Sea Forest Limited (ASX:SEA) reported a spectacular 486% surge in SeaFeed revenue for FY26, underpinned by 131,000 cattle committed, surpassing breakeven targets, and a robust $27.8 million cash buffer. The company advances its commercial footprint domestically and internationally, with carbon credit revenue set to kick off in late 2027.
- SeaFeed revenue jumps to $5 million in FY26
- 131,000 cattle under contract surpass breakeven threshold
- Underlying EBITDA loss narrows 50% to $3.1 million
- New Newcastle distribution centre commissioned
- Carbon credits expected to generate revenue from 3Q27
Revenue Surge Driven by Accelerated Cattle Induction
Sea Forest Limited (ASX:SEA) has delivered a striking leap in its flagship product SeaFeedTM revenue, soaring 486% to nearly $5 million in the fiscal year ended June 30, 2026. This surge reflects rapid commercial adoption, with 131,000 cattle now committed under supply agreements, comfortably exceeding the company’s breakeven target for cash flow. Revenue recognition aligns with progressive cattle induction schedules, highlighting sustained operational momentum rather than one-off contract signings.
Improved Profitability Metrics Amid Increased Investment
Underlying EBITDA losses narrowed by half to $3.09 million, driven by revenue growth offset partially by increased raw material costs and a 17% rise in operating expenses excluding one-off IPO costs. The company’s R&D spend climbed 63%, underpinning ongoing scientific validation, new delivery formats, and early-stage aquaculture research. Statutory net losses narrowed 40% to $5.42 million, reflecting a cleaner asset base following the divestment of non-core marine operations.
Strategic Expansion and Production Capacity Boost
Sea Forest’s operational footprint is expanding with the commissioning of its first regional mixing and distribution centre in Newcastle, NSW, poised to service an additional 300,000 cattle head. This facility is expected to commence production dispatches imminently, enhancing supply chain efficiency. Internationally, the company has entered South America via a partnership with Brazil’s Belterra Agroflorestas, the world’s largest livestock market, pending regulatory approvals. An exclusive manufacturing and distribution deal with Japan’s Oisix Ra Daichi further cements its global ambitions.
Carbon Credits and Market Trials Open New Revenue Streams
Sea Forest is progressing its Verra-registered carbon project, targeting methane emission reductions certified for carbon trading. This initiative is anticipated to generate new revenue streams from the third quarter of 2027. Domestically, a multi-year commercial-scale trial involving Woolworths Group, DIT AgTech, and Teys Australia aims to unlock access to Australia’s 30 million-head grazing cattle market. Additional commercial trials with Mainstream Aquaculture signal potential expansion beyond livestock into aquaculture feed additives.
Robust Balance Sheet Supports Growth Trajectory
Sea Forest’s balance sheet remains strong with $27.76 million in cash and deposits, bolstered by a $20.5 million IPO completed in November 2025. Operating cash outflows improved 22% year-on-year to $4.64 million, aided by increased customer receipts and a $1.86 million R&D tax incentive refund. The company’s net assets rose to $39.75 million, providing a solid financial foundation for scaling production capabilities and pursuing international regulatory approvals in key jurisdictions including the EU, UK, and Brazil.
Bottom Line?
While Sea Forest’s FY26 results showcase robust commercial traction and a path to breakeven, the company’s international expansion and carbon credit monetisation remain contingent on regulatory approvals and market adoption in FY27.
Questions in the middle?
- How swiftly will regulatory approvals in Brazil, the EU, and the UK translate into commercial sales?
- What impact will the launch of new SeaFeed delivery formats have on customer adoption rates?
- How significant will carbon credit revenues be relative to SeaFeed product sales from 3Q27 onwards?