Carbon Revolution Carbon Fiber Wheel Backlog More Than Doubles to $680 Million since Oct 2022
Total revenue forecast to grow from $28.5 million in calendar year 2022 to $90.1 million in 2024 for a compound annual growth rate (CAGR) of 78%.
Tailwinds include new business awards and funding.
Nearly 50% of backlog is for electric vehicle (EV) programs.
Carbon Revolution's ultra-lightweight 23-inch carbon fiber wheels on the Range Rover Sport SV weigh an average of 41% less than conventional 23-inch cast-alloy wheels, resulting in improvements to outright performance, handling and ride quality.
June 08, 2023 09:31 AM Eastern Daylight Time
GEELONG, Australia--(BUSINESS WIRE)--Carbon Revolution Limited (“Carbon Revolution” or the “Company”, a Tier 1 OEM supplier and a leading global manufacturer of lightweight advanced technology carbon fiber wheels, today announced that its backlog1 has more than doubled to $680 million since October 2022 due primarily to new programs.
“Over the last six months we have made noteworthy progress with new OEM programs awarded, including our first two EV programs, and new funding that allows us to move forward with our global business strategy.”
The news comes as the Company has made other significant advances since announcing in Nov 2022 that it had entered into a definitive business combination agreement with Twin Ridge Capital Acquisition Corp. (“Twin Ridge” or “TRCA” (NYSE: TRCA).
Recent awards of new programs take Carbon Revolution’s total lifetime awarded programs with global automakers Ford Motor Company (“Ford”, Ferrari NV (“Ferrari”, General Motors Company (“GM”, Renault Group (“Renault” and Jaguar Land Rover Automotive Plc (“JLR” to 162 with another 3 programs in progress under engineering agreements.
“We are firing on all cylinders,” said Carbon Revolution CEO Jake Dingle. “Over the last six months we have made noteworthy progress with new OEM programs awarded, including our first two EV programs, and new funding that allows us to move forward with our global business strategy.”
In May, the Company secured a $60 million IP-backed loan, providing proceeds to progress ongoing investment in its Mega-line automation, capacity expansion, repayment of existing debt, general working capital, and liquidity to complete the merger.
The rapidly growing market for EVs is a key strategic focus because Carbon Revolution’s wheels weigh up to 50% less than equivalent aluminum wheels, and can deliver an up to 5%-10% increase in vehicle range, if associated weight reduction were to be reinvested in battery mass.3 Carbon Revolution’s wheels provide significant unsprung mass reductions which can greatly improve efficiency and reduce road noise while also helping leading global automakers to comply with the Corporate Average Fuel Economy (CAFE) targets set by the National Highway Traffic Safety Administration (NHTSA).
This month, Carbon Revolution announced that it will supply the carbon fiber wheels that are featured on the 2024 Range Rover Sport SV, revealed on May 31 by JLR, the first SUV to feature Carbon Revolution’s carbon fiber wheels. Production of this 23-inch wheel commenced on the Mega-line early this year.
“Our partnership with JLR opens up a very promising path for new applications of our advanced carbon fiber technology because trucks and SUVs are now the heart of the North American and global markets, representing a key profit pool for OEMs,” said Dingle.
Carbon Revolution initially penetrated the performance and premium end of the market with wheel programs for vehicles including Ford’s GT and Shelby Mustang GT350R and GT500, Ferrari’s 488 Pista, F8 Tributo, SF90 Stradale, 812 Competizione and 296 GTB, Renault’s Megane RS Trophy R, and GM’s Chevrolet Corvette Z06 and E-Ray.
CBR Price at posting:
15.0¢ Sentiment: Buy Disclosure: Held
, a Tier 1 OEM supplier and a leading global manufacturer of lightweight advanced technology carbon fiber wheels, today announced that its backlog1 has more than doubled to $680 million since October 2022 due primarily to new programs.
