Sprintex (ASX: SIX) has secured its largest-ever purchase order, valued at A$27.4 million from Mest Water, significantly boosting revenue visibility and marking a major commercial milestone for its ZLD-UP systems in the European market.
Landmark Mest Water Deal
The purchase order is for 500 ZLD-UP Complete Systems, valued at €15.6 million (A$27.4 million).
This represents Sprintex's largest order in its history, providing substantial revenue visibility through to July 2027.
Deliveries are slated to begin with approximately 20 systems per month, ramping up to 40 systems per month over a 17-month window.
European Expansion Accelerated
The order includes EU RENURE approval, indicating alignment with European environmental regulations for ZLD-UP systems.
The deal follows a prior evaluation revenue of €926,000 for H1 FY2026 and an initial A$1.27m evaluation order in FY25.
The order strengthens Sprintex's presence in the European market for its zero-liquid discharge solutions.
Financial and Production Implications
The contract includes a 50% deposit structure for each batch, with €3.3 million expected for the first 200 systems.
Pricing is set at €33k per system for the first 200 units and €30k for the remaining 300.
This significantly boosts Sprintex's order book and revenue visibility, following a period of strategic pivot and commercialisation efforts.
Context and Risks
This order arrives subsequent to a period of significant net losses and a going concern uncertainty highlighted in the FY25 Annual Report.
Execution risk in ramping production and customer concentration with Mest Water are noted as key investor risks.
Reliance on regulatory tailwinds, which could shift, and currency exposure between EUR and AUD are also highlighted risks.
Bottom Line
Sprintex has secured a significant A$27.4 million purchase order from Mest Water, its largest to date, for ZLD-UP systems. This deal provides substantial revenue visibility through July 2027 and marks a pivotal moment for the company's European market penetration, though execution and funding risks remain key considerations.
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