Thank you for standing by. Welcome to the Matrix Composites & Engineering Limited Fiscal Year 2025 Results Conference Call. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I would now like to hand the conference over to Mr. Aaron Begley, Chief Executive Officer. Please go ahead. Thank you very much. Welcome, everyone, to Matrix's FY 2025 full-year results presentation. I'm joined by our CFO, Brendan Cocks, today, and we will take you through the presentation that's been posted up on the ASX platform. For those that would like to follow that presentation, you can turn directly to page three for a quick snapshot of our business. We are located in Perth in Western Australia. We have a very large manufacturing facility located in the Australian Marine Complex in Henderson, and our three key areas of operation currently are to deliver engineered product solutions to the subsea industry globally, and to protect key infrastructure with corrosion-resistant coatings, and deliver high-performance materials to the defense and resources sector. Essentially three pillars to the business of which the subsea industry represents currently the largest revenue base. You can see in that shot a picture of our facility, where it's situated on an 85,000 sq m facility, a few hundred meters back from the water in the Australian Marine Complex. Turning to page four, give you a snapshot of our FY 2025 results. We recorded revenue of seventy-eight Sorry, AUD 74.8 million. It was underpinned primarily by the demand for subsea buoyancy and equipment. That was a record year for our subsea or SURF revenue. It was down from the previous year in terms of the overall revenue, primarily because of project timing, and some drifting revenue, and earnings into FY 2026, and also a muted market in the drilling sector, which we did expect a bit more revenue from. As a result, we did see a slight decline from previous year's results. We also saw recent SURF awards of AUD 45 million drive momentum into FY 2026, with our subsea order book currently sitting at just under AUD 60 million. Advanced Materials we expect to grow considerably this year, and we expect also to see steady OpEx and maintenance revenue from our Corrosion Technologies division as we continue to supply materials and services into the local Australian engineering resource markets. The business operated profitably last year, with underlying EBITDA of AUD 5 million and cash on hand of AUD 18.3 million. You can see by the pie chart on the bottom right-hand side of slide four that subsea buoyancy and subsea products represented nearly 90% of our revenue for last year. Of which SURF, which is a relatively new product line for the business, contributed to most of that result. That's a snapshot of our FY 2025 results. I'm gonna pass you over to Brendan Cocks now for a more detailed overview of the financial performance. Thank you, Aaron, and good morning, everyone. If you just turn to page six, which you total the key financial metrics. I'll just make a couple of points on this page. Aaron mentioned AUD 75.8 million in revenue for the year. We had AUD 35 million in the second half, following AUD 39 million in the first half. Relatively similar. We actually expected the second half to be a little bit higher, with about AUD 3 million worth of contracted revenue that was due for the half. Due to a customer request to delay delivery of some product that we manufactured six months ago, meant that about AUD 3 million in revenue and AUD 1 million in operating profit got moved into the FY 2026 financial year. The result of AUD 74.8 is 12% off last year, does reflect a 60% increase on what we delivered in FY 2023. This equated to a normalized EBITDA of AUD 5 million for the year. The result net loss after tax, which is a AUD 2.2 million loss. Just turn to page seven, the balance sheet. There's cash on the balance sheet of AUD 18.3 million. Net working capital in use at the end of the year of AUD 17.3 million, which reflects our receivables inventory and trade payables. I'll note our receivables still remains quite high, and that just reflects that we finished a large project right at the end of the year, but there'll still be material receivables related to that project feeding in between at the end of the year and October. Replenishing our cash balance ready to execute on other projects that we've won recently. I just made a note in this that you won't see it on the balance sheet, but we do retain tax losses of AUD 140 million. Tax effect of that is AUD 42 million. They're still fully utilizable to us, and we did actually use some of those tax losses last year. We don't expect to be paying tax anytime soon through this recovery. Also note that we've still got the convertible note on our balance sheet, so that matures in December 2025. I just noted there that we have appointed Index Debt Advisory, who's been working with us over the last three months. We've been running a process where we'll move into a new banking relationship in the coming months. A big part of that is providing some debt that helps give clarity on how we'll repay the convertible note in December if we need to, and that hasn't been converted. That process has been encouraging. We've had two big four Australian banks that have provided us term sheets as well as a number of non-bank lenders. We've got different options there that we'll look to execute on. If you turn to page eight, it's just our cash flow bridge that reflected our working capital movements through the period supporting our project execution. Also there, the main