Calix Posts 17% Revenue Rise and 23% Cost Cut in FY25

Financial Performance and Operational Efficiency

Calix Limited has delivered a solid financial performance for the fiscal year ended June 30, 2025, with product and services revenue climbing 17% to $28.2 million. This growth was primarily driven by the Magnesia business, which saw a 16% revenue increase, and the Leilac services segment, which grew by 19%. The company also achieved a notable 23% reduction in operating expenses in the second half of FY25 compared to the first half, reflecting a strategic focus on cost discipline and operational efficiency.

Despite a decrease in cash on hand from $43 million to $23 million, Calix successfully extended its cash runway to 18 months, bolstered by a $21 million net equity raise. The balance sheet remains essentially debt-free, positioning the company to continue funding its commercialisation efforts and project development.

Progress on Decarbonisation Projects

Calix is advancing several key projects aligned with its mission to decarbonise heavy industry. The company secured a $15 million grant from the Western Australian government for the Pilbara Minerals Joint Venture Mid-Stream Lithium Demonstration Plant, which is on track for completion in the December quarter of 2025. Additionally, a $44.9 million grant from the Australian Renewable Energy Agency (ARENA) supports the construction of the ZESTY Green Iron Demonstration Plant, subject to matched funding.

In the cement and lime sector, Calix’s Project ZETA received a $15 million grant in July 2024, also contingent on matched funding. The Leilac-2 project, a joint venture with Heidelberg Materials, has commenced early site works at its new location in Ennigerloh, Germany, although permitting delays may push completion into 2027. Meanwhile, the direct air capture initiative with Heirloom in Louisiana remains paused pending U.S. Department of Energy grant reviews.

Strategic Outlook for FY26

Looking ahead, Calix aims to sustain revenue growth across all business lines while maintaining stringent cost management. The company expects significantly reduced capital expenditure compared to prior years, reflecting a more focused investment approach. Key priorities include completing construction of the lithium Mid-Stream Demonstration Plant, securing financing and commencing engineering for the ZESTY Green Iron Demonstration Plant, advancing permitting and funding for Leilac-2, and finalising front-end engineering design for Project ZETA.

Calix’s technology platform, which enables electrification of industrial processes and capture of unavoidable emissions, continues to attract global interest amid growing regulatory support for decarbonisation. The company’s patent portfolio now covers 32 families, underpinning its unique value proposition across multiple industrial sectors including cement, steel, alumina, magnesia, and critical minerals.

Industry Recognition and Market Context

Calix’s innovative approach has garnered international recognition, including the Net-Zero Industry Award at COP29 for its ZESTY project and the Decarb Next Gen Award for industrial heat electrification. These accolades underscore the company’s role in addressing the hard-to-abate sectors of heavy industry.

However, the company faces challenges such as permitting delays, market uncertainties, and ongoing reviews of U.S. Department of Energy grants that impact project timelines. Nonetheless, supportive policy developments, including enhanced carbon capture tax incentives in the U.S. and growing emissions trading schemes across Asia-Pacific and Europe, provide tailwinds for Calix’s growth trajectory.