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Carbonxt Group Limited (ASX:CG1)

ALERT: Price-sensitive ASX Announcement for CG1
Current share price for CG1 : $0.062 -0.013 (-17.33%)+
Announcement
Release
15 Sep 2026 9:03AM
Price at Release
$0.075
Full Release
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Summary
Carbonxt Group Limited announced that its largest customer, Wisconsin Public Service (WPS), has increased its order for Activated Carbon Pellets to support higher operations at the Weston Power Plant in Wisconsin, with deliveries running immediately through to the end of FY27 on standard 14-day payment terms. The pellets are used in WPS’s ReACT emissions control system to remove NOx, SOx and mercury from coal-fired plant emissions. Carbonxt said the increased WPS order alone represents at least a 25% increase on its total FY26 revenue, and when combined with higher pellet volumes from a second major customer previously disclosed in the June 2026 Quarterly Activities Report, the company now expects FY27 revenue to be more than 33% above FY26, with gross margins on the added volume expected to remain around current levels. The outlook is based on existing business only, assuming full delivery of the WPS order, increased second-customer volumes, stable powdered activated carbon sales and an AUD/USD exchange rate of 0.71, and excludes any contribution from the Kentucky facility. Production for the order starts immediately at Carbonxt’s new Minnesota pellet facility, where the company is relocating production from Arden Hills; while the move is expected to reduce September 2026 quarter production and revenue by about two weeks, it should lower monthly operating costs by about US$10,000 and support lower-cost expansion.
Key Points
  • WPS increased its order for Activated Carbon Pellets to support higher operations at the Weston Power Plant.
  • Deliveries under the increased order run from now until the end of FY27 on standard 14-day payment terms.
  • The pellets are used in WPS's ReACT emissions control system to remove NOx, SOx and mercury from coal-fired plant emissions.
  • Carbonxt has supplied WPS since 2016 and has a long-term contract for the life of the Weston Power Plant, which is expected to operate until at least 2032.
  • The increased WPS order represents at least a 25% increase on Carbonxt's total FY26 revenue.
  • Including increased volumes from a second major customer, Carbonxt expects FY27 revenue to be more than 33% higher than FY26.
  • Gross margins on the additional volume are expected to be at or around current performance.
  • The FY27 revenue outlook is based entirely on existing business and excludes any contribution from the Kentucky facility.
  • Production for the order begins immediately at Carbonxt's new Minnesota pellet facility.
  • The relocation from Arden Hills is expected to reduce September 2026 quarter production and revenue by about two weeks but lower monthly operating costs by about US$10,000.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.