Australian environmental technology company Calix Limited has unveiled remarkable growth in revenue streams, underlining the company’s commitment to advancing decarbonisation applications.
The ASX-listed company said total revenue and other income surged by 28 per cent to $16.3 million, a notable increase from the previous period’s $12.7 million.
The growth trajectory continued with revenues from sales and services experiencing a significant 42 per cent surge, reaching $12.2 million, up from $8.6 million in the comparable period.
Notably, gross profit exhibited an impressive upswing, skyrocketing by 126 per cent to $5.9 million, compared to $2.6 million in 1H23.
The surge in revenue and profit was driven by the steadfast contributions from Calix’s Water line of business, coupled with a fresh revenue stream stemming from engineering services supporting customers in Leilac, Calix’s subsidiary dedicated to cement and lime decarbonisation.
A substantial gain of $3.4 million stemmed from Calix’s free-carried equity in its joint venture with Pilbara Minerals, further enhancing the comprehensive statement of profit or loss to $19.7 million.
Operating expenses saw a measured increase, reaching $19.8 million, reflecting the Group’s continued investments in technology development and commercialisation.
However, this was partially offset by grants and tax rebates totalling $3.7 million across the various jurisdictions where Calix operates.
Calix’s Managing Director and CEO Phil Hodgson conveyed that Calix’s robust revenue and margin growth stemmed from a blend of sustained expansion in the water business and the introduction of new income streams via Leilac, their cement and lime decarbonisation subsidiary, along with the value generated through the joint venture with Pilbara Minerals.
“It is pleasing to see the diversification of our revenue streams and the benefits of commercialising our platform technology across multiple applications,” he noted.
Hodgson also remarked that the second half of FY24 had commenced with notable momentum, with the dedicated team focused on key projects, including commencing construction on the demonstration plant with Pilbara Minerals, preparing for Leilac-2 construction alongside identifying a new site with Heidelberg Materials, and advancing the ZESTY demonstration plant towards a Final Investment Decision.
Other significant achievements include the inking of a binding and perpetual global license agreement between Leilac, Calix’s subsidiary focused on cement and lime decarbonisation, and Heirloom Carbon Technologies for carbon dioxide removal via Direct Air Capture (DAC).
This exclusive agreement solidifies a strategic collaboration where Leilac’s technology will be employed across all future Heirloom DAC facilities, subject to mutually agreed milestones.
Heirloom, a participant in Project Cypress, has been selected by the US Department of Energy for funding of up to US$1.2 billion under the Bipartisan Infrastructure Law’s Regional DAC Hubs program.
A joint venture with Pilbara Minerals reached a Final Investment Decision to advance the construction and operation of a Demonstration Plant for a low carbon-intensity lithium phosphate salt product.
Calix’s participation in the venture, capped at $17.5 million, provides an estimated free carry in the project of $29.75 million, offering promising prospects for future growth.
The US water business witnessed continued revenue and margin growth, primarily driven by the successful sales of ALKA-Mag+, a new product in the market.
Additionally, the commissioning of two new hydration plants in Ripon, Wisconsin, and Lufkin, Texas, further bolstered the company’s operational footprint.
In the Advanced Batteries line of business, progress was notable with the imminent completion of the first commercial format module in an electric scooter.
This advancement, alongside established material cost and energy/carbon efficiencies, positions the company for further development within the Sustainable Processing line of business.
