NEXION Posts $1.16M Revenue, Cuts Costs 7.5%, Improves Cash Flow 49% in Q1 2025

Solid Financial Performance Amid Strategic Growth

NEXION Group Ltd (ASX: NNG) has delivered a robust quarterly performance for the period ending 31 March 2025, reporting a 5.45% increase in revenue to $1.16 million. This growth is underpinned by the company's expanding footprint in satellite communications, particularly servicing the iron ore mining sector in Western Australia.

Alongside revenue growth, NEXION achieved a 7.5% reduction in operating costs, contributing to a 49% improvement in net cash from operating activities. The company’s disciplined cost management and operational efficiencies have enhanced its cash flow position, despite ongoing investments in technology and customer acquisition.

Innovative Satellite Solutions for Remote Mining

A standout development in the quarter was the delivery of a pioneering enterprise network backup solution leveraging Starlink satellite services. This solution securely connects remote mining operations to global enterprise networks, addressing a critical need for reliable communications in isolated locations. The product has seen strong demand, reflecting the growing reliance on satellite technology in resource sectors.

NEXION also secured a term contract to deploy and manage remote communications hut power infrastructure for another major iron ore operator. These contracts not only diversify NEXION’s revenue streams but also deepen its engagement with key players in Western Australia’s mining industry.

Expanding Customer Base and Pipeline

The company reported new customer acquisitions in both the mining and retail sectors, with additional store roll-outs contributing to incremental revenue. The communications business, particularly in the Low Earth Orbit (LEO) satellite segment, continues to expand, signaling strong market acceptance of NEXION’s hybrid-cloud and satellite-enabled solutions.

Looking ahead, NEXION’s sales pipeline is steadily growing as it introduces innovative technology solutions tailored to the needs of remote and enterprise customers. This momentum is expected to support sustained revenue growth and operational scale.

Material Transaction and Financing Update

Progress continues on a material transaction announced in 2024, with NEXION and its partners working through final details. While specifics remain under wraps, this transaction could be pivotal in shaping the company’s strategic direction and capital structure.

On the financing front, NEXION maintains convertible notes issued in mid-2024, designed to fund the proposed acquisition and related costs. These notes carry a 10% interest rate and mature in 2026, with conversion to equity subject to shareholder approval and market conditions. The company has arranged additional loan financing in April 2025 to support ongoing operations, reflecting prudent financial management.

Outlook and Operational Resilience

Despite a modest net cash outflow from operating activities this quarter, NEXION affirms its ability to continue operations and meet business objectives. The company’s strategic focus on high-growth sectors, cost discipline, and innovative product offerings position it well to capitalize on emerging opportunities in satellite communications and remote enterprise networking.