CapEx item was build up of our tool library, predominantly for our SURF projects, which served us well during the year and hopefully will serve us well in future projects. At this point, I'll pass back to Aaron to take you through some more operating slides. Okay. Thanks very much, Brendan. If you'd like to turn into slide nine. There's a picture there of some mooring buoyancy, which is awaiting dispatch to Brazil. This shot was taken in our yard last year, and this was for a job for Petrobras, and was part of a large package of work we executed. Actually, I think the single largest SURF buoyancy job that we'd ever won. Also just gives you a bit of an overview of the diversity of work that we're doing in this application. These buoys aren't going onto a riser or onto a drilling product. They're actually supporting mooring lines for an FPSO. It was a good example of the sort of work packaging that we've been able to expand into. Moving to slide 10, just a bit of more of a deep dive into our three business pillars. In the subsea market, we include engineered products for subsea production. That's, by engineered products, I mean, not just buoyancy, but a range of other products that we've started to build out into this market. Products for deep water drilling, which is the company's traditional product line, that we were very heavily involved is in about a decade ago and still continue to service. Products for deep sea mining, products for decommissioning, mooring, and installation, and buoyancy for floating wind opportunities and applications, of which we would expect to see the first of those major projects reach FID next year. The two emerging parts of our business are Corrosion Technologies and Advanced Materials. Corrosion Technologies is a business unit that distributes high-performance coatings into anti-corrosion applications across the resources sector in Australia and New Zealand and PNG. Our clients there include companies like Exxon and Woodside, and others. That business provides month-to-month revenues, which is something that is very valuable to us. Advanced Materials is very much a growth sector for the business. It includes defense products for the mining sector, and specialty materials for niche marine applications. Turning to the next slide, which is titled "Expanding our subsea product portfolio beyond buoyancy." We included this slide to just to stress that the business is expanding its product portfolio in this space beyond just buoyancy. We have a track record, which in some cases is pretty extensive, in manufacturing products that are made from engineering polymers for applications such as over-bend control on umbilicals, flexible risers, and flow lines, VIV suppression products to reduce damage from vibration on pipelines and risers, very large structures that are used to support subsea infrastructure. Increasingly, we provide support services and training to actually install our products. We did a lot of this during the financial year in FY 2025, as we provided offshore support services and training services in the field offshore Brazil. We will continue to do that this year in places like Brazil and next year in Mexico. Other parts of the world where we continue to deliver products globally. There's a much broader range of applications here. It really represents a product line build-out and an opportunity to also provide equipment packaging to our clients. They will have an opportunity to buy not just the buoyancy, but all the other products that we can make. What it does is, expand our addressable market probably by a factor of two or more, as we can package this broader range of products up with buoyancy sales. Turning to the next slide, titled Subsea Production SURF. To distinguish subsea production from drilling, subsea production really refers to a line of products that are sold into the development of subsea fields for oil and gas applications. The revenue chart on the top right-hand side there really demonstrates how we've had year-on-year growth since FY 2023 in this market. We really did not participate in this market in any material way until FY 2023. It's a relatively new market for us. We're now an established player. We had the successful deployment of our products in FY 2025. Over 1,300 DBMs were successfully deployed across two projects in ultra-deepwater offshore Brazil, and that's really lent to our credibility and now the ability to expand our customer base and also expand the range of products that we can supply into this sector. I think for anyone that's participating in the offshore oil and gas industry, the subsea market is probably the most attractive because of its of the visibility that we have going out towards, really past the end of the decade. Demand for products and services from this sector is very strong, driven by opportunities in South America, infill opportunities and in-field opportunities in North America. A growing market which could be very considerable in West Africa, especially in southwest Africa in places like Namibia and also offshore Mozambique on the other side of the continent, and a growing number of opportunities in Southeast Asia. It's really driven by the fact that the economics of deepwater oil and gas are now quite compelling, as technology has got to the point where now this is a very profitable sector to operate in, with break evens that are far lower than shelf drilling and more attractive than what we've seen in North American shale. It's a good place to be for the business. The fact that we've been established in this market, only for