Xaar (LON:XAR) Announces Earnings Results

Xaar (LON:XAR) announced its earnings results on Tuesday. The company reported GBX 1.10 EPS for the quarter, Digital Look Earnings reports. Xaar had a negative net margin of 18.65% and a negative return on equity of 18.52%.

Here are the key takeaways from Xaar’s conference call:

• Group revenue rose 12% to GBP 60.1m, led by a 22% increase in Printhead sales driven particularly by the commercialization of wax printing for jewellery.
• Printhead gross margin improved by 300bps to 40% and adjusted pre-tax profit of GBP 0.8m beat consensus by 8%, highlighting strong operational gearing as volumes rise.
• Management is executing a diversification strategy across 21 target markets, backed by R&D, a new China hub for components/demo and a “halo account” approach to shorten customer time-to-market.
• Net cash fell to GBP 4.9m and inventory remains elevated; the company has introduced free cash flow as a KPI and targets at least a +0.5 stock-turn improvement per year to restore working capital efficiency.
• EPS (US) revenue declined but is undergoing restructuring under new management with a pipeline rebuild and expected return to growth in 2026, while ceramics has stabilised with a potential recovery (and new digital glaze opportunities) not expected before 2027–28.

Xaar Stock Up 2.0%

Xaar stock opened at GBX 103.50 on Tuesday. The company has a 50 day moving average of GBX 111.94 and a 200-day moving average of GBX 116.90. The company has a quick ratio of 1.31, a current ratio of 3.60 and a debt-to-equity ratio of 9.12. Xaar has a twelve month low of GBX 59.60 and a twelve month high of GBX 148. The stock has a market capitalization of £81.65 million, a PE ratio of -7.34, a price-to-earnings-growth ratio of 3.73 and a beta of 0.81.

About Xaar

Xaar plc designs, develops, manufactures, markets, and sells printheads and associated products in Europe, the Middle East, Africa, Asia, and the Americas. It operates through four segments: Printhead, Product Print Systems, Digital Imaging, and Ink Supply Systems segments. The company offers print head products; digital imaging solutions, comprising digital inkjet label presses and digital pathology scanners; industrial ink management and supply systems for digital inkjet; electronic products; industrial printing machines; and system components, such as ink system test kit, print manager, hydra ink supply system, midas ink supply system, inkjet development system, head personality card 1000, and 2001+ head personality card.