Xaar Returns to Adjusted Profit as New Inkjet Applications Drive Growth

Xaar plc ( (GB:XAR) ) has shared an announcement.

Xaar reported 2025 revenue from continuing operations of £60.1 million, up 12% at constant currency, with printhead sales rising 22% to £43 million and gross margin improving to 40%, lifting adjusted profit before tax to £0.8 million and returning the group to profitability on an adjusted basis. Net cash declined to £4.9 million after capital expenditure and share buybacks, but the balance sheet remains described as well capitalised, while R&D spending held at about 10% of revenue, underscoring continued investment in future product development.

Growth was driven by stabilising ceramics demand and expanding into new applications, including a “commercial breakthrough” in wax 3D jewellery printing, although weaker revenues at the Engineered Print Systems unit, down 10%, tempered overall progress. Operationally, Xaar opened a new facility in Dongguan, China, to manufacture ink delivery systems for Asian customers, shorten supply chains and enhance margin efficiency, and management signalled a healthy 2026 order book and stronger outlook as its differentiated high-viscosity inkjet technology gains traction in emerging industrial and digital manufacturing markets.

The most recent analyst rating on (GB:XAR) stock is a Hold with a £111.00 price target. To see the full list of analyst forecasts on Xaar plc stock, see the GB:XAR Stock Forecast page.

Spark’s Take on XAR Stock

According to Spark, TipRanks’ AI Analyst, XAR is a Neutral.

Xaar plc’s overall stock score reflects significant challenges in financial performance, with declining revenue and profitability. However, the company’s strong equity position and recent positive corporate events, including director share purchases and a positive outlook, provide some optimism. Technical analysis suggests a neutral trend, while valuation remains unattractive due to negative earnings.

To see Spark’s full report on XAR stock, click here.

More about Xaar plc

Xaar plc is a UK-based inkjet printing technology group that designs and manufactures industrial printheads, ink delivery systems and integrated equipment for OEMs and system integrators worldwide. With more than three decades of experience and a substantial patent portfolio, its high-viscosity, high-pigment inkjet technology targets both traditional sectors such as ceramics and coding, and newer applications in 3D printing, automotive, EV batteries, packaging, textiles and labelling.

The company operates in the UK, U.S. and China, leveraging its ability to deposit specialist fluids accurately on two- and three-dimensional substrates. This positioning allows Xaar to benefit from structural trends in digital manufacturing and waste reduction, as it expands from historically challenged legacy print markets into higher-margin, differentiated industrial and additive manufacturing uses.

Average Trading Volume: 68,446

Technical Sentiment Signal: Sell

Current Market Cap: £79.89M

Find detailed analytics on XAR stock on TipRanks’ Stock Analysis page.