Carbon Revolution (ASX:CBR) share price leaps 17% as sales surge

Why are the shares of this wheelmaker charging ahead today?

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Key points

  • Carbon Revolution share price exploding, up 17.26%
  • Revenue up by 92.6%, according to quarterly update
  • Wheel sales soared by 109.4%

The Carbon Revolution Ltd (ASX: CBR) share price is soaring today on the back of the company's quarterly update.

At the time of writing, shares in the lightweight carbon fibre wheelmaker are swapping hands for 99 cents. This is a 17.26% increase from yesterday's close.

Let's take a look at what Carbon Revolution announced today.

Carbon Revolution share price explodes amid quarterly results

The Geelong-based company revealed the following:

  • Quarterly total revenue of $11.4 million, up 82.6% on the previous corresponding quarter (PCP) of Q1 FY22
  • Wheel sales up 109.4% on the PCP to 4,397 wheels
  • Cash balance of $47.8 million
  • Net cash outflow of $16 million for the quarter, in line with expectations

What else happened in the quarter?

A highlight for the company was the news that its carbon fibre wheels would be used on General Motors' new Chevrolet C8 Corvette Z06 and Z07.

This is the first such partnership that Carbon Revolution has formed with the US-based car manufacturing giant.

Company managers also signed 2 new engineering deals. This includes an electric vehicle (EV) SUV deal.

What's next for Carbon Revolution?

In FY22, the company intends to produce more Ferraris and launch production of the Corvette Z06 and Z07 wheels.

Carbon Revolution managers hope to better the company's technology, equipment, and processes to improve its operations. The company is positive about its customer engagement on new initiatives and demand for its wheels.

In the company statement, Carbon Revolution said:

The global transition to electric vehicles is driving demand, with customers looking to benefit from the 40-50% weight savings of carbon fibre…

Carbon Revolution is optimistic that its sales outlook and new program pipeline is sound.

The company has 15 ongoing programs, including 8 awarded contracts and 7 design and engineering phase projects.

Carbon Revolution share price recap

The Carbon Revolution share price has gravitated downwards by 4.37% in 2022. Over the past 12 months, the share price has dropped 62.4%.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has returned 5.2% in the past year.

Carbon Revolution has a market capitalisation of roughly $203 million based on its current share price.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Carbon Revolution Limited. The Motley Fool Australia has recommended Carbon Revolution Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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