Highlights

  • Sea Forest (ASX:SEA) shares closed at A$1.60, up 0.31% on 9 September 2026.
  • SeaFeed Revenue increased 486% in FY26 to A$4.98 million from A$0.85 million in FY25.
  • Underlying EBITDA loss improved 50% to A$3.09 million, while statutory net loss narrowed 40% to A$5.42 million.
  • SEA ended FY26 with 131,000 cattle under commercial agreements and A$27.76 million in cash and cash on deposit.

Sea Forest Limited (ASX:SEA) shares finished Wednesday modestly higher, closing at A$1.60, up 0.31% on 9 September 2026.

The wider Australian market ended slightly lower. The S&P/ASX 200 (ASX:XJO) closed at 8,911.40 points, down 0.11% on 9 September 2026, while the S&P/ASX 300 (ASX:XKO) finished at 8,842.30 points, down 0.12%.

The S&P/ASX 200 Consumer Staples (ASX:XSJ) closed at 13,170.4 points, up 0.25% on 9 September 2026.

SEA therefore marginally outperformed the sector benchmark while also finishing ahead of the broader market. However, the 0.31% daily gain should not automatically be attributed to its recent corporate update. Daily moves can reflect trading conditions and investor positioning, while SEA’s longer-term Investment case depends on commercial adoption, operating economics, cash requirements and expansion of its methane-abatement platform.

SeaFeed Commercialisation Moves Forward

SEA is an Australian environmental technology company focused on reducing methane emissions from livestock.

Its flagship SeaFeed product uses and replicates the bioactive science associated with Asparagopsis seaweed. The company states that SeaFeed has been formulated to reduce methane emissions from ruminant livestock by up to 80%, while also seeking commercially practical delivery methods for producers.

SEA operates across research, Manufacturing and commercial distribution rather than relying solely on seaweed cultivation. Its strategy increasingly includes manufactured formulations and different delivery formats intended to make the product easier to use across feedlot and grazing production systems.

This scalability is important because a technically successful product must ultimately fit within normal livestock operations if it is to achieve widespread commercial adoption.

FY26 Update

SEA released preliminary unaudited FY26 results on 28 August 2026, providing the most recent major financial and operational update.

SeaFeed revenue reached A$4.98 million for the year ended 30 June 2026, up 486% from A$0.85 million in FY25. Management attributed the increase to continued commercial rollout and growing customer adoption.

Underlying EBITDA remained negative at A$3.09 million, but this represented a 50% improvement from the A$6.21 million loss recorded in FY25.

Statutory net profit after tax was a loss of A$5.42 million, narrowing 40% from the A$9.09 million loss recorded in the previous financial year.

The results therefore show a Business that remains loss-making but is beginning to demonstrate substantially greater commercial revenue alongside reduced losses.

For investors, the challenge is now to determine whether further revenue scale can continue narrowing the gap toward sustainable profitability.

131,000 Cattle Under Agreement

Commercial livestock commitments were another key feature of the FY26 update.

SEA reported that cumulative cattle under agreement had reached 131,000 by 30 June 2026. Those cattle are being progressively inducted onto SeaFeed supplementation rather than all contributing revenue immediately.

Management said this level was ahead of the threshold required for cash-flow breakeven based on its expectations.

This makes livestock induction an important metric to monitor. Signed agreements create potential future demand, but recognised revenue depends on customers progressing cattle onto the product.

The company is also pursuing the much larger Australian grazing market. Its multi-year program involving Woolworths Group, DIT AgTech and Teys Australia is designed to evaluate SeaFeed in grass-fed cattle systems, potentially opening access to a market of more than 30 million cattle if the commercial and technical outcomes support adoption.

Cash Position Improves

SEA entered FY27 with a comparatively strong Liquidity position for an early commercial-stage business.

Cash and cash on deposit stood at A$27.76 million at 30 June 2026, compared with A$12.62 million a year earlier. Net Assets were A$39.75 million.

Operating cash outflow improved 22% to A$4.64 million from A$5.94 million in FY25. The company said customer receipts increased during the year, while it also received an A$1.86 million Research and Development tax incentive refund.

Operating cash outflows included A$1.63 million of non-recurring expenditure associated with items including IPO transaction costs, decommissioning of non-core marine activities and other corporate costs.

SEA commenced ASX trading in November 2025 after completing its public listing. The strengthened Balance Sheet provides funding capacity for commercial rollout, research programs and distribution infrastructure.

For investors, cash burn remains relevant despite the improved position. The next phase will be about converting the balance-sheet capacity into greater recurring commercial revenue.

Newcastle, Carbon Credits and International Markets

SEA is also building infrastructure intended to support larger-scale distribution.

Commissioning was underway at the company’s first regional mixing and distribution centre in Newcastle, New South Wales, at the time of the 28 August update. The Facility forms part of the company’s plan to improve distribution efficiency as SeaFeed adoption increases.

A second prospective revenue stream is carbon credits.

SEA said customers were joining its Verra-registered carbon project, with carbon trading expected to become an additional revenue stream from the third quarter of FY27. The concept is to monetise verified methane-emission reductions generated through SeaFeed use.

Internationally, SEA is also pursuing regulatory and commercial opportunities in priority jurisdictions including Brazil, the European Union and the United Kingdom.

In Brazil, livestock trials had been completed, with the company awaiting regulatory approval before progressing further trials or commercialisation. SEA also has an exclusive manufacturing and distribution Partnership in Japan and reported discussions with potential customers in South Africa.

These opportunities increase the potential addressable market, but international revenue will depend on regulatory clearances, customer adoption and commercially viable distribution.

What Investors May Watch

SEA’s 0.31% gain on 9 September 2026 is modest compared with the scale of the operational changes underway.

The clearest measure to monitor is whether the 131,000 cattle already under agreement translate progressively into recognised SeaFeed revenue.

Operating leverage is another important factor. FY26 SeaFeed revenue increased 486%, while the underlying EBITDA loss improved 50%. Continued improvement in this relationship would provide evidence that increasing commercial scale is strengthening the Economics of the business.

Cash flow is equally important. SEA still consumed A$4.64 million through Operating Activities in FY26, meaning sustained revenue growth will need to be accompanied by disciplined spending.

Investors may also watch Newcastle commissioning, grazing trials, international regulatory approvals and the planned introduction of carbon-credit revenue.

Final Takeaway

Sea Forest (ASX:SEA) shares closed at A$1.60, up 0.31% on 9 September 2026, slightly outperforming the S&P/ASX 200 Consumer Staples Index.

The 28 August 2026 FY26 update provides the more meaningful fundamental picture. SeaFeed revenue increased 486% to A$4.98 million, underlying EBITDA loss improved 50% to A$3.09 million and statutory net loss narrowed 40% to A$5.42 million. SEA also finished the year with 131,000 cattle under agreement and A$27.76 million in cash and cash on deposit.

FY27 will therefore be an important commercialisation period. Revenue conversion from existing livestock agreements, operating cash flow, Newcastle distribution capacity, grazing-market progress and international regulatory approvals are likely to provide a clearer indication of SEA’s longer-term trajectory than a single trading session.