• Vection operates globally with 100+ clients and 200+ employees, solving real-world business problems in the digital world
• Vection's proprietary Spatial Computing and Artificial Intelligence technologies are driving growth in the defence sector
• Vection has won a $22.3M contract, the largest in the company's history, demonstrating its ability to become a trusted partner for leading, global contractors

Vection Technologies Ltd (ASX: VR1) operates globally with 100+ clients and 200+ employees, solving real-world business problems in the digital world. Despite being sector agnostic, Vection's defence clientele is rapidly growing given heightened geopolitical tension, greater defence spend and the increased adoption of integrated software applications. Vection's value proposition in the defence sector is underpinned by its proprietary Spatial Computing (VR, AR, XR, MR) and Artificial Intelligence (AI) technologies, coupled with hardware. The proprietary software platform gives a single point of access to integrate multiple Vection applications into client's operations, enabling smarter decision-making, seamless collaboration, and immersive experiences. Vection has won a small portion of the enormous addressable market, which is forecasted to reach ~US$1.8 Tn by 2030 (~30% CAGR), underpinned by 1H25 Revenues of $17.4m (up 60% pcp; pro forma, unaudited) and positive adjusted EBITDA (up 69% pcp). Importantly, defence expenditure as a percentage of GDP in the EU is currently ~2%, which is expected to grow substantially given NATO's proposed 5% GDP target. Vection has been the beneficiary of increased spend, winning ~A$42M in contracts in the last ~16 months, underpinned by a framework agreement, out to 2030, with an approved NATO contractor in the EU (top 15 globally). The company has also won its largest individual contract to date, worth $22.3M, demonstrating its ability to efficiently win, grow and retain contracts from blue chip clients.

Vection's FY25 YTD financials include growing revenue, 35-40% blended Gross Margins, ~$17m fixed cost base, and positive EBITDA. The company has a sales pipeline of ~$75m currently under negotiation.

Vection is strategically positioning itself as the leading software service provider in the defence sector, with the goal of being the go-to integrated software provider in the EU by 2027. The company is focused on driving international expansion, executing on its sales pipeline, and pursuing value-accretive opportunities to accelerate growth.