Energy Technologies Reports 35% Cash Outflow Cut, $1.525M Debt Boost in 2Q FY2026

Improved Cash Flow Amidst Lower Receipts

Energy Technologies Limited (ASX – EGY), a specialist in industrial electrical cables, has reported a notable improvement in its cash flow management for the December 2025 quarter. The company achieved a 35.45% reduction in cash outflows compared to the same quarter last year, despite experiencing a 38.55% decline in cash receipts from customers compared to the previous quarter. This suggests a deliberate and effective effort by management to tighten operational spending and preserve liquidity.

The company’s focus on reducing working capital commitments aligns with its broader strategy to sustain operations while navigating a challenging market environment. The Board continues to scrutinise opportunities to resource the business appropriately and sustainably, reflecting a cautious but proactive approach to financial management.

Debt Funding and Financing Facilities

To bolster its working capital, Energy Technologies secured an additional A$1.525 million in debt funding during the quarter. This injection complements the company’s existing financing arrangements, leaving it with approximately A$8.9 million in unused financing facilities at quarter-end. These facilities include secured debtor finance, trade finance, equipment loans, and convertible notes, with varying maturity dates extending into 2027.

The diversity and scale of these financing options provide Energy Technologies with a buffer to manage short-term liquidity needs and support ongoing operations. However, the company’s reliance on debt, including high-interest loans and convertible notes, underscores the importance of the Board’s forthcoming capital management strategy to ensure long-term financial stability.

Operational Continuity and Outlook

Energy Technologies confirmed that its core activities, manufacturing and selling specialist industrial cables through its subsidiary Bambach Wires and Cables Pty Ltd, continued without substantive changes during the quarter. This operational consistency is critical as the company navigates its financial restructuring and capital optimisation efforts.

Looking ahead, the Board is finalising a capital management process to capitalise on emerging opportunities and will communicate updates to shareholders in due course. Investors will be watching closely for how these plans translate into improved cash flow generation and reduced reliance on debt financing.