Australian cleantech company Parkway Corporate (ASX: PWN; FRA: 4IP), which specializes in industrial wastewater treatment, continued on its path to sustainable growth in the third quarter ended March 31, 2025, and once continued to increase its profitability. At the same time, the technology company and its subsidiary Queensland Brine Solutions (QBS) made important progress in implementing its QBS master plan for brine wastewater from the CSG industry in Queensland.
Transition to Profitability
During the reporting period, the company achieved increasing operating revenue of A$3.40 million, with a strong contribution from project-related activities, including from the Tankweld business. Despite seasonal fluctuations, revenue for the reporting period (Q3/25) was A$3.40 million, up 45% on the same period last year (Q3/24: A$2.35 million). The continued focus on more specialized projects requiring technical solutions contributed further to the transition to profitability, with EBITDA of A$0.40 million achieved in the reporting period. The increase in profitability was achieved without the contribution from the R&D refund. As of March 31, 2025, the company had cash reserves of A$2.25 million. Given the encouraging operating income, particularly towards the end of the reporting period, Parkway expects operating results to continue to improve in the future. As Parkway’s industrial segment continues to grow, the company is increasingly involved in the design, manufacture, and installation of complex water and wastewater treatment infrastructure. Parkway has a significant order backlog and an extensive pipeline of project opportunities, particularly in Victoria, where water authorities are expected to invest an estimated US$15 billion in water-related infrastructure over the next five years.
Effective immediately, the company will hold quarterly webinars for shareholders in conjunction with the release of its quarterly reports. The first quarterly update of this kind will take place on April 28, 2025. Registration on the Parkway Investor Hub platform is required to participate in the webinar. https://investorhub.pwnps.com/webinars/WPGKxP-q3-fy25-shareholder-webinar. The webinar will also be available as a recording afterwards.
New Capabilities: Technological Advancements
During the reporting period, the internal design of a proprietary pilot-scale crystallizer was completed, with manufacturing by Parkway’s Tankweld division scheduled to commence in May 2025. Parkway notes that the technological advances offer broader application opportunities, which Parkway is also pursuing, particularly in light of its growing project execution capabilities.
In the December quarter of 2024, Parkway completed a technology evaluation for a large global mining company to investigate the potential feasibility of implementing a predominantly aMES®-based flow sheet to increase water and mineral recovery from a high-grade critical minerals project. The current scope of the project is expected to be completed by the end of the June 2025 quarter, with the possibility of further expansion of the pilot phase during the year. The project continues to highlight the impressive caliber of partners and clients Parkway has been able to establish in recent years.
Discussions with Strategic Partners Are Ongoing
Given the highly strategic nature of the proposed infrastructure (including QBMC and QBEC), Parkway believes it will be able to dispose of interests in QBS and/or at the project level to finance development costs. The company has identified additional financing options, including advance payments for the liquid waste disposal services to be provided by QBS and/or for the sale of industrial chemicals, as well as a range of other options, including capital markets and government support. Parkway is also in discussions with other key stakeholders, including potential OEM and EPCM partners who can assist with project development and implementation, including global companies interested in investing in QBMC or QBEC.
Conclusion: The enormous significance of the CSG industry for Queensland is little known outside Australia. According to Australian Energy Producers, this industry alone recorded LNG export revenue of $22.4 billion in fiscal year 2024. Local and state authorities generated estimated revenues of $2.4 billion. These figures illustrate the challenge facing a company like Parkway Corporate, which is promoting itself as a provider of a new integrated solution for waste brines. Parkway wants to establish its technology as the new industry standard of ‘Best Available Technology’ (BAT). Many interests need to be reconciled. What all stakeholders, including industry as well as local authorities, can certainly agree on is that the solution adopted now should ideally last for the next 50 years. This explains the extensive search for locations and the effort to optimize processes to the utmost. Parkway shareholders who desire results as quickly as possible should not lose sight of this bigger picture. In the meantime, the company is rewarding its investors’ patience with the steadily improving profitability of its industrial business, which is not (yet) reflected in rising stock prices. The longed-for hockey stick development of Parkway’s stock price currently depends on concrete progress in realizing the QBS master plan for the CSG industry. The market is waiting for big names of partners coupled with the prospect of long-term, growing, and above all recurring revenues.
