HighCom (HCL) H1 2026 earnings summary

Executive summary

• Specialist in advanced ballistic protection and integrated defense technology, serving military, law enforcement, and commercial sectors globally.

• Structured into Armor (body armor, helmets, shields) and Technology (UAS, counter-UAS, integration, and training) divisions.

• Recent management refresh and strategic shift to US-produced products, sharpening operational focus.

• Revenue declined 59% year-over-year to $10.9m for H1 FY26, mainly due to US government shutdown and tariff uncertainty affecting the Armor segment.

• HighCom Technology performed to plan, delivering engineering and support services, while Armor faced market headwinds.

Financial highlights

• H1 FY26 revenue was $10.9 million, down from $26.6 million year-over-year, with EBITDA loss of $5.4 million, within guidance.

• Net loss after tax was $6.8 million (prior year: $1.2 million profit); gross profit $1.3 million (prior year: $6.8 million).

• Tax expense of $686,000 related to prior years and currency impact of $232,000 included in results.

• Inventory reduced to $12.5 million from $14.4 million at 30 June 2025; $1.1 million converted to cash.

• New impairment of $655,000 on delayed bid; reversal of $580,000 previously impaired inventory.

Outlook and guidance

• Expecting 100–150% revenue uplift in H2 FY26 vs. H1, aiming for break-even or slight profit.

• Recovery in US government funding anticipated to normalize by Q4 H2 FY26.

• Key dependencies: timing of large technology order, US government market recovery, and exchange rates.

• FY27 outlook strong with robust pipeline and capacity to meet growth.

• Opportunity pipeline for Armor exceeds US$55 million for H2 FY26.