FY24 Investor Presentation

• Revenues of $31 million with 23.4% gross margin
• Normalized EBITDA of $1.1 million, excluding non-cash impairment and restructuring charges
• Signed over $100 million in MaxSim contracts, $20 million in Aurora and REVAL opportunities

Adacel Technologies Ltd, a leader in air traffic management, simulation, and training solutions, has released its FY24 investor presentation. The company reported revenues of $31 million, with the services segment contributing 69% and the systems segment 31% of total revenues. Gross margin for the year stood at 23.4%, a decrease from 32.3% in FY23, mainly due to revenue mix. Normalized EBITDA, excluding non-cash impairment and restructuring charges, was $1.1 million. The company incurred a non-cash impairment charge of $1.9 million related to its remote tower business and one-time restructuring costs of $0.6 million. For FY25, the company anticipates a normalized EBITDA of between $4 million and $5 million, assuming continued delivery of the FAA Hardware Support Contract and a new Aurora ATM contract win worth over $3 million. Adacel highlighted strong growth opportunities in its flagship products, with over $100 million in MaxSim contracts signed in the last 18 months, and opportunities in excess of $20 million each for Aurora and REVAL.

For FY2025, the Company anticipates a normalized EBITDA of between $4 million and $5 million. FY2025 assumes continued delivery of the FAA Hardware Support Contract throughout FY2025 and a new Aurora ATM contract win with a total contract value in excess of $3 million, of which half is expected to be delivered in FY2025.

Adacel sees further opportunities to continue delivering growth in its flagship MaxSim product, with opportunities in excess of $20 million for both Aurora and REVAL. The company expects a new Aurora ATM contract win in H1 FY2025 with a total contract value in excess of $3 million.