Quarterly Activities/Appendix 4C Cash Flow Report
| Stock | Vection Technologies Ltd (VR1.ASX) |
|---|---|
| Release Time | 30 Apr 2026, 8:16 a.m. |
| Price Sensitive | Yes |
Vection Technologies Reports Third Consecutive Quarter of Positive Operating Cash Flow
- $30m in cumulative defence orders, with $13.6m already delivered
- ~$4m in new AI orders across 10 enterprise verticals in Q3
- Acquired DXLabs, adding $3.5m revenue and $0.8m EBIT immediately
Vection Technologies reported its third consecutive quarter of positive operating cash flow, with $8.0m in customer receipts and $0.45m in net operating cash flow. The company also secured $30m in cumulative defence orders, with $13.6m already delivered, and ~$4m in new AI orders across 10 enterprise verticals in Q3. Vection's new defence technology, FEDRA, achieved its first-ever $2.2m order, marking a shift from integrating hardware to selling a proprietary military AI platform. The company also renewed a classified intelligence engagement, adding $1.64 million in recurring revenue. Vection's AI business recorded one of its strongest periods to date, with approximately $4 million in new Algho AI contracts secured across 10 verticals. The company also acquired DXLabs, an Australian digital transformation and automation business, adding $3.5m in revenue and $0.8m in EBIT immediately. Vection enters Q4 FY26 with strong commercial momentum, a clear path to delivery, and a business demonstrably shifting toward higher-margin, recurring revenue.
Vection expects further material orders under the $22.3m defence framework (scalable to $29.5m) in Q4 FY26 and beyond. The $30m cumulative defence order book, with $13.6m already delivered, provides a multi-year revenue foundation that underpins the company's growth outlook.
Vection enters Q4 FY26 with strong commercial momentum and a clear path to delivery. In Defence, FEDRA deliveries and ongoing programme execution under the $22.3m framework will drive progressive revenue recognition through Q4 and into FY27, with further material orders anticipated. The $30m cumulative order book, with $13.6m already delivered, provides a multi-year revenue foundation that underpins the company's growth outlook. For AI, approximately $4m in new Algho AI contracts secured during Q3 will largely convert to cash receipts in Q4 and H1 FY27, adding to H2 momentum.