Carbonxt Posts 7.1% Revenue Growth and Narrows EBITDA Loss in FY25

Solid Revenue Growth and Margin Expansion

Carbonxt Group Limited has delivered a notable financial turnaround in FY25, with group revenue rising 7.1% to $16.2 million. This growth was primarily driven by strong sales of Powdered Activated Carbon (PAC), supported by long-term contracts including with ReWorld Waste, and a recovery in Activated Carbon Pellet (ACP) volumes in the second half of the year. The company’s gross margin surged to 52%, a significant improvement from 38% in FY24, reflecting better pricing, an improved product mix, and ongoing cost optimisation at its Arden Hills and Black Birch facilities.

EBITDA Loss Narrows Amid Operational Improvements

Underlying EBITDA losses shrank dramatically to $0.46 million, compared to a $3.13 million loss the previous year. Notably, Carbonxt achieved positive EBITDA in every month of the second half of FY25, signaling operational momentum. The net loss before tax also narrowed by 17% to $6.7 million, underscoring the company’s progress toward profitability despite ongoing challenges.

Kentucky Facility Nears Commissioning but Faces Delays

Carbonxt increased its ownership in the Kentucky-based NewCarbon Processing, LLC facility to 43.7% during the year, investing an additional US$2.25 million. Mechanical completion has been achieved, but commissioning has been delayed due to unexpectedly complex kiln insulation works. The kiln, a critical component for production expansion, requires extensive modifications to meet temperature specifications, pushing back the timeline by several weeks. Once operational, this facility is expected to triple Carbonxt’s production capacity and enable entry into the larger liquid-phase activated carbon market.

Regulatory Tailwinds Bolster Market Opportunity

Carbonxt’s growth prospects are underpinned by regulatory developments in the United States. The US Environmental Protection Agency (EPA) has reaffirmed strict standards for PFAS chemicals, including PFOA and PFOS, which are driving increased demand for activated carbon products to treat contaminated water supplies. Utilities and industrial customers are accelerating procurement plans, seeking reliable domestic suppliers amid rising trade barriers. Carbonxt’s US production footprint and sustainable product offerings position it well to capitalise on this expanding market, forecasted to grow at 5–9% annually through 2030.

Capital Management and Strategic Outlook

To support working capital, Carbonxt completed a $1.0 million convertible note raise in June 2025 and launched a fully underwritten Loyalty Option entitlement offer post year-end to raise approximately $0.7 million. Looking ahead, the company aims to commission the Kentucky facility, expand its share of the PFAS treatment market, and maintain cost discipline to build on the EBITDA turnaround. While the net loss remains material, the operational progress and regulatory environment provide a cautiously optimistic outlook for FY26.