Veem (VEE) H1 2025 earnings summary

Executive summary

• Revenue for 1HFY25 was $33.6m, at the upper end of guidance, but down 10% year-over-year and up 23% from 1HFY23.

• EBITDA was $3.9m, within guidance but down 43% year-over-year; NPAT was $1.0m, down 71% year-over-year.

• Cashflow from operations was $1.8m, down 50% year-over-year, with improvement expected in 2HFY25.

• Interim unfranked dividend of 0.23 cents per share declared, maintaining a 30% payout of NPAT.

• Management succession completed, with new CEO and CFO appointed.

Financial highlights

• Revenue was $33.6m, down 10% year-over-year but up 23% on FY23, and at the upper end of guidance.

• EBITDA was $3.9m (down 43%); NPAT was $1.0m (down 71%); EPS was 0.75c (down 71%).

• Operating cashflow was $1.8m, down 50% year-over-year; cash at period end was $0.3m with a $1.9m overdraft.

• Interim dividend of 0.23c per share declared, representing 30% of NPAT.

• Adjusted EBITDA (ex-AASB 16 leases) was $2.9m.

Outlook and guidance

• Revenue and margins are expected to improve in 2HFY25 as delayed orders are fulfilled and cost reductions take effect.

• Propeller and gyro sales are anticipated to rebound, supported by new contracts, expanded marketing, and product launches.

• Defence revenue to increase in 2HFY25 with new orders and completion of key programs.

• Cost reduction measures implemented in 1HFY25 are expected to benefit margins in 2HFY25.

• Sharrow by VEEM targeting 75 vessel installations in the next 12 months.