• Q3 free cashflow of $1.4 million, up 55% on pcp, up 917% on prior year to date
• Repayment of C$0.8 million RBC term loan, with the Group now debt free
• Q3 avionics revenue up 5% on pcp, up 43% on prior year to date

Structural Monitoring Systems Plc ('SMS' or 'the Company') (ASX: SMN & SMNOA) reported its Appendix 4C and Quarterly Update for the period ending 31 March 2026. The company reported continued improvement in avionics revenue and cash generation compared to the prior corresponding period (pcp) as well as continued improvements across total revenue, profitability and cash generation compared to the prior year to date. Revenue for the quarter increased modestly year-on-year, with stronger avionics performance offsetting softer contract manufacturing sales in the period. Free cashflow of $1.4 million was recorded during the quarter, an increase of 55% on the prior corresponding period, and 917% on the prior year to date, reflecting improved manufacturing margin and working capital management. During the quarter, the Company repaid its C$0.8 million Royal Bank of Canada term loan, resulting in the Group being free of all bank debt. Net profit after tax and adjusted EBITDA have increased 203% and 82% respectively on the prior year to date. The avionics segment continued to deliver strong performance, with sales 43% above the corresponding FY25 period, primarily driven by strong digital audio system sales and ongoing product demand. The Company also launched the MTP138 radio, the most advanced analogue radio on the market, that focuses primarily on the offshore oil rigs, gas, wind farms and other marine-based facilities. The Company continues to progress its CVM™ structural monitoring technology through the Boeing and FAA certification pathway.