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Veem Ltd (ASX:VEE)

ALERT: Price-sensitive ASX Announcement for VEE
Current share price for VEE : $0.550 -0.1 (-15.38%)+
Announcement
Release
25 Feb 2026 8:13AM
Price at Release
$0.650
Full Release
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Summary
VEEM Limited reported its financial results for the half-year ending 31 December 2025, experiencing a revenue of $23.4 million, which was a decrease of 30% from the previous half-year due to low gyro sales and delays in ASC order receipts. Despite an EBITDA of -$0.2 million, cashflow from operations was strong at $4.0 million, showing a 128% increase from the previous year. VEEM successfully reduced its net debt from $13.7 million to $1.8 million by year-end, further improving to a net cash position of $0.2 million by January 2026. The company’s transition phase involves investing in new products like VEEM Extreme and Gyro Mark III, and entering new markets such as the US defense sector. Propulsion sales decreased by 9%, while defense revenues were significantly hampered by delays but are expected to rebound with ongoing orders. VEEM’s association with US defense contractors was bolstered by achieving approved supplier status with HII and securing a contract with Northrop Grumman. Additionally, an impairment expense of $24.8 million was recorded for gyro-related development costs. Overall, VEEM is positioning itself for future profitability, with significant investments in innovation and market expansion.
Key Points
  • Revenue for 1HFY26 was $23.4 million, down 30% from 1HFY25.
  • EBITDA was -$0.2 million, but operational cashflows increased to $4.0 million.
  • Net debt was reduced significantly from $13.7 million to $1.8 million by 31 December 2025.
  • Delays in ASC orders affected defense revenue, expected to improve in 2HFY26.
  • VEEM launched the VEEM Extreme range and continued development on Gyro Mark III.
  • The company entered the US defense supply chain, gaining approved supplier status with key contractors.
  • A non-cash impairment expense of $24.8 million was recorded for gyro development costs.
  • VEEM is focusing on market expansion and innovation for future revenue growth.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.