Cleantech firm Carbonxt Group Ltd (ASX: CG1) (“Carbonxt” or “The Company”)has released its June 2025 Quarterly Activities Report, marking the end of a transformative financial year for the US-focused environmental technology company.
High-Quality Activated Carbon Pellets for Industrial Filtration [Carbonxt]
The highlight of the quarter was the near-completion of its flagship activated carbon facility in Kentucky, developed in partnership with NewCarbon Processing, LLC. Liquid-phase carbon production is set to begin as soon as kiln insulation wraps up in August.
Carbonxt Managing Director Warren Murphy said,
“Carbonxt ended FY25 with clear progress across multiple fronts — improved operating cash flow, stable product volumes, and a significant step forward at our Kentucky facility. The completion of kiln control systems and imminent commissioning marks a key inflection point in our strategy to enter the high-value liquid-phase carbon market.
At the same time, tightening US EPA regulations on PFAS contamination are bringing renewed urgency to water treatment infrastructure, and we’re seeing that reflected in increased commercial engagement with our products. With three production facilities in the US, a simplified cost base, and supportive market dynamics, Carbonxt is well-placed to deliver operational and financial growth in FY26 and beyond.”
Commissioning Progress at Kentucky
The Kentucky facility, once operational, is expected to increase Carbonxt’s production capacity by approximately 200%. During the quarter, Carbonxt increased its ownership in the project to 43.7%, following a US$1 million investment, the first of three remaining tranches totalling US$3.25 million.
Two further investments totalling US$2.25 million remain optional and are expected to be funded from cash flow. The plant’s progress has been closely watched by investors and industry observers, given the growing demand for domestic activated carbon supply chains in the US.
Financials and Operational Performance
Carbonxt reported $4.3 million in revenue for the quarter, with gross margins steady at 47%. The company recorded positive EBITDA throughout the second half of FY25, and operating cash outflow reduced to $266k (Q3: $367k).
The Company secured $1 million in funding through convertible notes from major shareholder Phelbe Pty Ltd. These notes carry a 9.5% interest rate and a conversion price of $0.08, with one unlisted option per share issued upon conversion, subject to shareholder approval.
On the product side:
- PAC (Powdered Activated Carbon) sales remained stable, supported by long-term contracts and rising regulatory requirements around PFAS.
- ACP (Activated Carbon Pellets) sales volume dipped slightly due to mix changes, although underlying demand from key customers has since normalised.
- Carbonxt achieved its previously forecast $7.2 million in H2 contracted revenue from ReWorld and WPS.
Tapping into Regulatory Momentum
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A significant growth driver ahead is the US EPA’s PFAS regulations, which require public water systems to monitor and comply with new limits on harmful substances like PFOA and PFOS by 2031. These chemicals, often dubbed “forever chemicals,” have been linked to serious health risks, prompting utilities to upgrade their treatment infrastructure. This has prompted a wave of investment in upgraded water treatment infrastructure.
Carbonxt’s PAC and granular activated carbon (GAC) technologies are well-suited for this space, and the company is already seeing heightened engagement from water treatment players seeking domestic, high-quality carbon solutions.
With an estimated 70,000 to 80,000 tonnes of activated carbon currently imported into the US annually, largely from China, India, and Sri Lanka, any move by the US government to expand tariffs or reinforce domestic procurement will directly benefit Carbonxt’s positioning as a US-based manufacturer.
Corporate Developments
Several corporate changes were announced this quarter.
- Laura Newell has taken over the role of Company Secretary, bringing deep governance expertise and familiarity with Carbonxt’s operations.
- Non-Executive Director Imtiaz Kathawalla has stepped down after playing a key role in strategic initiatives, including the Kentucky plant.
- Carbonxt’s head office has moved to Level 37, 180 George Street, Sydney, with updated contact details.
Looking Ahead to FY26
Carbonxt enters FY26 with strong momentum and clear growth drivers. The Kentucky facility is close to becoming operational, opening the door to the liquid-phase carbon market, a key step in expanding its product range and revenue potential.
With rising demand driven by new PFAS regulations and a growing preference for domestic suppliers, the company’s PAC and GAC technologies are well-positioned. A leaner cost base, steady PAC sales, and stable customer activity for ACP products further strengthen its outlook.
FY26 is set to be a pivotal year as Carbonxt focuses on scaling production, meeting rising demand, and delivering stronger financial performance.
Investor Outlook
Entry into the liquid-phase carbon market, a leaner cost base, and strong regulatory tailwinds are set to improve performance in FY26. With the Kentucky plant nearing production and demand rising for PFAS solutions, Carbonxt is positioned for growth.
Carbonxt (CG1) Shares Jump to $0.069, Marking 35% Surge in July [MarketIndex]
- As of July 31, 2025, Carbonxt Group Ltd (ASX: CG1) is trading at AUD 0.069 per share, within a 52-week range of AUD 0.043 to 0.083.
- The Company’s current market capitalisation stands at approximately $28.8 Million, with 418 Million shares on issue.
Bottom Line
As the company moves closer to first production at Kentucky, its role in the evolving activated carbon and PFAS remediation landscape appears set to expand significantly.
