Volt’s ATEN Project and EcoQuip Expansion: Risks and Rewards Ahead

Robust Revenue Growth Amidst Operational Momentum

Volt Group Limited (ASX – VPR) has delivered a strong operational update for the third quarter of fiscal 2025, posting record year-to-date ordinary revenue receipts of $4.01 million, marking a 9.9% increase compared to the same period last year. The quarter itself saw revenue receipts surge 170% year-on-year to $1.85 million, underscoring the company’s accelerating commercial traction.

The revenue uplift was primarily driven by the Wescone and EcoQuip divisions. Wescone, the proprietary OEM of the W300 sample crusher widely used in the iron ore and assay laboratory sectors, contributed $1.27 million in Q3 revenue, a significant jump from $0.47 million in the previous quarter. This growth reflects a rebound from a softer first half and is supported by approximately $0.8 million in secured customer orders slated for delivery before the end of 2025, positioning Wescone for a strong Q4 performance.

EcoQuip’s Sustainable Innovation Gains Traction

EcoQuip, Volt’s zero-emission Mobile Solar Light & Communications Tower (MSLT) business, maintained steady growth with $0.58 million in Q3 revenue, up modestly from $0.52 million in Q2. The company completed a 30% fleet expansion to 130 MSLT units during the quarter and targets deploying 30 units by early 2026. Notably, EcoQuip transitioned its demonstration trial with Westgold Resources Limited into a long-term vendor relationship, expanding the deployed fleet to 10 units and receiving additional deployment requests.

The EcoQuip MSLT offers a compelling value proposition by delivering approximately 50% cost savings compared to traditional diesel-fueled lighting plants, alongside zero operating and maintenance expenses and significant emissions reductions. Its robust design, developed in partnership with US military and aerospace experts, ensures mission-critical reliability, making it an attractive solution for mining and energy customers focused on electrification and sustainability.

Advancing ATEN Waste Heat to Power Amid Energy Transition

Volt continues to advance its ATEN Waste Heat to Power technology, a zero-emission solution designed to harvest low-grade industrial waste heat to generate baseload electricity at a fraction of the cost of solar and battery alternatives. The company submitted a comprehensive FEED study proposal to Synergy, Western Australia’s government-owned electricity retailer, for a feasibility study at the 200MW Kwinana Power Station. This project aligns strategically with the Australian Federal Government’s Future Gas Strategy, which recognises the critical role of gas-fueled power generation in maintaining grid security during the energy transition.

The ATEN system promises levelized costs of electricity up to 50% lower than comparable solar and battery solutions, with additional benefits including hydrogen co-firing capability and eligibility for Safeguard Mechanism Credits under new emissions legislation. While discussions with Synergy and other power station owners are ongoing, successful commercialization of ATEN could position Volt as a key player in Australia’s evolving energy landscape.

Financial Position and Outlook

Volt’s cash position strengthened to $2.1 million at the end of September 2025, supported by strong operating cash flows and reduced capital expenditure following the EcoQuip fleet expansion. The company also received a $0.56 million R&D tax rebate for FY24, further bolstering liquidity. With Wescone’s robust order book and EcoQuip’s expanding deployments, Volt is well positioned to sustain momentum into Q4 and beyond.

Overall, Volt Group’s operational update reflects a company successfully navigating the intersection of industrial technology, clean energy, and mining equipment innovation. Its proprietary solutions not only deliver cost efficiencies but also align with broader environmental, social, and governance (ESG) imperatives that are increasingly shaping investment and procurement decisions.