Carbonxt Lifts FY27 Revenue Outlook to at Least 40% Above FY26 on Reworld Deal
Key Takeaways
- Carbonxt now expects FY27 revenue at least 40% above FY26, up from the more than 33% guided on 15 September 2026, with growth coming entirely from existing operations.
- Four additional Reworld facilities move to Carbonxt from 1 January 2027, lifting annual PAC supply to Reworld by about 25% and adding roughly $1.0 million of 2027 revenue.
- The extra volumes run only to December 2028, the end of the existing contract, with gross margins expected at or around current Black Birch levels.
- A $1.1 million mill funded from existing cash flow will double Black Birch capacity to about 12,000 tons, with installation expected within two to three months (Q3FY27).
- Kentucky is excluded from the outlook, with kiln parts due on-site this week and no testing outcome or timing yet disclosed.
Carbonxt secures expanded Reworld contract, lifting FY27 revenue outlook to at least 40% above FY26
Revenue growth that comes entirely from a company’s existing business is rarer than it sounds. Carbonxt Group Limited (ASX: CG1) has secured an expanded agreement to supply Powdered Activated Carbon (PAC) to Reworld, a long-standing customer, and now expects FY27 revenue to be at least 40% higher than FY26.
Four additional Reworld facilities transition to Carbonxt from 1 January 2027, increasing annual PAC supply to Reworld by approximately 25%. The previous outlook, issued on 15 September 2026, was for revenue more than 33% higher than FY26.
Managing Director Warren Murphy said the expansion is a vote of confidence in the product and the team, and that the new mill gives Carbonxt the capacity to deliver the extra volumes.
Warren Murphy, Managing Director
“Reworld’s decision to expand our supply relationship again is a strong endorsement of the performance of our sustainable PAC products and the reliability of our team at Black Birch…”
For investors, the point is where the growth originates. Carbonxt says the outlook comes entirely from its existing business, ahead of the commissioning of its Kentucky facility.
When big ASX news breaks, our subscribers know first
Expanded Reworld agreement details
The expansion is tied to the existing Reworld contract and its timeline. The announcement does not disclose a total contract value.
What changes from January 2027
Key terms of the expanded agreement:
- Four additional Reworld US waste-to-energy facilities transition to Carbonxt from 1 January 2027.
- The additional volumes run for the remaining term of the existing contract, to December 2028.
- The 2027 revenue contribution is expected to be approximately $1.0 million.
- Gross margins on the additional volume are expected to be at or around current Black Birch performance.
The volumes are supplied from the Company’s Black Birch facility in Swainsboro, Georgia. Because the additional volumes end with the existing contract, the term of the uplift is defined.
Why Reworld keeps expanding
Carbonxt’s PAC is used in Reworld’s thermomechanical treatment facilities to remove mercury, dioxins and furans from emissions. Black Birch produces its PAC from wood-based material, and the product’s sustainable origins have been a key continuing factor in Reworld’s decision to expand its supply relationship.
Full-scale deliveries under the contract commenced in October 2024, supplying 17 Reworld waste-to-energy plants across the US. Carbonxt is also a member of Reworld’s Preferred Supplier Program.
FY27 outlook and Black Birch capacity
Two outlook updates in a month show how quickly demand is building. Here is how they compare.
Revenue outlook
| Outlook date | Guidance | Drivers |
|---|---|---|
| **15 September 2026** | More than **33%** above FY26 | Increased WPS order plus increased volumes from a second pellet customer |
| **13 October 2026** | At least **40%** above FY26 | Adds expanded Reworld volumes and other additional customer commitments |
The outlook assumes an AUD/USD exchange rate of 0.71. It does not include any contribution from the Kentucky facility, which remains additional upside.
New mill at Black Birch
To support the expanded volumes, Carbonxt is installing an additional mill at Black Birch:
- Production capacity is expected to double to approximately 12,000 tons.
- The mill is expected to provide redundancy across the facility’s operations.
- Installation is expected to be completed over the next two to three months (Q3FY27).
- Carbonxt will fund the approximately $1.1 million investment from existing cash flow.
Funding from existing cash flow means the expansion does not depend on new capital, and the announcement does not mention a capital raise.
What is Powdered Activated Carbon and why it matters
Powdered Activated Carbon is a fine carbon material that captures contaminants. In Carbonxt’s Reworld work, it is used to remove mercury, dioxins and furans from emissions at waste-to-energy facilities.
Adding four facilities increases annual supply by approximately 25%.
For investors, supplier status and sustainable sourcing are the retention angles to watch. Carbonxt is a member of Reworld’s Preferred Supplier Program, and the wood-based origin of Black Birch PAC has been a key continuing factor in Reworld’s decision to expand.
The next major ASX story will hit our subscribers first
Kentucky update and what to watch
Replacement of kiln parts and testing continue at Kentucky. The kiln contractor is expected to deliver the final replacement parts on-site this week, and the Company will provide an update following the conclusion of the testing work.
The announcement gives no outcome or timing for that testing, so it is not possible to size any Kentucky contribution at this stage.
Key items to watch:
- The 1 January 2027 transition of the four additional Reworld facilities.
- Installation of the new Black Birch mill in Q3FY27.
- The Company’s update after Kentucky testing concludes.
Growth is already coming from existing operations, with Kentucky as unquantified upside. The outlook is forward-looking and subject to risks, many outside the Company’s control, so actual results may differ materially.
Get ASX Mining News Before the Market Moves
Join 30,000+ investors receiving FREE breaking ASX mining and energy news within minutes of release, complete with in-depth analysis and the full announcement. Click the “Free Alerts” button at Big News Blast to stay ahead of the market and see the next big move the moment it breaks.