CAMBRIDGE: Xaar plc, a leading inkjet printing technology group, reported a 7% increase in revenue for the first half of 2025, reaching £27.2 million, up from £25.5 million in the same period last year. The growth was led by a surge in printhead sales, particularly in the jewellery wax segment.
Printhead revenue rose 20% to £19.9 million, accounting for 73% of group revenue. Jewellery wax sales jumped from £0.6 million to £3.3 million, following the April launch of Flashforge’s Waxjet 530 printer. Operating margin for the printhead division improved by 70 basis points to 10.4%, supported by strategic pricing and cost control.
Despite the revenue growth, Xaar posted a reported loss of £2.6 million from continuing operations, widening from £1.8 million in H1 2024. Adjusted EBITDA declined 15% to £0.76 million, while net cash fell 38% to £5.1 million due to capital equipment and development investments.
Engineered Print Systems (EPS) revenue dropped 16% to £6.3 million, impacted by tariff-related investment hesitancy. However, the company noted signs of recovery in the EPS pipeline.
Strategic partnerships in electric vehicle battery coating and automotive applications are expected to drive medium-term growth. Collaborations with Sokan, Shifang, and Omijia aim to advance next-generation battery coating solutions, while Axalta and Dürr are showcasing Xaar’s technology to premium automakers.
“We’ve made swift progress in jewellery wax, and our disruptive technology is gaining traction across key markets,” said CEO John Mills. “Despite tariff headwinds, we remain confident in our medium-term prospects and expect accelerating growth.”
Xaar reaffirmed its full-year guidance, anticipating second-half weighted revenue growth, particularly in printheads. EPS performance is expected to remain subdued due to ongoing market uncertainty.