Carbonxt Group Ltd (ASX: CG1) (“Carbonxt” or the “Company”) has outlined a strong growth outlook for FY27, forecasting record revenue of at least A$22 million, representing a minimum 40% increase from FY26. The US-focused cleantech company highlighted expanding customer contracts, additional production capacity and ongoing progress at its Kentucky facility in its September 2026 Quarterly Activities Report, released on 30 October 2026.
Carbonxt develops and manufactures activated carbon products that remove harmful pollutants from industrial emissions and water. Its established US operations and long-standing customer relationships underpin the Company’s anticipated revenue growth.
Figure 1: Carbonxt’s US Manufacturing Network and the WPS Weston Power Plant [Carbonxt September 2026 Quarterly Activities Report]
Contracted Customer Demand Supports Record Revenue Outlook
Carbonxt expects FY27 revenue to reach at least A$22 million, compared with A$15.7 million in FY26. The Company expects revenue across the remaining three quarters of FY27 to increase 66% compared with the corresponding period last year.
Managing Director Warren Murphy commented:
“Carbonxt heads into the remainder of FY27 with substantial growth, which is expected to lead to a record year. The growth is contracted, sustainable and grounded in our strategic position as the only US manufacturer of AC pellets to the industrial market, with more growth to come as the Kentucky facility comes online”.
The forecast reflects increased customer orders and existing manufacturing operations. Importantly, Carbonxt has excluded potential Kentucky revenue from its FY27 guidance, leaving scope for additional growth once commissioning concludes.
Wisconsin Public Service Expands Activated Carbon Pellet Orders
Carbonxt secured a substantial increase in Activated Carbon Pellet (ACP) orders from Wisconsin Public Service (WPS), its largest customer.
The expanded order represents a 60% increase in FY27 volumes compared with FY26 and supports higher operating activity at the Weston Power Plant.
Carbonxt has supplied WPS since 2016 under a life-of-plant agreement. WPS has indicated that Weston will operate until at least 2032, providing visibility over future demand.
The Company also extended another major pellet customer’s contract for three years on improved commercial terms. This arrangement could contribute approximately A$2 million in additional FY27 revenue.
Reworld Agreement Strengthens Powdered Carbon Business
Carbonxt expanded its supply agreement with Reworld Waste LLC in October 2026, adding four US waste-to-energy facilities from 1 January 2027.
The expansion will increase Reworld’s annual powdered activated carbon (PAC) purchases by approximately 25%, bringing the number of facilities supplied to 21.
Carbonxt expects the additional volumes to contribute approximately A$1 million in FY27 revenue. The agreement runs until December 2028.
The Company supplies PAC from its Black Birch facility in Georgia, where its products remove mercury, dioxins and furans from industrial emissions.
Figure 2: Original Black Birch manufacturing facility photograph [Carbonxt October 2026 Investor Presentation].
US Manufacturing Expansion Strengthens Production Capacity
Carbonxt continues to increase manufacturing efficiency across its existing facilities.
At Black Birch, the Company plans to install an additional mill by the third quarter of FY27. The approximately A$1.1 million investment should double annual production capacity from around 6,000 tons to 12,000 tons.
Meanwhile, Carbonxt completed the relocation of its pellet manufacturing operations from Arden Hills to Albertville, Minnesota.
The new facility provides approximately 12% additional production capacity and reduces monthly operating costs by around US$10,000.
The relocation temporarily disrupted September-quarter production but positions Carbonxt to fulfil increasing contracted orders.
Figure 3: Photograph of Carbonxt’s Albertville activated carbon pellet manufacturing facility [Carbonxt October 2026 Investor Presentation].
Kentucky Facility Advances Towards Commissioning
Carbonxt continues to progress its Kentucky activated carbon facility through NewCarbon Processing, LLC.
The facility will introduce granular activated carbon production and expand the Company’s exposure to water purification and liquid-phase treatment markets.
Following equipment-related delays, the final replacement kiln components arrived during the week commencing 26 October 2026. Repair and testing activities have commenced.
Carbonxt has invested US$9.75 million in NewCarbon, securing a 49.4% ownership interest.
The Company forecasts that Kentucky could increase group sales by approximately 200% over two years once operational, although commissioning and commercial milestones remain outstanding.
Figure 4: Original aerial photograph of NewCarbon’s Kentucky facility and replacement kiln heater [Carbonxt September 2026 Quarterly Activities Report]
September Quarter Financial Performance and Balance Sheet Restructuring
Carbonxt reported September-quarter revenue of A$3.3 million, compared with A$4 million in the preceding quarter.
The Minnesota relocation deferred approximately A$0.8 million in pellet sales, contributing to lower customer receipts and a net operating cash outflow of approximately A$1 million.
Cash holdings reached A$0.7 million at 30 September 2026.
The Company also progressed a two-stage balance sheet restructuring involving Phelbe Pty Ltd and PURE Asset Management.
Subject to required conditions and approvals, the restructuring could deliver up to A$11 million in cash funding and reduce senior debt by approximately A$5 million.
Shareholders will consider relevant resolutions at the Annual General Meeting on 9 November 2026.
Investors’ Outlook
Carbonxt’s investment outlook centres on contracted revenue growth, expanding US manufacturing capacity and the commercialisation of its Kentucky facility.
Its established customer relationships provide revenue visibility, while production efficiencies offer opportunities to strengthen profitability.
However, investors should monitor Kentucky commissioning delays, funding requirements, operating cash flow and shareholder approvals associated with the proposed restructuring.
Share Price and Market Capitalisation
| ASX Share Price Activity | Value [as at 12:36 pm AEDT, 30 October, 2026] |
|---|---|
| ASX Code | CG1 |
| Last Share Price | A$0.0655 |
| 1-Day Surge | +5.65% |
| Market Capitalisation | A$28.38 million |
With FY27 revenue expected to increase by at least 40%, Carbonxt enters the remainder of the financial year with substantial contracted demand. Successful execution across manufacturing, commissioning and financing will remain central to its longer-term growth prospects.
Disclaimer
This article has been prepared by Colitco in collaboration with Carbonxt Group Limited as part of a commercial content and investor communications arrangement. Colitco may receive compensation for the production and distribution of this content. This article is intended for informational purposes only and does not constitute financial product advice, investment advice, or a recommendation to buy or sell any securities. The content reflects information available at the time of publication and may not be updated. All figures, data and statements have been sourced from Carbonxt Group Limited’s official ASX announcements and publicly available sources. Readers should conduct their own independent research and seek professional financial advice before making any investment decisions. Past performance is not a reliable indicator of future results. Forward-looking statements are subject to risks and uncertainties, and actual results may differ materially from expectations.
Luke Carlino is a seasoned Copywriter, Content Strategist, and Social Media Manager specialising in Mining, Finance, and Business journalism. With more than a decade of industry experience, he brings rigorous editorial standards and commercial acuity to every project.
