HighCom (HCL) H2 2026 earnings summary

Executive summary

• FY 2026 was a significant year of transition, with strengthened leadership, board, and globalized product offerings.

• Both Armor and Technology divisions experienced momentum, with H2 revenue rebounding 73% over H1 and strong global demand signals.

• Technology division had a strong year; Armor was impacted by a prolonged U.S. budget shutdown but saw a Q4 recovery.

• Commercialisation of proprietary XTclave™ technology and a successful capital raise of $7.8m supported growth initiatives.

• Global demand and pipeline for both divisions are robust, with over AUD 1 billion in certified opportunities.

Financial highlights

• FY 2026 revenue: AUD 29.8 million, down from AUD 48.1 million in FY25, but H2 revenue was 73% higher than H1.

• Negative EBITDA: AUD 6.8 million, compared to AUD 0.2 million in FY25; H2 EBITDA at AUD (1.4) million, within guidance.

• Closing cash at year-end was AUD 9.7 million, up from AUD 5.8 million in FY25.

• Largest CUAS contract secured: AUD 8.9 million MyDefence follow-on order.

• Inventory levels are reasonable, with a focus on reducing aged inventory.

Outlook and guidance

• Positive outlook for FY 2027, with normalized U.S. government buying and increasing global demand.

• Both divisions supported by strong multi-year global pipelines.

• Positioned for growth, with significant operating momentum built up in H2 FY 2026 and new integrator roles secured.