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(Sharecast News) - Xaar reported higher first-half revenue on Tuesday, driven by strong growth in its printhead business, as it said it remained on track to meet full-year expectations despite tariff-related headwinds affecting part of the group.
Revenue for the six months ended 30 June rose 7% year-on-year to £27.2m, with printhead sales up 20% to £19.9m, accounting for 73% of the total.
Growth was led by a jump in jewellery wax revenue to £3.3m from £0.6m a year earlier, while printhead operating margin improved 70 basis points to 10.4%.
Engineered print systems (EPS) revenue fell 16% to £6.3m, reflecting delayed capital investment due to tariff uncertainty, though Xaar said the order pipeline is now recovering.
Gross margin slipped slightly to 36.5%, while adjusted EBITDA declined 15% to £0.76m.
The London-listed firm said its adjusted loss before tax widened marginally to £0.7m, as its statutory loss came in at £3.1m, compared with £2.6m in the first half of 2024, with net cash down to £5.1m following investment in equipment and development.
"The start of 2025 has been encouraging with the swift progress made in the jewellery wax market, reflecting the disruptive impact our technology will have in our target markets once OEM products have been launched," said chief executive John Mills.
"Opportunities in EV battery coating, automotive coating and desktop 3D are setting the Group up for sustainable medium-term growth with key developments within each market progressing as planned."
Xaar reiterated that revenue would be weighted towards the second half, with further growth in printhead sales expected, while EPS performance would remain affected by tariffs until the pipeline rebuilt.
The company said medium-term prospects were supported by maturing recent product launches and upcoming developments, with management confident of meeting current market expectations.
At 1021 BST, Xaar shares were down 4.18% at 114.5p.
Reporting by Josh White for Sharecast.com.
