How Calix Is Driving Industrial Decarbonisation with New Revenue and Cost Cuts

Financial Performance and Cost Management

Calix Limited, the Australian environmental technology company focused on industrial decarbonisation, has delivered a robust FY25 financial performance. The company reported total revenue and other income of $33.9 million, marking an 11% increase from the previous year. Notably, product and services revenue grew by 17% to $28.2 million, driven by strong sales in its Magnesia and Leilac lines of business.

Alongside revenue growth, Calix implemented significant cost reduction measures, achieving a 23% decrease in operating costs in the second half of FY25 compared to the first half. These savings, amounting to approximately $8 million annually, were realized through streamlining operations, discontinuing non-priority activities, and reducing headcount. The company also anticipates a substantial reduction in capital expenditure for FY26, further strengthening its financial position.

Project Progress and Commercial Milestones

Calix made meaningful strides in advancing its core projects during FY25. The lithium Mid-Stream Demonstration Plant, developed in partnership with PLS, reached 80% completion and remains on budget, despite a brief pause in late 2024. This project benefits from a $15 million grant from the Western Australian Government, which enabled construction to resume early in 2025.

In sustainable processing, Calix secured a grant agreement with the Australian Renewable Energy Agency (ARENA) for up to $44.9 million to support the ZESTY Green Iron Demonstration Plant, a 30,000-tonne per annum hydrogen direct reduced iron facility. This grant is contingent on matching funding, highlighting the importance of continued capital raising efforts.

The company also progressed Project ZETA, targeting a near-zero emissions lime plant in South Australia, backed by a $15 million Australian Government grant, again subject to matching funds. Meanwhile, Leilac technology development continued with upgrades to pilot plants and pre-engineering studies, although some U.S.-based projects have been paused pending the outcome of Department of Energy funding reviews.

Operational Expansion and Market Reach

Calix’s Magnesia business saw revenue growth fueled by expanded operations in both Australia and the United States. New hydration facilities in Wisconsin and Texas enhanced production capacity and market penetration in the U.S., while in Australia, contracts with Unitywater and the City of Gold Coast were secured or renewed. The company also established a new operational facility in Queensland, with plans to increase capacity further in FY26.

Despite pausing development of bioactive magnesium materials for marine and agricultural applications, Calix retains the intellectual property and capability to revisit these promising markets in the future.

Outlook and Strategic Focus

CEO Phil Hodgson emphasized the company’s focus on revenue growth, cost discipline, and advancing commercial milestones amid a challenging regulatory and funding environment. The extended cash runway of 18 months, bolstered by a $21 million net capital raise, positions Calix to pursue independently funded projects and subsidiary funding rounds.

Looking ahead to FY26, Calix aims to complete construction of the lithium plant, secure financing and commence construction of the ZESTY plant, finalize permitting and funding for Leilac-2, and complete front-end engineering design for Project ZETA. These milestones will be critical in validating Calix’s technology platform as a leading solution for industrial decarbonisation.