Carbonxt says an expanded order from its largest customer, Wisconsin Public Service, will help drive FY27 revenue more than 33% above FY26. The uplift comes before any contribution from the company’s Kentucky facility, but a two-week production disruption will weigh on the September quarter.
- WPS order expected to add at least 25% of FY26 revenue
- FY27 revenue forecast raised to more than 33% above FY26
- Gross margins expected to remain around current levels
- Production begins at the new Minnesota pellet facility
- Kentucky facility remains excluded from the outlook
Carbonxt Group Limited (ASX:CG1) has secured a meaningful lift from its biggest customer, with Wisconsin Public Service requesting additional activated carbon pellets for the Weston Power Plant. Carbonxt says the order alone represents at least 25% of its total FY26 revenue, helping push its FY27 revenue expectation to more than 33% above FY26.
WPS Order Reshapes FY27 Revenue Forecast
The additional volumes will be delivered from now through the end of FY27 and are intended to support increased operations at Weston, near Wausau, Wisconsin. Carbonxt has supplied WPS since 2016 and holds a long-term agreement covering the life of the plant, which WPS has publicly stated is expected to operate until at least 2032.
The pellets feed Weston’s ReACT emissions-control system, which uses activated coke to remove nitrogen oxides, sulphur oxides and mercury from coal-fired plant emissions. Carbonxt said gross margins on the new volume should remain at or around current performance, although the company’s FY27 revenue statement remains a forecast rather than reported financial performance.
Second Customer Adds to Existing Order Book
Carbonxt’s revised outlook also includes higher pellet volumes from a second major customer, which the company expects to contribute approximately $2.0 million of revenue in FY27. Management said two of its three largest pellet customers are now increasing volumes, giving the company greater visibility into the year ahead from its existing business.
The forecast assumes the full WPS order and the second customer’s increased volumes are delivered within FY27, powdered activated carbon volumes remain at current levels, and the Australian dollar trades at US$0.71. It excludes any revenue from the Kentucky facility, leaving that operation outside the current estimate rather than embedded in it.
Minnesota Production Starts Despite Relocation Disruption
Production for the WPS order starts immediately at Carbonxt’s new Minnesota pellet facility, following the relocation of production from Arden Hills. The move is expected to reduce monthly operating costs by approximately US$10,000 and creates room for lower-cost expansion, according to the company.
There is an immediate accounting wrinkle: the relocation caused a production and revenue reduction equivalent to about two weeks of output in the September 2026 quarter. Carbonxt expects that impact to appear in its first-quarter FY27 report, making that update the first useful test of the new site’s ramp-up and the timing of customer deliveries.
Bottom Line?
The revenue outlook now rests on execution: full delivery of two expanded customer programmes, stable powdered carbon volumes and a favourable enough exchange rate, while Minnesota absorbs the relocation impact.
Questions in the middle?
- How much of the expanded WPS volume will be delivered in each FY27 quarter?
- Will the Minnesota facility achieve the expected cost reduction without further production disruption?
- When will the Kentucky facility begin contributing revenue beyond the current forecast?