HighCom frames FY26 as a foundational year with H2 revenue up 73%
In its FY26 year-end investor presentation delivered on 25 August 2026, HighCom Limited positioned the financial year as a transition period, with momentum rebuilding in the second half ahead of anticipated FY27 growth. The ASX-listed Australian defence operator runs two divisions, HighCom Armour and HighCom Technology.
Management reported FY26 group revenue of $29.8m, down from $48.1m in FY25, though second-half revenue landed 73% above the first half. The company ended Q4 with closing cash of $9.7m, up from $5.8m a year earlier.
EBITDA came in at ($6.8m), which management noted landed at the mid-range of guidance. Revenue declined year-on-year, but the presentation framed the story around H2 recovery and a strengthened balance sheet rather than record results.
The FY26 full-year revenue decline relative to FY25 is partly explained by deferred armour orders that management confirmed remain on the order book and are scheduled for FY27 recognition, a distinction the June 2026 guidance revision made explicit when HighCom abandoned its original breakeven target.
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FY26 financial performance at a glance
The presentation detailed a full-year result shaped by a first-half slowdown and a marked second-half rebound, alongside disciplined cash management.
| Metric | FY26 | FY25 | Note |
|---|---|---|---|
| Group Revenue | $29.8m | $48.1m | H2 73% above H1 |
| EBITDA | ($6.8m) | $0.2m | Mid-range of guidance |
| H2 EBITDA | ($1.4m) | – | Within ($1.2m)–($1.6m) range |
| Closing Cash | $9.7m | $5.8m | Strengthened |
Management pointed to several sources of operating momentum through the year:
- Technology delivered a strong second half
- Armour recovered in Q4 as US Government and international purchases increased
- A strong pipeline build through H2
On cash discipline, the company reported $9.7m closing cash, $6.2m net cash and $7.3m in total liquidity, including $1.1m of undrawn headroom. The presentation described the group as “FY27 funded for growth.”
What XTclave and counter-UAS mean, a plain-English primer
Two core technologies sit at the centre of HighCom’s proposition, and each warrants a brief explanation for investors less familiar with the defence sector.
XTclave™ is HighCom’s proprietary manufacturing process for lightweight ballistic armour, the protective plates worn to stop enemy fire. Management confirmed the technology is now commercialised, with the first commercial run completed in June 2026. Lightweight armour matters because it protects personnel and targets premium markets.
Counter-UAS (C-UAS) refers to systems that detect and deter uncrewed aerial vehicles, more commonly known as drones. Rising drone use on the battlefield, and around airports, ports and critical infrastructure, is driving demand for these capabilities.
Both technologies sit within structurally growing defence markets, which the presentation identified as the foundation for the group’s FY27 positioning.
Segment performance, Technology outperforms, US Armour recovers
Technology delivers to plan
The Technology division reported FY26 revenue of A$16.3m and EBITDA of A$2.8m. A $1.1m MyDefence trial converted into an $8.9m follow-on order from the Department of Defence (DoD), the division’s largest counter-UAS contract.
That $8.9m follow-on order was anchored by the counter-drone contract announced in April 2026, which marked HighCom Technology’s first major entry into the C-UAS domain and established the MyDefence partnership as a cornerstone of the division’s revenue base.
Management also highlighted a new integrator role with Menet Aero, the first tethered drone sold to the DoD, an ongoing Puma contract with continued follow-on parts orders, and two new partners added during the year.
US Armour rebounds in Q4
US Armour reported FY26 revenue of US$9.1m and EBITDA of (US$3.4m). Fourth-quarter revenue increased 3.1x over Q3, with second-half revenue of US$5.3m improving on US$3.8m in the first half.
The presentation noted honestly that unit volumes were 60% down on normalised levels, though sales are trending back toward normal. Partner-led sales expanded into Ukraine, Brazil and the US.
Hard armour generated 70% of FY26 revenue for the division. The full product mix was outlined as:
- Hard Armour: 70%
- Helmets: 11%
- Soft Armor: 10%
- Shields: 6%
- Freight & Other: 5%
The integrated frontline proposition and global pipeline
Management framed HighCom’s differentiation around a single coordinated offering that combines lightweight body armour with counter-drone capability on the carrier. The presentation summarised this as “Two complementary systems. One integrated frontline proposition.”
The combined sales pipeline was stated at A$1b+, comprising a HighCom Armour global pipeline of US$858m and a HighCom Technology pipeline of A$59m. The vetted pipeline chart totalled approximately $1.2b across regions.
The geographic split of the pipeline was outlined as:
- North America: $683m (53%)
- Europe: $441m (34%)
- South America: $102m (8%)
- APAC: $59m (5%)
The company also detailed its certification footprint, reporting 40 products certified or independently verified across 3 regions, covering 660 active SKUs.
Market tailwinds positioning HighCom for FY27
The presentation set out several structural demand drivers underpinning both divisions:
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Ballistic protection: the global market is forecast to reach US$3.5b by 2033, with the US representing 67% at US$2.3b (Source: DataIntelo).
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Counter-drone systems: the market is forecast between US$15b and US$19.8b by 2033, at a CAGR of 21.5% to 25.2%, with the Australian Defence drone program carrying a TAM of up to circa A$22b over 10 years (Source: SkyQest Technology).
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APAC drone market: valued between $22.6b and $54.9b by 2033, at a CAGR of 11.1% (Source: Grand View Research).
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Defence spending: NATO’s commitment to 5% of GDP by 2035 (Source: NATO).
Management noted both divisions are exposed to these growing markets, spanning Europe re-arming, the US, APAC and South America.
FY27 outlook, positioned for growth
Management framed FY27 as positioned for growth, supported by more normal US Government buying patterns, steadily increasing global demand, and multi-year global pipelines underpinning both businesses. XTclave™ units produced in Q4 are scheduled for delivery in Q1 FY27.
On the balance sheet, the company completed a $7.8m capital raise and consolidated a $4.5m CBA debt facility with $1m headroom, with non-current debt repayable in May 2028.
FY27 Outlook
FY27 is positioned for growth, with more normal US Government buying patterns expected, global demand steadily increasing, and both businesses now supported by strong multi-year global pipelines.
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