Veem (VEE) H2 2026 earnings summary

Executive summary

• FY26 revenue reached AUD 51.7 million (USD 51.7m), at the upper end of guidance, but down from AUD 68.6 million in FY25 due to lower gyro sales and delayed ASC orders.

• EBITDA was AUD 3.6 million, within guidance but down from AUD 9.1 million in FY25, reflecting market and order delays.

• Second half saw a 21% increase in sales and a turnaround from a small EBITDA loss to AUD 3.8 million, driven by marine market recovery and ASC contract delivery.

• Significant product innovation with the launch of VEEM Extreme and Gyro Mark III, targeting commercial, defense, and new market segments.

• Strong operating cash flow of AUD 4.8 million as ASC contract deliveries began and propeller orders accelerated.

Financial highlights

• Revenue: AUD 51.7 million, down 25% year-over-year.

• EBITDA: AUD 3.6 million, down 61% year-over-year.

• Net profit after tax: AUD (17.8) million, impacted by a AUD 24.8 million non-cash gyro impairment.

• Operating cash flow: AUD 4.8 million, up over 60% year-over-year.

• Cash balance ended at AUD 9.4 million, with AUD 7.5 million in undrawn facilities.

Outlook and guidance

• Defence revenue and propeller orders expected to remain strong into FY27, with AUD 13 million in orders to fulfill and Hunter Class negotiations nearing completion.

• Anticipated growth in VEEM Extreme and Gyro Mark III sales, with commercial and defense markets as key drivers.

• First half of FY27 expected to be busier than usual, reversing typical seasonality.

• Focus in FY27 will shift to commercialising recently launched products.

• Positive market response to new products, with robust inquiries and new contracts signed.