Carbonxt Reports Strong Q4 FY25, Nears Kentucky Launch Amid Rising PFAS Demand

 

Carbonxt Reports Strong Q4 FY25, Nears Kentucky Launch Amid Rising PFAS Demand

Cleantech innovator Carbonxt Group Ltd (ASX: CG1) has wrapped up FY25 with strong operational results and major progress toward commissioning its flagship Kentucky activated carbon facility. The June 2025 Quarterly Activities Report highlights steady revenues, improved cash flows, and accelerating market opportunities in the high-value liquid-phase carbon segment.



Kentucky Facility Nears Commissioning

In partnership with NewCarbon Processing, LLC, Carbonxt’s Kentucky plant is now in its final construction phase, with kiln insulation expected to be completed in August. Once operational, the facility will boost Carbonxt’s total production capacity by around 200%, enabling entry into the liquid-phase carbon market — a crucial area for water treatment applications.

The company recently increased its stake in the project to 43.7% through a US$1 million investment, the first tranche in a planned US$3.25 million funding commitment. Two further tranches remain optional and are expected to be covered through operational cash flow.

Rising Demand Driven by PFAS Regulations

Growing urgency around PFAS contamination — often referred to as “forever chemicals” — is fuelling demand for advanced water treatment solutions. The US EPA’s tightening regulations, requiring compliance by 2031, are prompting utilities to adopt activated carbon technologies for PFOA and PFOS removal.

With three US-based production facilities, Carbonxt is strategically positioned to meet this demand, offering both Powdered Activated Carbon (PAC) and Activated Carbon Pellets (ACP). These products are already seeing increased commercial engagement from municipal and industrial customers.

Q4 FY25 Financial Highlights

  • Quarterly Revenue: $4.3 million

  • Gross Margin: 47%

  • EBITDA: Positive for the second half of FY25

  • Operating Cash Outflow: Reduced to $266k (Q3: $367k)

Additionally, the company secured $1 million in funding via convertible notes from major shareholder Phelbe Pty Ltd, with a 9.5% interest rate and $0.08 conversion price.

Strategic Market Position

An estimated 70,000–80,000 tonnes of activated carbon are imported into the US each year, largely from China, India, and Sri Lanka. As US policymakers push for stronger domestic supply chains and consider tariffs on imports, Carbonxt’s role as a US-based producer becomes increasingly critical.

The Kentucky plant’s launch will allow Carbonxt to diversify its product range into high-margin liquid-phase applications, further reinforcing its competitive advantage.

Corporate Updates

  • Laura Newell appointed Company Secretary, bringing governance expertise.

  • Non-Executive Director Imtiaz Kathawalla stepped down after contributing to key strategic projects.

  • Head office relocated to Level 37, 180 George Street, Sydney.

Outlook for FY26

With commissioning of the Kentucky facility imminent, Carbonxt enters FY26 with strong tailwinds — a leaner cost base, steady product demand, and favourable regulatory momentum. The company aims to scale production, capture a larger share of the PFAS treatment market, and deliver improved financial performance.

About Carbonxt

Carbonxt Group Ltd is an environmental technology company producing high-quality activated carbon products for air and water purification. Through its PAC, ACP, and soon liquid-phase offerings, Carbonxt serves industrial and municipal clients across the US.

For more cleantech industry updates and investment news, visit Colitco.com — your source for global market insights.

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