Structural Monitoring Systems Posts Record FY26 Revenue and Profit

Record Financial Performance Highlights Growth Trajectory

Structural Monitoring Systems Plc (ASX:SMN) closed FY26 on a high note, delivering record revenue of approximately $32.5 million, a 16% increase over FY25. Net profit after tax surged to $1.2 million from a modest $0.2 million the previous year, while EBITDA rose 33% to $6.3 million. The company’s free cash flow turned positive at $5.1 million, a stark reversal from the prior year’s outflow. This robust financial performance enabled SMS to repay all bank debt and bolster its cash reserves to $4.8 million by year-end.

Avionics Segment Drives Double-Digit Growth

The avionics business was the standout performer, with revenue climbing 40% to $22.2 million, fuelled by strong sales of digital audio systems and radios. Radio unit sales increased 29% to 322 units, reflecting growing market acceptance and expanded Supplemental Type Certificate (STC) coverage across aircraft platforms. The company’s aerial firefighting radio, certified by the US Forestry Service 2.5 years ago, now commands over 20% of that niche market due to its user-friendly design and reliability. This momentum positions SMS to further penetrate the estimated 30,000 civil and para-public helicopters worldwide requiring critical mission avionics.

Contract Manufacturing Remains Strategic Despite Revenue Dip

Contract manufacturing revenue fell 15% to $10.3 million but continues to provide stable cash flow and manufacturing scale that supports SMS’s proprietary avionics development. Management emphasises this segment’s role in improving overhead absorption and manufacturing efficiency, underpinning investment in growth initiatives.

Progress on CVMTM Smart Sensor Certification with Boeing and FAA

SMS is advancing the certification of its CVMTM smart sensor technology, a key long-term growth driver. With global commercial aircraft fleets aging and operating longer, CVMTM offers safety and maintenance efficiencies attractive to operators. Boeing has informed SMS that the FAA review is scheduled to commence on 7 October 2026, followed by a Service Bulletin evaluation starting 24 October, though these dates remain subject to change. Concurrently, Airbus is exploring additional applications for CVMTM, and SMS plans to increase engagement with military sectors, including attending the Aircraft Structural Integrity Program conference in San Antonio in November 2026 to connect with defence stakeholders.

Regulatory Reporting Milestone Reflects Strong Cash Flow

Reflecting sustained positive operating cash flows over four consecutive quarters, ASX has confirmed SMS is no longer required to lodge quarterly cash flow reports (Appendix 4C). The company will maintain its Quarterly Activities Reports and continuous disclosure obligations, signalling confidence in its financial stability.