Sea Forest Limited accelerated its commercial momentum in 4Q26 with an 83% revenue increase to $2.1 million, underpinned by new cattle supply agreements and the commissioning of its first regional distribution centre in Newcastle.
- Revenue up 83% to $2.1 million in 4Q26
- 131,000 cattle under SeaFeed agreements, up 11%
- New exclusive supply deals with Avondale Ag and New Agriculture
- Newcastle distribution centre commissioned to enhance logistics
- Commercial-scale aquaculture trials underway with Mainstream Aquaculture
Quarterly Revenue Growth Accelerates
Sea Forest Limited (ASX:SEA) reported a significant 83% jump in revenue for the June quarter, reaching $2.1 million. This surge reflects expanding volumes of its methane-reducing feed additive SeaFeed™ across an increasingly diverse customer base. The company now has 131,000 head of grain-fed cattle under agreement, marking an 11% rise from the previous quarter and signalling growing industry adoption.
Strategic Customer Agreements Expand Market Reach
Key to this growth were new exclusive supply agreements with Avondale Ag and New Agriculture. Avondale Ag, a family-owned operation in Rowena, NSW, committed to supplementing approximately 5,000 feedlot cattle with SeaFeed™, targeting full induction by October 2026. New Agriculture, a global investment manager focused on climate-conscious assets, inked a 36-month deal covering three cattle operations, including an 8,000-head feedlot, a 25,000-head Wagyu grazing operation, and a 198,000-head northern pastoral enterprise. This deal notably extends SeaFeed™’s footprint into Australia’s vast grazing sector, which houses millions of cattle.
Newcastle Distribution Centre Commissioned to Scale Operations
Sea Forest marked a major operational milestone with the commissioning of its first regional mixing and distribution centre in Newcastle, NSW. The 1,500 square metre facility can process and distribute up to 5,000 tonnes of SeaFeed™ annually, enabling more timely and cost-effective deliveries. Positioned to serve New South Wales and Queensland; regions that together hold 62% of Australia’s national cattle herd; the centre is expected to support an additional 300,000 head, significantly enhancing the company’s supply chain efficiency and customer service.
Diversifying into Aquaculture with Early-Stage Trials
Broadening its environmental technology scope, Sea Forest has initiated commercial-scale trials with Mainstream Aquaculture, a leading barramundi producer in Victoria. The trials aim to assess the benefits of incorporating Asparagopsis seaweed compounds into formulated feed, following promising research from the University of the Sunshine Coast and Deakin University that demonstrated growth improvements in salmon and barramundi. While still preliminary, this development hints at Sea Forest’s potential to expand beyond ruminant livestock into aquaculture markets.
Strong Financial Position Supports Growth Trajectory
Sea Forest closed 4Q26 with a robust cash balance of $12.6 million, up from $8.4 million in the prior quarter, and maintained a total liquidity position of $27.6 million. Net cash inflows from operating activities reached $0.7 million, buoyed by a $1.9 million R&D tax incentive refund. Capital expenditure remained modest at $658,000 for the period, preserving substantial unused funds earmarked for production expansion, product innovation, and working capital. This financial strength provides a solid runway for scaling SeaFeed™ nationally and advancing the company’s broader climate solution ambitions.
Bottom Line?
Sea Forest’s expanding cattle agreements and new distribution hub position it well for scaling, but execution of aquaculture trials and grazing sector penetration will be key to sustaining momentum.
Questions in the middle?
- How quickly will Sea Forest convert New Agriculture’s large grazing operations onto SeaFeed™?
- What commercial impact will the Newcastle distribution centre have on operating costs and delivery times?
- Can Sea Forest’s aquaculture trials translate into a viable new revenue stream beyond livestock feed?