Elsight Enters Production Phase as Aura Platform Delivers First Defence Units

About Elsight Ltd

Elsight Limited (ASX: ELS) is an ASX-listed communications technology company specialising in carrier-agnostic, multi-path connectivity solutions for defence, uncrewed systems and mission-critical applications. Founded in 2009, the company’s technology enables highly reliable, cyber-secure data transmission by intelligently bonding multiple communication links, including cellular, satellite and RF channels. Elsight’s solutions are increasingly used across defence, public safety, homeland security and commercial drone applications, where uninterrupted connectivity is essential.

Over the past year, Elsight has undergone a significant operational and financial turnaround, shifting from early-stage development into commercial execution. The commencement of Aura platform deliveries represents a defining step in this transition, demonstrating the company’s ability to convert long-cycle defence development programs into tangible production outcomes. With a growing order backlog, U.S. expansion underway and a diversified product portfolio, Elsight enters 2026 with accelerating momentum and expanding addressable markets.

Aura Platform Moves Into Production and Delivery

Elsight confirmed that delivery of the first batch of Aura units has commenced following the successful completion of development, testing and qualification for the strategic program announced in September 2024. The program is being delivered in partnership with a leading global defence prime contractor and represents Elsight’s first operational deployment of the Aura platform.

Aura is designed as a flexible communications device capable of supporting both uncrewed systems and dismounted or soldier-level use cases. This dual-purpose design materially broadens Elsight’s potential applications beyond its traditional focus on unmanned aerial systems, opening pathways into wider defence and security programs. As an OEM component within a larger integrated system, the program is expected to evolve over time as deployment plans, integration requirements and end-user needs continue to mature.

Management highlighted that the current milestone marks the formal transition from R&D and validation into production and delivery, a critical inflection point for any defence technology supplier.

Strategic Importance of the Defence Program

The Aura program is strategically important for Elsight, providing both near-term revenue visibility and longer-term growth optionality. Defence programs of this nature are typically structured in phases, beginning with development and qualification before progressing into scaled production as operational confidence builds. Elsight noted that further phases are expected as requirements evolve, although timing and scale remain subject to broader system integration and deployment dynamics.

By securing a role within a major defence platform, Elsight has embedded its technology into a larger ecosystem, increasing switching costs and strengthening customer relationships. This positioning supports repeat orders and potential follow-on opportunities across allied defence programs, particularly as uncrewed and networked systems become increasingly central to modern military doctrine.

U.S. Expansion and Regulatory Alignment

In parallel with product delivery, Elsight is accelerating its expansion in the United States, a critical growth market for defence and government communications technology. The company has appointed two senior sales and business development executives who will commence in January 2026, each bringing extensive experience within U.S. Department of Defence programs and defence procurement pathways.

These appointments are expected to support the conversion of existing pipeline opportunities while generating new demand across defence, homeland security and government channels. Elsight has emphasised that its products and operations are aligned with the evolving U.S. regulatory environment, including requirements introduced under the National Defense Authorization Act for FY26.

Management indicated that ongoing engagement with U.S. OEM partners and government entities provides confidence that Elsight is well positioned to comply with procurement, security and supply-chain requirements, mitigating regulatory risk as the company scales its U.S. presence.

Strong Year-End Performance and Financial Turnaround

The transition into Aura production caps a year of significant operational and financial improvement for Elsight. The company reported that it moved from marginal revenues and operating losses at the start of 2025 to sustained profitability by year-end. Breakeven was achieved in the June quarter, followed by a profitable September quarter, marking a decisive turning point in the business.

This performance has translated into record firm orders for early 2026 delivery, with a backlog totalling US$21.2 million (A$32.1 million) scheduled between January and April. The backlog includes orders associated with the commercial launch of the Aura platform, representing the first hardware release under a broader plan to diversify and enhance the company’s product portfolio.

The improving financial profile provides greater capacity for investment in growth initiatives, particularly in sales, regulatory alignment and customer support within priority markets.

Technology Differentiation and Portfolio Expansion

Elsight’s flagship Halo product remains central to its value proposition, providing robust, cyber-secure connectivity through multi-link bonding technology. Halo aggregates cellular, satellite and RF communications to deliver near-continuous connectivity even in highly challenging environments, with form factors suitable for both airborne and ground-based applications.

The introduction of Aura represents a deliberate expansion of this technology base into new use cases. By extending beyond unmanned systems into soldier-level communications, Elsight significantly expands its addressable defence market. This diversification reduces reliance on any single segment while enhancing relevance across a broader range of military and security operations.

Industry Context and Demand Drivers

Demand for resilient communications technology continues to rise as defence forces invest in networked, autonomous and data-intensive systems. Conflicts globally have highlighted the vulnerability of traditional communication methods and the strategic importance of reliable, secure connectivity across dispersed and contested environments.

Multi-path communications solutions such as those developed by Elsight are increasingly viewed as essential enablers of situational awareness, command and control, and autonomous operations. This structural demand backdrop supports continued investment by defence and government customers, particularly in allied markets such as the United States and Europe.

Outlook

Heading into 2026, Elsight is positioned at an inflection point, with production underway, a growing backlog and expanding international footprint. While defence procurement cycles remain inherently complex, the company’s successful transition into delivery reduces execution risk and strengthens credibility with customers and partners.

Management remains focused on executing existing programs, converting pipeline opportunities in the U.S. and expanding deployment of the Aura platform across additional defence and security applications. Continued discipline in scaling operations and maintaining regulatory alignment will be key priorities as the business grows.