Delorean’s Bold Pivot to Build-Own-Operate Model Marks FY25 Loss but Sets Stage for Growth

A Year of Strategic Transformation

Delorean Corporation Limited (ASX – DEL) has unveiled its preliminary financial results for the year ended 30 June 2025, revealing a pivotal year marked by a deliberate shift in its business model. The company transitioned from delivering bioenergy construction projects for third parties to focusing on the Build-Own-Operate (BOO) model for renewable gas infrastructure. This strategic pivot, while resulting in a total comprehensive loss after tax of $4.1 million, lays the foundation for long-term, multi-stream revenue generation backed by investment-grade partners.

FY25 revenue declined 29% to $19.8 million compared to FY24, reflecting the timing impact of delayed project completions and the reinvestment into scaling the company’s infrastructure capabilities. EBITDA recorded a loss of $6.3 million, underscoring the transitional nature of the year.

Project Progress and Delays

Delorean’s largest construction project to date; the $51 million Lilydale bioenergy facility for Yarra Valley Water in Victoria; reached substantial completion during FY25. However, delays primarily related to grid connection and cost increases have pushed final construction completion into the first quarter of FY26. This delay has deferred associated revenues and profits, reducing construction phase profit by $3.3 million to date. Despite this, the construction phase remains profitable and is expected to support significant gains during the upcoming operations and maintenance (O&M) phase.

Meanwhile, Delorean is advancing construction on its first BOO facility, the SA1 Salisbury bioenergy project in South Australia. This facility is designed to generate biomethane and multiple revenue streams, including organic waste tipping fees, liquid carbon dioxide sales, and carbon credits. First biomethane revenues are anticipated in April 2026, with commissioning expected in Q4 FY26.

Robust Pipeline and Financing

Beyond SA1, Delorean boasts a development pipeline valued at approximately $200 million, featuring shovel-ready projects NSW1 (in partnership with Brickworks) and VIC1, both targeted for construction commencement in FY26. The company has secured a $37 million corporate debt facility with Tanarra Restructuring Partners, complemented by a $6.1 million grant from ARENA, to fund these initiatives. The financing structure is designed to support capital recycling and refinancing with lower-cost project-level debt upon commissioning.

Strategic Partnerships and Regulatory Tailwinds

Delorean has strengthened its market position through strategic partnerships with major industrial and gas sector players, including Brickworks, AGIG, ATCO, and Supagas. These collaborations not only facilitate market access but also underpin the bankability of projects and secure binding multi-year revenue streams.

Regulatory reforms have further bolstered the renewable gas sector’s outlook. Biomethane is now officially recognised as a natural gas equivalent, enabling Renewable Gas Guarantee of Origin certificates that support emissions abatement and project bankability. The SA1 project is nearing registration under the GreenPower program, allowing it to issue these certificates upon first biomethane delivery.

Strengthened Leadership and ESG Commitment

Delorean has enhanced its leadership team with new appointments, including Non-Executive Directors Michael Philip and Surena Ho, CFO Aidan Flynn, and COO Neil Conquest, bringing deep expertise in infrastructure finance and operations. The company also maintained ISO 9001, 14001, and 45001 accreditations and published its third annual ESG report, reinforcing its commitment to sustainable practices and responsible investment.

Looking Ahead to FY26

The company’s outlook for FY26 is optimistic, focusing on commissioning the SA1 facility and commencing diversified revenue streams from its five integrated sources. The completion of the Lilydale project’s construction phase will transition into O&M revenues, providing stable income. Delorean also plans to advance VIC1 and NSW1 projects into construction and secure long-term biomethane offtake agreements to underpin financial sustainability.

While FY25 results reflect a temporary loss due to strategic reinvestment and project timing, Delorean’s repositioning as a BOO renewable gas infrastructure owner and operator positions it well for sustained growth in Australia’s expanding bioenergy sector.