Capital Raise Presentation
| Stock | Veem Ltd (VEE.ASX) |
|---|---|
| Release Time | 30 Sep 2025, 9:52 a.m. |
| Price Sensitive | Yes |
VEEM Ltd Raises $14M to Accelerate Defence Growth
- Secured 9-year $33M manufacturing licence agreement with Northrop Grumman
- Achieved Level 1 supplier status with Huntington Ingalls, a top US defence contractor
- Awarded $3M in defence grants, signalling confidence from Department of Defence
VEEM Ltd has announced a $14M capital raise to support its growing defence business. Key highlights include:- Secured a 9-year manufacturing licence agreement with Northrop Grumman worth up to US$33M, enabling VEEM to compete to supply parts for the Virginia Class nuclear-powered submarines.- Achieved Level 1 accreditation, one of the highest tiers of supplier qualification, with Huntington Ingalls Industries - Newport News Shipbuilding (HII-NNS), a top US defence contractor. VEEM has received its first request for quote and is targeting its first purchase order in 1HFY26.- Appointed David Singleton, former Managing Director of ASX-listed shipbuilder Austal Limited, to the VEEM Board, bringing deep defence and international business expertise.- Awarded $3M in defence grants, signalling the Department of Defence's confidence in VEEM's capabilities.- Expect defence revenue to accelerate, particularly in 2HFY26, in line with the cyclical nature of the Submarine Program and potential upside from the HII-NNS and Northrop Grumman agreements.- Propulsion and engineering businesses remain solid, with plans to broaden the customer base and introduce new products.The capital raise will be used to advance defence opportunities, provide working capital, and strengthen VEEM's balance sheet in anticipation of new purchase orders from leading defence customers.
1HFY26 EBITDA expected to be slightly lower than 1HFY25, but 2HFY26 revenue expected to accelerate in line with the cyclical nature of the Submarine Program, with potential upside from the HII-NNS and Northrop Grumman agreements.
VEEM is strategically positioned to capture the increasing expenditure in the government and defence sectors, with a focus on expanding its presence in the US defence supply chain, securing additional contracts for the Hunter Class Frigate Program and other naval shipbuilding programs, and growing its traditional propulsion and engineering businesses.