Wisconsin Public Service, our largest customer, has asked for more Activated Carbon Pellets to support increased operations at its Weston Power Plant. We've supplied WPS since 2016 and hold a long-term contract to keep supplying pellets for the life of that plant, which WPS has said will run until at least 2032.

This one order adds at least 25% to our total FY26 revenue. Combined with increased volumes from a second major customer we flagged in our June 2026 quarterly report, expected to add around $2.0 million in FY27, we now expect FY27 revenue to be more than 33% higher than FY26. We expect gross margins on the extra volume to sit around current levels.

This outlook comes entirely from our existing business. It assumes we deliver the full WPS order and the second customer's increased volumes within FY27, that Powdered Activated Carbon volumes hold steady, and an AUD/USD exchange rate of 0.71. It doesn't include anything from our Kentucky facility, which stays as further upside on top of this.

Production for this order starts straight away at our new Minnesota pellet facility, as we shift production from Arden Hills. That move cost us about two weeks of production and revenue in the September 2026 quarter, which will show up in our first quarter FY27 report, but it cuts monthly operating costs by around US$10,000 and gives us room to expand more cheaply down the track.

As with any forward-looking outlook, actual results may differ from what we expect here, and we'll keep the market updated as required.

If you have questions about this announcement, we'd welcome you raising them through the question box on this page.