Hazer Group Ltd. (2H8) Q2 2026 Earnings Report

The call highlighted multiple material commercial and technical progress points: a solid cash position (> $17M) with reduced burn, an advancing 11-year KBR alliance (paid studies and in‑kind support), the first revenue-generating Hazer–KBR project in the U.K., expanded pipeline and clear traction in steel and graphite markets (POSCO extension, M Resources MOU). Challenges remain around timing/uncertainty in large government-led tenders (Whyalla), longer qualification timelines for high-value graphite markets, and engineering scale-up risks (heat, conversion, product quality). On balance the company presented tangible milestones, partner-backed execution pathways and growing demand indicators that outweigh the operational and timing risks.

The call guided that Hazer enters 2026 with a cash position of over A$17m (bolstered by >A$5.5m R&D rebate and ~A$1m from an AGM‑approved capital reallocation), a cash burn reduced ~30% quarter‑on‑quarter and ~40% year‑on‑year, and a stronger pipeline now ~A$51m (equating to ~1.5 million tpa of customer leads, or >1.5% of global H2 demand) with >50 active leads (up from ~45); the KBR alliance (an 11‑year engagement backed by a US$3m contribution and further in‑kind support cited in the call) is delivering a commercial design package built around a ~30,000 tpa base single‑train (scalable toward 50–100k tpa), with the first paid study (Energy Pathways) being a 20,000 tpa, revenue‑generating project; market context provided included an addressable H2 market of ~100m tpa (~US$206bn), current SMR emitting ~10 t CO2 per t H2 and ~920m t CO2 industrywide, sector growth forecasts (ammonia ~3× in ~25 years; steel ~10× to 2050), and graphite commercialisation metrics targeting “drop‑in” markets at ~US$300–700+/t (typical target >US$500/t) with one 50,000 tpa deal modeled to deliver ~US$80–100m in license revenue; management also flagged additional non‑dilutive funding/grants (ARENA ~A$1m expected, Mitsui/WA funds ~A$2m+, Fortis CAD11m support) and large regional funding for Whyalla (federal ~A$1bn+, SA ~A$400m) as important enablers to convert pipeline into licences this year.