Sea Forest Limited (ASX:SEA): FY26 SeaFeed Revenue, Cattle Agreements and Newcastle Distribution Hub

Aditi Sarkar

23 October 2026 12:29 AM AEDT

Sea Forest Limited (ASX:SEA): FY26 SeaFeed Revenue, Cattle Agreements and Newcastle Distribution Hub

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Highlights

Sea Forest (ASX:SEA) reported unaudited FY26 SeaFeed revenue of A$4.98 million, up 486%.
Underlying EBITDA loss narrowed to A$3.09 million from A$6.21 million.
Cash and cash on deposit were A$27.76 million at 30 June 2026, with net assets of A$39.75 million.
Cattle under agreement reached 131,000, and a Newcastle distribution centre is being commissioned.

Sea Forest Limited is an Australian environmental technology company that replicates the science of methane-reducing Asparagopsis seaweed to offer climate solutions for agriculture and related supply chains. The company has published preliminary unaudited FY26 results showing higher revenue, a narrower loss and wider commercial agreements.

Company Business

Sea Forest's main product, SeaFeed, is designed to replicate the bioactive compounds found in Asparagopsis seaweed, and the company says it can reduce methane emissions in ruminant livestock by up to 80%. It operates three Australian sites across Tasmania and New South Wales, supplies land-based cultivation trials in the United Kingdom, Europe and South America, and is certified as a B-Corp.

The company is also expanding into aquaculture and nutraceutical research, and Sea Forest (ASX:SEA) is currently focused on ruminant livestock, particularly cattle.

Recent Development

In late August 2026, the company released preliminary unaudited results for the year ended 30 June 2026. Cattle under agreement reached 131,000 at 30 June, which management says exceeds the volume required for its projected cash-flow breakeven, although breakeven has not been achieved and these cattle are being progressively placed on SeaFeed. The first regional mixing and distribution centre, in Newcastle, New South Wales, is being commissioned.

Sea Forest (ASX:SEA) is also running a multi-year trial with Woolworths Group, DIT AgTech and Teys Australia aimed at the Australian grazing market, which the company says includes more than 30 million cattle. A Verra-registered carbon project is in progress, with carbon trading expected as a revenue stream from 3Q27. Trials with Mainstream Aquaculture are underway.

Internationally, the company has partnered with Belterra Agroflorestas in Brazil, where livestock trials are complete and regulatory approval is pending. It has an exclusive manufacturing and distribution partnership with Oisix Ra Daichi in Japan and is in advanced discussions with potential customers in South Africa. In July 2026, a parcel of 166,667 shares, about 0.3% of issued capital, was released from voluntary escrow.

Financial Performance and Sector Context

SeaFeed revenue was A$4.98 million compared with A$0.85 million in the prior corresponding period, an increase of 486%. Underlying EBITDA was a loss of A$3.09 million compared with a A$6.21 million loss, a 50% improvement. The statutory net loss after tax was A$5.42 million compared with A$9.09 million, an improvement of 40%.

Raw materials, consumables and production costs were A$2.20 million compared with A$0.51 million, and operating expenses were A$4.06 million, up 39%. Excluding non-recurring IPO listing costs, operating expenses rose 17%, mainly because of higher research and development spending.

Net cash used in operating activities was A$4.64 million compared with A$5.94 million, with a A$1.86 million research and development tax incentive refund received. Cash and cash on deposit rose to A$27.76 million from A$12.62 million, and net assets were A$39.75 million.

In the sector, the company is targeting a grazing market of more than 30 million cattle in Australia, and carbon trading is expected as an additional revenue stream from 3Q27. Commercial adoption depends on livestock producers choosing to use feed additives.

Risks to Consider

Sea Forest remains in an early commercial phase, with a loss-making income statement and reliance on its cash balance to fund expansion. The business depends on customer uptake, trial progress and regulatory approvals in the European Union, United Kingdom and Brazil. Execution risks include commissioning the Newcastle facility, scaling production while controlling costs and developing delivery formats beyond oil dosing. Revenue from carbon projects depends on registration and market conditions.

What to Watch Next

Milestones outlined by the company include commissioning of the Newcastle distribution centre, expansion of production and distribution, and development of delivery formats such as blocks, loose licks and water delivery. Regulatory approval in Brazil and customer trials in the European Union and United Kingdom are continuing, and carbon trading is expected from 3Q27. Further updates on cattle numbers will show progress against the cashflow breakeven threshold for ASX:SEA.

Key Insights

Sea Forest (ASX:SEA) enters FY27 with revenue up sharply from a small base, a narrower underlying loss and cash and deposits of A$27.76 million. Cattle under agreement have risen, and domestic and international partnerships are expanding. The company is still loss-making, and results depend on rollout timing, regulatory approvals and customer adoption. Monitoring points include the Newcastle hub, cattle volumes, cash use, carbon project progress and overseas approvals.

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