Canadian Halal Investor.

Screened September 30, 2026 · TSX: PYR · Q2 2026 results

FAIL

Is PyroGenesis Canada Inc. (PYR) halal?

PyroGenesis Canada Inc. (TSX: PYR; also OTCQX: PYRGF) is a Montreal plasma-process technology company — plasma torches, waste destruction, aluminum dross recovery (DROSRITE), titanium metal powders for additive manufacturing — mostly heavy-industry decarbonization, intrinsically clean activities. But the company explicitly brands itself a technology provider to "heavy industry & defense" (Q2 2026 earnings release), booked ~9.3% of Q2 2026 revenue from the U.S. Navy, delivered a ~C$4.13M torch contract to a U.S. defense prime contractor in January 2026, and is actively pursuing military chemical-weapons-destruction contracts. The financial ratios pass (debt ~8.7% incl. leases of market cap, interest-like income ~0.7% of revenue, cash ~2.0% of market cap). The FAIL comes from the business gate alone. Data from Q2 2026 results, screened September 30, 2026.

The two-gate Shariah screen

Every screener on this site runs the same two gates: first, the business must be halal (no conventional insurance, banking, alcohol, gambling, weapons manufacturing, and the like); second, the financial ratios must clear (debt under roughly 33% of market cap, non-compliant income under roughly 5%).

Gate one: the business — material, deliberately-targeted defense segment, fails

PyroGenesis's core plasma technology serves heavy industry — but defense/military is not incidental; it is a named growth vertical. The evidence:

Competing position, noted honestly: PAWDS and PACWADS are waste/destruction systems — not weapons manufacture — and chemical-weapons destruction is demilitarization. But the company actively markets to defense/military as a growth vertical, holds multi-million-dollar defense contracts, and books ~9%+ of quarterly revenue directly from armed forces. The business gate fails.

Gate two: the ratios — all pass

All ratios pass — the FAIL comes from the business gate alone. (Context: net working capital deficiency of C$7.1M at June 30, 2026, with a going-concern note in the Q1 2026 statements; a June 2026 bought deal plus CEO private placement raised C$6.26M gross.)

What other screeners say

The bottom line

This screener gives PyroGenesis Canada Inc. (TSX: PYR) a FAIL. The ratios are clean (debt ~8.7% incl. leases, interest-like income ~0.7%, cash ~2.0%), but the company brands itself a provider to "heavy industry & defense," books ~9.3% of quarterly revenue from the U.S. Navy, holds multi-million-dollar defense torch contracts, and is actively pursuing military chemical-weapons-destruction contracts — a material, deliberately-targeted defense segment. Snapshot dated September 30, 2026; re-checked quarterly after earnings.

Sources

Related screeners

Frequently asked questions

Is PyroGenesis (PYR) halal?

Our screener gives PyroGenesis Canada Inc. a FAIL screening result. The business — plasma-process technology (plasma torches, waste destruction, aluminum dross recovery, titanium metal powders) — includes a material, deliberately-targeted defense segment: the company calls itself a technology provider to “heavy industry & defense” (Q2 2026 earnings release), booked ~9.3% of Q2 2026 revenue from the U.S. Navy, delivered a ~C$4.13M torch contract to a U.S. defense prime contractor in January 2026, and is actively pursuing military chemical-weapons-destruction contracts. The financial ratios pass (debt ~8.7% incl. leases of market cap, interest-like income ~0.7% of revenue, cash ~2.0% of market cap), but the business gate fails.

Why does PyroGenesis fail the business gate?

Every 2026 earnings release self-describes PyroGenesis as a “plasma-based technology provider to heavy industry & defense.” The Q2 2026 MD&A reports C$411,927 of revenue (9.3% of Q2 revenue) from “development and support related to systems supplied to the U.S. Navy” (PAWDS waste-destruction systems contracted for four Ford-class aircraft carriers). A ~C$4.13M (US$3.13M) 4.5 MW torch was delivered to a U.S. aeronautics & defense prime contractor in January 2026, with a 20 MW follow-on contract in engineering. In January 2026 the company signed an agreement to jointly pursue 2026-tendered contracts for the destruction of chemical weapons in Syria. The Q2 2026 MD&A Outlook states defense/military interest “has increased considerably, to the point where identifying these industries as unique target markets is justified.” That is a material and deliberately grown military/defense segment.

Do PyroGenesis' financial ratios pass?

Yes, all pass. Interest-bearing debt of ~C$5.89M incl. leases (term loans C$231K, secured loans C$1,625K, convertible debentures C$406K, lease liabilities C$3,626K at March 31, 2026; June 30, 2026 likely lower after repayments) against a ~C$67.91M market cap is ~8.7% (~3.3% excluding leases) — under the ~33% AAOIFI ceiling. Interest income is not separately disclosed, but the disclosed interest-like finance income (accretion of royalties receivable, C$0.03M) is ~0.7% of Q2 revenue (C$4.42M) — under the ~5% ceiling. Cash of C$1.3M is ~2.0% of market cap — under the ~33% ceiling. The FAIL comes from the business gate alone. Context: net working capital deficiency of C$7.1M at June 30, 2026, with a going-concern note in the Q1 2026 statements.

What do Zoya, Musaffa and ShariaPortfolio say about PyroGenesis?

As of September 30, 2026 we found no public Zoya rating page, no Musaffa rating page, and no ShariaPortfolio coverage for PYR — none of the three verifiably covers the ticker. Our screener reports its own figure-by-figure analysis above.

Could PyroGenesis become halal?

Only if the military/defense segment were exited or shrank to immateriality — a high bar given management names defense/military a “unique target market,” the 20 MW defense torch project is in engineering, and the company is actively pursuing chemical-weapons-destruction military contracts. Re-screen quarterly after earnings.