a short period of time, but really built credibility here, means that over the next five years, we would expect to see significant growth in the sector right around the world with our target customer base. Ordinarily, when we looked at this graph, we would really only been looking at the SURF portion of the global forecast CapEx spend. Both FPS and pipelines, the spend in those two areas, which are subsets of the global forecast CapEx spend, will also drive demand for our products as we keep building that product line out. In many cases, we will be supplying product into subsea applications that don't have any requirement for buoyancy at all. Moving to the next slide. Just a bit of an explainer, I guess, on what's happened in the drilling market. Look, most commentary we've seen around this has really seen that utilization's dropped off a little bit, from 2024 and 2025, for drill ships. Demand has drifted into FY 2026, so there is an expected recovery in that market next year. As a result, our customers tend to buy fewer spares. Upgrades have become a calendar year 2026 story as opposed to a calendar year 2025 story. We did produce less riser buoyancy in FY 2025 than we expected. That was part of the contribution to a slightly lower result than we would have liked, in FY 2025. I would point out that in the underlying result, there's been an increase in SURF revenue, and that's really what's driving the business forward. Although the more drilling product sales we can get, the better, because it is a part of the market where we tend to dominate that sector. However, we have seen AUD 7 million of new riser buoyancy orders across that period, and a further AUD 5 million awarded in recent months for our LGS technology in South America. Very quick note on the next slide on offshore floating wind. It's still very much a story for later in the decade. We are seeing some large commercial projects that are likely to hit FID next year, actually in the first half of the calendar year. There's some big opportunities in Korea, Japan, and Taiwan that we're focused on. We are actively bidding equipment into these markets. Nothing to do with risers, obviously, but mainly to do with mooring systems, cables and cable protection. That's a very interesting opportunity for us because of our geographic position and our proximity to what will likely be the world's first commercial-scale floating wind markets in North Asia. We really do have a geographic advantage over our competitors that are based in Europe, given the sheer size of the equipment that's required for this. Big potential opportunity. If we pick up work in this sector, it's likely to be not in the next financial year, but the following one. We are actively bidding in this space. A quick overview of Advanced Materials. Our primary push into this market is defense and underwater vehicles, manned and unmanned. We supply specialized materials, components, and structures to unmanned underwater vehicles for defense applications, and also remotely operated vehicles for civilian use, including ROVs for oil and gas, and also telecommunications applications. We supply buoyancy for very large trenches that basically trench telecommunications cables into deep ocean crossings. Buoyancy for work-class ROVs that are going down and servicing subsea oil and gas equipment, and of course, buoyancy and other products for manned and unmanned defense applications. There's also some other opportunities in energy and also LNG that we supply for these product lines. Very much a growth area. That's something we're pushing very hard and resourcing appropriately. On the next slide, Advanced Materials for energy applications. Centralizers are a key product in this sector. They're a downhole consumable that we sell into the horizontal completion sector for oil and gas. We sold just under half a million of these centralizers since 2013. We have about 20-30 different products and different sizes across four distinct ranges that we sell into this sector. We're qualified by Saudi Aramco, which is something we've talked to before. As that becomes an established product, we expect quite significant demands coming from that part of the world. We are establishing a new tranche of distributors globally. This is something that's a relatively recent development. Our model is very much to find distributors that can package our equipment with their equipment. We'll be expanding into markets including Indonesia, Malaysia, Vietnam, the Middle East, including Oman and Kuwait, and in Europe and Norway. We're also changing our distribution in the USA and Canada. We have a much wider reach than we've ever had for this product line, and we would expect to see some significant growth from this over the coming one to two years. The next slide, quickly, is just a bit of an overview of what we're doing in the mining space. We believe there's a lot of opportunity here for Matrix to supply, in particular, wear products and lightweight structural products into the local mining sector. We're currently working with Rio Tinto on some materials handling equipment, which is going into the field this month into an iron ore mine in the Pilbara. We're building out a specialist team, business development team, to really start pushing this market, and we've had lots of sector engagement across a number of different businesses, including Rio Tinto, Fortescue, Alcoa, and a number of other companies. We see an opportunity to leverage our materials technology into this space to provide solutions primarily in wear applications, screening