Parkway’s Perth Restructure and Project Delays Pose Near-Term Profitability Questions

Stable Operating Performance Sets Stage for Record H2

Parkway Corporate Limited (ASX, PWN) has delivered a stable operating quarter, generating $3.64 million in revenue for the December 2025 period and achieving breakeven EBITDA. While a site access delay deferred some revenue recognition, the company remains on track for a record second half of FY26, driven by accelerating project execution, particularly on a $16 million municipal resource recovery contract.

Strategic Investments and Operational Restructuring

To support this growth, Parkway has invested significantly in plant, equipment, and vehicles, including specialised telehandlers, enhancing its project delivery capabilities. Concurrently, the company is restructuring its Perth operations to align with strategic priorities, resulting in some redundancies but positioning the division for improved profitability and scalability.

Advancing the Queensland Brine Management Complex

A major highlight is Parkway’s progress on the Queensland Brine Management Complex (QBMC), a flagship project addressing waste brine challenges from the coal seam gas industry. The company secured a 10-hectare site in Central Queensland, central to the coal seam gas operations, and lodged a development application with the Western Downs Regional Council. This application has now advanced to the information and referral stage, including referral to the Queensland Government’s State Assessment & Referral Agency.

The QBMC is designed as an integrated facility combining brine pre-treatment, concentration, and electrochemical conversion into valuable green industrial chemicals. Parkway’s proprietary technologies underpin this complex, which aims to process up to 75,000 tonnes of salts annually in its initial stages, with potential to scale to industry-wide capacity. Early technoeconomic evaluations suggest a robust business case with a net present value exceeding $2 billion and internal rates of return above 30% at full scale.

Corporate Developments and Financial Position

On the corporate front, Parkway is navigating board changes following the retirement of Chairman Stephen van der Sluys, with Non-Executive Director Ayten Saridas stepping in as interim chair. The company maintains a solid financial footing, holding $1.91 million in cash reserves and access to a $4 million loan facility. Operating cash flow remains positive on a rolling 12-month basis despite short-term pressures.

Parkway continues to invest in research and development through its Industrial Technology division, focusing on commercialising innovative water treatment technologies with applications beyond coal seam gas, including mining and industrial sectors.

Looking Ahead

With a strong project backlog, ongoing feasibility studies for QBMC, and strategic partnerships in discussion, Parkway is poised for accelerated growth in the coming months. The company’s upcoming investor webinar scheduled for 30 January 2026 will provide further insights into its progress and outlook.