Veem (VEE) Investor Presentation summary

Strategic growth and defence market expansion

• Secured a 9-year manufacturing licence agreement with Northrop Grumman worth up to US$33m, enabling competition to supply parts for Virginia Class nuclear submarines and entry into the US defence supply chain.

• Achieved Level 1 supplier accreditation with HII-NNS, qualifying to manufacture high-tier components for US defence, with first RFQ received and purchase orders targeted for 1HFY26.

• Signed a 6-year, $65m contract with ASC, with revenue expected to increase in FY26, and completed demonstrator blades for BAE Systems’ Hunter Class Frigate Program, positioning for further domestic and export opportunities.

• Awarded $3m in defence grants to increase sovereign capacity, and appointed David Singleton as Non-Executive Director to strengthen defence and international business expertise.

• Factory extension underway to boost capacity, with completion due in 2HFY26.

Financial performance and capital raising

• FY25 revenue reached $68.6m, EBITDA $9.2m (13.4% margin), and NPAT $3.0m; proforma net debt reduced to $0.6m post-raise.

• Successfully raised $14m via placement at $1.30 per share, representing a 13.6% discount to last close, with strong participation from major shareholders.

• Funds will be used to advance defence opportunities, provide working capital, and strengthen the balance sheet.

• Market capitalisation post-raise is $220.9m, with 146.7m shares on issue.

• Placement managed by Morgans Corporate, Blue Ocean Equities, and Euroz Hartleys.

Business segments and market outlook

• Defence revenue expected to accelerate in 2HFY26, driven by submarine program cycles and new US supply chain entry.

• Propulsion segment maintains strong global demand, with facility expansion and new product development underway.

• Gyrostabilisers segment investing in marketing and product improvements, targeting commercial and recreational markets.

• Engineering segment continues to see steady demand, with innovation in advanced castings and 3D sand printing.

• Outlook anticipates 1HFY26 EBITDA slightly lower than 1HFY25, but revenue growth in 2HFY26.