially exposed to the timing of those projects.

In May 2026, MyCelx delivered its third produced water treatment system to a global integrated oil company in the Gulf of Mexico. Several more platforms are scheduled for upgraded water treatment capability, while filter media sales have accelerated.

Management believes the modular nature of its equipment is attractive offshore because systems can be deployed quickly and may enable operators to achieve higher production levels.

The latest update builds on the progress discussed when MyCelx returned to profitability in 2025. However, the current announcement does not provide a profit expectation for 2026.

The opportunity pipeline has more than doubled

MyCelx said its pipeline opportunities have more than doubled since January 2026, both by number and aggregate value. Management described this as the largest and highest-quality opportunity pipeline in the company's history.

The pipeline spans:

• Onshore and offshore produced water treatment in the US
• Produced water projects in the Middle East
• PFAS treatment in the US
• Other industrial water applications

A pipeline is not the same as contracted revenue, so investors should avoid treating its full value as secured business. Still, a broader opportunity base could reduce dependence on any one project if MyCelx converts a reasonable share of these prospects.

Middle East timing remains uncertain

Management expects several large expansion and upgrade projects to be awarded in the Middle East during the next six months. It believes MyCelx is well positioned to win several opportunities, including a retrofit project that could potentially be delivered during 2026.

That wording is encouraging but remains conditional. Timelines depend on the ongoing Middle East conflict, and no contract values or customer names were disclosed.

This is a clear execution risk for the full-year result. MyCelx said several additional opportunities could affect 2026 revenue, but the final outcome depends on projects meeting their delivery schedules.

PFAS validation could open another market

MyCelx has also signed an agreement with a municipal solid waste landfill in Minnesota for a three-month field validation of its PFAS treatment technology.

PFAS are a group of persistent synthetic chemicals that can be difficult to remove from contaminated water. The trial will assess treatment efficiency, media performance and whether the system can consistently achieve regulatory discharge compliance for complex landfill leachate.

MyCelx believes successful validation could lead to a permanent installation at the current site and opportunities at other sites across Minnesota. That potential should be viewed cautiously until the trial is completed and commercial orders are secured.

Cash and financing need close attention

The main concern in this update is the balance sheet. Cash and cash equivalents stood at approximately $500,000 on 30 June 2026, although a further $1.1 million of customer payments arrived in July.

Those payments are helpful, but MyCelx also needs working capital to manufacture equipment and deliver growth. The company said it is considering potential financing options to fund capital equipment for specific Permian Basin opportunities.

The form, timing, cost and size of any financing were not disclosed. Possible routes could carry different consequences for shareholders, but the company did not specify which options are under consideration.

Investors therefore have two connected points to monitor: whether the project pipeline converts into firm orders, and how MyCelx funds the equipment needed to fulfil those orders.

What investors should watch next

The trading update contains genuine operational progress. First-half revenue increased, a major Permian delivery is expected to contribute $3.9 million in Q3, recurring sales are growing and around 80% of the $11.0 million full-year revenue expectation has reasonable visibility.

The less comfortable part is that cash was limited at the period end and further financing is being considered. Revenue also remains sensitive to delivery milestones, particularly for large projects and opportunities affected by geopolitical uncertainty.

The September interim results should provide a fuller picture, including profit performance, cash flow and working capital. Until then, the central question is whether MyCelx can turn its record pipeline into cash-generative growth without placing excessive strain on its balance sheet.