• Successful A$14m placement to accelerate growth in defence sector
• Signed 9-year US$33m Manufacturing Licence Agreement with Northrop Grumman
• Achieved Level 1 accreditation with Huntington Ingalls Incorporated Newsport News Shipbuilding

VEEM Ltd has announced the successful completion of a A$14 million placement to institutional and sophisticated investors, with the proceeds to be used to support growth in the defence sector, working capital, and balance sheet strength. The company's largest shareholder, the Miocevich family, and major shareholder Perennial are participating in the placement. VEEM has also signed a 9-year Manufacturing Licence Agreement (MLA) with Northrop Grumman, a leading global aerospace and defence company, to supply a range of pre-determined parts for the Virginia Class submarine program. The initial value of the MLA is up to US$33 million, with the potential for the agreement to be increased by amendment. Additionally, VEEM has achieved Level 1 accreditation with Huntington Ingalls Incorporated Newsport News Shipbuilding, one of the highest tiers of supplier qualification in the US defence system. This allows VEEM to manufacture Level 1 certified components and the company has received its first request for quote, targeting a purchase order in the first half of FY26. The company continues to pursue other defence opportunities, including a 6-year, A$65 million contract with ASC and a contract with BAE Systems Australia for the Hunter Class Frigate Program. While demand in propulsion and engineering remains solid, the slower than anticipated conversion of gyro leads to orders and later than expected ramp up in ASC orders mean 1HFY26 EBITDA is expected to be slightly lower than 1HFY25, though revenue is expected to accelerate in 2HFY26 consistent with the cyclical nature of the Submarine Program.

VEEM expects 1HFY26 EBITDA to be slightly lower than 1HFY25 due to the slower than anticipated conversion of gyro leads to orders and later than expected ramp up in ASC orders. However, revenue is expected to accelerate in 2HFY26 consistent with the cyclical nature of the Submarine Program.

VEEM is well-positioned to capitalize on the growing government and defence expenditure, particularly in the US, through its recent agreements with Northrop Grumman and Huntington Ingalls Incorporated Newsport News Shipbuilding. The company expects further manufacturing opportunities beyond what has been announced to date as the US aspires to expand its nuclear submarine build plan.