• 6-year, $65 million contract to continue supplying critical components for Australia's Collins Class submarines
• Continues 30+ year relationship with ASC
• Orders expected to accelerate in FY26, particularly in 2HFY26

VEEM Limited (ASX: VEE), a designer and manufacturer of marine propulsion and stabilization systems, has announced the signing of a 6-year, $65 million defence contract renewal with ASC Pty Ltd (ASC). VEEM is a long-standing manufacturer of defence marine products and the only Australian supplier for Flowserve Flow Control (UK) Ltd Defence valves, the original equipment manufacturer of the Collins Class submarine ball valves. Under the renewed agreement, VEEM will continue to provide certain specialized parts as part of the maintenance program for the Collins Class submarines to ASC on substantially similar commercial terms. Orders are expected to accelerate in FY26, particularly in the second half, in line with the cyclical nature of the contract. This renewal reaffirms the strength of the longstanding relationship between the two entities and further demonstrates VEEM's reputation for precision engineering to the exacting defence standards. The renewed agreement is effective from 27 June 2025 and will run through to 27 June 2031. VEEM's Managing Director, Mark Miocevich, welcomed the announcement, recognizing the collaborative efforts of the VEEM and ASC teams in negotiating and executing this critical and complex in-country manufacturing and service program.

Based on preliminary unaudited results for FY25, VEEM expects to report revenue in the range of $68m to $69m, EBITDA in the range of $8.5m to $9.5m, and NPAT in the range of $2.75m to $2.85m.

VEEM expects ASC revenue to be approximately $6.5m in FY25 compared to $16.1m in FY24, a 60% decline. However, the company plans to build upon the stronger 2HFY25 performance into FY26 based on the renewed contract.