Veem (VEE) H1 2026 earnings summary

Executive summary

• Revenue for the half-year ended 31 December 2025 was $23.4m, down 30% year-over-year, mainly due to low gyro sales and delayed ASC defence orders.

• EBITDA was -$0.2m, within guidance, and net loss after tax was $19.5m, impacted by a $24.8m non-cash impairment on gyro assets.

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

• $13.1m capital raise significantly reduced net debt from $13.7m to $1.8m, transitioning to a net cash position by January 2026.

• The period was marked by a transition year, with investments in new product launches (VEEM Extreme, Gyro Mark III) and US defence market entry.

Financial highlights

• Revenue: $23.4m for 1HFY26, down 30% year-over-year and below guidance of $24m–$26m.

• EBITDA: -$0.2m, within guidance range; EBITDA margin: -0.7%.

• Net loss after tax: $19.5m, including $24.8m impairment.

• Cash at 31 Dec 2025: $9.1m; cashflow from operations: $4.0m, up 128% year-over-year.

• Net debt reduced to $1.8m at 31 Dec 2025, moving to net cash by January 2026.

Outlook and guidance

• Defence revenue expected to increase in 2HFY26 as ASC orders are fulfilled and US defence supply chain entry progresses.

• Propulsion revenue and margins anticipated to recover in 2HFY26 and beyond, supported by new product launches.

• Gyro Mark III launch expected to drive sales as market adoption improves.

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

• FY26 is a transition year, laying foundations for stronger growth in FY27.