Highlights

  • Revenue for the year to 30 June 2026 was $9.74 million, and the loss before tax widened to $6.72 million.
  • Hydrix issued 1.18 billion shares at $0.005 under its entitlement offer, with $5.22 million received in cash by year end.
  • Signed contract value rose to $11.7 million from $9.9 million, and 73% of revenue came from outside Australia.
  • Hydrix Defence, set up in May 2026, targets counter-drone, autonomous systems, electronic warfare and sensing work.

Hydrix Limited (ASX:HYD) is rebuilding its balance sheet while reaching into defence. The Victoria-based engineering and technology company reported FY26 revenue of $9.74 million and a $6.72 million loss before tax, opened a new defence subsidiary and recapitalised through an entitlement offer priced at $0.005 per share.

Company Snapshot

Hydrix says it develops, invests in and launches new technologies in regulated and safety-critical sectors. It has about 50 to 54 employees and operates in Australia, Singapore, New Zealand and the United States. Hydrix Services provides engineering, product development and regulatory consulting for medtech, cardiac, defence and industrial clients.

Hydrix Medical distributes the Implicity cloud-based remote cardiac monitoring platform. Hydrix Ventures holds equity stakes in selected clients, including Gyder Surgical and WaveWise Analytics. Hydrix Defence, a wholly owned subsidiary, was set up in May 2026.

FY26 Results

Revenue was $9,741,433, against $10,092,472. The loss before tax was $6,718,322, against $3,654,226. Excluding non-cash fair value losses, the loss was $3,964,997, against $3,192,316. Operating cash outflow rose to $1,907,665 from $527,006, and cash at 30 June 2026 was $2.96 million.

The venture portfolio fell by about $2.8 million, including a mark-down of about $2.3 million on Gyder Surgical. A SynCardia program signed in January 2026 was temporarily paused after a funding change, which hurt fourth-quarter revenue and cash receipts. Borrowings at year end included $5.9 million of loans and convertible notes owed to directors, with a pro forma residual of $2.2 million after planned conversions.

Capital Raising and Defence Strategy

The 18 May 2026 prospectus offered six new shares for every share held at $0.005, each with a free option exercisable at $0.01 until 30 June 2029, seeking up to about $8.18 million. By 30 June 2026, 1,176,980,462 shares had been issued at $0.005, and a further 132.4 million shares were issued on 22 June 2026 under the note conversion offer.

Hydrix Defence cites NIOA counter-UAS work and a Phasor Innovation quantum navigation program. The company says defence contract wins were $2.9 million, or 70% of Australian revenue,. A $1.975 million director loan maturity was extended to 1 October 2027.

Outlook and Risks to Watch

The directors describe conditions as fluid and aim to reach cash operating profit within 12 months through sales conversion, higher revenue and margins and lower costs. The company cites a pipeline of about $40 million of future program-stage revenue from 15 active clients. These are not guarantees.

Earlier reports disclosed a material uncertainty on going concern, net liabilities of $9.1 million at 31 December 2025 and an overdue tax liability of about $2.5 million on a proposed payment plan. Other risks include reliance on director funding, venture valuations and dilution. The AGM on 26 November 2026 will consider related-party conversions of 784 million shares and options.

Stock Price Information

Hydrix shares were unchanged at A$0.003 on 27 October 2026, giving the company a market capitalisation of about A$4.35 million. The stock is down 36.22% over the past year.