Harvest Technology Group (ASX:HTG) has reported operational growth in the defence and maritime surveillance markets, alongside early signs of financial recovery in the first half of FY26. The company’s quarterly activity report highlights a narrowing of EBITDA losses to $520,000, down from $1.11 million in the prior corresponding period, reflecting operational efficiencies and cash flow management initiatives.
Total revenue for H1 FY26 stood at $2.73 million, a slight decrease from $3.02 million in the previous year. Despite this, the company recorded cash receipts of $2.534 million for the December quarter, supporting a net operating cash inflow of $44,000. HTG also drew down an additional $1 million from its $6 million funding facility with RiverFort Global Opportunities PCC Ltd.
Key cash movements during the quarter included a R&D tax rebate of $1.279 million, $730,000 received from the final settlement of the VOS Shine vessel matter, and repayment of $1.2 million in convertible notes secured against the R&D rebate. Cash balances stood at $782,000 at the end of the quarter, with $3.5 million in undrawn financing facilities.
On the operational front, HTG achieved several milestones in the December quarter, particularly in the defence and maritime sectors with its Nodestream platform. The platform enables secure, live video and data to be transmitted even over weak or unreliable connections. The company executed a binding agreement with Pyxis Controls to act as the exclusive reseller of HTG’s proprietary Nodestream technology across the MENATISA region. Pyxis will leverage its established networks to accelerate adoption of Nodestream across national security, energy, marine, and government communications, with multiple customer engagements already underway.
HTG also signed a memorandum of understanding with Annex Digital to jointly pursue government and defence tenders, further expanding its commercial footprint. Production started for the rollout of a national integrated maritime surveillance system, planned to scale beyond 30 autonomous or remotely managed unmanned surface vessels (USVs).
Direct engagement with NATO customers led to initial orders for testing and development platforms, with larger-scale rollouts anticipated. A major NATO contractor has placed additional orders for Nodestream systems following successful field trials, while a US defence contractor has begun testing the technology within its drone product development program. Marine services customers have also ramped up adoption of Nodestream, with several requesting enterprise licences as part of broader remote operations initiatives.
Defence-sector interest continues to grow as the platform demonstrates capabilities in contested environments. HTG is finalising a dedicated defence strategy, including recruitment of a senior leader to drive engagement with defence clients, with a full update expected in its upcoming half-year report.
Investor relations activities remained strong during the quarter, supported by partners Dr Reuter, Spark+, and Stockhead. European investors now account for 25–30% of trading volume, reflecting rising global interest in defence technologies. The company plans multiple roadshows in the coming quarter to further strengthen investor engagement, particularly following the release of its upcoming defence strategy.
This article was developed in collaboration with Harvest Technology Group, a Stockhead advertiser at the time of publishing. This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
As Harvest Technology Group continues to expand its footprint in the defence and maritime sectors, the strategic partnerships and operational milestones achieved in the December quarter underscore a promising trajectory. The narrowing of EBITDA losses and the growing interest from European investors further highlight the company’s potential for sustained growth and innovation in these critical markets.