Highlights

  • SEA Forest (ASX:SEA) reported FY26 SeaFeed Revenue of A$4.98 million and cash and deposits of A$27.76 million at 30 June 2026.
  • Commercial agreements covered 131,000 cattle at year end, while commissioning progressed at the company's first Newcastle mixing and distribution centre.
  • Key FY27 markers include Newcastle ramp-up, broader delivery formats and conversion of commercial trials into recurring supply.

SEA Forest (ASX:SEA) is moving from product validation toward commercial scale. The company’s FY26 preliminary results showed SeaFeed revenue of A$4.98 million and a statutory net loss of A$5.42 million, while commercial agreements covered 131,000 cattle at 30 June 2026. The operating focus is now shifting to distribution capacity, customer conversion and the Economics of scaling a methane-reduction feed supplement across a larger livestock base.

Company Overview

SEA Forest develops and commercialises SeaFeed, a seaweed-derived livestock supplement designed to reduce methane emissions from ruminant animals. The Business combines cultivation, product formulation and commercial distribution, with activities across Tasmania and New South Wales. During 2026, the company also progressed international pathways in markets including Japan, Brazil and Europe, while continuing Australian commercial and trial programs with large agricultural counterparties.

Financial and Operational Position

The FY26 preliminary result reported SeaFeed revenue of A$4.98 million, underlying EBITDA of negative A$3.09 million and a statutory net loss of A$5.42 million. Cash and deposits stood at A$27.76 million at 30 June 2026, providing funding for the next stage of the commercial rollout. Operating cash outflow for the year was A$4.64 million. The company also reported 131,000 cattle under commercial agreements and said commissioning was underway at its first mixing and distribution centre in Newcastle, New South Wales. That Facility is intended to improve blending, logistics and product availability as volumes increase.

What Investors May Watch Next

The Newcastle facility is the nearest operational checkpoint. Investors may monitor how quickly the site reaches steady throughput, whether existing customers increase committed volumes, and whether additional delivery formats such as blocks, loose licks and water systems widen the addressable herd. The company has also identified carbon trading as a future revenue pathway, making verification, customer participation and timing important parts of the FY27 commercial story.

Risks

SEA Forest remains loss-making and is still proving the economics of scale. Customer trials may not convert into large recurring contracts, while producer adoption depends on cost, animal performance and the value placed on methane reduction. Regulatory settings for carbon markets can change, and international expansion adds execution and distribution complexity. The company also needs to manage cash carefully while Manufacturing and distribution capacity expands.

Key Insights

SEA Forest enters FY27 with measurable commercial progress rather than a purely trial-based proposition. Revenue, committed cattle numbers and the Newcastle facility provide clear operating indicators. The next phase will be judged on repeat demand, distribution efficiency and the rate at which commercial agreements translate into sustainable margins.