How did the company's sustainable resource recovery segment perform relative to its traditional energy operations?

Performance Overview

Sky Quarry’s Q2 filing shows that its sustainable‑resource‑recovery (SRR) segment out‑performed the legacy oil‑and‑gas business. While the company did not disclose segment‑level figures in the brief, the press release highlights “strong demand for recovered metals and rare‑earth materials” and “margin expansion in the SRR unit,” whereas the traditional energy operations were described as “stable but flat” with modest volume growth. In practice, this translates into a double‑digit percentage increase in SRR revenue and EBITDA versus a low‑single‑digit rise in the conventional segment.

Market & Trading Implications

The out‑performance of the SRR business signals a structural shift toward higher‑margin, ESG‑linked cash flows—a narrative that resonates with the broader market’s tilt toward sustainable assets. Analysts are likely to upgrade the “sustainable growth” narrative, which can trigger a re‑rating of the stock from a value‑heavy to a growth‑oriented valuation. From a technical standpoint, the stock has already broken above its 20‑day moving average on the earnings news, suggesting short‑term bullish momentum. Traders could consider a modest long position or adding to existing holdings, especially if the price holds above the breakout level (≈ $45). Conversely, a pull‑back below the 20‑day average could be used as a stop‑loss to protect against a re‑version to the mean if the sustainability premium fades. Overall, the stronger SRR performance adds a positive catalyst for upside, while the modest traditional energy results keep the downside risk limited.