• Revenue, EBITDA and NPAT down on prior year due to cost increases
• Defence revenue accelerated in 2H FY25 despite reduction in ASC revenue
• ASC revenue expected to increase in FY26, particularly in 2H

VEEM Ltd's FY25 results saw a decline in revenue, EBITDA and NPAT compared to the prior year, with revenue down 15% to $68.6m, EBITDA down 38% to $9.2m, and NPAT down 57% to $3.0m. This was due to increases in raw materials and freight costs, as well as general staff shortages and COVID-19 impacts on customers, suppliers and staff. However, the second half of FY25 saw an improvement, with 2H revenue up 4% on 1H and 2H EBITDA up 36%. Defence revenue accelerated in 2H FY25, up $0.9m compared to 1H, despite a $2.4m reduction in ASC revenue. ASC revenue is expected to increase in FY26, particularly in the second half, as part of the cyclical nature of the contract, which has been renewed for a further 6 years to the value of $65m. Propulsion revenue remained robust, and the company continued to invest in capital and development expenditure, including additional robotics, to drive efficiency. VEEM also saw 13 gyros sold for $9.6m, expanding its customer base, which is positive for FY26.

VEEM expects ASC revenue to increase in FY26, particularly in 2H FY26, as part of the cyclical nature of the contract, which has been renewed for a further 6 years to the value of $65m.

VEEM continues to commit to research and development projects to remain at the forefront of its markets and potentially enter new markets. FY26 will see continued investment with the facility expansion underway.