applications, and other light weighting opportunities. Our ambition is to build this into a very significant part of our business. The next slide is really about our location. Those on the call may not be aware that we're in the Australian Marine Complex, smack bang in the middle of the West Australian Engineering and Defence Hub. We are directly behind the Common User Facility and Australian Submarine Corporation. We also have waterfront access, and this puts us in a very interesting strategic location with respect to being able to service a sustainment of surface and sub-surface vessels for AUKUS, not just the Australian Navy, but also supporting U.S. and U.K. operations that will be located out of Stirling and also seek servicing out of Henderson. The recent announcement around the surface frigates and also the various large landing barges that will be manufactured in Henderson will present some opportunities to us. We are still exploring the best way of us being involved with those. In terms of wanting to be located in probably the best geographic location for servicing that sector in Australia, we really are in the best location. We are currently servicing that sector as well. I mean, we have clients such as Thales, ASC, and Anduril, to name a few, that we've been servicing for a long time. We're a member of DISP, which is the Defence Industry Security Program. We are actively involved in that sector. Lastly, Corrosion Technologies. We continue to build this business unit and expand our customers here. It's very established. We've been doing it now for about four and a half years. We've been steadily supplying LNG companies like Woodside and Exxon with a wide range of different corrosion solutions from Australia. We're expanding our footprint into the East Coast as well to service both the LNG and mining sector there. Just turning to the last slide, as an overview of our growth outlook. The subsea business is very much part of our focus to continue to build out both our client base and our product line across that sector because we believe the market conditions are very good for us to significantly build our business into this space and leverage our existing installed capacity to service it. The new product lines that we're introducing will be capital light and utilize existing facilities and supply chains. We believe we can enter that market with a very limited amount of capital required. There's lots of near-term opportunities in that sector that we're continuing to address. We'll continue to grow our Advanced Materials business and our Corrosion business. We're seeing some very significant opportunities globally with defense because of our niche market and also in Australia. We'll continue to build our presence in the resources sector to try and utilize the capabilities and skills that we have and our facility and location to service the West Australian or broader Australian mining sector, which should build a baseline of income for the business. I think a good and very positive outlook for the coming year and following years. I'll conclude my presentation there. Thank you for listening, and I think I'll pass back to the moderator to facilitate any questions that might be out there. Thank you. Okay. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you're on a speakerphone, please pick up the handset to ask your question. Your first question comes from Joseph House with Bell Potter Securities. Please go ahead. Hi, Aaron and Brendan. Thanks for taking my questions. I've got three. Firstly on facility utilization. It's good to see you've got two large SURF contracts, which will be worked on starting from the second quarter. It looks like you're rolling off some large work packages that you've recently completed. Is it fair to assume there might be a slowdown or lower utilization maybe in the first half of 2026 or the first quarter before it starts to pick up in the second quarter? Any color around utilization and also how you're expecting to manage your workforce over that half. Well, look, Joseph, you're right. There is lower utilization in the first quarter. The way we manage that is, we do have a large pool of experienced casual labor that we draw from. Being in the Henderson precinct, there is a pool of casual labor we can draw from working mainly in the mining sector. As our demand goes up and down from quarter to quarter, so we can turn that casual workforce on and off, and that's how we manage it. Great. Thank you. Does that affect productivity at all? No, not really. Sometimes it does. I mean, look, there's always a demand for labor that have things like crane tickets and forklift tickets and that sort of thing. That can be a little bit expensive to have to retrain people. That's about it. I mean, the casual labor that we're employing are really semi-skilled and unskilled labor, typically. We're not having to bring machine operators or plant operators or that sort of thing, we tend to retain those skills through the cycles. For example, at the moment, I think from peak we're down 50 people, and that's all handled. Yep. Okay. That's really clear. Thank you. Just secondly, on the SURF contract opportunities you flagged over the next- Yeah six to 12 months. Are you able to provide any maybe clarity on the timing of some of these contracts? Will it be more second half weighted of the financial year? Just given the delivery dates, should we be expecting that some of these contracts will be kind of overlapping into FY 2027? Is there some first half contracts that might be fully delivered into FY 