Pyrum Innovations AG (PYR.DE) fair value

ACCE thesis

Pyrum Innovations runs pyrolysis plants that convert end-of-life tyres and other hard-to-recycle plastic waste back into pyrolysis oil, carbon black and recovered steel. The investable case rests on its position as one of the few European operators with a commercial-scale tyre recycling process, at a time when EU rules on landfill and waste-to-energy are tightening. The data does not yet show that position paying off: revenue is down 77.1% year on year, the gross margin is negative at -14.8%, and the operating margin is -410.8%, so the company is still losing money on each tonne processed. The catalyst to watch is whether volumes and product pricing recover enough to move gross margin into positive territory, which would be the first real sign the plants are running economically. At a 115M EUR market cap with no earnings and no index membership, this is a turnaround to verify before it is a thesis to underwrite, and it deserves a deeper look mainly to test whether the plant economics can be fixed.