Half Year 2026 Xaar PLC Earnings Call for Analysts Transcript
Key Points
- Group revenue grew 9.2% like-for-like, with growth across all business segments.
- Gross margins improved by 220 basis points, driven by better financial management and stronger pricing in new markets.
- The legacy ceramics market has stabilized after years of decline, with new digital glaze technology driving small growth.
- The company achieved a profitable first half for the first time in at least three years, with adjusted profit before tax of GBP 0.2 million.
- The installed base of printheads provides an annuity revenue stream from replacements, and the company is increasingly taking a share of fluid revenue.
- The launch of the Desktop 3D product by Flashforge has been delayed again, with only minor issues but no confirmed launch date.
- Adjusted free cash flow was an outflow of GBP 4.3 million, primarily due to building inventory for the Desktop 3D launch.
- The company faces long qualification times in new markets like semiconductors and solar, which can take years to generate revenue.
- Revenue from one customer in the coding and marking sector declined by 53.8% due to structural changes, expected to continue into H2.
- Global economic volatility, including the Middle East crisis, has caused sluggishness in capital purchases, impacting demand.
Yeah, good morning. Thank you all for coming on to Xaar's 2026 interim results. As you said, my name is John Mills, CEO. I'm joined by Paul James, who's our CFO. Today we want to take you through our half year results. We're really pleased presenting that the group revenue is up 9.2% like for like. I think we started the year hopeful that this was going to be a year without any major economic crisis around the world. But unfortunately, as you know, that's not been the case. Despite that, the growth has been pretty good. Printhead revenue up by 5.5%. This has really been driven by progressing new applications, which we'll talk about in the next few slides.
Gross margins have improved, just over two basis points. That really is a function of better financial management and also stronger pricing as we move into some of these new markets where pricing is a little stronger. Today, we were all hoping and expecting to have been talking about the launch of the Desktop 3D. Unfortunately, there has been a few additional delays, all of which
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