Carbon Revolution (ASX:CBR) share price surges 14% on growth outlook

The carbon fibre wheel developer released its full financial year results today.

| More on:
A drawing of a rocket follows a chart up, indicating share price lift

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Carbon Revolution Ltd (ASX: CBR) share price is charging higher today, up 14% at time of writing to $1.09 per share.

This follows on the release this morning of the carbon fibre wheel developer's results for the 2021 financial year (FY21).

Carbon Revolution share price rockets on FY21 results

  • Total revenue of $34.9 million, down from $38.9 million in FY20
  • Gross loss of $14.3 million compared to a loss of $11.6 million the previous year
  • Total expenses of $24.3 million, down from $17.8 million
  • Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) came in at a loss of $17.2 million, compared to a loss of $15.7 million in FY20

What happened during the reporting period for Carbon Revolution?

Carbon Revolution reported significant influences to its business from COVID-19, with many of its customers negatively impacted by the pandemic. Revenues also came under pressure from the global semi-conductor chip shortage.

The company said the first and second half of the financial year were markedly different. H1 saw production volumes decrease along with additional finishing costs. In H2 production volumes picked up and Carbon Revolution implemented its Diamond Weave Technology. That technology led to lower finish costs and improved wheel aesthetic quality.

Two new Ferrari vehicles were released in FY21 equipped with Carbon Revolution wheels.

The company also completed a $95 million capital raise to support its "Phase 1 Mega-line expansion".

What did management say?

Commenting on the results, Carbon Revolution's CEO Jake Dingle said:

The global vehicle market's move toward electric vehicles and vehicles with large wheel formats represents a step change for the adoption of our wheel technology and the development of our company.

The broader industrialisation program is progressing, with Diamond Weave Technology introduced to dramatically improve the first-time aesthetic quality of the wheels. We have also commissioned a significant amount of new industrialised equipment, delivering the capacity required for awarded but not yet launched programs.

What's next for Carbon Revolution?

Looking ahead, Carbon Revolution said that with a strong balance sheet and having advanced its industrialisation activities, it's well positioned for the next stage of growth.

During the course of the year, the company secured agreements on 4 new wheel design and engineering programs. It said a "significant proportion of these" are higher volume platforms for EVs with large wheel formats. It expects these programs to enter production in the 2023 and 2024 calendar years.

The Carbon Revolution share price is down 29% over the past 12 months.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Carbon Revolution Limited. The Motley Fool Australia has recommended Carbon Revolution Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Technology Shares

Man with rocket wings which have flames coming out of them.
Mergers & Acquisitions

Guess which ASX stock just rocketed 21% on takeover news

Investors are piling into the ASX stock following a confirmed takeover offer.

Read more »

A male sharemarket analyst sits at his desk looking intently at his laptop with two other monitors next to him showing stock price movements
Technology Shares

What does Macquarie think Xero shares are worth?

Does the broker see value in this tech stock? Let's find out.

Read more »

Man pointing at a blue rising share price graph.
Technology Shares

Up 30% in a month, this ASX 200 tech share is 'a compelling opportunity': expert

Analysts from listed investment company WAM Capital say this ASX 200 tech stock is worth watching.

Read more »

A young man goes over his finances and investment portfolio at home.
Technology Shares

How much upside does Macquarie tip for Light & Wonder shares after its result?

Let's see what the broker is saying about this tech stock.

Read more »

Business people discussing project on digital tablet.
Technology Shares

Guess which ASX 200 stock is down 4% following Q3 update

Let's see what is causing investors to hit the sell button today.

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Technology Shares

Guess which ASX 200 tech stock is crashing 14% on results day

This tech stock is having a rough time today. But why?

Read more »

Data Centre Technology
Technology Shares

Is it too late to buy NextDC shares?

NextDC's share price has surged over the last couple of weeks. Will it continue?

Read more »

Man with a hand on his head looks at a red stock market chart showing a falling share price.
Technology Shares

Guess which ASX 200 tech stock is crashing 25% following an update

This tech stock is being sold off on Wednesday. But why?

Read more »