VEEM Limited (ASX:VEE) shares fell 4.39% to $0.54 on 27 August, after the defence and marine manufacturer reported a net loss for FY26 driven by a large non-cash impairment, despite Revenue and EBITDA both landing at the upper end of guidance.

FY26 Result Snapshot

  • Revenue: $51.7 million, upper end of $50–52 million guidance (down 25% on FY25)
  • EBITDA: $3.6 million, upper end of guidance
  • Net loss after tax: $17.8 million (FY25: $3.0 million profit)
  • Impairment: $24.8 million non-cash charge on gyrostabilisers
  • Cash flow from operations: $4.8 million, up 64%
  • Net debt: $1.2 million, down after a $13.1 million Capital raise

Why the Stock Fell

The headline net loss is the obvious driver, even though it stems from a one-off, non-cash Impairment rather than ongoing trading weakness. The $24.2 million write-down on capitalised gyro development costs followed a slowdown in the marine market that led to zero gyro sales in the first half.

The Improving Second Half

  • Second-half revenue of $28.3 million, up 21% on the first half
  • Second-half EBITDA of $3.8 million, up $4.0 million on the first half
  • Defence revenue rose from $3.7 million (H1) to $8.6 million (H2), up 130%, as ASC submarine refit orders accelerated
  • Gyro sales resumed in H2, with a current order book of $1.0 million