Etherstack's North American arm has landed a US$0.83 million follow-on deal with Codan subsidiary Daniels Electronics, extending a major contract from late 2023. The revenue is expected to be recognised fully in FY26, reinforcing the company’s growth trajectory.
- US$0.83m follow-on equipment order from Daniels Electronics
- Follows US$2.3m deal announced in December 2023
- Hardware manufactured in Australia
- Revenue expected in FY26 financial year
- First half 2026 revenue guidance to be met or exceeded
Follow-On Contract Strengthens North American Footprint
Etherstack plc (ASX:ESK) has secured a US$0.83 million follow-on order from Daniels Electronics Ltd, a North American channel partner and subsidiary of Codan Limited (ASX:CDA). This latest deal builds on the previous US$2.3 million contract announced in December 2023, underscoring sustained demand for Etherstack’s digital radio communications technology in a key market.
The equipment involved is manufactured in Australia, highlighting Etherstack’s integrated production capabilities. Management anticipates the full recognition of this follow-on revenue within the financial year ending 31 December 2026, signalling a steady contribution to the company’s top line.
Revenue Guidance Supported by Contract Momentum
Etherstack’s management reiterated expectations that first half revenue for 2026 will meet or exceed prior guidance issued on 28 April 2026, with a formal update to be provided after the half-year period closes. This confidence aligns with the company’s recent string of contract wins and revenue growth initiatives, including strong government project deliveries.
Equipment sales of this nature typically pave the way for ongoing support revenues, which are valuable for long-term earnings stability in mission critical network communications. This dynamic was a key driver of Etherstack’s 70% revenue surge in FY25, and remains a focal point for FY26 growth.
Global Presence and Sector Focus
Etherstack’s technology serves demanding sectors such as public safety, defence, utilities, transportation, and resources. The company maintains offices and R&D facilities across Sydney, London, New York, and Yokohama, reinforcing its global reach in wireless technology development and licensing.
With the North American market a strategic priority, this follow-on deal with Daniels Electronics strengthens Etherstack’s positioning amid competitive pressures and expanding mission critical communications demand.
Bottom Line?
This follow-on contract not only boosts near-term revenue but also reinforces Etherstack’s foothold in North America’s mission critical communications sector, setting the stage for potential recurring support income streams.
Questions in the middle?
- How significant will recurring support revenues be from this North American deal?
- Will Etherstack pursue further expansion with Codan subsidiaries or other channel partners?
- How might broader industry trends in mission critical networks affect Etherstack’s growth beyond FY26?