VEEM Enhances Defence Pipeline with HII Supplier Approval and ASC Contract Renewal

VEEM Ltd (ASX: VEE) has achieved approved supplier status with the Newport News Shipbuilding division of Huntington Ingalls Industries, advancing its entry into the US submarine industrial base.

The approval followed a rigorous quality assessment under the Australian Submarine Supplier Qualification program, designed to streamline local companies into the AUKUS trilateral supply chain.

VEEM said it now expects to receive requests for quotation from HII in the first half of FY26, although the scope of potential orders has not yet been confirmed.

HII Supplier Status

The qualification process validated VEEM’s technical capabilities and reinforced its reputation for reliability and performance in defence manufacturing.

Chief executive officer Trevor Raman said the milestone positioned VEEM for long-term collaboration with global prime contractors and strengthened its role in supporting national security.

“Participating in AUSSQ has strengthened our position as a trusted partner within the defence sector, opening doors to new business opportunities and long-term collaboration with prime contractors,” Mr Raman said.

He added that the process enhanced both capability and reputation, laying the foundation for meaningful contributions to a resilient defence supply chain.

Strategic Defence Context

The AUSSQ program was established by the Australian Submarine Agency to accelerate supplier qualification into the US submarine base in support of AUKUS Pillar I objectives.

For VEEM, the approval builds on its multi-decade track record with Australia’s Collins Class submarines and involvement in other defence programs including the Hunter Class frigates.

Management said the company’s specialist engineering and manufacturing expertise places it well to supply advanced components to both domestic and international defence customers.

The company noted that demand for precision marine components continues to rise as naval programs scale up across Australia, the US and allied nations.

VEEM said its inclusion in the HII supply chain underscores the growing alignment of its business with defence sector priorities.

Submarine Contract Renewal

Earlier this month VEEM signed a six-year, $65 million contract renewal with ASC Pty Ltd to continue supplying specialised components for the Collins Class submarine fleet.

The agreement extends through to 2031 and reaffirms VEEM’s role as the sole Australian supplier of critical valves for the program.

VEEM sees orders accelerating in FY26 as part of the contract’s cyclical profile, reinforcing the its long-term defence revenue base.

The company also reported preliminary unaudited FY25 results, with revenue of $68m–$69m, EBITDA of $8.5m–$9.5m and net profit after tax of $2.75m–$2.85m.

Management said the renewed ASC agreement, combined with the new HII approval, strengthens VEEM’s outlook across both domestic and international defence markets.