• 1HFY25 revenue expected at $33m-$35m, EBITDA $3.4m-$4.0m, NPAT $0.4m-$1.2m
• 2HFY25 expectations unchanged from previous AGM update
• Cost reduction measures implemented, $5m bank loan extended to 2027

VEEM Ltd has revised its financial expectations for the first half of FY2025 (1HFY25). The company now expects revenue in the range of $33 million to $35 million, EBITDA between $3.4 million and $4.0 million, and Net Profit After Tax (NPAT) in the range of $0.4 million to $1.2 million. This is lower than the previous guidance provided on 14 November 2024, which forecast 1HFY25 revenue of around $36 million, EBITDA of $5.0 million to $5.5 million, and NPAT of $2.0 million to $2.3 million. The company has attributed the revised expectations to a few factors, including additional costs incurred on certain industrial products jobs, a quality issue related to gyrostabiliser parts, and some large orders being received later than expected, which impacted productivity in November and December. VEEM has implemented a number of cost reduction measures, including reducing staff in certain areas, to improve margins. The company also noted that its expectations for the second half of FY2025 remain unchanged from the previous AGM update, with margins expected to return to historically normal levels.Additionally, VEEM has been awarded a $1 million government grant to purchase and install a new multi-axis CNC machine and scanner for manufacturing propellers and other critical components for the Navy. The company has also extended its $5 million loan facility with ANZ to 1 October 2027 on the same terms and conditions.

For 1HFY25, VEEM expects revenue in the range of $33 million to $35 million, EBITDA between $3.4 million and $4.0 million, and NPAT in the range of $0.4 million to $1.2 million.

VEEM is confident that with the changes it has implemented and recent orders, the second half and beyond of FY2025 will be back to the company's usual margins and levels of profitability. The company noted that all areas of the business have a strong outlook, and new defence opportunities are potentially going to provide revenue as early as 2HFY25.