Vection wins AUD $4m in Algho AI deals across Italy

Vection Technologies has secured about AUD $4 million in new enterprise contracts for its Algho AI platform, with deployments across 10 industry verticals and several large organisations in Italy.

The orders were signed over recent weeks and span rail transport, healthcare, water utilities, food and hospitality, consumer electronics, procurement, education, human resources and regional innovation programs.

One named deployment is Italy's primary national passenger rail operator, underscoring how AI systems are moving into core operational environments as transport organisations expand automation for customer service and internal processes.

Other deals include work with a global eye health and ophthalmic products group, one of the main water utilities serving Tuscany, and a major Italian restaurant group that operates casual dining chains.

A separate contract relates to a government-funded initiative focused on AI-driven digital transformation and humanoid robotics integration. Vection did not disclose financial terms for individual customers, contract lengths, or how much of the AUD $4 million total is recurring revenue.

Platform focus

Algho is Vection's no-code platform for deploying AI agents in business settings. It supports customer support, internal knowledge management, workflow automation and decision support.

The recent work covers conversational AI systems, enterprise automation modules, customer experience platforms, supply chain optimisation tools and AI-driven process intelligence solutions. It includes both new deployments and expansions of existing projects.

The contracts follow Vection's record first-half result for its 2026 financial year and a move into positive underlying earnings before interest, tax, depreciation and amortisation. For the half year, revenue was AUD $17.4 million, up 34% on the prior corresponding period, with gross margins of 56% (up from 42%) and underlying EBITDA of AUD $0.2 million.

Vection noted the first half has historically been its softer trading period. It reported AUD $4.5 million in post-period contract wins, a commercial pipeline of about AUD $60 million under negotiation, and about AUD $30 million in contracted total contract value.

Sector spread

The range of sectors in the update reflects where organisations are trialling AI agents. In rail and utilities, companies are exploring tools that can triage customer enquiries, support field operations with knowledge prompts, and automate back-office workflows.

Healthcare and life sciences groups are investing in automation for internal support, knowledge retrieval and service operations. Hospitality and retail groups are looking at AI for customer service and supply chain processes.

Newly signed AI contracts for the second half of FY26 already represent about 87% of total AI revenue booked in the first half. Vection did not provide an Algho revenue breakdown by geography or industry vertical.

Managing Director and CEO Gianmarco Biagi said the contracts reflect stronger demand for the company's AI products.

"This result is a strong signal that our AI strategy is gaining real commercial traction, and that our investments made are paying off. Securing approximately $4 million in Algho AI orders in a short time, across 10 verticals and with clients of significant relevance and scalability, demonstrates that the platform is resonating with many enterprise customers at scale," Biagi said.

He compared the recent wins with the level of AI contracting earlier in the financial year.

"For context, we secured approximately $4.6 million in AI contracts across the whole 6 months of H1 FY26, and here we are adding almost the same amount in a short period alone. Combined with the record half-year results we have just reported - $17.2 million in revenue, 56% gross margins, and our first positive underlying EBITDA - we are entering the second half of FY26 with meaningful momentum," Biagi said.

Vection positions itself as a provider of extended reality and artificial intelligence software and services focused on enterprise applications. The company is listed on the Australian Securities Exchange under the ticker VR1.

Biagi said Vection remains focused on converting Algho demand into sustainable, higher-margin recurring revenue.