PPK Group reported a statutory loss in FY25 driven by a significant non-cash impairment of its lithium-sulfur battery investment, while its ballistics division achieved record revenue and battery sales gained momentum from government programs.
- Craig International Ballistics posts highest revenue in 25 years at $48.1 million
- Significant non-cash impairment of Li-S Energy investment impacts statutory loss
- PowerPlus Energy launches new battery products benefiting from government subsidies
- Corporate restructuring simplifies group structure with deconsolidation of Li-S Energy
- July 2025 sales for PowerPlus Energy up 40% year-on-year, signaling growth potential
Strong Ballistics Performance Amidst Group Challenges
PPK Group Limited’s FY25 financial results reveal a tale of contrasting fortunes across its business segments. Craig International Ballistics (CIB) delivered an exceptional performance, recording its highest revenue ever at $48.1 million, a remarkable 116% increase on the prior year. This milestone underscores CIB’s successful investment in new manufacturing technology, including the Southern Hemisphere’s largest hydraulic press and an in-house R&D lab, positioning it well to capture further market share.
Battery Business Navigates Market Headwinds
Conversely, PowerPlus Energy (PPE) faced a challenging market environment, with revenues down 16% to $23.1 million. Despite this, PPE launched two Clean Energy Council-approved battery products, Eco4847P and Whispr-7, which are now available through the Australian Government’s Cheaper Home Batteries program. This initiative has already driven a 40% sales increase in July 2025 compared to the previous year, suggesting a promising trajectory for FY26.
Technical Advances and Strategic Moves in Lithium-Sulfur Technology
Li-S Energy (LIS), PPK’s lithium-sulfur battery arm, achieved a world-class energy density milestone of 456 Wh/kg for a commercial-sized cell and installed a lithium foil extrusion line co-funded by a government grant. However, the group recorded a substantial non-cash impairment of $16.8 million post-tax on its 39.24% LIS investment, following its deconsolidation from the group in October 2024. This accounting adjustment, driven by AASB 13 fair value measurement rules, contributed heavily to PPK’s statutory loss of $21.6 million.
Notably, LIS shares have rebounded post-year-end, suggesting a potential reversal of some impairment losses. PPK’s management emphasizes that their LIS stake is a strategic holding rather than a tradable share portfolio, hinting at longer-term value beyond current market prices.
Corporate Restructuring Simplifies Group Outlook
PPK undertook significant corporate restructuring during FY25, including the disposal of its 30% stake in Advanced Mobility Analytics Group and the reclassification of LIS as an associate. These moves aim to streamline the group’s financial statements and enhance transparency for shareholders and investors. The company’s chair, Anne-Marie Birkill, highlighted these changes as foundational for future growth and improved clarity in reporting.
Looking Ahead
While the statutory loss and impairments weigh on FY25 results, underlying operational progress across PPK’s subsidiaries, especially the strong momentum in ballistics and emerging battery technologies, provide a cautiously optimistic outlook. The government’s battery subsidy program and ongoing technological advancements could be catalysts for growth in FY26, provided market conditions stabilize.
Bottom Line?
PPK’s FY25 results reflect a pivotal year of transformation, setting the stage for potential recovery and growth amid evolving market dynamics.
Questions in the middle?
- Will PowerPlus Energy sustain its post-subsidy sales growth into FY26?
- How will LIS’s share price volatility impact future impairment assessments and PPK’s valuation?
- What are the strategic plans for further expansion or investment in Craig International Ballistics?