Carbon Revolution Plunges 12.24% Despite Record Revenue

On May 16, 2025, Carbon Revolution's stock experienced a significant drop of 12.24% in pre-market trading, marking a notable decline in its share price.

Carbon Revolution reported record financial results for fiscal 2024, with revenue reaching US$47.3 million, marking an 87% increase year-over-year. The growth was primarily driven by full production of the Range Rover Sport SV program and increased shipments for the Corvette Z06/E-Ray program. However, the company posted a significant loss after income tax of US$146.4 million, compared to US$52.5 million in the previous year, including US$20.9 million in transaction costs and a US$68.0 million asset impairment charge. The company completed initial commissioning of its Mega-line, strengthened leadership with key appointments including Donald Hampton, Jr. as CEO, and launched programs with prestigious automotive brands like Chevrolet Corvette ZR1 and Lamborghini Temerario.

Carbon Revolution has secured additional funding through two sources: a US$5 million release from Orion Infrastructure Capital (OIC), bringing the total released to $20 million of their $25 million facility, and a US$400,000 release from existing PIUS loan noteholders, totaling $1.6 million in released reserves. The company will issue penny warrants to both OIC and Existing Noteholders, representing 5.0% of outstanding shares. Both lenders may accept partial payment in kind for interest payments. The funding aims to support liquidity and meet OEM customer demand, with several new programs entering production. CREV is working to file its Annual Report to regain Nasdaq compliance.

Carbon Revolution has appointed Donnie Hampton, Jr. as Acting Chief Executive Officer and Board member. Hampton brings over 30 years of experience in Tier 1 automotive supply, including leadership roles at Maxion Wheels, Pace Industries, and Faurecia. The leadership transition marks Carbon Revolution's evolution from an R&D-focused startup to a premier global supplier of carbon fiber wheels to the automotive industry. The company aims to leverage Hampton's expertise to enhance operational excellence, pursue new opportunities with existing customers, and expand its customer base.