• Revenue of $68.6m, down 15% on FY24
• EBITDA of $9.2m, down 38% on FY24
• NPAT of $3.0m, down 57% on FY24
• Signed 6-year $65m contract extension with ASC
• Achieved approved supplier status with HII for Virginia Class Submarines

VEEM Ltd (ASX: VEE) has reported its financial results for the year ended 30 June 2025. The company's revenue for the year was $68.6m, down 15% on FY24, but 2HFY25 revenue of $35.1m was up 4% on 1HFY25. EBITDA and NPAT were $9.2m and $3.0m, down 38% and 57% respectively on FY24. However, EBITDA and NPAT in 2HFY25 of $5.3m and $2.0m were up 34% and 100% compared to 1HFY25, reflecting cost reduction measures, economies of scale, and efficiency gains. The company's Submarine Program revenue with ASC was significantly lower than anticipated, but VEEM has since announced a 6-year $65m contract extension with ASC. VEEM has also achieved approved supplier status with Huntington Ingalls Incorporated Newport News Shipbuilding (HII-NNS) for the Virginia Class nuclear powered submarines, enabling it to receive a request for quote in 1HFY26. Demand for VEEM's fixed pitch propellers remained strong, with propulsion revenue of $35.0m, a decrease of less than 1% over FY24. Gyrostabilizer revenue of $9.6m was down $2.7m compared to FY24, primarily due to the acceleration of a Strategic Marine order in FY24. VEEM invested over $3.9m in capital and development expenditure during FY25 and spent $4.1 million on formal research and development projects.

VEEM expects revenue from the ASC Submarine Program to increase, particularly in 2HFY26, in line with the cyclical nature of the contract. The company remains committed to continuing research and development projects to maintain its position at the forefront of the markets in which its products are sold and potentially enter new markets.