DEFSEC Applied sciences Proclaims Important Momentum in Income Expansion because of Higher Annualized Billings for Executive Products and services on a Move-Ahead Foundation to Roughly CAD$8.3M Setting out February 2026

• 62.5% build up in income producing headcount from in the past introduced 24 on October 29, 2025.
• Roughly 704% build up in annualized program billings on govt services and products over FY2024 billings of $1M¹.
• Roughly 845% build up in annualized rude margin contribution from govt services and products of roughly $2.3M² over FY2024 rude margin of $0.2M³.

OTTAWA, ON, Dec. 5, 2025 /PRNewswire/ – DEFSEC Applied sciences Inc. (TSXV: DFSC) (TSXV: DFSC.WT.U) (NASDAQ: DFSC) (NASDAQ: DFSCW) (“DEFSEC” or the “Company“) is happy to announce important momentum in its govt services and products industry because it expects so as to add an supplementary 15 roles to the 24 roles in the past disclosed within the Corporate’s information shed dated October 29, 2025, for a complete of 39 roles staffed taking off in February, 2026. All greenback quantities on this information shed are in Canadian Greenbacks until in a different way famous.

All roles were staffed with a massive a part of the rise because of a ramification of labor scope with the Directorate Land Command Techniques Program Control Device Engineering Facility (“DSEF“) promise for virtual modernization of the Canadian Armed Forces.

DEFSEC has organized to rapid observe the success of this fresh paintings scope requirement via subcontracting 13 of the supplementary 15 roles from ADGA Workforce Experts Inc. (“ADGA“). Graduation of labor in February 2026 is matter to standard administrative onboarding procedures. The Corporate has already won DSEF’s observation of labor and expects to finish onboarding procedures over the subsequent a number of weeks in week for the February get started.

The cumulative affect of the supplementary assets implies that, efficient February 2026, when paintings commences, the Corporate’s go-forward annualized program billings are anticipated to extend to roughly $8.3M⁴, in comparison to the $5.1M⁵ as reported in Corporate’s information shed dated October 29, 2025. Moreover, annualized rude margins on a go-forward foundation on programmatic paintings are anticipated to extend commensurately to roughly $2.3M (with roughly $0.5M of the rise in rude margin related to the jobs added since October 29, 2025). This strikes the Corporate considerably additional in opposition to its function of attaining a money current sure operation at the commercialization of its generation and assets. 

“It’s very gratifying to see the continued momentum in our programmatic work on digital modernization of the Canadian Armed Forces with our industry partners,” stated Sean Homuth, DEFSEC President and CEO. LGen Jean-Marc Lanthier (Ret’d), President and CEO of ADGA, commented that “ADGA brings experienced software development experts who have supported DND for many years. We look forward to continuing to deploy this operationally critical talent in collaboration with DEFSEC so the customer benefits from teams ready to deliver without delay.”

“The announcement today means that DEFSEC’s annualized go-forward revenue run rate of approximately $8.3M at the beginning in February 2026 are expected to be approximately 704% higher than our actual Fiscal 2024 programmatic revenue of $1.0M,” added Mr. Homuth. “Additionally, partnering with ADGA will have the effect of an immediate impact on revenue and margin when this additional, ongoing work commences in February 2026.”

Mr. Homuth concluded via noting that “This collaboration with ADGA is a great example of two Canadian defence companies working together to quickly deliver upgraded capability to our Canadian Armed Forces. We continue to be well positioned for further momentum and growth as the Canadian government works to increase defence spending on critical capabilities within our sphere of expertise”.

The Corporate famous that those up to date go-forward income run price and margin contribution numbers introduced as of late exclude its product industry, mainly ARWEN gross sales, which might be projected to extend considerably in Fiscal 2025 over Fiscal 2024. The Corporate expects additional income expansion because the Canadian govt continues to position motion to their deliberate protection spending and larger margins because the Corporate continues to scale its programmatic services and products.

Moment the Corporate expects to document its year-end filings in a while, they’ll in large part be in sequence with the Q3 expansion trajectory and can provide a powerful monetary place owing to the financing finished in This fall.

About DEFSEC 

DEFSEC (TSXV: DFSC and DFSC.WT.U; NASDAQ: DFSC and DFSCSW; FSE: 62UA) develops and commercializes leap forward next-generation tactical methods for army and safety forces. The corporate’s tide portfolio of choices contains digitization of tactical forces for real-time shared situational consciousness and concentrated on data from any supply (together with drones) streamed immediately to customers’ roguish units and guns. Alternative DEFSEC merchandise come with countermeasures in opposition to ultimatum equivalent to digital detection, lasers and drones. Those methods can function stand-alone or combine seamlessly with OEM merchandise and battlefield control methods, and all come built-in with TAK. The corporate additionally has a fresh proprietary non-lethal product sequence branded PARA SHOT^™ with packages throughout all sections of the non-lethal marketplace, together with regulation enforcement. The Corporate is headquartered in Ottawa, Canada, with a consultant workplace in London, UK. 

