Calix (CXL) H1 2025 earnings summary

Executive summary

• Revenue grew 11% year-over-year to $13.5m in 1H FY25, with Magnesia up 8% and Leilac services up 26%, both driving growth and margin improvement.

• Cost base reduced by ~$6m annualised from January 2025, with headcount cut and $3m in one-off restructuring costs.

• Balance sheet strengthened by $20m institutional placement and $2.1m SPP, with $35.8m cash at 31 Dec 2024 and at least 18-month cash runway.

• Major projects advanced, including the Mid-Stream Lithium Demonstration Plant (74% complete, $15m WA government grant), ZESTY Green Iron, and Leilac-2 in Germany.

• Technology received international recognition, including the Net Zero Industry Award for ZESTY at COP29 and multiple government grants.

Financial highlights

• Product and services revenue rose 11% to $13.5m; Magnesia contributed $10.7m (up 8%), Leilac $2.9m (up 26%).

• Non-cash $8.8m gain from Pilbara Minerals UJV recognized in 1H FY25.

• Gross margin was 36%; operating expenses were $22.3m, including $3m in restructuring costs.

• Capex totaled $8.1m, mainly for the Mid-Stream Project, with $2.5m remaining to completion.

• Net loss after tax was $12.7m, similar to prior period.

Outlook and guidance

• Further revenue growth expected in 2H FY25, especially from Magnesia and Leilac, supported by secured contracts and project execution.

• Annualised cost savings of ~$6m to be fully realized from January 2025, supporting a sustainable financial base.

• At least 18-month cash runway to pursue funded projects and subsidiary-level capital raisings.

• Focus on commercialising technology in cement, lime, magnesia, iron/steel, and lithium sectors, with further milestones anticipated.

• Management forecasts depend on Magnesia volume/margin growth, Leilac revenue, and prioritisation of externally funded projects.