Highlights

  • Hydrix Services booked A$4.1 million of contract sales and A$2.8 million of Revenue in the Sep-2026 quarter.
  • The defence Subsidiary delivered its first benchtop integration system under a A$1.2 million NIOA development contract.
  • Hydrix Medical secured its first Asia-Pacific Implicity sale through a multi-year National Heart Centre Singapore contract.
  • Shareholders will vote on 26 November 2026 on converting about A$5.8 million of loans into equity.

Revenue momentum returned to the engineering arm of Hydrix (ASX:HYD) in the September 2026 quarter, while its young defence Business reached a first technical milestone on a counter-drone programme, setting up a busy Annual General Meeting where shareholders will decide on a major debt-for-equity conversion.

The Melbourne-based group designs medical, defence and industrial technology for clients through Hydrix Services, distributes cardiac monitoring technology through Hydrix Medical, and is building a defence technology business through Hydrix Defence, established in May 2026.

Engineering Revenue Recovers After a Soft FY26 Finish

Hydrix Services generated quarterly revenue of A$2.8 million, up 28.1% on the June quarter and 11.6% on the prior corresponding period, while contract sales reached A$4.1 million. Work progressed on the Remedy Robotics surgical programme, and the company appointed a US-based vice president of business development.

The improvement follows a difficult FY26 to 30 June 2026, when group revenue eased to A$9.74 million from A$10.09 million and the statutory loss after tax widened to A$6.72 million, including a A$2.75 million non-cash Fair Value loss. A funding-related pause in the SynCardia Emperor programme weighed on fourth-quarter revenue. The carrying value of the Hydrix Ventures portfolio also fell to A$0.4 million, mainly reflecting a A$2.3 million non-cash markdown on Gyder Surgical.

Defence and Medical Divisions Record Early Commercial Progress

On 5 October 2026, Hydrix Defence delivered its first prototype to NIOA, the initial benchtop integration system under a A$1.2 million development contract. The work also met the first major milestone of NIOA's counter-UAS payload programme under the Mission Syracuse initiative of the Advanced Strategic Capabilities Accelerator, with flight trials planned for the December quarter. Twelve further technology opportunities were evaluated, four of which remain under active review. The division's other named programme involves quantum navigation technology with Phasor Innovation.

Hydrix Medical signed a multi-year contract with the National Heart Centre Singapore in September 2026, marking the first commercial sale of the Implicity remote cardiac monitoring platform in Asia-Pacific.

Balance Sheet Reset and FY27 Priorities

Customer receipts were A$2.55 million in the quarter, but net operating cash outflow reached A$1.15 million, which management attributed to delayed receipts, Capital raising costs and a change to monthly Superannuation payments. Cash fell to A$1.5 million at 30 September 2026, and Loan facilities of A$6.0 million were fully drawn.

Most loans, largely held by director-associated entities, mature on 26 November 2026. The company plans to convert loans totalling A$5.8 million into equity, subject to approval at the AGM that day, while one A$1.975 million loan has been extended to 1 October 2027. Management expects delayed receipts to be recovered in the December quarter and has set reaching cash operating profit as its priority for the next 12 months, alongside advancing selected defence projects and growing Hydrix Medical.

Shares were priced at A$0.003 on 2 November 2026, down 16.67% on the day, giving a Market Capitalisation of A$3.63 million and a 12-month decline of 50.18%.