Key Highlights

  • Veem Ltd (ASX:VEE) shares closed at $0.54 on 21 October 2026, up 10.20%.
  • Veem became the first Australian company to receive HII Virginia Class submarine purchase orders through the AUSSQ program.
  • The initial purchase orders have a combined value of about A$0.8 million.

VEEM Limited (ASX:VEE) shares gained 10.20% to close at $0.54 during the trading session on 21 October 2026, while the S&P/ASX 200 (XJO) stood at 8,809.20, down 7.70 points or 0.087%. VEEM is a Perth-based Australian defence manufacturer and designer of marine propulsion and large gyrostabiliser systems.

What VEEM does

VEEM designs and manufactures high-technology marine propulsion and large gyrostabiliser systems for the global defence, yacht, fast ferry and commercial workboat markets. Its gyrostabilisers reduce the rolling motion of vessels in waves, which the company says increases on-sea time and improves personnel safety and efficiency.

The company also produces high-performance propellers, fin systems, valves and specialised components for defence, and it has reinvested in research and development for new products and processes through an in-house team. VEEM operates from a 15,700 square metre purpose-built fabrication and manufacturing facility in Perth, Western Australia, that includes Australia’s largest non-ferrous foundry, and employs about 195 staff. It listed on the ASX in 2016 and celebrated its 50th anniversary in business in 2018.

First Virginia Class purchase orders

On 20 October 2026, VEEM announced that it is the first Australian company to receive purchase orders from HII for the Virginia Class submarine new build program through the Australian Submarine Supplier Qualification (AUSSQ) program. Amid today’s share price gain, this update comes in the limelight. The initial purchase orders have a combined value of about A$0.8 million.

VEEM said the orders follow more than 12 months of qualification and audit processes to meet the requirements of the US submarine supply chain. It described the orders as a commercial milestone in its expansion into the US defence supply chain.

Tenders and AUKUS context

The company stated that it has submitted tenders for additional opportunities, which it expects to yield further orders as the AUKUS program gathers momentum. It noted that it has been a supplier to the Collins Class submarine program for 38 years and that it built on that experience over the past two years to meet the AUSSQ requirements.

The announcement does not state the timing of deliveries under the initial orders or the value of the tenders submitted.

Information not included in the announcement

The release does not state the delivery timetable for the initial orders, the number or value of tenders submitted, the margin on the work or the expected effect on VEEM’s earnings. The orders of about A$0.8 million are described as initial, and the company did not provide a forecast for further orders beyond stating that tenders are expected to yield further orders as AUKUS gathers momentum.

Sector context

The AUSSQ program is a qualification pathway for Australian suppliers seeking to enter the US submarine supply chain, and the announcement places VEEM’s orders within the AUKUS program, a trilateral security partnership involving Australia, the United Kingdom and the United States. Defence supply chains typically require extended qualification, audit and quality-assurance processes before orders are placed, and order sizes can build progressively as suppliers complete initial deliveries.

The Collins Class submarine program is the long-running Australian program that VEEM has supported for 38 years, which the company cites as the base of expertise it built on to meet the AUSSQ requirements. Gyrostabilisers also serve non-defence customers such as yacht, fast ferry and commercial workboat operators, giving the company exposure to marine markets beyond defence.

Risks and uncertainties

The initial purchase orders of about A$0.8 million are small relative to the scale of a submarine build program, and the announcement does not guarantee further orders. Tenders submitted may not be successful, and defence procurement timelines can be long and subject to government decisions. VEEM’s results also depend on its commercial marine business, where demand depends on yacht, ferry and workboat markets. Share price moves of 10.20% in one session may reverse.

What’s next

VEEM has submitted tenders for additional opportunities and expects further orders as the AUKUS program gathers momentum. Updates on delivery of the initial orders and any additional orders are expected to be announced through the ASX.