Carbon Revolution projects profit as ‘tailwinds’ drive progress

Carbon fibre road wheel manufacturer Carbon Revolution has released new forecasts for future sales and confirmed a path to a maiden profit in a turnaround for the company as it heads towards a US listing.

The Geelong Victoria company suffered badly during Covid with its car maker customers pausing new wheel developments and even closing their factories during the pandemic.

With the company facing massive outlays to build its first mega-line production line to boost output the company was forced into a merger with a US entity, Twin Ridge Capital Acquisition Corp, being recapitalised and listed in the US in the process.

In the meantime its share price collapsed, in line with a number of young Australian high technology manufacturers not yet making profits.

Today Carbon Revolution said: “Carbon Revolution has progressed significantly since the merger announcement with tailwinds across new business awards, operations and funding.”

The company said it had been awarded three new wheel development programmes including its first two for electric vehicles, taking the total number of awarded programmes to 16 with five global OEMs.

A further three programmes are in progress with engineering agreements with customers.

The company’s backlog has more than doubled and is now $680 million, with nearly half the wheels to be manufactured for electric vehicles where reducing weight is particularly important.

This includes wheels for the just revealed Jaguar Land Rover 2024 Range Rover Sport SV (pictured), the first premium SUV featuring the company’s wheels.

Carbon Revolution’s revised financial projections released today show a slightly smaller revenue and bigger loss for CY23.

This will be followed by a doubling of revenue in CY24 to US$90 million with an accompanying US$2.8 million EBITDA profit.

These projections were made on cost improvements driven by improvement on labour costs per wheel as the company finalises its mega-ling investment project.

The company’s shares were trading this morning up one cent or 6.7 percent to 16 cents.

Further reading:
Carbon Revolution to merge, to be US listed
Browse @AuManufacturing’s coverage of Carbon Revolution here.

Picture: 2024 Range Rover Sport SV