Xaar (XAR) H1 2026 earnings summary

Executive summary

• Group revenue increased 9.2% year-over-year to £29.7m, with printhead revenue up 5.5% and Megnajet up 27.3%, driven by new applications and market expansion.

• Adjusted profit before tax reached £0.2m, reversing a £0.7m loss last year.

• Gross margin improved to 38.7%, up 2.2 percentage points year-over-year, reflecting operational improvements and favorable product mix.

• The business is more geographically and application diverse, expanding into high-value digital manufacturing and new applications.

• Delays in the Desktop 3D product launch are expected to be resolved soon, with pre-launch orders received.

Financial highlights

• Group revenue: £29.7m, up 9.2% year-over-year; printhead revenue: £21.0m, up 5.5%; Megnajet: £1.4m, up 27.3%; EPS: £7.3m, up 15.9%.

• Adjusted EBITDA more than doubled to £1.7m; adjusted operating profit reached £0.4m.

• Adjusted free cash flow was an outflow of £4.3m, mainly due to inventory build and higher capex.

• Net debt position at £0.1m, reflecting investment in inventory and capex ahead of OEM launches.

• General and admin expenses declined by 1.6%, while operational expenditure rose 5.7% to support sales, marketing, and R&D.

Outlook and guidance

• Full-year outlook remains unchanged, with confidence in demand across core and emerging applications.

• Second half revenue is expected to be stronger, driven by new business and the anticipated Desktop 3D launch.

• Growth anticipated in 3D, advanced manufacturing, and semiconductor sectors, with several new applications maturing.

• The legacy ceramics market has stabilized, removing a long-standing headwind.

• Dongguan facility commissioning to enhance supply chain resilience and customer engagement in Asia.