Harvest Technology Group reports improved first-half FY26 financials alongside strategic defense sector expansions, including new reseller agreements and NATO engagements.
- H1 FY26 revenue of $2.73 million with reduced EBITDA loss
- Secured $2.279 million from R&D tax rebate and vessel settlement
- Exclusive reseller deal for Nodestream™ in MENATISA region
- New contracts and testing with NATO and US defense contractors
- Cash balance of $0.782 million with $3.5 million undrawn facilities
Financial Performance and Cash Flow
Harvest Technology Group Limited (ASX, HTG) has reported a solid first half of fiscal year 2026, with total revenue reaching $2.73 million. This marks a slight decrease from the previous half-year but comes alongside a notable improvement in EBITDA, which narrowed its loss to $0.52 million from $1.11 million. The December quarter saw cash receipts of $2.534 million, up from $2.262 million in the same period last year, resulting in a modest net operating cash inflow of $44,000.
Key cash inflows included a $1.279 million R&D tax incentive rebate from the Australian Taxation Office and $730,000 received following the settlement of the VOS Shine vessel matter. The company also drew down $1 million from its existing $6 million funding facility with RiverFort Global Opportunities PCC Ltd, while repaying $1.2 million of convertible notes secured against the R&D rebate. At quarter-end, Harvest held $782,000 in cash with $3.5 million in undrawn financing facilities, providing a buffer for ongoing operations.
Operational Highlights and Strategic Partnerships
On the operational front, Harvest has made significant strides in expanding its Nodestream™ technology footprint. A binding agreement with Pyxis Controls appoints the latter as the exclusive reseller across the MENATISA region, targeting sectors such as national security, energy, marine, and government communications. Early customer engagements in these markets are already underway, signalling strong initial traction.
Further strengthening its defense sector presence, Harvest signed a memorandum of understanding with Annex Digital Pty Ltd to jointly pursue government and defense tenders. The company has also commenced a national rollout of an integrated maritime surveillance system featuring over 30 autonomous and remotely managed unmanned surface vessels, a move that underscores its commitment to scalable remote operations.
Growing Defense Sector Engagement
Harvest’s technology is gaining momentum with NATO and US defense contractors. New NATO customers have placed initial orders for testing and development platforms, with a major NATO contractor expanding orders after successful field trials integrating Nodestream into unmanned surface vessel drone platforms. Additionally, a US defense contractor has begun field testing Nodestream units within its drone product development program.
Marine services customers are also ramping up Nodestream deployments, reflecting a broader industry shift towards remote operations. This has led to requests for enterprise license proposals, highlighting the commercial potential of Harvest’s solutions. The company is finalising a dedicated defense strategy, supported by the recruitment of a senior leader to drive this initiative, with further details expected in the upcoming half-year report.
Investor Relations and Market Interest
Investor relations efforts continue to gain traction, particularly in Europe where defense sector interest is rising. Approximately 25-30% of current trading volume originates from European investors. Harvest plans multiple roadshows in the coming quarter to deepen investor engagement, especially following the release of its defense strategy.
Bottom Line?
Harvest Technology’s expanding defense footprint and improved cash position set the stage for a pivotal half-year update.
Questions in the middle?
- How will the upcoming defense strategy reshape Harvest’s market positioning and revenue streams?
- What is the timeline and scale for the national maritime surveillance system rollout?
- How sustainable is the company’s cash flow given ongoing R&D and corporate expenses?