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 diversification.

• Gross margin improved by 2.2 percentage points to 38.7%, reflecting operational improvements and favorable product mix.

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

• The business expanded into new applications and geographies, enhancing resilience and supporting growth in ceramics, advanced manufacturing, and 3D.

• Strategic focus remains on differentiated technology for high-value digital manufacturing applications.

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%.

• Gross margin: 38.7%, up 2.2 percentage points year-over-year.

• Adjusted EBITDA: £1.7m, up 112.5% year-over-year; adjusted operating profit: £0.4m.

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

• Net debt at period end: £0.1m, reflecting investment in inventory and capex.

Outlook and guidance

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

• Board confident in continued growth, citing broadened revenue streams and annuity demand.

• Growth anticipated in 3D, advanced manufacturing, packaging, and semiconductor sectors.

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

• Legacy ceramics market stabilized, no longer a headwind.