2026? Oh, yeah. Look, there are. Depends on the nature of them. It's a bit of a mixed bag, frankly. There'll be some small contracts that will be captured and delivered into this year, definitely. Any drilling that we pick up at all, look, we can deliver those very quickly. In some cases, if we've got the tooling on the ground, we can turn those contracts around in one month. It really just depends on the nature of it. As we've picked up and become more established in the sector, remember, I'll just sort of point out again that FY 2023 was really the first sort of significant year of us delivering products into the SURF market. As we become established with our customers and we've got a good reputation, so we're starting to get visibility and inquiries for smaller sort of bread-and-butter orders, if you like. They may not be contracts that are individually material, but collectively they are. Typically, they're shorter turnaround. For example, we manufacture installation buoys, which is effectively something we keep on the shelf and sell. We've started receiving inquiries out of the Americas for contracts that go into long-term service arrangements that some of our customers have. I think it'll be more of that. If we get a really big SURF contract, say, at the end of the first half, yes, the majority of that will be delivered in the following year. What we're forecasting really is the delivery of the majority of our backlog in this financial year. That'll be topped up by a number of those smaller contracts and also the sales that we'll see out of Advanced Materials and Corrosion Technologies division. Yeah, that's really clear. Thank you. Just lastly, you spoke a bit about the opportunities that you're seeing in Advanced Materials. Yeah with Rio Tinto and in defense. Yeah. Just keen to get, are these opportunities near-term, or are they more medium-term opportunities that you want to convert? Yeah. Look, there are some that are near term in mining, where we're able to supply products that are mainly used in wear applications because the demand is there constantly. There's a few opportunities there that we're chasing. The product development with Rio is probably a little longer term. However, we'll probably conclude the first phase of our testing in the next six months. That's quite exciting. We just need to go through the process of mass producing it. In Defence, it tends to have a longer run, but we're actively supplying those companies that we noted in the presentation, like ASC and Thales and Anduril and other UUV manufacturers. In the civilian space for unmanned vehicles, yeah, there are a number of opportunities that are near term. In some cases, Joseph, what we've done is dust off some of the products that we used to manufacture 10 to 15 years ago, that we put into the freezer, if you like. As we've built a bigger presence in the SURF market and also in the Defence sector, we've rolled some of those products back out again and reinvigorated them. We started manufacturing them. They're the sort of orders that might be anywhere from AUD 50,000 to AUD 1 million. That again, build that sort of bread-and-butter base the business has lacked over recent times. It's actually really important that we continue to do that because we're also just tapping into our existing facilities. We see that opportunity across Defence and resources to do both of those things. Yep. Okay. That's great, color. That's all my questions. Thank you. Cool. Thanks. Your next question comes from the line of Nicholas Wall with Morgans. Please go ahead. Good evening. Brendan Hi guys. Thanks for taking my questions. My first one is sort of a follow-on from Joe's first question. You guys have mentioned, AUD 57 million locked in for Subsea. I'm just wondering how much of that is expected to land in the first half from a P&L perspective? Maybe. Look, we're working through those large projects now. With production starting October, we probably think that the full year revenue will be weighted towards the second half. Yeah. We're still kind of working through exactly what that looks like, because both the client and us are keen to start as soon as we can. Yeah. Yeah. Anyway, second half. Second half. Excellent. Yeah, there is a bit of a pattern to this because it's happened over the last 2 years, and it's happening again. We see relatively subdued activity in the first half, then went absolutely flat out in the second half. We had one period where we were operating at, I think it might've been in FY 2024, in the second half, we were operating at a 70% capacity. We haven't been at that sort of production level for a long, long time, for a period of about three or four months. I don't think there's any seasonality to it. That's really happened again for this year. Also a reason why those smaller jobs, that bread-and-butter business, as I termed it, is so important to try and fill in some of the lumps and bumps. Yeah. Okay, that's helpful. Thanks, guys. Just lastly, I think you guys were expecting about AUD 15 mil rev from your sort of annuity style segments in FY 2025, but it looks as though it's coming at roughly half of that. Could you just explain what happened there? NCT and Advanced Materials. Yeah, look, I think with Advanced Materials, there were two things that happened. We had a change out of a distributor in the second half. One of our distributors was taken over by a competitor, and so that wasn't helpful. Okay. We were really rocking along very nicely and then second half sales slowed right down and then we've worked out why. We're in the process