Industrial inkjet firm Xaar returns to profitability with 220-basis-point margin improvement and diversified revenue streams.
Xaar reported a £0.2 million adjusted pre-tax profit for the first half of 2026, reversing a £0.7 million loss from the prior year. Like-for-like revenue rose 9.2%, driven by growth in Printhead, Megnajet, and EPS segments, while gross margin expanded by 220 basis points.
The company expanded into 21 applications, including semiconductors and batteries, though industrial qualification cycles remain lengthy. Megnajet revenue surged 27%, while Printhead sales climbed 5.5%, supported by new technology adoption.
Free cash flow turned negative at £4.3 million due to delayed product launches, but Xaar maintained net debt of just £0.1 million and secured a £10 million revolving credit facility.