Can Aquirian Overcome Ramp-Up Losses to Lead Mining Tech Transformation?
Aquirian Limited reported a 12.6% revenue increase to $26.07 million for FY25 but posted a $3.41 million statutory loss amid ramp-up costs and impairments. The company is advancing its Energetics and Technology divisions, including the Wubin Emulsion Facility and Collar Keeper® System.
- 12.6% revenue growth to $26.07 million
- Statutory loss after tax of $3.41 million due to ramp-up and impairments
- Wubin Emulsion Facility commissioning and ramp-up underway
- Collar Keeper® System progressing toward automation and broader rig compatibility
- $5 million capital raise supports facility upgrades and technology development
Financial Performance and Strategic Transition
Aquirian Limited (ASX, AQN) has released its audited financial results for the year ended 30 June 2025, revealing a mixed picture. The company achieved a 12.6% increase in revenue to $26.07 million, driven primarily by the ramp-up of its Western Energetics division and the Wubin Emulsion Facility. However, this growth was overshadowed by a statutory loss after tax of $3.41 million, reflecting significant ramp-up costs, depreciation, interest expenses, and non-cash impairments linked to the company’s strategic pivot away from underground heavy equipment operations.
The underlying loss, excluding these abnormal items, was $1.62 million, indicating operational challenges but also a clearer focus on core growth areas. EBITDA declined to $1.58 million from $2.7 million the previous year, impacted by fixed costs exceeding early-stage revenues at Wubin.
Growth Through Energetics and Technology
Aquirian’s strategic emphasis on its Energetics and Technology pillars is evident in the commissioning of the Wubin Emulsion Facility, a key milestone that enhances its integrated drill and blast solutions. The facility is already supplying two customers under commercial agreements, with further tenders active across Western Australia. The company’s $5 million capital raise in March 2025 has been earmarked to accelerate upgrades at Wubin and to fund technology development.
On the technology front, the Collar Keeper® System, designed to improve blast hole drilling quality and safety, has expanded compatibility to both Sandvik and Epiroc rigs. The automated version is in final workshop testing, with production trials slated for early FY26. This innovation, alongside the Wubin facility, positions Aquirian to deliver efficiency gains and strengthen its competitive edge in the mining services sector.
Operational and Financial Highlights
The company’s People Services division, including recruitment and training, maintained stable demand, supporting overall group resilience. However, the transition out of underground heavy equipment hire led to impairments totaling approximately $1.97 million, including goodwill and fleet write-downs. These moves align with Aquirian’s strategy to redeploy capital into its growth divisions.
Cash flow from operations remained positive at $1.16 million, supported by the capital raise and careful cash management. The balance sheet strengthened, with cash and equivalents rising to $6.85 million. Borrowings decreased slightly to $13 million, with all banking covenants met.
Governance, Remuneration, and Risk
The Board has initiated a 90-day strategic review to unlock the full potential of the Wubin facility, signaling a proactive approach to value maximization. Executive remuneration includes performance rights tied to compound annual growth rates in earnings per share and EBITDA, aligning management incentives with shareholder returns.
Key risks highlighted include the cyclical nature of the mining industry, reliance on specialist labour and key personnel, supply chain vulnerabilities for the Collar Keeper® product sourced from Asia, and operational risks inherent in remote and international markets.
Outlook
Looking ahead, Aquirian expects continued revenue growth and margin improvement as the Wubin facility scales production and the Collar Keeper® System moves into automation and broader commercialization. The company’s focus on ESG practices and innovation aims to build a resilient business capable of delivering long-term shareholder value.
Bottom Line?
Aquirian’s FY25 results mark a foundational year of transition and investment, setting the stage for growth but underscoring the challenges ahead in commercializing new technologies and scaling operations.
Questions in the middle?
- How will the 90-day strategic review reshape the Wubin facility’s growth trajectory?
- What is the timeline and market potential for the automated Collar Keeper® System’s commercial rollout?
- How will Aquirian mitigate supply chain and labour risks amid its international expansion plans?