• Revenue, EBITDA and NPAT down on prior year due to cost increases and COVID impact
• $13.1m capital raising strengthens balance sheet and reduces net debt
• Propeller and defence revenue expected to improve in 2HFY26

VEEM Ltd reported a 30% decline in revenue to $23.4m and a 32% decline in total activity to $23.3m for the 1HFY26 period, compared to the prior corresponding period. EBITDA and NPAT were -$0.2m and -$19.3m respectively, down from $3.9m and $0.9m in 1HFY25. The result includes a non-cash impairment of $24.8m associated with gyrostabilisers. Cashflows from operations were strong at $4.0m, up 128% on 1HFY25. The company received $13.1m in net proceeds from a capital raising, significantly strengthening the balance sheet and reducing net debt to $1.8m. Propeller revenue was down 9% to $12.9m, while defence revenue declined 50% to $3.7m due to delays in ASC orders, which are now being delivered. VEEM launched the Gyro Mark III and VEEM Extreme products during the half, with the latter expected to contribute to improved performance in the second half. The company also made progress in entering the US defence supply chain. FY26 is expected to be a transition year as VEEM incurs costs for new products and markets prior to their ramp-up.

VEEM expects propeller and defence revenue to improve in the second half of FY26 as the company delivers on ASC orders and its new products gain traction. The company is also focused on expanding its presence in the US defence market.