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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.
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H2 2025 earnings summary29 Aug, 2025

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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Frequently asked questions

XTEK Limited is an Australian company engaged in the provision of homeland security products and services. It specializes in high-quality protective security, tactical, and forensics solutions, primarily serving government, law enforcement, military, and commercial sectors. The company's product range includes ballistic armor and protection systems, unmanned aerial systems, and forensics software, among others. XTEK is recognized for its focus on developing and commercializing innovative technologies that cater to critical security needs. The company is headquartered in Canberra, Australia, and its shares are listed on the Australian Securities Exchange.

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