Sea Forest Limited’s 3Q26 revenue surged 92% to $1.1 million, boosted by expanding SeaFeed™ sales and a pioneering low-carbon wool launch with Theory. New cattle supply deals raise herd commitments to 131,000, underpinning growth amid supportive government policies.
- 92% revenue increase to $1.1 million in 3Q26
- Launch of low-carbon Regal Wool with global brand Theory
- New cattle supply agreements increase herd under contract to 131,000
- Net cash outflows improve 44% to $1.1 million
- Strong liquidity position with $8.4 million cash and $27.4 million total
Revenue Nearly Doubles on SeaFeed™ Expansion
Sea Forest Limited (ASX:SEA) posted a 92% jump in quarterly revenue to $1.1 million, driven by increased supplementation of its methane-reducing feed additive SeaFeed™. This marks a continuation of the company’s rapid commercial traction, following earlier reports of a 236% revenue surge in the first half of 2026. With 118,000 head of cattle under agreement at quarter-end, Sea Forest is steadily scaling its footprint in the Australian livestock sector, reflecting growing farmer adoption of emissions-cutting technology.
Operational efficiencies also improved, with net cash outflows from operating activities narrowing by 44% to $1.1 million. The company ended the quarter with a robust cash balance of $8.4 million and an aggregate liquidity position of $27.4 million, positioning it well to fund ongoing growth initiatives and regional distribution expansion.
Global Fashion Brand Debuts Low-Carbon Wool Collection
In a notable diversification beyond beef cattle, Sea Forest partnered with global fashion brand Theory, part of the Fast Retailing and Uniqlo Group, to launch the Regal Wool Collection. This initiative follows a scientifically verified 120-day pilot that achieved a 43% reduction in methane emissions from 2,000 Merino sheep supplemented with SeaFeed™. The wool collection represents one of the first luxury fashion lines to incorporate farm-level emissions reduction, underscoring increasing demand from multinational brands for scalable sustainability solutions.
Although revenue from wool remains modest compared to beef operations, the collaboration opens a pathway to broader supply chain integration for Sea Forest, leveraging Fast Retailing’s global reach. This milestone highlights the product’s potential beyond traditional feedlots, as Sea Forest explores new markets and applications for its proprietary seaweed-based additive.
New Supply Agreements Expand Herd Commitments
Post-quarter, Sea Forest secured two exclusive supply agreements that add 13,000 head of feedlot cattle to its customer base, lifting total cattle under agreement to 131,000. The 12-month deal with Avondale Ag covers 5,000 feedlot cattle, while a 36-month agreement with New Agriculture includes 8,000 feedlot cattle plus potential expansion into a 200,000-head grazing system across Northern and Southern Australia. This latter deal represents a significant advance into Australia's extensive grazing sector, potentially scaling SeaFeed™ adoption well beyond feedlots.
These agreements build on the company’s earlier successes, including surpassing breakeven cattle commitments and signing international partnerships, as documented in prior quarterly updates. The Newcastle distribution facility under construction is expected to support this growth and is on track for commissioning by the end of FY26.
Government Policy Provides Tailwind for Methane Reduction
Sea Forest’s CEO Sam Elsom highlighted the Australian Government’s prioritisation of a new Australian Carbon Credit Units (ACCU) method for methane-abating livestock feed additives as a potential game changer. This policy development could enhance the commercial case for SeaFeed™, incentivising producers to adopt the technology and supporting demand growth over time. Regulatory recognition of feed additives aligns with Sea Forest’s strategy to scale product commercialisation and market penetration.
The company’s disciplined use of funds aligns closely with its prospectus allocations, focusing on capital expenditure for production expansion, product innovation, and working capital. With $27.6 million of prospectus funds remaining, Sea Forest maintains financial flexibility to support its strategic objectives.
Sea Forest’s progress continues to attract attention amid a competitive landscape of agricultural emissions solutions. Its ability to translate scientific validation into commercial partnerships across diverse livestock sectors will be critical to watch as it moves into the final quarter of FY26.
SeaFeed revenue jumps 236% and 118,000 cattle committed to SeaFeed™ illustrate the firm’s growing market footprint, while the company’s earlier $20.5M IPO fuels global rollout set the financial foundation for this expansion.
Bottom Line?
Sea Forest’s expanding herd commitments and high-profile wool collaboration signal growing market traction, but scaling beyond feedlots and converting policy tailwinds into sales will be key challenges ahead.
Questions in the middle?
- Can Sea Forest translate its low-carbon wool pilot into significant revenue growth?
- How quickly will the new ACCU method influence farmer adoption of SeaFeed™?
- Will the Newcastle distribution centre accelerate SeaFeed™ penetration into Australia’s grazing sector?