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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 GBP 27.2 million, driven by strong printhead sales, especially in jewellery wax and new business segments, with printhead new business revenue up 96% and now representing 49% of printhead revenue.
Strategic focus on EV battery coating, automotive coating, desktop 3D printing, and jewellery wax markets, supported by partnerships and product launches, is opening new market opportunities.
Legacy ceramics business has stabilized, while EPS revenue declined 16% due to market headwinds and tariffs.
Net cash position at GBP 5.1 million as of June 30, 2025, reflecting investment in capital equipment and development.
Adjusted EBITDA declined 15% to GBP 0.76 million, with reported loss for the period widening to GBP 3.1 million.
Financial highlights
Revenue reached GBP 27.2 million, up 7% compared to H1 2024, with printhead division revenue up 20% to GBP 19.9 million.
Gross margin stable at 36.5% (down 90bps year-over-year); gross profit increased to GBP 9.9 million.
Adjusted loss before tax was GBP 0.7 million; reported loss before tax at GBP 2.8 million, impacted by restructuring and fair value losses.
Net cash outflow of GBP 3.6 million in H1, with cash and equivalents at GBP 5.1 million.
Adjusted EPS at (0.7p), basic EPS at (3.9p), both lower year-over-year.
Outlook and guidance
2025 expectations unchanged; revenue anticipated to be second-half weighted with printhead growth offsetting continued EPS weakness.
Management confident in meeting current expectations despite tariff and geopolitical uncertainties.
Medium-term focus on growth areas expected to deliver meaningful revenue at attractive margins.
No plans to scale down R&D; investment will remain at a high single-digit percent of revenue to drive innovation.
Tariffs and global geopolitical environment monitored closely, but expectations for 2025 remain unchanged.
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