XRF’s Record Profit Masks Normalized Equipment Orders—What’s Next?

Robust Growth Driven by Mining Sector

XRF Scientific Ltd has announced a standout financial performance for the fiscal year ending June 2025, posting record revenue of $59.5 million and a 17% increase in net profit after tax to $10.4 million. The company’s Managing Director, Vance Stazzonelli, attributed this success to sustained strong activity in the global mining industry, which remains the primary driver of demand for XRF’s analytical instruments and consumables.

International sales expanded across Asia, the Americas, and Europe, reflecting XRF’s growing footprint and diversified customer base. The company’s strategy to cross-sell multiple products to existing clients has also paid dividends, boosting recurring revenue streams from consumables and platinum labware recycling.

Division Highlights and Quarterly Performance

The June quarter capped off the year with a record profit before tax of $4.3 million on revenue of $16.8 million. The Consumables division was a standout performer, generating a record $7.2 million profit before tax from $19.3 million in revenue. This division benefited from record product volumes sold without significant increases in fixed costs, underscoring operational efficiency.

The Precious Metals division delivered $21.5 million in revenue and $3.5 million in profit before tax, supported by steady recurring orders from mining customers and a more balanced revenue mix compared to the previous year. Meanwhile, the Capital Equipment division posted $22.6 million in revenue and $4.1 million in profit before tax. Notably, Orbis Mining, part of this division, saw a 39% profit increase driven by strong crusher sales in Australia, the USA, and Canada, particularly within the gold sector.

Shareholder Returns and Outlook

Reflecting confidence in its financial position, XRF declared a final fully franked dividend of 4.5 cents per share, up 15% from the prior year and representing a payout ratio of 61% of net profit after tax. The company also offers a dividend reinvestment plan with a 2.5% discount, encouraging shareholder participation.

With a solid balance sheet highlighted by a net cash inflow from operating activities of $10.1 million, XRF appears well-positioned to capitalize on ongoing mining sector demand and further international expansion. However, the company noted that new orders for its xrFuse fusion machines have normalized, signaling a potential moderation in capital equipment sales growth.

Overall, XRF Scientific’s FY2025 results demonstrate a successful blend of operational efficiency, product diversification, and strategic market expansion, setting a strong foundation for the year ahead.