Xaar reports return to profitability

(Sharecast News) - Xaar reported a return to profitability on an adjusted basis for 2025 on Tuesday, as revenue growth in its core printhead business offset ongoing investment, with the inkjet technology group highlighting progress in new applications and a positive start to 2026. Revenue from continuing operations rose to £60.1m in the year ended 31 December, up from £53.8m a year earlier and 12% higher at constant currency.

Growth was driven by a 22% increase in printhead revenue to £43.0m, reflecting improving demand and traction in newer markets.

The London-listed group reported an adjusted profit before tax of £0.8m, compared with a loss of £1.0m in 2024, marking a return to profit as it focused on margin enhancement.

Net cash stood at £4.9m at the year end, down from £8.2m, after capital expenditure of £2.0m and £0.9m spent on share buybacks.

Xaar said it continued to invest in research and development, with spending on its Printhead and Megnajet businesses maintained at around 10% of revenue.

The company said it achieved a commercial breakthrough in the jewellery wax 3D printing market during the year, alongside further progress across other development programmes.

Operationally, the group opened a new manufacturing facility in Dongguan to strengthen its presence in Asia, improve supply chain resilience and enhance efficiency, as part of its focus on margin improvement.

"Xaar's differentiated technology can deposit precise volumes of high viscosity inks with pin-point accuracy," said chief executive John Mills.

"This capability brings benefits, increasingly in new applications which are driven by global trends towards digital manufacturing and the need to reduce process waste.

"Over the last five years, a period during which Xaar's traditional markets have been troubled, the group has revitalised product design and developed new products for applications where higher viscosity or higher pigment loading offers differentiation."

Mills said that was starting to contribute to results, with printhead revenue up 22% in 2025, adding that "commercial breakthrough" was achieved in wax 3D printing, while "demonstrable progress" was being made in several other new applications.

"The timing of revenue from new applications, which generally require several layers of customer qualification, can be uncertain.

"This complexity, while sometimes challenging, eventually leads to much clearer competitive advantage, along with a valuable annuity revenue for printheads.

"Early trading in 2026 is in line with expectations.

"The order book is healthy for this time of year, and the board believes the group is well positioned for further progress - both in 2026 and in the longer term."

At 0808 GMT, shares in Xaar were up 5.42% at 107p.

Reporting by Josh White for Sharecast.com.

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