• Avionics revenue up 68% driven by increased production volumes and improved program mix
• Segment Adjusted EBITDA for Avionics increased to $3.8 million
• Contract manufacturing revenue down 2% but Adjusted EBITDA improved to $1.3 million

Structural Monitoring Systems Plc (ASX: SMN) reported a 31% increase in revenue to $16.5 million for the half-year ended 31 December 2025. The Avionics AEM Avionics business segment continued to perform strongly, delivering revenue of $10.0 million, an increase of 68% compared to the prior corresponding period. This growth was primarily driven by increased production volumes across existing OEM programs and improved program mix. Segment Adjusted EBITDA for Avionics was $3.8 million, materially higher than the prior corresponding period ($0.6 million), reflecting improved gross margins, better absorption of fixed overheads and disciplined cost control. The Contract Manufacturing segment delivered revenue of $6.6 million, down 2% on the prior corresponding period. However, Segment Adjusted EBITDA improved to $1.3 million (31 December 2024: $0.7 million), reflecting improved pricing discipline, operational efficiencies and tighter cost management. The CVM™ Smart Sensor Solutions business generated revenue of $0.01 million during the period (31 December 2024: nil), with the next major milestone being Boeing submitting the Service Bulletin to the FAA for approval.The Group incurred an after-tax loss of $0.1 million for the half-year, an improvement from the $2.3 million loss in the prior corresponding period. Adjusted EBITDA for the period was $3.7 million, compared to Adjusted LBITDA of $0.4 million in the prior half-year.The Group's focus in the short and medium-term will be on avionics product development and commercialisation, as well as the ongoing commercialisation of its CVM™ technology and progressing FAA approval of its APB application in 2026.

In the short and medium-term, the Group will focus on avionics product development and commercialisation, the ongoing commercialisation of its CVM™ technology, and progressing FAA approval of its APB application in 2026.