For more info, please seek advice from https://www.defsectec.com

Ahead-Taking a look Statements 

This press shed incorporates “forward-looking statements” and “forward-looking information” throughout the which means of Canadian and United States securities rules (jointly, “forward-looking statements“), that could be known via the importance of phrases and words equivalent to “may”, “would”, “should”, “could”, “expect”, “intend”, “estimate”, “anticipate”, “plan”, “foresee”, “believe”, or “continue”, the unfavorable of those phrases and alike terminology, together with references to suppositions, even if now not all forward-looking statements comprise those phrases and words. Ahead-looking statements made via DEFSEC on this press shed come with, however aren’t restricted to, the timing and affect on DEFSEC’s income and rude margins because of its guarantees with ADGA, projected will increase of ARWEN gross sales, expansion of DEFSEC’s income and rude margins because of the Canadian govt’s deliberate protection spending and DEFSEC’s programmatic services and products scaling, the timeline for DEFSEC’s programmatic services and products scaling, and the timing and contents of DEFSEC’s year-end monetary statements. Ahead-looking statements are supplied resulting in helping the reader in figuring out us, our industry, operations, potentialities and dangers at some degree in week within the context of ancient and conceivable moment traits and due to this fact the reader is cautioned that such data might not be suitable for alternative functions. Such forward-looking statements are in response to the tide expectancies of DEFSEC’s control and are in response to suppositions and matter to dangers and uncertainties.

Despite the fact that DEFSEC’s control believes that the suppositions underlying such forward-looking statements are affordable, they are going to turn out to be unsuitable. The forward-looking statements mentioned on this press shed won’t happen via positive specified dates or in any respect and may range materially on account of recognized and unknown possibility elements and uncertainties affecting DEFSEC, together with, however now not restricted to,

DEFSEC’s endured and a hit partnership with ADGA thru its guarantees and its affects on DEFSEC’s income and rude margins, the timing and affect on DEFSEC’s income and rude margins because of its guarantees with ADGA, the Canadian govt’s deliberate protection spending going on as anticipated or expressed, the facility of DEFSEC to scale its programmatic services and products scaling effectively, if in any respect, the facility of DEFSEC to document its year-end monetary statements on deliberate timelines, DEFSEC’s incapability to conserve oaths and subcontracts (at the timelines, dimension and scale anticipated or in any respect); amendments to statements of labor and orders for its merchandise in 2025 and onwards for causes past its keep an eye on; the renewal or extension of guarantees past their latest time period; the granting of patents carried out for via DEFSEC; incapability to finance the dimensions as much as complete industrial manufacturing ranges for its bodily merchandise; incapability to conserve key partnership guarantees to facilitate the outsourcing and logistics for its ARWEN and PARA SHOT merchandise; incapability to satisfy timeline to commercialization for SaaS product; general hobby in DEFSEC’s merchandise being not up to expected, anticipated or expressed; normal financial and hold marketplace statuses; opposed business occasions; moment legislative and regulatory traits in Canada, the US and in different places; the shortcoming of DEFSEC to put into effect and shoot its industry methods; dangers and uncertainties colorful from week to week in DEFSEC’s filings with the Canadian Safety Directors and the US Securities and Trade Fee; and alternative elements past the keep an eye on of DEFSEC.

Despite the fact that DEFSEC has tried to spot noteceable elements that might purpose untouched movements, occasions or effects to range materially from the ones described in forward-looking statements, there could also be alternative elements that purpose movements, occasions or effects to range from the ones expected, estimated or supposed. With the exception of as required via acceptable securities rules, forward-looking statements talk most effective as of the occasion on which they’re made and DEFSEC undertakes disagree legal responsibility to publicly replace or revise any forward-looking statements, whether or not on account of fresh data, moment occasions or in a different way. 

Neither the TSX Mission Trade nor its respective Law Products and services Supplier (as that time period is outlined within the insurance policies of the TSX Mission Trade) accepts duty for the adequacy or accuracy of this shed. 

Non-IFRS Measures 

This information shed makes connection with positive non-IFRS measures. Those measures aren’t known measures below the Global Monetary Reporting Requirements (“IFRS”), do not need a standardized which means prescribed via IFRS, and are due to this fact not going to be related to alike measures offered via alternative corporations. In lieu, those measures are supplied as supplementary data to counterpoint the ones IFRS measures via offering additional figuring out of our result of operations from control’s point of view. Accordingly, those measures will have to now not be regarded as in isolation nor as an alternative to research of our monetary data reported below IFRS. 

The non-IFRS measures worn on this information shed. contains “annualized gross margin contribution” and “program billings on annualized go-forward basis”, which might be unaudited, non-IFRS measures.

“Annualized gross margin contribution”, refers to rude margin bucks in response to the body of workers and alternative homogeneous prices for all of the 12 months on the program billing price. Control believes annualized rude margin contribution is an invaluable measure as it aligns with annualized income and billings. Essentially the most immediately related monetary measure this is disclosed within the monetary statements of the Corporate to which this non-IFRS measure relates is rude margin.

“Program billings on annualized go-forward basis”, refers to programmatic income in response to the jobs staffed for a complete 12 months on the program billing price. Control believes program billings on annualized go-forward foundation is an invaluable measure as it displays control’s estimate of annualized revenues in response to tide contractual taskings as of the occasion of this shed. Essentially the most immediately related monetary measure this is disclosed within the monetary statements of the Corporate to which the non-IFRS measure relates is income.

Those non-IFRS monetary measures mirror an supplementary manner of viewing facets of the Corporate’s operations that, when considered with IFRS effects and the reconciliations to the corresponding IFRS monetary measures, would possibly serve a extra whole figuring out of things and traits affecting the Corporate’s industry. As a result of non-IFRS monetary measures exclude the impact of things that may build up or cut the Corporate’s reported result of operations, control strongly encourages buyers to check the Corporate’s consolidated monetary statements and publicly filed reviews of their entirety below the Corporate’s profile on EDGAR and SEDAR+.

SOURCE DEFSEC Applied sciences Inc.