Carbonxt Group Limited (ASX: CG1) (“Carbonxt” or the “Company”) has secured an expanded supply agreement with Reworld, strengthening its position in the US waste-to-energy sector and lifting its FY27 revenue growth forecast to at least 40% compared with FY26.
The agreement will bring four additional Reworld facilities into Carbonxt’s customer network from 1 January 2027, increasing annual powdered activated carbon (PAC) supply volumes to Reworld by approximately 25%.
The Company will fulfil the expanded agreement through its Black Birch facility in Swainsboro, Georgia. Carbonxt is also installing a new mill to increase production capacity and support higher customer demand ahead of the commissioning of its Kentucky facility.
Figure: Powdered Activated Carbon (PAC) plays a vital role in water purification, wastewater treatment, and industrial air emission control by effectively removing harmful contaminants.
As of 12:30 pm AEDT on 13 October 2026, Carbonxt shares traded at $0.073, up 4.29%, giving the Company a market capitalisation of approximately $31.63 million.
Expanded Reworld Agreement Adds $1 Million in FY27 Revenue
Under the expanded agreement, four additional Reworld waste-to-energy facilities in the United States will transition to Carbonxt’s PAC products from 1 January 2027. The additional supply volumes will continue for the remaining term of the existing contract, which expires in December 2028.
Carbonxt expects the expanded agreement to contribute approximately $1.0 million in revenue during FY27. The Company also anticipates that gross margins on the additional volumes will remain at or around Black Birch’s current performance levels.
The agreement builds on an established commercial relationship between the two companies. Carbonxt commenced full-scale deliveries under its existing contract in October 2024, supplying 17 Reworld waste-to-energy plants across the United States. The Company also participates in Reworld’s Preferred Supplier Program.
Carbonxt’s wood-based PAC helps Reworld remove mercury, dioxins and furans from emissions generated by its thermomechanical treatment facilities. The sustainable origin of Carbonxt’s product remains an important factor in Reworld’s decision to expand the relationship.
Key details of the expanded agreement:
| Agreement Detail | Information |
|---|---|
| Additional facilities | Four US waste-to-energy facilities |
| Commencement date | 1 January 2027 |
| Increase in annual PAC supply | Approximately 25% |
| Expected FY27 revenue contribution | Approximately $1.0 million |
| Contract term | Until December 2028 |
| Expected gross margins | Around current Black Birch performance |
FY27 Revenue Growth Forecast Increases to at Least 40%
The expanded Reworld agreement strengthens Carbonxt’s revenue outlook for FY27, building on previously announced customer commitments.
On 15 September 2026, the Company forecast revenue growth of more than 33% compared with FY26, supported by increased volumes from a second pellet customer and a larger Wisconsin Public Service (WPS) order. The latest Reworld expansion, alongside other additional customer commitments, has lifted the forecast to at least 40% year-on-year revenue growth.
| Revenue Outlook | Previous Forecast | Updated Forecast |
|---|---|---|
| FY27 revenue growth vs FY26 | More than 33% | At least 40% |
| Basis | Existing business and previously announced customer commitments | Existing business, expanded Reworld volumes and other additional customer commitments |
| Kentucky facility contribution | Excluded | Excluded |
The revised outlook assumes an AUD/USD exchange rate of 0.71 and relies entirely on Carbonxt’s existing business. The Company has excluded any contribution from its Kentucky facility, which remains additional potential upside.
Managing Director Warren Murphy commented:
“Reworld’s decision to expand our supply relationship again is a strong endorsement of the performance of our sustainable PAC products and the reliability of our team at Black Birch. Together with the increased WPS order and higher volumes from a second pellet customer, this growth comes entirely from our existing business, ahead of the commissioning of our Kentucky facility. The new mill gives us the capacity to deliver these additional volumes, adds redundancy at Black Birch, and positions us to meet further demand from our customers.”
Figure: Carbonxt (ASX: CG1) lifts its FY27 revenue growth forecast to at least 40%, backed by an expanded Reworld agreement and stronger customer demand.
Black Birch Mill Investment to Double Production Capacity
To accommodate higher demand, Carbonxt is installing an additional mill at its Black Birch facility. The Company expects installation to be completed over the next two to three months.
The approximately $1.1 million investment, funded through existing cash flow, will double Black Birch’s production capacity to approximately 12,000 tons once completed. The additional mill will also provide operational redundancy, strengthening the facility’s ability to maintain supply as customer requirements increase.
Kentucky Facility Remains a Key Operational Milestone
Carbonxt continues to replace kiln components and conduct testing at its Kentucky facility. According to the announcement, the kiln contractor was expected to deliver the final replacement parts on-site during the week of 13 October 2026.
The Company stated that it would provide a further update after completing the testing work. Although the Kentucky facility remains outside the FY27 revenue forecast, its eventual commissioning represents a potential additional growth opportunity.
Investors will be watching for updates on the testing programme and commissioning progress, as well as the completion of the Black Birch mill installation. These operational milestones will help determine how effectively Carbonxt can translate stronger customer demand into sustained production and revenue growth.
Investors’ Outlook
Carbonxt’s expanded Reworld agreement strengthens its customer relationships, adds an expected $1.0 million in FY27 revenue and supports a revised revenue growth forecast of at least 40% compared with FY26. The additional mill at Black Birch should help the Company accommodate higher supply volumes while improving operational redundancy.
The key developments for investors to monitor include:
- Reworld contract execution: Four additional facilities are scheduled to transition to Carbonxt from 1 January 2027.
- Production expansion: The approximately $1.1 million Black Birch mill investment is expected to double capacity to around 12,000 tons.
- Revenue delivery: The Company expects FY27 revenue to rise by at least 40% compared with FY26, excluding any contribution from Kentucky.
- Kentucky commissioning: Completion of kiln replacement and testing could provide additional growth potential beyond the current forecast.
The updated outlook provides greater visibility over Carbonxt’s anticipated growth from its existing operations. However, investors should assess the forecast alongside execution risks, production performance and the timing of operational milestones. The Kentucky facility remains a potential source of further upside rather than a contribution included in current revenue expectations.
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.
Elizabeth Jones is a finance and mining content specialist with over 10 years of experience creating clear, SEO-driven content across fintech, investing, banking, insurance, cryptocurrency, and resource markets. She transforms complex financial data and industry trends into engaging, reader-focused articles that improve understanding and audience engagement.
