Rakon expects FY25 results near guidance midpoint amid headwinds

Rakon (NZX:RAK) announced today that it expects to deliver Underlying EBITDA for FY25 near the midpoint of its NZD $5 - 15 million guidance, an improvement from its November 2024 update, despite facing significant geopolitical and commercial headwinds. The company highlighted improved performance in the second half of the year due to tight cost control and efficiency gains. Rakon also addressed previous takeover interest, noting that negotiations ended due to complexities, principally regulatory and geopolitical factors, but considered the interest an endorsement of the company's value. Additionally, as part of prudent risk management, Rakon will discontinue commercial relationships with a Chinese telecommunications-infrastructure customer, accounting for approximately 5% of FY25 revenue. Looking ahead to FY26, Rakon anticipates year-on-year improvement driven by growth in Space & Defence, Telecommunications, and AI Hardware & Datacentre sectors. Finally, Chair Lorraine Witten will retire at the 2025 ASM, with the board beginning the process of electing a new Chair.