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Highlights

  • Vection secures AUD 4.4 million follow-on order from a top 10 global defence contractor.

  • Total revenue from the customer reaches ~AUD 10 million, with ~AUD 21 million in additional contracts expected between FY26–FY30.

  • The deal deepens Vection’s role within the NATO Tempest production chain, validating its INTEGRATEDXR® platform.

Shares of Vection Technologies Ltd (ASX:VR1) surged 17.2% on Monday morning to 3.4 cents apiece following the announcement of a new AUD 4.4 million defence supply order. The agreement, secured with a top ten global defence contractor, marks a significant milestone in the company’s expansion within the defence sector.

The new contract builds upon an AUD 1 million pilot order initially awarded in March 2023, transitioning the partnership from proof-of-concept to large-scale production delivery. This latest order brings Vection’s total revenue from the client to approximately AUD 10 million, with a further AUD 21 million in additional work anticipated across the financial years 2026 to 2030, pending finalisation of future award orders.

The current supply contract covers mission-critical ICT infrastructure integrated with Vection’s proprietary INTEGRATEDXR® platform and AI-enabled analytics. These technologies are designed to support real-time, data-driven decision-making for defence applications, including the protection of national perimeters and critical assets.

Vection indicated that it expects to recognise approximately AUD 3.8 million of the AUD 4.4 million contract in FY25, with the remaining portion to be accounted for in FY26. The deal is seen as a key progression in Vection’s role within the NATO Tempest supply chain, positioning the company as a trusted technology provider in secure defence operations.

Managing Director Gianmarco Biagi emphasised the importance of this development:
“Transforming our pilot program into recurring orders within the NATO Tempest supply chain highlights the trust we have built with one of the largest defence contractors in the world. Achieving ~$10 million in orders strongly validates our technology and is a strong indication that the client will continue with the full program for the additional $21 million scheduled for FY26–FY30.”

He added that geopolitical instability across regions is increasing the demand for AI-powered, XR-enhanced defence solutions capable of processing extensive data sets in real time. According to Biagi, Vection’s INTEGRATEDXR® platform is well-positioned to address these emerging operational needs.

The announcement was classified as material by the company’s board, meeting its internal materiality threshold for contracts exceeding AUD 500,000 in cumulative revenue.

Vection Technologies is an ASX-listed company with focus on delivering enterprise-grade extended reality (XR) solutions that bridge the physical and digital realms. Its technology is aimed at helping organisations enhance collaboration, training, and operational efficiency through immersive 3D interfaces.