Why Reactive Recycling could become Nexam’s most valuable business area

The Q2 2026 report marked another milestone. Reactive Recycling generated SEK 10.2 million in revenue, up 76% year-over-year, following another record quarter in Q1. Just as importantly, Nexam reported its first positive EBIT in company history, with Reactive Recycling making an increasingly meaningful contribution.

Looking back over the past few years on Nexam Insights, one thing stands out: the commercial development has followed a very consistent pattern. Projects rarely move directly from a first customer meeting to large orders. Instead, they progress through technical evaluations, laboratory testing, production trials, industrial validation and finally commercial production.

Many of the customers generating revenue today were part of Nexam’s development funnel only a few years ago.

That makes today’s pipeline particularly interesting.

The funnel is becoming increasingly valuable

One of the most encouraging trends has been the steady growth of Nexam’s commercial pipeline. Quarter after quarter, management has communicated new customer evaluations, pilot projects and industrial trials across multiple polymers and applications.

Some investors have viewed these updates as “just more trials”.

Looking back today, that would be an oversimplification.

The customers contributing revenue in 2025 and 2026 are largely the same companies that were once reported as development projects. The funnel has proven capable of converting technical interest into recurring business.

As the funnel continues to expand, the number of future commercial opportunities grows as well.

Only a fraction of the potential market

Perhaps the strongest part of the investment case is how early Nexam still is.

At the end of 2025, the company reported around 25 recurring commercial Reactive Recycling customers.

Twenty-five customers is an important achievement for a specialty chemical business.

But compared to the actual addressable market, it is only scratching the surface.

Globally there are thousands of:

• Plastic recyclers
• Compounders
• Packaging manufacturers
• Film producers
• Pipe manufacturers
• Injection moulders
• Blow moulders
• PET sheet producers

Reactive Recycling is not targeting one niche application. It is addressing one of the largest challenges in mechanical recycling across several of the world’s biggest polymer markets, including PET, polypropylene and polyethylene.

The opportunity is therefore measured in thousands of potential industrial customers - not a few dozen.

Existing customers may become even more valuable

Winning a customer is only the beginning.

Industrial companies rarely qualify a new additive across their entire production immediately. Instead, adoption often starts with one application before expanding to additional products, production lines or manufacturing sites.

Nexam has already demonstrated this.

The previously announced US food packaging customer has expanded its use of Reactive Recycling to an estimated annual run rate of approximately SEK 11 million.

That illustrates an important point.

Revenue growth doesn’t only come from winning new customers - it also comes from existing customers increasing consumption over time.

Why customers are interested

Reactive Recycling is attractive because it solves a real economic problem.

Higher recycled content often leads to poorer processing, lower product quality and increased production waste.

Nexam’s technology helps restore polymer performance, allowing customers to use more recycled material while maintaining quality.

The result can be:

• Higher recycled content
• Lower raw material costs
• Better production stability
• Less scrap
• More consistent product quality

That makes the business case attractive even without considering sustainability targets.

Looking ahead

The most interesting part of the story may not be today’s revenue.

It is the fact that the commercial engine now appears to be working.

Over the past few years we have seen the funnel mature, pilot projects become commercial customers and existing customers expand their business with Nexam.

With only around 25 recurring commercial customers today, compared to thousands of potential customers globally, the runway remains significant.

If Nexam continues converting its pipeline at the same pace while existing customers increase volumes, Reactive Recycling has the potential to become one of the company’s largest and most profitable business areas over the coming years.