Carbonxt Group Limited (ASX: CG1) (“Carbonxt” or the “Company”) has secured an increased Activated Carbon Pellets (AC Pellets) order from its largest customer, Wisconsin Public Service (WPS), strengthening revenue visibility into FY27 and highlighting growing demand from the US utility sector.
The additional order represents a minimum 25% increase on Carbonxt’s total FY26 revenue. Combined with higher pellet volumes from another major customer, the Company now expects FY27 revenue to exceed FY26 by more than 33%.
Figure 1: Activated Carbon Pellets [Carbonxt Group]
Wisconsin Public Service Increases Pellet Demand
WPS has requested additional AC Pellets to support increased operations at the Weston Power Plant near Wausau, Wisconsin. Carbonxt will deliver the additional volumes from now through to the end of FY27 under its standard 14-day payment terms.
The Company has supplied WPS since 2016 and holds a long-term contract covering AC Pellet supply for the life of the Weston Power Plant. WPS has publicly stated that the plant will operate until at least 2032, providing Carbonxt with an established long-term customer relationship and a substantial period of potential supply.
The AC Pellets support WPS’ ReACT (regenerative activated coke technology) emissions control system. The integrated technology targets multiple pollutants from coal-fired power generation, including Nitrogen Oxides (NOx), Sulphur Oxides (SOx) and mercury (Hg), through adsorption with activated coke.
Key points from the expanded WPS relationship include:
- WPS represents Carbonxt’s largest customer.
- Carbonxt has supplied WPS since 2016.
- The Company holds a long-term contract for AC Pellet supply for the life of the Weston Power Plant.
- WPS has stated that the plant will operate until at least 2032.
The expanded order therefore adds to an established supply relationship rather than relying on a newly acquired customer or an untested market opportunity.
Existing Customers Drive More Than 33% FY27 Revenue Growth
Carbonxt expects the increased WPS order to contribute at least the equivalent of 25% of its FY26 revenue. The Company has also identified additional growth from a second major pellet customer, with higher volumes expected to contribute approximately $2.0 million in FY27.
Together, these developments have lifted Carbonxt’s FY27 revenue expectation to more than 33% above FY26.
Importantly, the forecast comes entirely from the Company’s existing business. Carbonxt has based the outlook on several key assumptions:
- Full delivery of the increased WPS order during FY27.
- Increased volumes from the second major pellet customer.
- Powdered Activated Carbon volumes remaining at current levels.
- An assumed AUD/USD exchange rate of 0.71.
The Company expects gross margins on the additional pellet volumes to remain at or around current performance levels.
This gives Carbonxt increased visibility into its upcoming financial year before accounting for any contribution from its Kentucky facility.
Warren Murphy Highlights Stronger Customer Visibility
Carbonxt Managing Director Warren Murphy said the expanded order reflects the strength of the Company’s relationship with WPS and the growing demand across its major pellet customer base.
“This order reflects the strength of the partnership we have built with WPS over the past decade. Two of our three largest pellet customers are now increasing their volumes, which gives us clear visibility into FY27 at margins consistent with our recent performance. All of this comes from our existing business, and it sits ahead of the commissioning of our Kentucky facility, which remains additional upside.”
Murphy’s comments highlight several important elements of the Company’s current position. Two of Carbonxt’s three largest pellet customers have now increased their volumes, giving the Company greater visibility across its existing customer base.
The timing also positions the additional revenue opportunity ahead of the commissioning of Carbonxt’s Kentucky facility.
The Company has not included any contribution from Kentucky in its current FY27 revenue expectation. This means the facility remains an additional potential growth driver beyond the more than 33% FY27 revenue growth currently anticipated.
Figure 2: Carbonxt Managing Director Warren Murphy and his comment
New Minnesota Facility Begins Production
Carbonxt will commence production of the pellets supplied under the increased WPS order immediately at its new Minnesota pellet facility.
The Company is relocating pellet production from Arden Hills to the new site, following the move outlined in its June 2026 Quarterly Activities Report. The transition will temporarily affect production and revenue.
Carbonxt expects the relocation to result in a production and revenue decrease equivalent to approximately two weeks of production during the September 2026 quarter. The impact will appear in the Company’s 1QFY27 quarterly report.
However, the new Minnesota location should provide longer-term operating benefits. Carbonxt expects the facility to reduce monthly operating costs by approximately US$10,000 while also providing scope to expand production at a lower cost.
The move is expected to provide:
- Approximately US$10,000 in lower monthly operating costs.
- Lower-cost opportunities to expand the facility.
- Immediate production capability for the additional WPS order.
Carbonxt’s Activated Carbon Business
Carbonxt develops and markets specialised Activated Carbon products designed to capture contaminants from industrial processes that generate harmful pollutants.
The Company manufactures Powdered Activated Carbon and Activated Carbon Pellets for applications including industrial air purification, wastewater treatment and other liquid- and gas-phase markets.
The Company’s product portfolio supports applications across:
- Industrial air purification.
- Wastewater treatment.
- Liquid- and gas-phase treatment markets.
The WPS order demonstrates the role of the Company’s pellet business within industrial emissions-control applications, while the long-term supply relationship provides a foundation for continued sales to an established US utility customer.
Share Price Activity
Carbonxt’s latest market performance reflects positive momentum, with the shares trading at $0.0795 and gaining 6.00%.
| Share Price Metric | Performance (As of 12 pm AEST, 15 September, 2026) |
|---|---|
| Last Price | $0.0795 |
| Daily Change | +6.00% |
| 1 Month | +15.22% |
| 1 Year | +22.31% |
| vs ASX 200 (1yr) | +24.43% |
| Market Capitalisation | $34.45 million |
Over the past month, Carbonxt shares have risen 15.22%, while the stock has gained 22.31% over one year. The Company’s one-year performance compares with a 24.43% gain for the ASX 200 over the same period.
Investors’ Outlook
Carbonxt enters FY27 with stronger revenue visibility following the larger WPS order and increased volumes from a second major pellet customer. The Company expects these existing-business opportunities to drive FY27 revenue more than 33% above FY26, while maintaining gross margins at or around recent levels.
The WPS relationship also provides an important element of customer continuity, with Carbonxt having supplied the US utility provider since 2016 and holding a long-term contract for the life of the Weston Power Plant, which WPS has stated will operate until at least 2032.
Meanwhile, the new Minnesota facility is expected to lower monthly operating costs by approximately US$10,000 and provide lower-cost expansion capacity.
For investors, the key developments are:
- FY27 revenue is expected to be more than 33% higher than FY26.
- The increased WPS order represents at least 25% of FY26 revenue.
- A second major pellet customer is expected to contribute approximately $2.0 million in FY27.
- Gross margins on the additional volume are expected to remain around current performance.
- The Kentucky facility has not been included in the current FY27 revenue forecast and therefore remains additional upside.
Against this backdrop, Carbonxt’s upgraded FY27 outlook relies on its existing customer base and current operations, rather than assuming revenue from Kentucky. The combination of higher pellet demand, established customer relationships and additional production capacity gives the Company a clearer pathway into FY27.
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.