of appointing a new distributor, which hopefully will be on board next month in the U.S. That affected sales in the second half. We also had some Defence programs that, and given the state, I guess there's a bit of a commentary around Defence spend in Australia at the moment that has just been delayed into this financial year that we expected to do last financial year. Between the two of those, it probably shifted AUD 2 million or AUD 3 million into Well, AUD 2 million or AUD 3 million less than we would have expected. NCT- Yeah The coating section, we had a bit of a drop-off in sales of equipment hire and technical services. Some of our customers have moved away from hiring equipment from us and have bought their own equipment. That affected the top line there a bit. There are a few things that really impacted that first or the full-year result. Those two factors, sort of a decrease in NCT sales, a shift of Advanced Materials sales into this year and not enough drilling products sold, which was pretty annoying. Otherwise, we did genuinely expect to see year-on-year growth on the top line, and there were those three factors that peeled it back a bit. How are you guys thinking about Advanced Materials and Corrosion Technologies into FY 2026? Well, I've probably got a better feel for Advanced Materials. The big change to Advanced Materials is really we have a bit more visibility now on defense, which is good. The addition of, I think it's six new distributors for our well construction product line, it should drive a lot of growth in that revenue. We're very bullish about that, simply by virtue of the fact that we've got some very good distributors lined up in those key markets. The product's got such a fantastic reputation, a great track record. It's probably my favorite product in the business because it's so easy for us to make. It's patented, and we manufacture it, keep it on the shelf, and ship it. It's great. More of that would be good, and it's also overhead light. Yeah. The end result for that number, Nicholas, was, I think we've been talking about AUD 10 million-AUD 16 million. Yeah across those lines. Yeah I think just a tick over nine. Nine. Yeah. Yeah. Yeah, had we hit that target, and had we have got one small drilling rig, the buoyancy job, we would have exceeded our revenue forecast. It was a bit of a totally unrelated confluence of events. Yeah. It sounds like you've got more visibility in Advanced Materials, but Corrosion Technologies, can you? Yeah provide some guidance on how you think it about both the businesses into FY 2026, is it 10 to 15 again, like you initially thought? Oh, look, I hope we do a lot more in Advanced Materials than we did last year. Certainly, the writing's on the wall that we'll do that. NCT it is a difficult one for us to forecast. It's not very lumpy, which means big swings up are unlikely, as are big swings down. It's probably steady as she goes for that business unit. It is being looked at pretty hard and I think the product and service portfolio in that business needs to be expanded, and as we do that, you should see some growth in the top line. Awesome. That's it from me. Thanks, Aaron. Cool. Your next question comes from the line of Jesse Fleissig with Tenba Capital. Please go ahead. Hello. Hey guys. Thanks for taking my questions. I was just wondering, with regards to the AUD 300 million worth of competitive quotations that are yet to be awarded in the SURF market, whether you can provide some additional color on when you expect them to be awarded. Whether they're expected to be awarded mostly within FY 2026 or FY 2027, or how that balance looks? Yeah. Also with the AUD 75 million in drilling as well, the timing with regards to that. Lastly, just whether you can provide some additional color regarding SURF revenue guidance for FY 2026. Thanks. Sure. Well, I'll try and answer the questions in order as best I can. Look, the forward quotation book, which is just over AUD 300 million, almost all of that will be awarded over the next two years. Right? I'd say primarily most of it will be awarded over the next 18 months. You've got some pretty big lumpy orders in there where our customers have actually been awarded the contract. They will be awarded next year, in some cases, but towards the back of the calendar year. There'll be some that will be awarded in FY 2026, some that will be awarded in FY 2027 in the first half. There's a really broad spread of opportunities. We're looking at opportunities that sit in Brazil, North America, the Middle East. There's some very interesting opportunities in the Middle East that we've quoted on where our customers have been awarded those orders and of course, in both West Africa and East Africa, and a few around Southeast Asia. There's a really broad spread of work. Geographically, I think it's gonna be far more diverse than the orders that we've picked up, which have almost all been in Brazil or Gulf of Mexico/Gulf of America. The next question was the AUD 75 million worth of drilling buoyancy. Look, the order timing around that is really obscure, frankly. The way it works is, there are two reasons our customers come to us for drilling riser buoyancy. We have probably more than 50% of the deployed fleet out there, in terms of we've manufactured 50% of the deployed fleet. The two reasons they'll come to us is either broken buoyancy or it's old and it's worn out. If it's old and it's worn out, it's probably not something that's been supplied by us, but we can replace it because we're really the only active player in the market. We