Carbonxt Group Limited (ASX: CG1) (“Carbonxt” or the “Company”) has outlined its path into FY27 at its Annual General Meeting on 9 November 2026. Growing customer contracts, cash-generating operations and a Kentucky plant nearing first production anchor the Carbonxt FY27 outlook.
Carbonxt develops and manufactures activated carbon products that remove harmful pollutants from industrial emissions and water. Chairman Matthew Driscoll described FY26 as a year of real and measurable progress.
Contracted Customer Demand Underpins the FY27 Revenue Outlook
Carbonxt expects FY27 revenue of at least A$22 million, compared with A$15.7 million in FY26. That is growth of at least 40% from existing operations alone.
The Company has excluded Kentucky from this outlook. Any contribution from the new facility would add to it.
Chairman Matthew Driscoll commented:
“The Company enters FY27 in a materially stronger position than a year ago: existing operations substantially improved, with an agreed pathway to lower senior debt subject to the conditions set out below, and with our flagship growth asset close to first production.”
| Revenue Driver | FY27 Contribution |
|---|---|
| FY26 revenue (audited) | A$15.7 million |
| Wisconsin Public Service order | +A$3.9 million |
| Second pellet customer | ~A$2.0 million |
| Reworld expansion (from 1 January 2027) | ~A$1.0 million |
| FY27 expectation | At least A$22.0 million |
Table 1: Carbonxt FY27 revenue expectation.
Customer Contracts Expand Across Pellets and Powder
Carbonxt secured a three-year extension of a principal Activated Carbon Pellet (ACP) customer contract. It carries higher pricing and improved payment terms. Expected annual revenue from that contract rises by over 30%.
Figure 1: Carbonxt’s two core products and their principal markets.
Carbonxt also received a first purchase order from a new customer for a new ACP product. The product enters the steel industry, which has 152 electric arc furnace facilities in the US. Discussions on a long-term supply agreement are advancing.
US Manufacturing Expansion Strengthens Production Capacity
Carbonxt relocated its Minnesota pellet operations to a new site in the September 2026 quarter. The move lowers monthly operating costs by over US$10,000. It also adds about 12% in capacity, with no further capital spend required.
Figure 2: Black Birch PAC plant, Swainsboro, Georgia. [Carbonxt October 2026 Investor Presentation]
At Black Birch in Georgia, a new mill is expected in the third quarter of FY27. It should double capacity from about 6,000 tons to about 12,000 tons. The A$1.1 million cost is funded from cash flow. Black Birch also supplies Powdered Activated Carbon (PAC) to Reworld, which adds four plants from 1 January 2027.
Kentucky Facility Advances Towards Commissioning
Carbonxt is developing its Kentucky activated carbon facility through its jointly owned company, New Carbon Processing, LLC. Kiln construction is complete, and all outside works are finished. The bagging station, conveyors, storage silos, and on-site power station are installed and online.
Final replacement kiln parts arrived in the week commencing 26 October 2026. Repair and testing are underway. The kiln manufacturer is replacing the equipment at its own cost. Carbonxt has lifted its interest in New Carbon Processing to 49.4%, nearing its 50% objective.
Chairman Matthew Driscoll added:
“FY26 has put the pieces in place for a step change in the scale of this business, and we look forward to updating you as we deliver on the opportunities ahead.”
Figure 3: NewCarbon Processing plant, Inez, Kentucky, and replacement kiln heating units. [Carbonxt October 2026 Investor Presentation]
Kentucky Opens the Liquid-Phase Market
Kentucky takes Carbonxt into the liquid-phase activated carbon market. This segment is several times larger than its current air-phase focus. Once operational, the facility is expected to lift group sales by approximately 200% over two years.
Independent testing shows Inez activated carbon achieves 99% removal of PFOA, a widely regulated PFAS chemical. It also achieves 92% removal of geosmin, a compound that gives water an earthy taste. Both results outperform lignite and bituminous coal competitors.
| Kentucky Snapshot | Detail |
|---|---|
| Location | Inez, Kentucky |
| Carbonxt ownership | 49.4% of New Carbon Processing, LLC |
| Initial capacity | 10,000 tons per annum |
| Expansion potential | 20,000 tons per annum |
| Products | Granular and pelletised activated carbon |
| Target markets | Water utilities and PFAS treatment |
Table 2: Kentucky facility snapshot.
Regulation and Funding Support Long-Term Demand
In May 2026, the US EPA proposed upholding limits for PFOA and PFOS at 4 parts per trillion. It also proposed a two-year extension of the compliance deadline to April 2031.
The EPA released nearly US$1 billion in new grants, taking the programme to US$5 billion over five years. Activated carbon remains the most widely adopted treatment technology for PFOA and PFOS removal at scale. Demand is projected to grow at a 5–9% compound annual rate through 2030.
FY26 Operating Cash Flow and Balance Sheet Restructuring
Carbonxt recorded customer receipts of A$16.99 million for the period ended 30 June 2026. Net operating cash flow was positive at A$492,000. Full-year gross margins were approximately 47%.
On 3 July 2026, Carbonxt completed Stage 1 of a restructuring with Phelbe Pty Ltd and Pure Asset Management. It included A$3.5 million of new convertible notes, with A$2.0 million of new cash from Phelbe. Pure has agreed to provide covenant waivers to 31 December 2026. Stage 2 aims to reduce senior debt to approximately A$10 million.
Priorities for FY27
Carbonxt has set four clear priorities for the year ahead:
- Completing Kentucky commissioning, achieving the initial revenue milestone and entering the liquid-phase market
- Completing Stage 2 of the restructuring and removing all financial covenants
- Converting the new ACP purchase order into a long-term supply agreement
- Completing the Minnesota relocation and maintaining the operational discipline behind FY26 cash flow
Share Price and Market Capitalisation
- Last Share Price: A$0.062 per share
- Market Capitalisation: A$26.86 million
- 52-Week Range: A$0.115 to A$0.054 per share
The Carbonxt FY27 outlook combines contracted growth, lower operating costs and a near-term Kentucky catalyst. Existing customers are increasing volumes, and the restructuring supports the balance sheet.
Catalysts to watch include Kentucky commissioning, Stage 2 of the restructuring and a long-term supply agreement for the new ACP product. With contracts growing and Kentucky approaching first production, Carbonxt enters FY27 well placed.
More coverage of the Company is available in our Carbonxt archive.
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.
