Carbonxt has added four US waste-to-energy facilities to its Reworld supply agreement, lifting annual Powdered Activated Carbon volumes by about 25% from January 2027. The expanded contract pushes the company’s FY27 revenue expectation to at least 40% above FY26, while Kentucky remains outside the forecast.
- Four additional Reworld facilities to transition to Carbonxt from 1 January 2027
- Annual Reworld PAC supply expected to increase by approximately 25%
- FY27 revenue now expected to be at least 40% higher than FY26
- A$1.1 million Black Birch mill investment to double capacity to about 12,000 tons
- Kentucky facility remains excluded from guidance while kiln testing continues
Reworld expansion lifts Carbonxt’s FY27 revenue target
Carbonxt Group Limited (ASX:CG1) has expanded its supply agreement with US waste-to-energy operator Reworld, adding four facilities from 1 January 2027 and increasing annual Powdered Activated Carbon (PAC) volumes to the customer by approximately 25%. The additional supply is expected to contribute about A$1.0 million in 2027 revenue, with gross margins around Black Birch’s current performance.
The deal marks a further step-up from the company’s previous FY27 forecast. Carbonxt had most recently expected revenue to rise by more than 33% over FY26, following a larger order from Wisconsin Public Service and higher volumes from a second pellet customer, as reported in its larger WPS order. It now expects FY27 revenue to be at least 40% above FY26, based entirely on existing business and customer commitments.
Black Birch capacity set to double
Carbonxt plans to spend approximately A$1.1 million from existing cash flow on an additional mill at its Black Birch facility in Swainsboro, Georgia. Installation is expected over the next two to three months, with the new equipment forecast to double production capacity to approximately 12,000 tons and provide redundancy across the site’s operations.
Black Birch PAC is used in Reworld’s thermomechanical treatment facilities to remove mercury, dioxins and furans from emissions. Carbonxt said the wood-based origin of the product has been an important factor in Reworld’s decision to expand the relationship. Full-scale deliveries began in October 2024 to 17 Reworld plants across the US, and Carbonxt remains part of Reworld’s Preferred Supplier Program.
Kentucky remains outside current guidance
The revenue outlook does not include any contribution from Carbonxt’s Kentucky facility, leaving potential upside dependent on the outcome of ongoing kiln testing. The company said replacement kiln parts are continuing to be installed and tested, with the final parts expected on-site from the kiln contractor during the week of the announcement.
That facility has been a recurring source of execution risk even as Carbonxt moves to expand its operating base: earlier coverage noted that replacement parts had arrived and retesting was under way in August, through the Kentucky kiln retesting. Carbonxt has not yet provided a completed testing result in this announcement, saying it will update the market after the work concludes. The FY27 forecast also assumes an AUD/USD exchange rate of 0.71, so the reported target remains exposed to both operational delivery and currency movements.
Bottom Line?
The upgraded outlook is supported by contracted demand, but the next test is whether Black Birch can add capacity smoothly while Kentucky remains unresolved and outside guidance.
Questions in the middle?
- Will the four Reworld facilities transition as planned from 1 January 2027, and will the additional volumes sustain current Black Birch margins?
- Can the new mill be installed and brought online without disrupting existing Black Birch production?
- When will Kentucky kiln testing conclude, and what commercial contribution could the facility make beyond the current FY27 outlook?