PPK Group Posts 422% Profit Surge to $10.5M, Led by Li-S Energy Gain

A Remarkable Financial Turnaround

PPK Group Limited has delivered a striking financial performance for the six months ended 31 December 2025, reporting a profit after tax of $10.535 million compared to a loss of $3.273 million in the prior corresponding period. This 422% increase is largely attributed to a non-cash accounting gain of $12.9 million arising from the partial reversal of a prior impairment on its investment in Li-S Energy, a key associate in advanced battery technology.

Operational Highlights Across the Portfolio

Craig International Ballistics (CIB), in which PPK holds a 39% interest, continued its strong momentum, contributing an equity accounted profit of $1.4 million and delivering a $2.4 million dividend in July 2025. The company’s solid order book and active participation in international defence and security trade shows signal sustained demand and potential for further growth.

PowerPlus Energy, a controlled entity with a 75% stake, expanded its product range beyond small-scale commercial and industrial systems to include residential and larger commercial solutions. Its revenue grew 32% to $15.7 million in H1 FY26, alongside modest margin improvements, reflecting successful innovation and market penetration.

Li-S Energy made significant strides by producing Australia’s first lithium metal foils, validating its proprietary processing capabilities. The company secured a $7.8 million grant from the Australian Renewable Energy Agency (ARENA) to scale up advanced battery manufacturing and entered several international collaborations, including defence-focused partnerships. These developments underpin Li-S Energy’s ambitious Phase 4 manufacturing plant plans.

Strategic Portfolio Simplification

PPK’s decision to deconsolidate White Graphene Group (WGL) following its merger with BNNT Technology reflects a strategic move to simplify the group’s financial structure. PPK reduced its investment to 39.38%, reclassifying WGL as an equity-accounted associate. While WGL continues to develop applications and expand its international distribution, no material commercial outcomes have yet emerged.

Chair Anne-Marie Birkill emphasised that these portfolio adjustments, including the earlier deconsolidation of Li-S Energy, aim to make PPK’s financial statements more transparent and easier for shareholders to interpret. The underlying businesses’ strong performance and ongoing innovation provide a solid foundation for future growth.

Looking Ahead

With robust operational results and strategic clarity, PPK Group appears well-positioned to capitalise on emerging opportunities in advanced materials and energy storage. The company’s international partnerships, government grants, and product expansions suggest a positive trajectory, although the market will be watching closely for tangible commercial outcomes from its associates, particularly White Graphene and Li-S Energy.