Veem (VEE) H2 2024 earnings summary

Executive summary

• Revenue reached $80.6m, up 35% year-over-year, with NPAT up 70% to $7.0m, driven by increased propeller capacity, productivity, and accelerated gyro sales.

• EBITDA rose 48% to $14.8m, including non-recurring costs.

• Operating cash flow was $8.4m, up 77% year-over-year.

• Gyro sales surged 147% to $12.3m, driven by Strategic Marine orders; orders in hand at $3.4m.

• Signed exclusive 17-year global license with Sharrow Engineering for inboard vessel propellers; rollout underway.

Financial highlights

• Revenue: $80.6m (+35% YoY); EBITDA: $14.8m (+48% YoY); NPAT: $7.0m (+70% YoY); EPS: 5.15c (+70% YoY).

• Operating cash flow: $8.4m (+77% YoY); cash at period end: $0.2m (net of overdraft).

• Declared total FY24 dividend of 1.54c per share, with a final unfranked dividend of 0.77c.

• Debt repayments totaled $4.0m, supported by strong operational cashflow.

• $4.6m invested in capital and development, including robotics and automation.

Outlook and guidance

• Gyrostabiliser market expected to grow with new Mark II model and expanded marketing; commercial sector to lead adoption.

• Propulsion demand to remain strong; SHARROW by VEEM rollout to drive sales growth into FY25 and FY26.

• Defence revenue to stay robust with ongoing submarine and patrol boat contracts; Hunter demonstrator program to unlock further opportunities.

• FY25 outlook expects core business to maintain similar activity levels, with focus on new products, markets, and margin improvement.