LaserBond Ltd has reported a robust first half of FY26, with revenue up 13.4% and net profit after tax more than doubling, underpinned by a significant licensing agreement with Komatsu and ongoing R&D investments.
- Revenue rises 13.4% to $23 million in 1H FY26
- NPAT surges 117% to $2.2 million
- Products division revenue grows 34.2%, Services margin expands to 58.3%
- Secured $2.4 million licensing deal with Komatsu
- Strategic R&D investment targets tungsten carbide alternatives and new market applications
Strong Financial Momentum Amid Sector Challenges
LaserBond Ltd (ASX: LBL) has delivered a solid first half performance for FY26, reporting a 13.4% increase in revenue to $23 million and a remarkable 117% jump in net profit after tax (NPAT) to $2.2 million. This growth comes despite seasonal headwinds and planned equipment downtime, underscoring the company’s operational resilience and strategic positioning.
The company’s Products division led the charge with a 34.2% revenue increase, maintaining momentum from the previous half-year, while the Services division achieved a notable gross margin expansion to 58.3%, up from 50.8% a year earlier. These results reflect improved operational efficiencies, better utilisation of machinery, and effective cost controls.
Komatsu Licensing Deal Validates Technology Commercialisation
A highlight of the period was securing a $2.4 million licensing agreement with Komatsu, a global leader in earthmoving and mining equipment manufacturing. This deal not only provides a new revenue stream but also validates LaserBond’s patented cladding technology as a valuable asset in industrial applications. The Komatsu agreement is expected to be delivered in the second half of FY26 and serves as a foundation for further licensing opportunities with original equipment manufacturers (OEMs).
LaserBond’s technology segment continues to demonstrate strong customer retention and repeat business, supported by long-term licensing agreements and embedded technology products. The company’s proprietary LaserBond® cladding technology is gaining traction internationally, with export markets becoming a significant revenue contributor.
Strategic R&D and Supply Chain Initiatives
In response to supply chain challenges, particularly the volatility in tungsten carbide prices due to geopolitical factors, LaserBond has proactively built inventory and invested in research and development. The R&D efforts focus on developing tungsten carbide alternatives and advancing new materials and surface engineering processes. These innovations aim to reduce dependency on constrained supply chains and open new market opportunities, including wind turbine and agricultural sectors.
One promising development is the X-Clad technology, a next-generation surface cladding engineered with up to 70% fine tungsten carbide by weight, offering exceptional hardness and wear resistance. Field trials with major global customers and a German manufacturer are underway, with a full market release anticipated in late FY26.
Gateway Group Investment Strengthens Market Position
LaserBond’s 40% stake in Gateway Group, acquired in March 2024, contributed positively to the company’s equity-accounted profits. Gateway’s expanded workshop capacity and improved machining capabilities are attracting new mining customers and broadening the customer base beyond traditional segments. The integration of LaserBond’s technology with Gateway’s operations is well received, supporting cross-selling and national coverage ambitions.
The balance sheet remains robust, with low gearing, strengthened working capital, and a strategic cash investment in tungsten carbide inventory to secure supply continuity. Although cash on hand decreased slightly to $4 million, this reflects deliberate inventory build-up rather than operational weakness.
Outlook: Positioned for Growth as Mining Recovers
Looking ahead, LaserBond is well positioned to benefit from a recovery in mining sector capital expenditure and normalising equipment replacement cycles. The company’s order book is approximately 70% higher than a year ago, providing strong revenue visibility into the second half of FY26, which historically is the stronger period.
Continued investment in innovation, international market expansion, and licensing deals like Komatsu’s underpin LaserBond’s growth strategy. The company’s focus on operational excellence, supply chain security, and workforce development further supports its ambitions to diversify revenue streams and expand its industrial footprint.
Bottom Line?
LaserBond’s strong half-year results and strategic partnerships set the stage for accelerated growth amid a recovering mining sector and expanding global opportunities.
Questions in the middle?
- How will the Komatsu licensing deal impact LaserBond’s revenue and margins in FY27?
- What progress is being made on tungsten carbide alternatives amid ongoing supply chain pressures?
- Can Gateway Group’s expanded capacity sustain growth as mining activity rebounds?