Full Year 2025 Xaar PLC Earnings Call for Analysts and Institutional Investors Transcript
Key Points
- Xaar PLC (FRA:XAR) reported a 12% increase in group revenue, driven by a 22% growth in the Printhead segment.
- The company has established an Asian hub in China to support regional customers and demonstrate capabilities.
- Xaar PLC's unique printhead technology, protected by over 147 patents, allows printing of fluids that competitors cannot, providing a competitive edge.
- The company has seen significant growth in new segments, particularly in jewelry wax printing, and stabilization in the ceramics market.
- Gross margin performance improved by 300 basis points to 40% in the Printhead division, highlighting operational efficiency and increased profitability.
- The EPS revenue in the United States declined by 10% due to the unexpected end of a multi-year contract and lack of a business pipeline.
- Net cash decreased year on year to GBP4.9 million, despite exceeding consensus expectations.
- Operating expenditure increased by 11% as the company rebuilt capabilities and resources to support growth.
- The company faces challenges in predicting the timing of commercialization due to reliance on OEMs and end-user market responses.
- The packaging and textiles segment may experience fluctuations, potentially going backwards before seeing forward growth.
Hi. Good morning. My name's John Mills. I'm CEO of Xaar and I'm joined today by Paul James who's our CFO.
Today, I'd like to take you through our full-year results I'm pleased to report that revenue for the group was up by 12%. This was largely driven by strong growth within the Printhead group of 22%. One of the key contributors there was the commercialization of the wax printing for jewelry where we saw substantial growth in that market. And to underpin, we still retain the discipline of maintaining the margins and driving margin growth in the business, both through stock turns and through yield and other improvements.
And as we grow the business, it's really important that we support customers in our regions and that's why we've established an Asian hub in China to help supply the system components, that we'll talk a little more about later on in the presentation, along with the ability to actually demonstrate our capabilities within that region.
So Xaar is -- we have we have many competitors, and they are
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