Veem (VEE) Investor presentation summary

Company overview and market position

• Founded in 1968, operates in Defence, Marine, and Industrial sectors with a global distribution network and 175+ employees.

• Recognized for cutting-edge technology, including world-leading propellers and gyrostabilisers.

• Trusted partner to Australian defence since 1987, with $250m+ in defence work and entry into the US defence supply chain.

• Sole global supplier of large gyros for marine stability; Mark III gyro launched in H1 2026.

• Largest non-ferrous foundry in Australia, focusing on precision-engineered products.

Financial performance and capital structure

• 1HFY26 revenue was $23.4m, below guidance, with EBITDA at -$0.2m and strong operating cash flow of $4.0m.

• FY26 revenue expected between $50m and $52m, with EBITDA forecasted at $3.25m–$3.75m, driven by defence and ASC order fulfilment.

• Net debt reduced to $1.8m at 31 Dec 2025, moving to net cash of $0.2m by 31 Jan 2026 after $13.1m capital raise.

• Cash balance at 31 Dec 2025 was $9.1m, with $8.8m in undrawn facilities, supporting future investments.

• Pre-tax non-cash impairment of $24.8m on gyro assets significantly impacted 1HFY26 results.

Operational highlights and product developments

• Propulsion sales of $13.0m in 1HFY26, down 9%, but with improving marine market and new VEEM Extreme propeller launch.

• Defence revenue of $3.7m in 1HFY26, down 49%, but expected to rise as ASC orders are delivered in 2HFY26 and FY27.

• Mark III gyro launched with major technical improvements; sales expected to increase in FY27.

• Engineering products revenue steady at $8.2m, with focus on foundry-led precision products and hollow bar offerings.

• Factory extension completed, 3D printer installed, and three new CNC machines to be commissioned, expanding capacity.