tend to win pretty much all of the work that we quote on there if they actually need that product. That tends to be funded by the drilling contractor. They'll only do it if they absolutely have to or if their client tells them they have to do it. The other reason they come to us is if they're bidding on a scope of work where they don't have a particular piece of equipment that they need from us. That might be they're drilling in high current areas and they need LGS, which is the product that we developed for that market, to reduce VIV and drag. We're actually starting to see our product specified in a number of different inquiries that they're getting from their customers. They'll bid on that scope of work. They'll ask us for a price, and if they win the job, well, then they will then place the order with us. That can also include extensions, and these are really good opportunities for us to get into if our customers need to extend the operational capability of their rigs. We have the lightest product on the market, and that again will be where they'll bid for work and need to buy equipment from us to execute it. Typically, that ends up being client-funded. The operator, the oil company that they're working for will fund that equipment purchase as part of the mobilization cost of the rig. That tends to be where we get most of our work now because the drilling contractors will only replace buoyancy if they absolutely have to. The last question was around SURF for this financial year. Well, look, the contract that we've been awarded will execute in our backlog. We'll execute this financial year. There may be smaller contracts, which include variations on the existing contracts that we'll also execute this financial year. We're really looking for growth to come from Advanced Materials, ACT, a bit of drilling, and those smaller contracts, including variations from SURF. Thank you. Your next question comes from the line of Oliver Porter with Euroz Hartleys. Please go ahead. Morning, Aaron and Brendan. Thanks for taking my questions. Most of them have been touched on already, just two quick ones from me. 2025, you started off with AUD 33 million in secured subsea revenue work and ultimately ended up delivering something in the order of AUD 66 million. Is that sort of AUD 33 million delta something that you see as sort of readily achievable across 2026? That's a good question. Probably not. I'll caveat that on the fact that we are getting qualified, so it's possible. We are getting qualified by a couple of new customers that have demand that would require us to quote and deliver in this financial year. Okay. Depending on how quickly that moves, it's possible. I'd like to think that it'd be great if we could do something like that. At the moment, I don't think it's gonna be quite that much, but it is possible. Okay. I don't know. It's not really a definitive answer, is it? No, you can hear. I think the short answer is that odds are probably not, but it's not impossible. No. No. Where we sit at the moment, Oli, we've got the AUD 57 million, which pretty much will be all delivered this year with the expectation there'll be a bit of variations on some of the existing projects because there's some optional packages of work that are part of those quotes. If we can achieve our aspirations around AUD 15 million of that recurring revenue, which is looking more likely, we're already at kind of this year's revenue. Yeah, we think that a lot of the activity and sort of the quotation pipeline we've got out there, we'll still be adding to that number over the orders that we win over the next six months. Yeah, I think we're in a pretty good place at the start of the year, but we've work to do in just converting those quotes. Yeah. Great. Thanks. Lastly from me. AUD 5.2 million in CapEx this year, how is that sort of shaping up to deliver that AUD 57 as it stands now? Yeah. Well, look, a lot of that CapEx, probably about 20% of it, is more sustaining CapEx that we spend on our facility and a few other bits and pieces. We did buy an injection molding machine, which has given us additional capacity, which makes our clamps for the SURF market, but also makes all our centralizers. Part of that's making sure we've got additional capacity to reach the growth we want out of our well construction products. A fair chunk of it also was buoyancy for our- Tooling. -projects. Yeah, buoyancy. Yeah. This year, the biggest project we won, we're utilizing tools that we've already purchased in prior years, so we can adapt some of that tooling to make that. We expect the CapEx will be less this year. If we pick up other projects that require tooling, well, that will be funded out of the project. Yeah. We've built a tool library for the SURF market that we can utilize across multiple projects. We did that for the first time probably last year with a project that we executed, and we're doing the same this year. It's really part of our spend that we had to do to enter the market. Because we effectively are now making, for want of a better description, industrial Lego, we've had to tool up for it, and we've done that. Great. Thanks, Aaron and Brendan. That's it from me. Thanks, Oli. Okay, thanks, Oli. Bye now. There are no further questions at this time. I will now hand the call back to Mr. Begley for closing remarks. Thank you very much for listening. We look forward to seeing some of you on the road next month. We'll talk to you next time. Thank you. Goodbye. That does conclude our conference for today. Thank you for participating. You may now disconnect.