Highlights

  • HighCom reported FY25 revenue of AUD 48.11 million, representing a 6.16% increase from FY24.
  • The company’s gross margin declined to 23% in FY25 due to higher low-margin Armor sales.
  • HighCom expects growth in FY26 supported by U.S. government funding and XTclave™ commercialisation.

HighCom Limited (ASX:HCL) is an Australian company specialising in defense and security technologies. It operates through two main divisions: HighCom Armor, which focuses on ballistic protection solutions, and HighCom Technology, which provides small unmanned aircraft systems, sensors, system integration, and related support services.

Financial Update

For the financial year 2025 (FY25), HCL reported revenue of AUD 48.11 million, up 6.16% YoY from AUD 45.32 million in FY24, driven by higher sales in the U.S. Armor division and steady performance in the Technology segment. Gross profit declined to AUD 10.98 million in FY25, down 18.09% YoY compared to AUD 13.41 million in FY24, and the gross margin falling to 23%  from 30% in the previous year, mainly due to a greater share of lower-margin Armor products, discounted sales to large-volume partners, and the clearance of previously impaired inventory.

Net cash flows from operating activities increased to AUD 2.86 million in FY25 from AUD 0.66 million in FY24, as Technology segment revenue remained largely stable, reflecting ongoing sustainment, spare parts supply, and training-related services rather than major new orders.

Business Update

On 27 November 2025, the company expended its U.S. procurement capabilities, reinforced strategic partnerships, and reached the final stage of a major international armour contract while upgrading its UAS/CUAS offerings.

On 3 October 2025, HCL received AUD 1.1 million in new orders for SUAS spare parts and technical services under its existing multi-year support contract, confirming the orders relate specifically to Small Uncrewed Aerial Systems.

Key Positive and Negatives

For FY25, the company reported an increase in its quick ratio to 1.22x, compared with 1.20x in FY24. The cash cycle decreased to 118.2 days in FY25 from 173.2 days in the previous year. On the other hand, company recorded a negative net margin of 2.5% for the year.

Business Outlook

HighCom expects a positive FY26, supported by increased U.S. government funding from Q2 and advancement in commercialising XTclave™, which will enable new product lines and access to previously untapped markets.
These developments are anticipated to strengthen capacity, market share, and Group EBITDA. HighCom Technology continues to participate in active defence-related sales cycles in the UAS and CUAS sectors while maintaining existing contracts, providing additional support for revenue growth.

Share performance of HCL

HCL shares closed 1.85% lower at AUD 0.265 per share on 1 December 2025. Over the past year, the stock has risen 51.42%, with a 32.50% increase over six months and a 47.22% gain over nine months. The three-month performance shows a negative trend, declining 13.11%, while the stock is down 11.66% over the past month.

The 52-week high for HCL is AUD 0.530, reached on 18 August 2025, and the 52-week low is AUD 0.150, recorded on 04 February 2025.

Support and Resistance Summary

Note 1: Past performance is neither an Indicator nor a guarantee of future performance. 

Note 2: The reference date for all price data, and currency, is 01 December 2025. The reference data in this report has been partly sourced from EODHD/Others. 

  

Technical Indicators Defined:  

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock. 

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.