HighCom (HCL) H1 2026 earnings summary

Executive summary

• Specialist in advanced ballistic protection and integrated drone solutions, serving defense, law enforcement, and first responders globally, with a focus on personnel protective systems and technology integration.

• Structured into Armor (body armor, helmets, shields) and Technology (UAS, counter-UAS, integration, and training) divisions.

• Revenue declined 59% year-over-year to $10.9m for H1 FY26, mainly due to the US government shutdown and tariff uncertainty impacting the Armor segment.

• Strategic shift to US-produced products, refreshed management, and operational focus sharpened.

• Strong customer relationships and positive market feedback, especially for new XTclave lightweight products.

Financial highlights

• H1 FY26 revenue at $10.9 million, down from $26.6m year-over-year, with EBITDA loss of $5.4 million; net loss after tax was $6.8m.

• Includes abnormal tax expense of $686,000 and currency impact of $232,000.

• Technology division revenue stable year-over-year; Armor division heavily impacted by shutdown.

• Gross profit: $1.3m (prior year: $6.8m); gross margin: 12% (prior year: 26%).

• Cash at period end: $3.0m; inventory reduced to $12.5m from $14.4m at 30 June 2025.

Outlook and guidance

• Expecting 100%-150% revenue uplift in H2 FY26 versus H1, aiming for break-even or slight profit.

• Recovery in US government spending anticipated to normalize by Q4 H2 FY26.

• Guidance dependent on timing of a large technology order, US government order recovery, and exchange rate fluctuations.

• FY27 outlook strong, with pipeline and market activity supporting growth.

• Opportunity pipeline for Armor exceeds US$55m for H2 FY26.