XRF Scientific Posts 17% NPAT Growth Despite 1% Revenue Dip in FY25
XRF Scientific Limited reported a record profit for FY25, driven by strong mining sector demand and international sales growth, alongside strategic acquisitions that bolster its market position.
- Record FY25 net profit after tax up 17% to $10.4 million
- Revenue slightly down 1% to $59.5 million amid strong consumables growth
- Completed full acquisitions of Orbis Mining and Labfit in 2024
- Net cash position of $11.1 million with fully franked dividend of 4.5 cents per share
- Growth strategy focused on product ramp-up, geographic expansion, and M&A
Record Profit Despite Revenue Dip
XRF Scientific Limited has announced a record net profit after tax (NPAT) of $10.4 million for the fiscal year 2025, marking a 17% increase compared to the previous year. This milestone comes despite a slight 1% decline in revenue to $59.5 million, reflecting a nuanced performance across its business segments. The company’s ability to grow profitability while managing revenue pressures underscores operational efficiencies and a strong focus on high-margin consumables and recurring revenue streams.
Strategic Acquisitions Bolster Market Reach
During FY25, XRF Scientific completed the acquisition of the remaining 50% stake in Orbis Mining for $3.91 million and fully acquired Labfit for $1.16 million. These moves have expanded the company’s footprint in laboratory equipment and sample preparation technologies, particularly in mining markets across Australia, the USA, and Canada. Integration of these acquisitions into the main Perth manufacturing facility is underway, with Orbis showing a 20% revenue increase and a 39% jump in profit before tax, signaling successful assimilation and growth potential.
Segment Performance Highlights
The consumables segment, which includes laboratory chemicals and materials, posted a 2% revenue increase and a 26% rise in profit before tax, driven by robust demand from mining customers and international expansion into developing markets. Conversely, the precious metals segment saw flat revenue and a slight 1% dip in profit, reflecting a more diversified sales mix and the impact of fluctuating precious metals prices. Capital equipment sales grew 4% in revenue but experienced an 11% decline in profit, partly due to normalisation of new product sales and ongoing investment in product development.
Strong Financial Position and Shareholder Returns
XRF Scientific maintains a healthy net cash position of $11.1 million, supported by positive operating cash flow of $10.1 million. The company declared a fully franked dividend of 4.5 cents per share, reflecting confidence in its cash generation and commitment to shareholder returns. The balance sheet shows modest debt reclassification related to its Melbourne platinum factory, with platinum metal inventory loans eliminated in July 2025 amid rising interest costs.
Looking Ahead – Growth and Innovation
For FY26, XRF Scientific plans to accelerate sales of its thermogravimetric analyser (xrTGA), expand Orbis laboratory crusher sales globally, and leverage its global network to increase Labfit product sales. The company is also preparing new product releases, including next-generation upgrades and new complementary machines, with a particular focus on expanding its gold sector analysis portfolio. Continued geographic expansion and targeted mergers and acquisitions remain central to its growth strategy.
Bottom Line?
XRF Scientific’s record profit and strategic acquisitions position it well for growth, but execution of its ambitious FY26 plans will be key to sustaining momentum.
Questions in the middle?
- How will XRF Scientific manage margin pressures amid flat precious metals revenue?
- What impact will new product launches have on capital equipment profitability?
- Can international expansion and M&A deliver sustained revenue growth beyond FY25?
