Seeing Machines shares rose about 11.3% to around 5.29 pence in early trading, making it one of the better-performing AIM stocks of the day, after the AI-powered driver monitoring specialist reported a sharp acceleration in revenue, record automotive production volumes and a profitable second half.

Adjusted revenue for the year ended June increased 45% to $76.3m, in line with expectations, with momentum accelerating significantly in the second half as the revenue mix shifted towards higher-margin automotive royalty income. Second-half adjusted revenue rose 126% to $52.9m, while automotive royalty revenue for the full year increased 135% to $33.9m.

Seeing Machines expects adjusted earnings to have turned positive in the second half, at between $10.7m and $11.7m, compared with a $13.7m loss in the first half. The full-year adjusted earnings loss is expected to narrow to between US$2m and US$3m. The improvement reflected greater operating leverage from higher-margin automotive royalties alongside continued cost discipline.

The EU General Safety Regulation (GSR) requiring camera-based driver monitoring systems in new vehicle types came into force on 7 July, strengthening the regulatory support for the company's technology. The number of vehicles on the road using its driver and occupant monitoring technology more than doubled over the year to 8.2 million.

The company also expanded automotive programmes worth more than $40m with two existing European OEM customers and was selected for programmes with three new Japanese OEMs. It also secured $5.6m of guardian orders from an existing robotaxi customer and won a deployment with a major US multinational for about 1,100 units.

Cash flow turned positive in the second half, with cash at June-end increasing to $4.3m from $3.4m at the end of 2025. Trade receivables and royalties owed also rose sharply to $25.3m from $11.6m, reflecting the substantial increase in automotive royalty revenue recognised during the final quarter and the timing of customer payments.

Automotive production volumes rose 195% to 4.49 million units during the year, with quarterly production reaching a record 2.11 million units in Q4, up 64% from the previous quarter and 333% year on year. Second-half production increased 212% to 3.40 million units as vehicle manufacturers prepared for new European safety requirements.

Seeing Machines CEO Paul McGlone said: "FY2026 was a pivotal year for Seeing Machines, with record automotive production volumes, strong revenue growth and a profitable second half that demonstrates the operating leverage in our business. More than 8.2 million vehicles are now on the road with our technology, with Q4 volumes indicative of a transition to a significantly higher quarterly run-rate.

"With the European GSR mandate now in force, demand for our driver and occupant monitoring system technology is increasingly underpinned by regulatory requirements and our expanding Automotive programs, broader Cabin AI capabilities and growing opportunities across Guardian and Future Mobility provide a strong platform for sustained growth. We remain focused on converting this momentum into increasing royalty revenue, cash generation, improving profitability and long-term shareholder value."

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