HighCom targets sharp H2 rebound after U.S. shutdown hits first-half results

XTEK Limited ( (AU:HCL) ) has provided an announcement.

HighCom reports that it has now completed key operational and business decisions designed to sharpen its focus and improve performance, including a shift toward differentiated U.S.-produced products and the build-out of annuity-style services. Management says these strategic foundations, combined with established capability and a growing pipeline, underpin a positive outlook for growth as the company seeks to consolidate its position in the defence technology and protective equipment market.

The company’s first-half performance in FY26 was hit by a procurement and funding pause caused by the U.S. Government shutdown, which delayed new and renewed contracts and weighed on revenue. With delayed funding now released and procurement activity resuming in the second half, HighCom expects a 100% to 150% uplift in H2 FY26 revenue compared with H1 and is targeting a return to breakeven or profitability, contingent on the timing of a major technology order, recovery in U.S. orders and currency movements.

The most recent analyst rating on (AU:HCL) stock is a Hold with a A$0.32 price target. To see the full list of analyst forecasts on XTEK Limited stock, see the AU:HCL Stock Forecast page.

More about XTEK Limited

HighCom, part of XTEK Limited, is an Australian-based specialist defence company focused on personnel protective systems and technologies for government, law-enforcement, military, space and commercial clients. Its operations are split between HighCom Armour, which designs and manufactures advanced ballistic protection including body armour, helmets, shields and lightweight composite solutions, and HighCom Technology, which integrates and supports small and medium uncrewed aerial systems and counter-UAS capabilities for the ADF and allied regional militaries.

The group has increasingly pivoted to differentiated, U.S.-produced products and service-based offerings, under a refreshed management team and restructured operations aimed at improving scalability and recurring revenue. This positioning aligns HighCom with growing global demand for high-performance armour, drone systems and counter-drone technologies, and is intended to strengthen its competitive standing with defence and security customers worldwide.

Average Trading Volume: 221,366

Technical Sentiment Signal: Sell

Current Market Cap: A$25.03M

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