Image source: © 2025 Krish Capital Pty. Ltd.

Highlights

  • RAK’s FY25 revenue declined by 19.0% YoY due to significant challenges, mainly in the telco and positioning markets.
  • In FY26, growth is expected across Aerospace & Defence, Telecommunications (as 5G capex stabilises), and AI-led infrastructure.
  • The U.S. tariffs are not expected to materially impact results, with costs estimated below 2% of revenue.

Rakon Limited (NZX:RAK) is an international technology company that designs and manufactures advanced frequency control and timing solutions for applications across telecommunications, space, defence, and industrial sectors.

In the financial year 2025 (FY25), the company’s revenue declined by 19.0% YoY to NZD 103.66 million, down from NZD 128.01 million in FY24, due to significant challenges mainly in the telco and positioning markets. The net loss after tax reached NZD 5.85 million, compared to a profit of NZD 4.25 million, primarily driven by geopolitical shifts and commercial headwinds. The net loss included NZD 3.6 million in one-off restructuring and transaction costs.

The second half (2HFY25) alone contributed 60% in FY25 revenue, representing a 49% increase over 1HFY25 and swinging underlying EBITDA by NZD 16.8 million, setting the stage for continued momentum in FY26.

The Aerospace & Defence segment posted record revenue, marking a 15% YoY increase and extending its growth streak into a third consecutive year. The segment benefitted from new contract wins and a robust order book heading into FY26.

Company Outlook

The AI & Cloud Computing Infrastructure business is set to generate significant revenue from 1H26, supported by a completed manufacturing setup and demand from Tier-1 customers for next-gen semiconductor products.

Looking ahead, momentum into FY26 remains positive, with growth expected across Aerospace & Defence, Telecommunications (as 5G capex stabilises), and AI-led infrastructure. Despite a strategic exit from a Chinese telecom client, which contributed ~5% of FY25 revenue, the company is well-positioned to capitalise on more sustainable, high-growth markets. U.S. tariffs are not expected to materially impact results, with costs estimated below 2% of revenue.

Stock Information

RAK shares closed at NZD 0.65 per share on 4 July 2025. Over the past six months, RAK’s stock price has dropped by almost 4.84%.

52-week high of RAK is NZD 0.92, recorded on 1 August 2024 and 52-week low is NZD 0.41, recorded on 24 April 2025.

Support and Resistance Summary

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels Is 4 July 2025. The reference data in this report has been partly sourced from EODHD/Others.

Technical Indicators Defined

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.