Hazer Group (HZR) Q3 2025 TU earnings summary

Executive summary

• Commercial readiness for core technology confirmed by independent assessments, including Lloyd's Register, and successful CDP and Canada project test programs.

• Advanced scale-up strategy with new reactor programs targeting over 20,000 t per annum, with significant progress in Canada, Japan, and Korea.

• Secured major patents in the US and Japan, strengthening a global IP portfolio of around 70 patents across 30 jurisdictions.

• Built a robust sales and customer pipeline with over 40 licensing opportunities, representing more than 1 million t per annum in aggregate demand across North America, Asia Pacific, Middle East, and Europe.

• Cash position increased to $10.3 million, supported by non-dilutive grants and project revenues.

Financial highlights

• Ended the quarter with $10.3 million in cash and over $12.5 million in total liquidity, up from the previous quarter.

• Revenue growth driven by Canadian project milestones, grant funding, and FortisBC revenues.

• Achieved a 12% reduction in operating costs compared to the previous half-year, maintaining cost discipline.

• Net operating cash inflow of $1.1 million for the quarter, reflecting lower expenses and grant inflows.

• Received $3.8 million in LCG grant milestone payments during the quarter.

Outlook and guidance

• Targeting 10 commercial projects in 10 years, with a focus on scaling up to over 50ktpa and widespread deployment across industries.

• Strategic priorities include accelerating reactor scale-up, unlocking graphite value, progressing the commercial portfolio, and securing partnerships.

• Expecting further grant milestones and R&D rebates in the coming quarters to bolster funding.

• Ongoing engagement with global partners and customers, targeting hard-to-abate sectors and large-scale hydrogen projects.

• Continued cost discipline and capital flexibility to maintain robust liquidity amid global uncertainty.