Unaudited Preliminary Final Report (Appendix 4E)
| Stock | Highcom Ltd (HCL.ASX) |
|---|---|
| Release Time | 29 Aug 2025, 10:05 a.m. |
| Price Sensitive | Yes |
HighCom Reports Unaudited Preliminary Final Results
- Positive EBITDA of $0.2m in FY25, up from $9.6m loss in FY24
- Profit after tax of $1.2m, improved from $12m loss in FY24
- Revenue up 6% to $48.1m in FY25
HighCom Group Ltd (ASX: HCL) reported its Unaudited Preliminary Final Report (Appendix 4E) for the financial year ended 30 June 2025. The company's new executive leadership team, appointed in FY24, has prioritized stabilizing the business and laying the groundwork for future growth. In FY25, the US-based HighCom Armor operation focused on managing costs, optimizing inventory, and driving sales growth, leading to a notable improvement in EBITDA performance. The Australian HighCom Technology operation remained focused on servicing existing defense contracts for UAS while also successfully bidding for a new CUAS project. For the full year ending 30 June 2025, the company reported a profit after income tax expense of $1.2m, including a $1.7m reversal of impairments, an improved result compared to a $12m loss in FY24. Group revenue for the period increased 6% to $48.1m. The company's combined blended gross margins decreased to 23% in FY25 from 30% in FY24 due to the sale of discounted excess inventory. Cash at 30 June 2025 was $5.8m, down from $6.2m a year earlier, with no debt on the balance sheet and $3.8m in available credit facilities.
The company expects the overall outlook for FY26 to remain positive, providing management the opportunity to lead the business towards future growth, market expansion, and EBITDA improvement. However, the company has seen a slower start to FY26 in the US market due to a slowdown in government spending, which is expected to change in Q2 based on new legislation. The company's XTclave technology is currently undergoing R&D to develop new product lines, which are expected to be available for sale in FY26 and increase the company's market share, revenue, and EBITDA.
The company's Australian HighCom Technology operation is focused on maintaining and servicing existing contracts while also successfully supplying a new CUAS product range to the Australian government in FY26. Overall, the company is positioned for growth and EBITDA improvement in the coming year as it executes on its strategic priorities.