FBR Raises $6.3M, Cuts Costs 70%, and Completes US Demo Program

• Completed US Demonstration Program with $2 million non-refundable payments from CRH Ventures
• Raised A$6.3 million via institutional placement to bolster cash reserves
• Appointed Mark Pivac as new CEO following executive and board restructuring
• Reduced operating costs by approximately 70% to extend runway
• Ongoing collaborations with Samsung Heavy Industries and Liebherr targeting shipbuilding automation and US localization of Hadrian X®

US Market Progress and Demonstration Success

FBR Limited (ASX: FBR) has marked a significant milestone in its US expansion strategy by completing a Demonstration Program with CRH Ventures, receiving US$2 million in non-refundable payments. The program culminated in a high-profile demonstration build for PulteGroup, one of the largest US builders, which attracted considerable industry attention. With the expiry of exclusivity arrangements with CRH Ventures and no exercise of the joint venture option, FBR is now actively engaging multiple US stakeholders, including builders, suppliers, and financiers, to explore Wall as a Service® (WaaS®) opportunities.

Capital Raising and Financial Discipline

To support its commercialisation efforts, FBR successfully raised A$6.3 million through a two-tranche institutional placement priced at A$0.01 per share. This capital injection comes at a critical time as the company reported a cash balance of A$2.6 million at quarter-end, excluding placement proceeds. Importantly, FBR has embarked on a rigorous cost rationalisation program, targeting a 70% reduction in annual operating expenses. This includes streamlining its board and executive team, with Mark Pivac stepping into the CEO role following Mike Pivac’s retirement.

Strategic Collaborations Signal Broader Automation Ambitions

Beyond construction robotics, FBR is expanding its technology footprint through collaborations with industry heavyweights. A technical and engineering study with Samsung Heavy Industries has demonstrated the feasibility of applying FBR’s Dynamic Stabilisation Technology (DST®) to automate shipbuilding processes. Discussions are ongoing to develop automated solutions in a staged approach. Concurrently, FBR has partnered with Liebherr-Mischtechnik GmbH to localise and assemble Hadrian X® units in the US, leveraging Liebherr’s extensive manufacturing and truck mounting expertise. These partnerships underscore FBR’s intent to diversify applications of its core technology beyond bricklaying.

Intellectual Property and Product Development

FBR continues to safeguard and expand its intellectual property portfolio, with multiple patent applications for its next-generation Hadrian robots entering national phases. The company maintains approximately 400 global IP rights and is exploring licensing opportunities to monetise its technology. Meanwhile, Hadrian 3 remains stationed at a CRH facility in Florida, with Hadrian 4 in commissioning and Hadrian 5 in manufacturing, positioning FBR for future deployments.

Outlook and Leadership Vision

New CEO Mark Pivac articulates a clear vision for FBR: to capitalise on its world-leading DST® technology to automate outdoor construction and industrial tasks traditionally reliant on manual labour. He emphasises the company’s commitment to profitability through technology commercialisation, cost discipline, and strategic partnerships. The upcoming investor webinar on 1 May 2025 is expected to provide further insights into FBR’s roadmap and revenue generation plans.

Bottom Line?

FBR’s strategic reset and capital raise set the stage for accelerated US market entry and broader automation ventures, but execution risks remain.

Questions in the middle?

• How quickly can FBR convert US expressions of interest into paying WaaS® contracts?
• What commercial terms and scale will emerge from the Samsung Heavy Industries collaboration?
• Will the cost reductions impact FBR’s R&D capacity and innovation pipeline?