Highlights

  • The FAA approved the Boeing 737NG certification plan for the company's CVM technology on 29 October 2026.
  • Final approval of the 737NG aft pressure bulkhead service bulletin remains outstanding, with no revised completion date given.
  • Group Revenue reached A$7.0 million in the Sep-2026 quarter, with net profit after tax of A$0.7 million.
  • Cash at bank rose to A$5.2 million at 30 September 2026, and all borrowings have been repaid.

Structural Monitoring Systems Plc (ASX:SMN) has cleared an important procedural step for its Comparative Vacuum Monitoring (CVM) technology, after the US Federal Aviation Administration approved the Boeing B737NG certification plan on 29 October 2026.

The approval relates to the plan only. It does not amount to final approval of the CVM application or of the service bulletin for the 737NG aft pressure bulkhead, and Chairman Neville Bassett said further approvals remain outstanding as the company works with Boeing through certification.

A Long Road to CVM Commercialisation

CVM sits alongside the company's established operating Business as a separate commercialisation pathway, with approvals granted on an application-specific basis. In its September quarter update, the company said Boeing had reported that the FAA review of the 737NG service bulletin was taking longer than expected because of competing certification priorities. The Chairman acknowledged Shareholder frustration with the timetable, and no revised completion date is being provided.

During the quarter, the company sold CVM equipment, test products and sensors to the FAA for evaluation and research, received a purchase order from a major defence aircraft manufacturer and submitted a Quotation to another aircraft manufacturer. A potential Airbus A320 application remains subject to further work.

Avionics Business Funds the Group

Day-to-day Earnings come from AEM, the wholly owned Canadian Subsidiary that makes specialised radios and digital audio systems and provides contract manufacturing. For FY26 to 30 June 2026, group revenue rose to A$32.5 million from A$28.1 million, adjusted EBITDA increased to A$6.3 million and net profit after tax reached A$1.3 million. Avionics revenue grew 40% to A$22.2 million.

Operating cash flow of A$8.2 million in FY26 helped the company end the year with A$4.8 million in cash and no bank debt.

September Quarter Softened by Currency and Timing

Unaudited revenue for the Sep-2026 quarter, the first of FY27, was A$7.0 million, down from A$8.1 million a year earlier. The comparative quarter included A$1.4 million carried over from June 2025 because of a customs delay, and a weaker Canadian dollar also weighed on reported results.

Avionics revenue fell 25% to A$3.8 million, while contract Manufacturing revenue edged up 3% to A$3.1 million and loudspeaker system sales rose 32%. Adjusted EBITDA was A$1.8 million and net profit after tax was A$0.7 million. Cash at bank increased to A$5.2 million, with product development spending rising to A$0.8 million.

Product Pipeline and Pending Approvals

Two self-funded avionics development programmes are on schedule, with product introductions targeted for late FY27 and early FY28, subject to development progress and certification. Transport Canada approval of the MTP138 radio for its first targeted application is expected at the beginning of Q3 FY27, with European approval to follow. The company has not issued new financial guidance.

Shares were priced at A$0.34 on 2 November 2026, up 9.68% on the day, giving a Market Capitalisation of A$53.43 million. The stock was down 26.09% over 12 months.