• Preliminary 1HFY26 results close to or within guidance
• $24.2m non-cash impairment of gyro development costs
• $0.6m non-cash impairment of obsolete inventory
• Transition to new Mark III gyro design underway

VEEM Limited (ASX: VEE) has announced its preliminary unaudited results and anticipated non-recurring accounting adjustments for the half year ended 31 December 2025 (1HFY26). The company's pre-Board approved 1HFY26 operating results (excluding non-recurring adjustments) are expected to be close to or within the guidance provided at the company's AGM in November 2025. VEEM's revenue for 1HFY26 is expected to be approximately $23.4 million (Guidance: $24 million to $26 million), and EBITDA (excluding non-recurring adjustments) is expected to be -$0.2 million (Guidance: -$1 million to $1 million). Cashflows from operations are expected to be $4.0 million, up 128% on 1HFY25, demonstrating the resilience of the core business. However, the company has undertaken a review of its capitalised gyro development costs, which are largely related to the original Mark I and Mark II gyro designs. This review is likely to result in a pre-tax non-cash impairment charge of $24.2 million to the capitalised gyro development costs, as well as a $0.6 million pre-tax non-cash impairment of obsolete inventory. The transition to the new Mark III gyro design has seen a significant drop in sales, as customers await the availability of the new units. VEEM expects research and development costs to have peaked and plans to account for future costs through the profit and loss in future periods. The company continues to drive sales of its gyro range and has strengthened its balance sheet to leverage the opportunities ahead.

With the impairment of historical development costs and a capital raising completed during 1HFY26, the Board has rationalised and strengthened the Company's balance sheet to leverage the opportunities that lay ahead for the Company.