How Ava Risk Group’s $9M Q1 Orders Signal Growth in Global Security Markets
Ava Risk Group reported a solid start to FY2026 with $9 million in Q1 sales orders and a $7.5 million backlog, underpinning its guidance for a profitable first half.
- Q1 sales order intake of $9.0 million, slightly up year-on-year
- Order backlog of $7.5 million including $2.6 million in recurring revenue
- Key contracts with Siemens for Australian transport infrastructure
- Growth in border protection contracts in Latvia and Eastern Europe
- First half revenue guidance of $17.0–18.2 million with expected EBITDA positivity
Strong Start to FY2026
Ava Risk Group Limited (ASX, AVA) has kicked off FY2026 with a steady trading update, reporting $9 million in sales order intake for the first quarter. This figure marks a modest increase from the $8.9 million recorded in the same period last year, signaling consistent demand for the company’s security technology solutions.
The company’s order backlog stands at $7.5 million, encompassing $3.9 million in equipment orders and $2.6 million in contracted annual recurring revenue from multi-year service agreements. This backlog provides a solid foundation for the company’s near-term revenue visibility.
Sector Highlights and Key Contracts
Ava Risk Group’s diverse portfolio spans three segments, Detect, Access, and Illuminate. The Detect segment, which includes smart fibre optic sensing systems, accounted for the bulk of Q1 sales at $6.9 million, a 5% increase year-on-year. Notably, the company secured a $1.2 million contract with Siemens Limited to supply Aura Ai-X detection systems for critical Australian transport infrastructure, building on prior success with the Sydney Metro project.
Border protection remains a growth area, with a $0.5 million contract awarded for Latvia’s border security, following earlier deployments in Eastern Europe. Additional orders totaling $0.5 million were received for critical energy infrastructure protection in the region, underscoring the geopolitical drivers behind demand for Ava’s technology.
The Access segment generated $1 million in orders, primarily from Asia Pacific and Europe, with a strategic focus on expanding demand in the US and Europe through the dormakaba distribution network. Illuminate sales rose 7% to $1.5 million, supported by key customers like Bosch and ongoing distributor engagement in North America.
Outlook and Market Positioning
CEO Mal Maginnis expressed confidence in the company’s sales pipeline, highlighting ongoing opportunities in telecommunications, transportation, aviation, and sovereign border protection. While progress with Telstra in the telecommunications sector has been slower than anticipated, additional testing of Aura Ai-X systems has reinforced product performance, with further sales expected.
Based on current order intake and pipeline conversion expectations, Ava Risk Group has set first half revenue guidance between $17.0 million and $18.2 million. Importantly, the company anticipates achieving positive EBITDA in this period, signaling operational leverage and improving profitability.
Despite some uncertainty caused by the US government shutdown delaying orders for government sites, Ava Risk Group’s diversified customer base and expanding international footprint position it well to capitalize on growing security and infrastructure protection needs.
Bottom Line?
Ava Risk Group’s steady order flow and expanding contracts set the stage for a potentially profitable FY2026 first half, but geopolitical and sector-specific uncertainties remain key watchpoints.
Questions in the middle?
- How will the US government shutdown impact the timing and volume of future orders?
- Can Ava Risk Group accelerate progress in the telecommunications sector, particularly with Telstra and other global providers?
- What is the potential scale of border protection contracts amid ongoing geopolitical tensions in Eastern Europe?
