How Will HighCom’s $7M Raise Accelerate Its Return to Profitability?
HighCom Limited has announced a $7 million capital raise alongside a $1 million Share Purchase Plan to support working capital and product innovation, aiming for a strong revenue rebound and profitability in the second half of FY26.
- Placement raising $7 million via two tranches with director participation
- Share Purchase Plan open to eligible Australian and New Zealand shareholders
- Expected 100-150% revenue uplift in H2 FY26, returning to breakeven or profit
- Investment focus on XTclave® technology upgrades and operational expansion
- Strong government contracts and global defence market presence underpin growth
HighCom’s Strategic Capital Raise
Australian defence specialist HighCom Limited has unveiled plans to raise $7 million through a placement of 35 million new shares, supplemented by a $1 million Share Purchase Plan (SPP) for existing shareholders. The capital raise is structured in two tranches, with the second tranche subject to shareholder approval and supported by director participation, signalling confidence from the company’s leadership.
The raise is priced at $0.20 per share, representing an 11.1% discount to the last closing price and a deeper discount to recent volume-weighted average prices. Joint Lead Managers Henslow and Morgans are overseeing the offer, which aims to bolster HighCom’s working capital and fund key product optimisation initiatives.
Driving Growth Through Innovation and Efficiency
HighCom’s proprietary XTclave® technology, a patented process producing ultralight, strong ballistic armour, remains central to the company’s growth strategy. The capital injection will fund upgrades to XTclave® manufacturing capabilities, including new tooling and facility enhancements designed to increase production capacity and efficiency.
Beyond technology, the company plans to invest in operational growth activities such as expanding its US and international sales footprint and strengthening head office capabilities. These efforts align with HighCom’s ambition to improve margins through product differentiation and streamlined production, particularly at its Columbus facility where cost reduction initiatives are slated to commence in FY27.
Market Recovery and Revenue Outlook
HighCom reported a challenging first half of FY26, with $10.9 million in revenue and an EBITDA loss between $5.0 million and $5.8 million, largely attributed to the US government shutdown and tariff uncertainties. However, the company anticipates a significant rebound in the second half, forecasting a 100% to 150% uplift in revenue compared to H1, potentially returning to breakeven or profitability.
This optimistic outlook is underpinned by resumed funding in the US armour market and strong customer engagement following industry events such as Shot Show. HighCom’s diversified global presence, spanning North America, LATAM, Europe, and the Indo-Pacific, coupled with its trusted government and defence relationships, positions it well to capitalise on growing demand for advanced ballistic protection and counter-drone technologies.
Leadership and Strategic Direction
Newly appointed Executive Chairman and Group CEO Geoff Knox brings over four decades of defence and advanced manufacturing experience, aiming to steer HighCom through its growth phase. Alongside CFO Martyn Dominy, who joined in 2025 with a strong background in financial turnarounds, the leadership team is focused on operational excellence and delivering sustained shareholder value.
HighCom’s transition towards integrated technology solutions, combining ballistic protection with unmanned aerial systems and counter-drone capabilities, reflects a broader industry shift towards bundled, long-term support contracts. This approach is expected to generate more predictable revenue streams and enhance competitive positioning.
Bottom Line?
HighCom’s capital raise and strategic investments set the stage for a pivotal turnaround, but execution and market recovery will be critical to sustaining momentum.
Questions in the middle?
- Will HighCom secure the shareholder approval needed for the second tranche of the placement?
- How quickly will the US government shutdown impacts fully resolve to support sustained revenue growth?
- What new product launches from the R&D pipeline will drive future margin expansion?
