• Record revenue of $17.4m, up 34% on pcp
• Gross profit increased 100% to $9.7m, with gross margin expanding to 56%
• First positive EBITDA of $0.2m, demonstrating path to profitability

The first half of FY26 marks a true turning point for Vection, with the company achieving record revenue, gross margins over 50% for the first time, positive underlying EBITDA, and break-even operating cash flow - all in what is traditionally the weaker half of the year. Revenue reached a record $17.4m, driven primarily by the defence and healthcare verticals, with an increasing contribution from multi-year contracts. Gross profit increased 100% to $9.7m, with gross margin expanding to 56% from 42%, reflecting a structural shift toward higher-margin software, AI and services revenue. Vection also reported its first positive EBITDA of $0.2m, demonstrating the operating leverage emerging in the business. Customer receipts nearly doubled to $22.5m, marking the strongest collection half on record, and operating cash flow improved significantly to breakeven. The company's defence business has been established as a core growth engine, with $27.7m in cumulative orders secured, including a landmark $22.3m multi-year framework agreement. Vection's AI and platform strategy is also gaining traction, with $4.6m in new AI contracts secured during the half and the contracted AI pipeline for FY26 reaching $5.7m. The company is on track to complete two profitable, earnings-accretive acquisitions that will expand its presence in APAC and further strengthen its capabilities.

Vection expects gross margins to trend structurally higher as the revenue mix continues shifting toward AI and software. Underlying EBITDA is already positive heading into the historically stronger second half, and the company has a ~$60m commercial pipeline under negotiation, alongside ~$30m in contracted TCV.

Vection is entering the second half of FY26 with strong momentum, having secured $4.5m in post-period wins that provide a clear line of sight on growth targets. The company's strategic focus on defence, healthcare, and AI-driven enterprise solutions is delivering significant results, and Vection is well-positioned to continue its growth trajectory.