Veem (VEE) AGM 2026 presentation summary

FY26 performance

• Revenue was $51.7m, down from $68.6m in FY25 and at the upper end of $50m–$52m guidance; lower gyro and propeller sales and delayed ASC orders weighed on results.

• EBITDA was $3.6m versus $9.2m in FY25, within $3.25m–$3.75m guidance; EBITDA margin was 6.9%.

• 2HFY26 sales rose 21% to $28.3m from $23.4m in 1HFY26; EBITDA was $3.8m in 2H versus -$0.2m in 1H.

• Operating cash flow was $4.8m versus $2.9m in FY25; FY26 included a $24.8m non-cash, pre-tax gyro impairment, with PBT of -$26.6m and NPAT of -$17.8m.

• No final dividend was declared for FY26.

Financial position and cash flow

• Cash at 30 June 2026 was $9.4m versus $0.8m a year earlier; net debt was $1.2m versus $13.7m, excluding AASB 16 leases.

• A capital raising generated $13.1m in net proceeds; net debt fell $12.5m after adding $2.4m in hire purchase and asset finance liabilities.

• Total unused facilities were $7.5m, including a $4.0m undrawn overdraft and $3.1m undrawn trade facility.

• FY26 capex was $2.5m, including a 3D printer and propeller equipment and tooling; $2.4m was funded through hire purchase and asset finance.

Products and operations

• Non-defence propulsion sales were $24.9m, down 7% YoY; marine-market recovery in 2HFY26 continued into FY27.

• VEEM Extreme testing showed 24.1% lower fuel burn and emissions versus matched conventional equipment, verified by Lloyd’s; Manly Fast Ferries recorded an 8.3% fuel-burn reduction from the propellers alone.

• Defence revenue was $12.3m, down 21% YoY; 2HFY26 revenue reached $8.6m as delayed ASC orders began delivery, with orders continuing into FY27.

• US defence progress included approved supplier status with HII, EB and Blue Forge, a 9-year Northrop Grumman agreement for up to US$33m, and initial A$0.8m Virginia Class submarine orders.

• Engineering revenue excluding defence was $14.3m, down 14% YoY; the completed ~1,000m² factory extension supports three CNC machines and a commissioned 3D printer.