• FY25 revenue of $68.6m, EBITDA of $9.2m and NPAT of $3.0m
• Defence revenue accelerated in 2HFY25 to $8.3m, with new contracts signed
• Propulsion revenue consolidated at $35.0m, with new VEEM Extreme product launch
• 13 gyros sold for $9.6m, with new Mark III gyro model launched

VEEM Ltd reported its FY25 results, with revenue of $68.6m, down 15% on FY24, EBITDA of $9.2m, down 38% on FY24, and NPAT of $3.0m, down 57% on FY24. The company saw strong performance in its defence segment, with revenue accelerating in 2HFY25 to $8.3m, despite a continued reduction in ASC revenue. VEEM signed a 6-year, $65m contract with ASC, and is developing demonstrator blades for the Hunter Class Frigate Program. The company also joined the HII AUSSQ Pilot Program and signed a 9-year, up to US$33m MLA with Northrop Grumman, providing access to the US defence supply chain. In propulsion, revenue consolidated at $35.0m, with the launch of the new VEEM Extreme propulsion package, which offers up to 18.1% fuel efficiency gains. The gyrostabiliser segment saw 13 units sold for $9.6m, with the launch of the new Mark III model. VEEM's engineering products and services revenue grew 5% to $16.7m. The company completed a $14m capital raising and is expanding its Baile Rd facility. The 1HFY26 trading update indicates slower than anticipated start, but a stronger 2HFY26 is expected.

VEEM expects to report revenues for 1HFY26 in the range of $24m to $26m with EBITDA in the range of -$1m to $1m and a Net Loss After Tax in the range of $2m to $3m. The second half of FY26 is expected to be stronger than the first half, with significant contributions from defence and in particular ASC.

VEEM is positive about the outlook for its defence, propulsion and gyrostabiliser segments. In defence, the company expects revenue to increase in FY26, particularly in 2HFY26, as orders are received under the new ASC contract. The company is also pursuing new opportunities in the US defence supply chain. In propulsion, VEEM is optimistic about the VEEM Extreme product, with strong leads to date. In gyrostabilisers, the company expects purchasing hesitancy in 1HFY26 due to the anticipated Mark III model to lead to accelerating orders and sales in 2HFY26.