Etherstack (ASX:ESK) said it has achieved its first major milestone delivery on time under its project with the UK Government, disclosed on Oct. 17, 2025, with the milestone expected to contribute about $1.5 million to first-half revenue, according to a Monday Australian bourse filing.

The company, which reports in US dollars, its primary trading currency, said the project is expected to contribute more than $6 million to its full-year revenue.

The total value of the contract disclosed on Oct. 17, 2025, is 14.2 million pounds sterling, with the majority of associated revenue expected to be recognised in the current fiscal 2026 and the following in fiscal 2027, the filing added.

"The first half is performing very strongly again, and we will look to provide guidance for the half in coming weeks," said Chief Executive David Deacon.

The company's shares were down 2% in recent Monday trade.