Analysis and Commentary

Carbon Revolution sales up, US listed shares down

Analysis and Commentary

By Peter Roberts

Australian-born, US based automotive wheel manufacturer Carbon Revolution has announced preliminary sales for the fiscal second-quarter ending December 2023 of a record US$14.8 million, exceeding previously announced guidance for the quarter of US$14.0M-US$14.5M.

For the year ended December 31, 2023, revenue increased 42 percent to US$40.3 million.

CEO of Carbon Revolution Jake Dingle said: “Carbon Revolution delivered another quarterly revenue record in the fiscal second quarter of 2024.

“This was driven by our programme wins continuing to move into production and growth of existing programmes.

“Looking ahead, we expect that strength to continue.”

The latest quarter sales are a 177 percent increase year-on-year – however shareholders are unlikely to be celebrating given the company’s performance on the NASDAQ since the 2022 sale of the Australian business to US takeover vehicle Twin Ridge Capital Acquisition Corp (TRCA).

Carbon Revolution was badly hit by the Covid-19 pandemic, seeing automotive production worldwide slump and the temporary closure of some vehicle production lines. A massive investment in automated technology underway at its Geelong, Victoria plant necessitated a hunt for new capital.

During the pandemic and later capitalisation process of then-ASX listed Carbon Revolution Ltd, its shares slumped from a high of Au$4.47 to 13.5 cents, then their value slumped again when transferred to the US NASDAQ exchange.

On listing on the US NASDAQ exchange Carbon Revolution plc opened at US$7.45 and went as high as US$90.59 – giving the company a market cap of US $197.99 million.

However it has been downhill since then with the company’s closing share price on Friday of US0.07 cents giving the company a market capitalisation of US$20.97 million

It is hardly a stellar performance for a company which essentially fled to the US to secure new capital and a hoped for higher share price.

One wonders if this will give the new largely US owners pause for thought – was it really the best idea to flee to the US when you have yet to make a profit?

And is it really wise to be contemplating another major investment in manufacturing in Mexico?

Further reading:
Carbon Revolution progresses merger, US listing
Carbon Revolution lives on, cupboard bare for Australian investors
Carbon Revolution to manufacture in Mexico – media report

Picture: Carbon Revolution

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