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Xaar (XAR) investor relations material
Xaar H1 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Revenue grew 7% year-over-year to £27.2m, driven by strong printhead sales, especially in jewellery wax and new business segments, with printhead new business revenue up 96% and now 49% of H1 revenue.
EPS revenue declined 16% due to market headwinds and tariffs, while legacy ceramics business stabilized.
Strategic partnerships and product launches in EV battery coating, automotive coatings, and 3D printing are opening new market opportunities.
Net cash position at £5.1m as of June 30, reflecting investment in capital equipment and development.
Adjusted EBITDA declined 15% to £0.76m, with reported loss for the period widening to £3.1m.
Financial highlights
Group revenue for H1 2025 was £27.2m, up 7% year-over-year, with printhead division revenue up 20% to £19.9m and EPS revenue down 16% to £6.3m.
Gross margin stable at 36.5% (down 90bps year-over-year); gross profit increased to £9.9m.
Adjusted loss before tax was £700k; reported loss before tax at £2.8m, impacted by restructuring and fair value losses.
Net cash balance of £5.1m as of June 30, after £3.6m net cash outflow for capital equipment and development spend.
Adjusted EBITDA margin declined to 2.8% from 3.5% in H1 2024.
Outlook and guidance
2025 expectations unchanged; revenue anticipated to be second-half weighted with printhead growth offsetting EPS weakness.
Printhead revenue anticipated to remain strong, but timing of orders uncertain due to global geopolitical environment and tariffs.
Medium-term focus on EV battery coating, automotive coating, and desktop 3D printing as key growth markets.
EPS will continue to be a drag on group growth in 2025, but pipeline rebuilding should benefit future years.
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