Monthly Archives: November 2025

Seeing Machines seals Amazon contract in the US

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Seeing Machines (AIM: SEE) has finally won the Amazon.com contract for Guardian Gen 3, which should be the first of many decent-size Gen 3 contracts over the next few months. 

In an RNS issued today Seeing Machines confirmed that it has won the “US-based multinational” and would support the initial installation of 1,100 Guardian units, which are scheduled for completion by this December. Discussions are also ongoing for further expansion in the New Year for Amazon’s heavy truck fleet.

According to information I’ve obtained (which are likely to be an underestimate), Amazon in the US has a fleet of approximately 1,645 tractors (cabs) and 12,835 trucks. 

KPIs

Seeing Machines also released its latest set of KPIs for Q1 FY 2026, with confirmation that it now has 4.24m cars on the road with its DMS technology. An additional 510,000 cars were produced in the latest quarter, 4% up on the previous quarter, demonstrating continued growth in what is traditionally a subdued quarter.

Sales of Guardian Gen 3, at 368, did disappoint. However this was due to delayed large deals, which are now coming through as is clear from the Amazon win.

In a note issued today, analyst Peter McNally from house broker Stifel commented: “Guardian unit sales in the quarter were 368 (fiscal Q425: 2,536) as certain expected deals slipped into the current quarter, including a significant aftermarket order announced today for the 1.1k units before December 2025. This means that shipments in Q2 so far are already greater than 2,600 units and therefore have been more of an issue of timing rather than quantity, as we are less than halfway through fiscal Q2.”

He added: “The aftermarket pipeline remains healthy, with multiple pilots and commercial contracts progressing, and partnerships such as Mitsubishi Electric Automotive America expected to support production scaling through FY26. We estimate current quarterly capacity at roughly 6k units with c.$800 ASP and ~40% gross margin, highlighting improved unit economics versus Gen-2 and stronger leverage potential as volumes rebuild.”

Importantly, CEO Paul McGlone has confirmed: “We remain on track to achieve our cashflow break-even run rate target by the end of this calendar year.” 

While some traders have cashed out their winnings, most investors are holding as the share price rise seems set to continue, as auto volumes ramp in anticipation of EU legislation that comes into force in July 2026. Also, tougher Euro NCAP safety ratings apply from January 2026 and will necessitate a camera-based DMS/OMS for a car to achieve a 5 star safety rating.

McNally’s view is clear: “We expect momentum to build through FY26 as full compliance with the July 2026 GSR mandate approaches. Seeing Machines remains the DMS market leader with over 4.2m vehicles deployed, ahead of Smart Eye (~2m). With customers representing c.12.5m of the 16.1m European vehicles forecast to be sold in Europe in 2026, the installed base should continue compounding, though the pace of inflection will vary by OEM depending on inventory and model cycles.”

In addition, I expect multiple new contract wins in auto and aftermarket to materialise by Christmas.

The writer holds stock in Seeing Machines.

Stifel reiterates ‘Buy’ with 9.6p price target

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Following on from the news that VW has started production in China, with Seeing Machines DMS and OMS tech in Magna’s rearview mirror, Stifel has reiterated its 9.6p price target and confirms SEE as one of its top picks.

In a flash note issued today, Stifel analyst Peter McNally wrote:

“The significance to us is that production is happening on time. As we heard at the Townhall event earlier this year, Seeing Machines was expecting the start of production of a number of programmes this year with one significant one over the summer (which we believe happened on time) and a second larger one later in the year. So, the announcement is good news that it is starting toward the early part of calendar Q4.

“We also note that this is for both DMS and OMS which typically indicates better ASP than DMS alone. We see this as a positive development as the company approaches its target of run-rate cash flow break-even by the end of the year.

“We don’t think this announcement has anything to do with the Magna loan but is purely signaling that the production ramp is starting on time. We should be getting fiscal Q2 KPIs in the next couple of weeks. The company remains one of our top picks at 14.4x FY26E EV/EBITDA. Buy.”

It should be remembered that current broker estimates don’t include estimates for revenue from sales in China, so I’m expecting broker upgrades in due course.

The writer holds stock in Seeing Machines.

Magna confirms Seeing Machines mirror winning OEMs

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In its Q3 earning update on 31 October Magna confirmed that its DMS/OMS rearview mirror with Seeing Machines technology is being launched into additional car manufacturers aside from Volkwswagen.

The Magna CEO Seetarama Kotagiri stated in his investor overview last Friday that “…in advanced safety, our mirror integrated driver and occupant monitoring system is meeting growing global demand for DMS technologies.

As you may recall, this product earned a 2024 Automotive News PACE Award for its innovation and safety impact. We are launching this system with multiple customers worldwide and volumes are expected to reach several million units annually.”

This is encouraging news as we await the latest set of KPIs from Seeing Machines this week. I expect them to confirm its lead in automotive and growing traction in sales of Guardian Gen 3, while we wait for some huge contracts in the latter. 

Indeed, while Smart Eye has only now hit 3m cars on the road with its tech, Seeing Machines is set to speed past 4m, on the way to 5m by the end of the year.

Toyota 

The news last week of progress in Japan, with an OEM that I believe is Toyota, failed to make much impact on the share price. I found that surprising as the engineering work on this cutting edge interior monitoring system (featuring both DMS and OMS) will generate not insignificant revenues, industry estimates vary from $4-5m.

Of course, much more significant is the near certainty that this Advanced Development Project will lead to a very large contract from this OEM in the first half of 2026.

That contract alone will increase the price any acquirer will eventually have to pay for Seeing Machines.

The writer holds stock in Seeing Machines.