Frontier Energy (FHE) Q3 2025 TU earnings summary

Executive summary

• Stage One of the Waroona Project secured 88.06 MW of peak capacity credits for 2027-2028, expected to generate ~$32 million in annual revenue from capacity credits alone, fixed for five years starting October 2027.

• Expansion strategy aligns with the retirement of 1.3GW to 1.7GW of coal and gas assets in Western Australia, enabling rapid development without new grid infrastructure.

• Early works and connection activities for Stage One are progressing, targeting commercial operations by October 2027.

Financial highlights

• Cash at 30 September 2025 was $4.0 million.

• Net cash used in operating activities for the quarter was $742,000; for the nine months, $1.7 million.

• Net cash used in investing activities for the quarter was $8.5 million; for the nine months, $16.5 million.

• $8 million short-term debt facility secured to fund reserve capacity security.

Outlook and guidance

• Stage One expects at least $160 million in capacity credit revenue over the first five years of operation (2027-2032), providing a guaranteed revenue stream for project financing.

• Expansion plans for Waroona Energy Park to reach up to 1,000 MW solar and 600-660 MW battery by 2031.

• Application to the Australian Government's CIS Tender 5 for both Stage One and Stage Two, targeting additional support for hybrid renewable projects.