Ambertech Faces Inflation Headwinds Despite Strong Defence Segment Growth
Ambertech Limited anticipates surpassing $100 million in revenue for FY25, driven by a strong second half and improved profitability across key segments.
- FY25 revenue expected to exceed $100 million, up from $95.5 million in FY24
- Second half sales surpass $54 million, marking a record half-year performance
- EBITDA margin in H2 materially improves over first half’s 2.4%
- Growth fueled by Media Systems and Defence, Law Enforcement and Emergency Services segments
- Inflationary pressures continue to challenge musical instruments and HiFi segments
Strong Finish to FY25
Ambertech Limited has delivered a robust trading update for the full year ending June 30, 2025, signalling a significant turnaround in its financial performance during the second half of the fiscal year. The company expects unaudited revenue to exceed $100 million, surpassing last year’s $95.5 million, with second half sales alone topping $54 million; a new record for the business.
This improvement follows a softer first half, where revenue was $45.5 million and EBITDA margins were modest at 2.4%. The company attributes the stronger finish to the completion of several key projects, particularly within its Media Systems and Defence, Law Enforcement and Emergency Services (DLES) segments, which have seen increasing demand amid favourable defence spending trends.
Segment Dynamics and Market Challenges
Ambertech’s diversified product portfolio has helped it navigate a mixed market environment. While the Media Systems and DLES segments have driven growth, other areas such as musical instruments and specialist HiFi equipment continue to face headwinds from persistent inflationary pressures that have dampened consumer spending. Despite these challenges, management remains optimistic about the medium-term prospects for these segments, expecting a return to growth as inflationary effects ease.
Managing Director Peter Amos highlighted the company’s confidence in its long-term value proposition, noting the emergence of new opportunities with both existing and new customers. This suggests Ambertech is not only capitalising on current momentum but also positioning itself for sustained growth beyond FY25.
Looking Ahead
Ambertech plans to release its full year audited results around August 25, 2025, which will provide a clearer picture of profitability and cash flow. Investors will be keen to see how the improved EBITDA margins in the second half translate into overall financial health and whether the company can maintain its growth trajectory amid ongoing economic uncertainties.
Overall, Ambertech’s trading update paints a picture of resilience and adaptability, with strong execution in key segments offsetting broader market pressures. The company’s ability to deliver record sales in the latter half of FY25 underscores its strategic focus and operational strength.
Bottom Line?
Ambertech’s strong finish sets the stage for a pivotal FY25 results release that could redefine investor confidence.
Questions in the middle?
- Will Ambertech sustain improved EBITDA margins in FY26 amid inflationary pressures?
- How will the company’s key segments perform as defence spending evolves?
- What new projects or contracts might drive future growth beyond current momentum?
