Sprintex’s Revenue Soars 162% to A$2.7m on Landmark European Deal
Sprintex Limited reported a 162% surge in revenue to A$2.7 million for the half-year ending December 2025, driven by a landmark €15.6 million European contract. Despite this, the company posted a net loss of A$1.7 million, an improvement from the prior year, while raising $3.6 million to support global expansion.
- Revenue up 162% to A$2.7 million on €15.6m Mest Water order
- Net loss narrowed to A$1.7 million from A$3.6 million prior year
- Completed $3.625 million capital raise post period to reduce debt
- Manufacturing license secured in Malaysia for regional production
- Operational delays in Europe due to severe winter weather
Revenue Growth Driven by Landmark European Contract
Sprintex Limited has reported a significant uplift in revenue for the six months ended 31 December 2025, with sales rising 162% to A$2.7 million. This surge was largely underpinned by a €15.6 million (approximately A$27.4 million) purchase order from MW Techniek Systems B.V. (Mest Water) for 500 high-speed MVR compressor systems and 500 integrated PLC control systems. This contract marks Sprintex’s largest commercial agreement to date and signals a transition from technology validation to multi-year commercial deployment.
Narrowing Losses Amid Operational Progress
Despite the revenue growth, Sprintex recorded a net loss after tax of A$1.7 million, an improvement from a loss of A$3.6 million in the previous corresponding period. The company’s loss reduction reflects operational efficiencies and increased sales, although it continues to invest heavily in scaling production and expanding its market footprint. The company’s cash position remains tight, with only A$179,596 in cash at bank as of December 2025, highlighting ongoing liquidity challenges.
Capital Raising and Debt Reduction Strengthen Balance Sheet
Post period-end, Sprintex successfully completed a $3.625 million capital raising through a share placement and option exercises. The proceeds were primarily used to repay legacy loan facilities and partially reduce convertible debt, simplifying the company’s capital structure and enhancing financial flexibility. This funding boost is critical as Sprintex prepares for the production ramp-up required to meet its Mest Water contract obligations and pursue further commercial opportunities.
Expanding Global Footprint and Manufacturing Capabilities
Sprintex has made strategic advances beyond Europe, notably in India and China. In India, the company expanded its distribution partnership with Euroteck Environmental Pvt Ltd, securing additional purchase orders and launching larger-capacity jet blowers to address higher-value projects. In China, Sprintex entered a three-year private-label supply agreement with Guangdong Baode Technology Co., Ltd, valued at approximately A$9.4 million, targeting the world’s largest aquaculture market.
Operationally, Sprintex secured a manufacturing license for its Malaysian subsidiary, positioning the facility as a regional hub to improve lead times and cost competitiveness across Asia-Pacific. Initial production runs at the Malaysian plant have been validated, supporting the company’s readiness for scaled manufacturing.
Challenges and Risks: Weather Delays and Going Concern Uncertainty
Sprintex’s European operations have faced setbacks due to one of the coldest winters in the Netherlands in two decades, causing transport and commissioning delays. Mest Water has deferred deposits due in January and February 2026, reflecting the impact of these disruptions. Sprintex engineers are scheduled to resume site commissioning as weather conditions improve, aiming to catch up in spring 2026.
The company’s financial statements highlight a material uncertainty regarding its ability to continue as a going concern, given net liabilities exceeding A$3.2 million and ongoing cash outflows. However, the directors express confidence in the company’s multi-year contracts, funding arrangements, and growth strategy to navigate these challenges.
Bottom Line?
Sprintex’s landmark European order and capital raise set the stage for growth, but execution risks and financial pressures remain key watchpoints.
Questions in the middle?
- Will Sprintex meet its delivery and payment milestones under the Mest Water contract despite weather-related delays?
- How effectively can the Malaysian manufacturing hub scale production to support international demand?
- What is the outlook for Sprintex’s cash flow and funding needs beyond the current capital raising?
