Xaar (XAR) H1 2025 earnings summary

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.