• Revenue and EBITDA loss for H1 expected to be $10.5-$11.0 million and $(5.0)-$(5.8) million respectively
• Temporary shutdown of US Government during H1 impacted results
• Outlook for H2 is positive, with revenue to exceed H1 and EBITDA to trend back to positive levels

HighCom Limited (ASX: HCL) has provided a trading update for the first half of FY26. The company expects revenue and EBITDA loss for H1 to be in the range of $10.5 to $11.0 million, and $(5.0) to $(5.8) million respectively. This result is primarily due to the temporary shutdown of the US Government during H1, which slowed and delayed contract awards, procurement activity, and revenue recognition across the company's US operations. US customers account for approximately 75% of HighCom's global revenue. Despite these headwinds in the Armor business, the company continues to execute on its strategy, developing new products, broadening and strengthening its channels to market, and delivering a strong performance in its Technology business. Recent orders in Small Uncrewed Aerial Systems (SUAS) and expanded services underpin the Technology business's momentum as a key technology aggregator and provide visibility into second-half deliveries. The company has also proactively advanced a diversification strategy, expanding into new sectors including its direct-to-consumer platform and State-based procurement panels. These initiatives are expected to translate into increased orders during the second half of FY26. Accordingly, the company expects 2H FY26 revenue to exceed 1H FY26 and is targeting a material improvement in EBITDA in the second half. Operationally, HighCom continues to progress a channel and product optimisation program in the US aimed at improving margins.

Revenue and EBITDA for H1 FY26 expected to be $10.5-$11.0 million and $(5.0)-$(5.8) million respectively. The company expects 2H FY26 revenue to exceed 1H FY26 and is targeting a material improvement in EBITDA in the second half.

Following the slowdown in the US during 1H FY26, management expects procurement and funding cycles to normalise over Q3 FY26. The company's diversification strategy, including its direct-to-consumer platform and State-based procurement panels, is expected to broaden the addressable market, enhance revenue resilience, and position the business to mitigate the impact of any future market disruptions.