Calix (ASX:CXL) executives highlighted strong first-half FY2026 revenue growth, tighter cost control, and a series of commercialization milestones across its core business lines during the company’s half-year results briefing. Management also reiterated its focus on social inclusion and sustainability, positioning decarbonization technology development alongside a growing magnesia products business.
First-half financial performance: revenue growth and lower cash burn
CFO Darren described the first half as delivering “strong revenue growth,” “focused business delivery,” and “significant commercial milestones.” The company reported AUD 15.8 million of revenue in its magnesia business, up 48% from the prior corresponding period, and noted that sustainable processing contributed revenue for the first time. Darren said total products and services revenue was AUD 16.3 million, up 21% year over year.
Calix also emphasized reduced cash use and operating expenses. Net cash used in operating activities fell 65% to AUD 6.2 million (from close to AUD 18 million in the prior period). Operating expenditure declined 30% to AUD 15.6 million. Darren said savings were achieved across sales and marketing, research and development, and administrative expenses.
On capital spending, management characterized Calix as “capital-light,” stating that aside from consolidating its share of spending for the Mid-Stream project, the company spent about AUD 600,000 on CapEx in the half. Darren noted that while accounts recognized AUD 7.1 million of CapEx, AUD 6.5 million of that was Calix’s share of spending at the Mid-Stream joint venture, and Calix “did not actually tip any additional capital into the Mid-Stream Project in the first half of FY2026.”
Darren also addressed a one-off non-cash impairment charge tied to the company’s decision to sell its share of the Mid-Stream UJV to Pilbara Minerals (PLS). He said the impairment effectively reversed non-cash gains of just under AUD 30 million recorded over the last two and a half years, following the announcement that Calix would receive AUD 11.4 million in cash under the sale.
Magnesia: strong growth and a new U.S. contract ramping up
Management repeatedly pointed to the magnesia business as a key near-term growth driver, describing performance as “incredibly strong.” Darren said Calix secured a new contract worth up to AUD 10 million of additional annual revenue with a major U.S. agriculture customer, with a three-year term and a two-year extension option. He emphasized that the contract had “zero impact” on first-half FY2026 results, with deliveries only beginning in recent weeks.
In Q&A, management said the contract is expected to ramp over “a couple of months” and reach a full run-rate in the second quarter of the calendar year, but it would not contribute the full AUD 10 million in the second half of the fiscal year. Calix said it continues to pursue additional U.S. water-related and similar opportunities, noting long sales cycles for multi-year contracts but low customer churn once accounts are won.
In Australia and New Zealand, the company cited renewed and expanded contracts with the City of Gold Coast and Unitywater. Management also said it is completing a new manufacturing facility on the Sunshine Coast to service Unitywater, describing the related CapEx as relatively minimal.
Sustainable processing: iron and steel, alumina, and lithium milestones
CEO Phil and the team outlined progress across sustainable processing markets where Calix’s kiln/furnace platform technology is being developed for industrial decarbonization.
- Iron and steel (ZESTY): Calix reiterated ARENA support of AUD 44.9 million for the ZESTY opportunity, subject to match funding and milestones. Phil said a major milestone was Rio Tinto joining as a strategic partner, committing over AUD 35 million in cash and in-kind. Calix said it is seeking additional financing at the subsidiary level and targeting a final investment decision (FID) “this year,” while declining to provide a definitive timing. Management also said ZESTY could be flexible on reductants, including natural gas reforming as an interim option if green hydrogen supply is delayed.
- Alumina (ZEAL): Calix announced a partnership with Norsk Hydro, described as operating the largest alumina refinery outside China. Phil said Calix expects over $1 million in paid materials testing and development work and that the work has commenced using materials from Hydro’s Alunorte refinery in Brazil.
- Lithium and the Mid-Stream Project: Calix discussed the restructuring with Pilbara Minerals, which includes the planned sale of Calix’s share of the Mid-Stream UJV in return for AUD 11.4 million cash (subject to final documentation). Phil said the company viewed the deal as strengthening its balance sheet and accelerating the path to commissioning and demonstrating its first electric calciner at scale. He said Calix retains upside via 20% of any royalties applied to third-party use, while Pilbara Minerals receives a royalty-free license for its own development. Phil also stated construction of the Mid-Stream project was complete and on budget, with commissioning decisions in Pilbara Minerals’ hands, and Calix will be paid market rates for engineering and testing work.
Leilac and carbon dioxide removal: progress and delays
Calix reported progress in its Leilac (Low Emissions Intensity Lime and Cement) portfolio alongside acknowledged delays in certain projects.
Phil said Calix completed a pre-FEED study for Project ZETA, a lime calciner project in South Australia supported by grant funding, and the company would like to progress it toward FID with project-level equity or financing. He also highlighted a new paid study with Frontier—described as a group of large U.S. corporations including Google, Stripe, Shopify—with a contract value of over $500,000. Phil said the work relates to using Calix technology to decarbonize lime and other carbonates for “ocean alkalinity” as a carbon dioxide removal pathway, with potential follow-on phases if initial work is successful.
On Leilac-2, management said the project continues to face permitting and financing issues and is now delayed with “no clear line of sight” to resolution. Phil described a complex, multi-level German permitting process requiring detailed redesign and resubmission cycles, and said the company is exploring an option to move Leilac-2 to another site with fewer permitting challenges.
Phil also said the company had not yet heard back from the U.S. Department of Energy regarding Leilac Full Scale and alumina-related matters that were previously under review, and that Calix is looking to convert parts of its pipeline elsewhere given U.S. delays. Management said the pipeline remains “over 85 projects,” while noting it is not actively seeking to add more projects.
Cash outlook and capital strategy
Looking ahead, Darren said Calix expected to be cash flow neutral in calendar year 2026, driven by continued revenue and gross profit growth, reduced operating costs, and lower CapEx requirements. He also flagged anticipated one-off receipts during calendar 2026, including government grants (including ARENA payments), a second cash payment from Rio Tinto subject to milestones, and R&D tax incentives from the U.K. government.
After the Mid-Stream UJV sale proceeds, management said the additional AUD 11.4 million would further strengthen liquidity. Executives also reiterated their approach of raising capital for major demonstration projects at the subsidiary level—rather than at the Calix head company level—while maintaining a “capital-light” model focused on licensing and royalties for scaling deployment.
About Calix (ASX:CXL)
Calix Limited, an environmental technology company, provides industrial solutions to address global sustainability challenges in Australia, Europe, the United States, and South East Asia. Its solutions include ACTI-Mag for biogas and wastewater; AQUA-Cal+, a water conditioner for shrimp farming and lake remediation; BOOSTER-Mag, an agricultural solution for increased yield, fertilizer usage, insect/pest management, and fungal control; and low emissions intensity lime and cement (LEILAC) for cement and lime companies to mitigate carbon dioxide emissions.
