Volt Group reported a 15% decline in Q2 FY25 revenue due to customer order timing delays but secured new Wescone orders pointing to a strong Q3 recovery. Meanwhile, EcoQuip and ATEN projects advanced with promising demonstrations and feasibility studies.
- Q2 FY25 ordinary revenue down 15% to $1.0 million
- Wescone secured ~$0.8 million in new July orders, indicating Q3 recovery
- EcoQuip expanded Mobile Solar Light & Communications Tower fleet by 30%
- ATEN Waste Heat to Power feasibility study completed for Kwinana Power Station
- Appointment of Hon. William Johnston to support commercialisation efforts
Operational Performance and Revenue Dynamics
Volt Group Limited (ASX, VPR) disclosed its Q2 FY25 operational update, revealing a 15% decline in ordinary revenue receipts to $1.0 million compared to $1.17 million in Q1. This dip primarily reflects timing delays in customer orders, notably within the Wescone business segment. Despite this, Wescone has secured approximately $0.8 million in new orders slated for July delivery, positioning the company for a rebound in Q3 revenue.
The company’s cash position stood at $1.4 million at the end of June 2025, reflecting disciplined capital management amid ongoing investments in product development and fleet expansion.
EcoQuip’s Strategic Fleet Expansion and Demonstrations
EcoQuip, Volt’s Original Equipment Manufacturer of Mobile Solar Light & Communications Towers (MSLT), progressed its market footprint with a 30% fleet expansion, advancing the build of 30 new units. The technology platform offers zero-emission, zero-maintenance illumination and communications solutions, delivering approximately 50% cost savings compared to traditional diesel-fuelled lighting.
Significantly, EcoQuip completed a demonstration at a Chevron-operated hydrocarbon refinery in Texas, attended by personnel from multiple US refinery sites. This demonstration underscores EcoQuip’s potential to penetrate industrial sectors with robust emission reduction and operational cost benefits. However, negotiations for further deployments remain ongoing with no certainty of completion, highlighting the challenges of navigating large customer procurement processes.
ATEN Waste Heat to Power Project Advances
The ATEN Waste Heat to Power project, a zero-emission baseload electricity generation solution, reached a key milestone with the completion of a definitive feasibility study for installation at Synergy’s 200MW Kwinana Power Station near Perth. The study highlights substantial benefits including a 10% capacity increase, 82,800 tonnes per annum Scope 1 CO2 emission abatement, and a capital payback period of four years.
This project aligns strategically with the Australian Federal Government’s ‘Future Gas Strategy’, which recognises the critical role of gas-fired power generation in maintaining energy security during the transition to renewables. Volt’s ATEN technology offers a cost-effective, scalable solution to enhance grid stability and reduce emissions.
Corporate Developments and Financial Discipline
In a strategic move to bolster commercialisation efforts, Volt appointed The Honourable William (Bill) Johnston, former Western Australia Minister for Energy, as a Non-Executive Director. His experience is expected to accelerate the rollout of Volt’s proprietary ATEN and EcoQuip technologies.
Financially, the quarter delivered a positive operating cash flow of $0.14 million, supported by ongoing research and development expenditure and capital investment in EcoQuip’s fleet. The company maintains a cautious but optimistic outlook, balancing growth ambitions with prudent cash management.
Bottom Line?
Volt’s Q2 challenges are tempered by promising order momentum and project milestones that could reshape its growth trajectory in the resource and energy sectors.
Questions in the middle?
- Will Wescone’s new orders translate into sustained revenue growth beyond Q3?
- How soon can EcoQuip convert ongoing demonstrations into firm commercial contracts?
- What are the next steps and timelines for the ATEN project’s commercial deployment at Kwinana?