Calix (CXL) H2 2024 earnings summary

Executive summary

• Achieved record revenue growth in FY 2024, with product and services revenue up 30% to $24.2m and total revenue surpassing AUD 30 million for the first time.

• Diversified revenue streams across magnesia, carbon capture (Leilac), and sustainable processing, with significant contributions from each.

• Advanced key projects in carbon capture, sustainable processing, lithium, iron & steel, and magnesia, supported by new partnerships, expanded capacity, and grant funding.

• Major operational milestones included new US hydration facilities, JV with Heidelberg Materials, and progress in Direct Air Capture and green iron projects.

• Board renewal with new independent directors and upcoming chair transition.

Financial highlights

• Product & services revenue rose 30% to $24.2m; magnesia revenue up 14% to $21.0m; Leilac revenues increased to $3.2m (FY23: $0.1m).

• Gross profit increased 66% to $10.3m; gross margin improved to 43% (FY23: 33%).

• $12.2m gain realised from IP contribution to Pilbara Minerals UJV.

• Cash and cash equivalents at $43.0m as of 30 June 2024, down 10% from December 2023, with minimal debt.

• Loss for the year was $26.2m, reflecting increased investment in R&D and commercialisation.

Outlook and guidance

• FY25 priorities include commissioning the Pilbara UJV project, advancing Leilac-2 construction, and expanding magnesia revenue.

• Focus on progressing commercial demonstration projects in cement, lime, iron & steel, lithium, and direct air capture.

• Continued growth in magnesia water business expected, leveraging expanded US manufacturing capacity.

• Targeting further paid engineering studies and license revenues in carbon capture and sustainable processing.

• Continued cost management and capital discipline to support technology development and project delivery.