Hazer Group (HZR) H2 2025 earnings summary

Executive summary

• FY2025 marked a transformative year with significant progress in commercialising proprietary clean hydrogen and graphite technology, including successful performance testing at the Commercial Demonstration Plant (CDP) and a strategic alliance with KBR for global licensing and engineering.

• Key partnerships advanced, including projects with FortisBC in Canada, Chubu Electric and Chiyoda in Japan, and a new MOU with EnergyPathways in the UK for a 20,000 tpa hydrogen facility.

• The company strengthened its financial position through a $8.1 million capital raise, a $2.6 million share purchase plan, and $6.2 million in government grant funding, supporting ongoing innovation and commercialisation efforts.

Financial highlights

• Revenue from ordinary activities increased 124% year-over-year to $8,512,485, driven by $4.3 million in grant income.

• Net loss after tax decreased 60% to $7,619,639 from $19,067,366 in the prior year, reflecting higher grant income and reduced CDP construction and consulting costs.

• Total operating expenses fell 17% to $14,624,530, with consulting and research costs down to $4,388,758 and employee benefits at $7,886,673.

• Net operating cash outflow was $5,152,709, a significant improvement from $15,815,886 in FY2024.

• Cash and cash equivalents at year-end were $12,534,265, with net assets of $13,711,232.

Outlook and guidance

• The company is positioned for commercial scale-up, with a robust pipeline of over 45 potential customers and partners, and expects to leverage its KBR alliance for global licensing opportunities.

• Ongoing projects in Canada, Japan, and the UK are expected to drive future revenue streams through engineering services, licensing, and royalties.