Veem (VEE) H1 2026 earnings summary

Executive summary

• Revenue for the half year was $23.4m, down 30% year-over-year, with activity levels similar to the prior period and declines driven by lower gyro and delayed defense sales.

• EBITDA was negative $0.2m, within guidance, and net profit after tax was a loss of $19.5m due to a significant non-cash impairment of $24.8m related to gyro assets.

• Operating cash flow was strong at $4.0m, up 128% year-over-year, and cash and cash equivalents rose to $9.1m.

• Major product launches included the VEEM Extreme propulsion range and the Mark III gyro, both representing years of engineering development.

• $13.1m–$14m was raised via capital raising, significantly reducing net debt and strengthening the balance sheet.

Financial highlights

• Revenue for the half year was $23.4m, down from $33.6m year-over-year.

• EBITDA was negative $0.2m, within the guidance range of negative $1m to +$1m.

• Cash at period end was $9.1m, rising to $10.3m by end of January; undrawn facilities totaled $8.8m.

• Net debt reduced to $1.8m at 31 Dec 2025, with a net cash position of $200,000 after capital raising.

• Operating cash flow was $4.0m, up from $1.8m in the prior period.

Outlook and guidance

• FY26 is a transition year, with costs for new product launches and market entry expected to yield future revenue.

• Propeller revenue expected to improve in 2HFY26 as marine market recovers.

• Defence revenue anticipated to accelerate in 2HFY26 as ASC orders are delivered and US defense market entry progresses.

• Gyro Mark III launch expected to drive sales and margins as production scales.

• Overhead cost reductions of $3.5m annualised to support profitability.