Energy Technologies Reports $10.99M FY2025 Loss on 37% Revenue Drop

Financial Overview

Energy Technologies Limited (ASX – EGY) has released its preliminary final report for the fiscal year ending 30 June 2025, revealing a consolidated net loss after tax and minority interests of $10.99 million. This marks a slight deterioration from the prior year’s $10.54 million loss, underscoring ongoing financial pressures within the specialist and industrial cables sector.

Revenue from operating activities fell sharply by 37% to $8.07 million, a decline attributed primarily to a strategic repositioning of the company’s business model. The shift focused on refining product mix and prioritising higher-margin offerings, particularly within the renewable energy sector, which has temporarily reduced sales volumes but aims to improve long-term profitability.

Operational and Strategic Developments

The company’s wholly owned subsidiary, Bambach Wires and Cables Pty Ltd, reported a reduced loss of $8.49 million compared to $9 million the previous year. This improvement, though modest, reflects operational discipline in maintaining margins despite lower sales. Bambach’s transition to a new manufacturing facility in Rosedale, Victoria, and the ongoing construction of a silicone line shed are key capital investments expected to enhance capacity and efficiency once completed in FY2026.

However, cash flow constraints have limited the company’s ability to fully capitalise on these operational changes. Energy Technologies reported a net current asset deficit of $16.1 million and an equity deficiency of $14.1 million, highlighting liquidity challenges. The company’s balance sheet shows significant borrowings, including convertible notes and short-term loans, with some facilities maturing within the next 12 months.

Capital Management and Going Concern

Despite these headwinds, the board remains confident in the company’s going concern status. Post-year-end activities include a share placement raising equity through the conversion of $1.5 million in short-term loans and the receipt of unsecured loans totaling $1.85 million. Management is actively pursuing further capital raising initiatives and is in discussions to renegotiate or extend debt facilities.

The directors emphasise that the revised business plan is beginning to yield positive signs, with an increase in tender opportunities and a recent contract award for cable supply linked to a significant infrastructure project in New South Wales. The company’s order book remains robust, and operational margins have been preserved, suggesting a pathway to improved cash flow once production capacity at Rosedale is fully realised.

Outlook and Risks

Energy Technologies’ future hinges on successful execution of its strategic repositioning and capital management. The company acknowledges material uncertainty regarding its ability to continue as a going concern should revenue growth or capital raising efforts falter. Nonetheless, the board’s confidence is underpinned by a history of capital market support and ongoing operational improvements.

Investors will be watching closely for the audited financial statements and updates on capital structure initiatives, as well as progress in scaling manufacturing operations and securing further contracts in the renewable energy sector.