VEEM Limited reported full-year 2026 revenue of AUD 51.7 million, matching the upper end of guidance, though EBITDA fell to AUD 3.6 million from AUD 9.1 million in FY25. The company attributed the decline to a AUD 24.2 million impairment of gyroscope capitalized costs, driven by lower-than-budgeted sales in the first half of FY26.
Activity revenue totaled AUD 54.2 million, reflecting work-in-progress on deliveries to the Australian Submarine Corporation (ASC). Second-half revenue rose 21% compared with the first half, while H2 EBITDA reached AUD 3.8 million, reversing a AUD 0.2 million loss in H1. Cash at period-end stood at AUD 9.4 million, with operating cash flow of AUD 4.8 million and net debt reduced to AUD 1.2 million.
Capital expenditure for FY26 amounted to AUD 2.5 million, primarily for a 3D sand printer, tooling, and factory expansion. VEEM raised AUD 40 million gross (AUD 13.1 million net) in equity during the year. The company’s order book included AUD 1 million in gyroscope orders, with U.S. defense contracts totaling AUD 180,000 secured so far.
VEEM’s share price closed at AUD 0.56, down 1.75% on the day, with a 52-week range of AUD 0.445 to AUD 1.95. No final dividend was declared, as management prioritized reinvestment to restore profitability. The company’s factory now operates at peak historical capacity, producing around 20 propellers daily, with three new CNC machines installed and expected to add 25% capacity upon full commissioning.
On propulsion performance, VEEM highlighted a combined 24.9% improvement in vessel efficiency through its VEEM Extreme system, enabling sales of complete shaft-line systems valued three to five times higher than standalone propellers. The Mark III gyroscope remains on track for full availability by the end of FY27, with retrofit opportunities identified for over 80 existing units in the field.
Looking ahead, VEEM expects FY27 to be busier, particularly in the first half, as remaining ASC orders are delivered through January and February. The company framed current conditions as comparable to the post-financial crisis period of 2008–2009, with management noting strategic investments made during the downturn to bolster future capacity.
