HighCom Limited reported a 73% sequential rebound in second-half revenue for fiscal 2026, driven by defence procurement orders, even as annual revenue declined 38% year-over-year.
The company, listed on the Australian Securities Exchange under ticker HCM, posted A$29.8 million in group revenue for the year ended June 30, 2026, down from A$48.1 million in fiscal 2025. Second-half revenue reached A$18.9 million, compared with A$10.9 million in the first half, reflecting a 73% improvement. Shares rose 5% to A$0.105 following the presentation of results.
Total EBITDA for the year remained negative at A$6.8 million, though the second-half loss narrowed to A$1.4 million, within management’s guided range of A$1.2 million to A$1.6 million. The company completed a A$7.8 million capital raise through institutional investors and family offices, lifting its closing cash position to A$9.7 million from A$5.8 million a year earlier. Net cash stood at A$6.2 million, with total available liquidity of A$7.3 million. Debt was consolidated into a single A$4.5 million facility with the Commonwealth Bank of Australia, maturing in May 2028, leaving A$1.1 million in undrawn headroom.
Revenue in the Technology Division rose to A$16.3 million, generating positive EBITDA of A$2.8 million. HighCom converted a A$1.1 million trial with MyDefence into an A$8.9 million follow-on order from the Department of Defence for counter-drone systems. The US Armour Division reported revenue of US$9.1 million, with second-half revenue of US$5.3 million more than tripled the US$3.1 million recorded in the third quarter. EBITDA in the division remained negative at US$3.4 million due to subdued demand amid a prolonged US government budget impasse. Unit sales volumes ended the year 60% below normalized levels.
HighCom reduced aged US inventory over 180 days by US$1.2 million, bringing total US inventory to US$4.8 million by the second half of fiscal 2026 from approximately US$10 million in the first half of fiscal 2024. The company’s XTclave™ technology completed its first commercial production run in June 2026 at full capacity, with 40 products certified and tested across North America, South America and Europe, covering 660 active SKUs.
The company’s vetted sales pipeline exceeds A$1.2 billion, including US$858 million in armour opportunities and A$59 million in technology prospects. North America accounts for 53% of the pipeline, Europe 34%, South America 8% and Asia Pacific 5%. DataIntelo forecasts the global ballistic protection market to reach US$3.5 billion by 2033, with the US representing 67% of that total. Counter-drone systems are projected to grow from US$15 billion to US$19.8 billion by 2033 at a compound annual growth rate of 21.5% to 25.2%, while Australia’s integrated drone program represents a A$22 billion addressable market over a decade.
