Seeing Machines benefits from regulatory push as automotive and fleet volumes climb

Seeing Machines Limited (LSE:SEE) delivered strong expansion in its automotive driver and occupant monitoring segment, with the number of vehicles on the road equipped with its technology rising 67% year on year to around 4.8 million. Quarterly production volumes increased 13% compared with the prior quarter and were up 117% from a year earlier.

Management expects royalty income to gather pace as European manufacturers step up installation of driver monitoring systems ahead of the EU’s 2026 General Safety Regulation requirements. The regulatory backdrop is reinforcing Seeing Machines’ role within next-generation vehicle safety systems.

The company also reported a sharp recovery in sales of its Guardian aftermarket solution for commercial fleets. Hardware units sold rose to 3,764 in the quarter, up from 368 previously, helping lift annual recurring revenue modestly to $14.0 million.

Chief executive Paul McGlone said the rebound in automotive production and Guardian volumes supports the company’s expectation of reaching positive adjusted EBITDA in the third quarter and across the second half of FY2026. This comes despite some delays in new requests for quotation (RFQs) and cumulative production volumes remaining below guaranteed thresholds.

While regulatory-driven growth and cost measures aimed at achieving cash-flow breakeven provide encouragement, the investment outlook remains constrained by ongoing losses and negative operating cash flow. Near-term technical indicators also point to weaker momentum, partially offset by improved sentiment following recent operational updates.

More about Seeing Machines

Seeing Machines is headquartered in Australia and listed on AIM. The company specialises in AI-powered computer vision systems that monitor driver and occupant behaviour to enhance transport safety.

Its technology is deployed by automotive manufacturers and commercial fleet operators, and is also applied in off-road and aviation settings, supporting safety and regulatory compliance across multiple transport sectors.