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HighCom (HCL) investor relations material
HighCom H2 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Achieved breakeven EBITDA of $0.2M in FY25, a $9.8M improvement year-over-year, with both armor and technology divisions contributing positively and covering corporate costs.
Revenue grew 6% year-over-year to $48.1M, driven by both US and Australian operations.
Major investment and recommissioning of the XD Clave/XTclave™ positions the business for higher-margin product growth in the US.
Operational stabilization achieved through cost controls, inventory optimization, and a new executive team.
Financial highlights
EBITDA improved by $9.8M to $0.2M, with net loss narrowing to $1.2M from $12.0M in FY24.
Revenue reached $48.1M, up 6% year-over-year; gross margin declined to 23% from 30% due to discounted sales and inventory clearance.
Inventory reduced from $17M to $14M, freeing up $3M in cash.
Cash held at $5.8M with no debt or borrowings as of June 2025; market capitalization at $45.1M.
Employee costs decreased by $1.7M and operating expenses by $2.7M.
Outlook and guidance
FY26 outlook is strong, with anticipated EBITDA and margin improvements from new product launches and XD Clave/XTclave™ commercialization.
Growth expected without materially increasing operating costs, leveraging a stabilized cost base.
Global defense spending trends and new US administration funding expected to support market expansion, though short-term US government funding delays may impact Q1 FY26.
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