XRF Reports $64.4m Revenue and $10.5m Net Profit in FY26

Revenue Growth Driven by Mining and Industrial Demand

XRF Scientific Limited (ASX:XRF) has delivered a solid financial performance for the year ended 30 June 2026, posting an 8% increase in revenue to $64.4 million. Net profit after tax edged up 1% to $10.49 million, despite the company incurring $0.7 million in acquisition and international office setup costs. The company’s adjusted profit before tax rose 10% to $16.1 million, reflecting robust demand from mining and industrial customers and accelerating international sales.

Strategic Acquisition Broadens Analytical Instrumentation

A standout development during FY26 was XRF’s acquisition of Bruker AXS SE’s German-based Combustion Gas Analysis (CGA) business for an upfront cash consideration of USD 4 million. This move significantly expands XRF’s portfolio into sophisticated elemental analysis instruments measuring carbon, sulfur, oxygen, hydrogen and nitrogen. The CGA product line serves diverse sectors including mining, metals production, rare earth magnets, additive manufacturing, cement, glass and ceramics.

The manufacturing and engineering handover of the CGA business commenced in June 2026, with instrument production transferring to XRF’s Perth facility. Sales of CGA instruments are expected to commence in the first half of FY27, marking a new growth avenue alongside established products like the thermogravimetric analyser (xrTGA) and Orbis Mining crushers.

Division Performance Highlights

The Consumables division, which supplies chemicals and laboratory consumables, generated $18.1 million in revenue and $6.8 million in profit before tax. After a sluggish first half, the division saw a strong second-half performance driven by international sales growth, particularly in Asia’s mining sector.

The Precious Metals division posted a 14% revenue increase to $24.6 million and a 27% rise in profit before tax to $4.5 million, buoyed by strong demand for recycling platinum products and expanded margins due to elevated precious metal prices. While high platinum prices dampened new product sales mid-year, demand rebounded in the final quarter as prices softened.

Capital Equipment was the fastest-growing segment, with revenue up 17% to $26.3 million and profit before tax rising 29% to $5.3 million. Orbis Mining crushers led the charge with a 26% revenue increase to $8.9 million, driven by customers in Australia, the US and Canada’s gold sectors. The xrTGA instrument line surpassed $1 million in sales for the first time, with repeat orders from major global customers signaling growing market acceptance.

Financial Position and Dividend Policy

XRF Scientific closed FY26 with a net cash position of $8.5 million after spending $5.6 million on the CGA acquisition. Operating cash flow was strong at $11.4 million, supporting ongoing investment in new product development and international expansion. The company opened new offices in India and the USA during the year to accelerate growth in these key markets.

The Board declared a final fully franked dividend of 4.5 cents per share, unchanged from the previous year, reflecting a payout ratio of 61% of net profit after tax. The dividend reinvestment plan (DRP) remains available with a 2.5% discount for participating shareholders.

Growth Prospects and Product Pipeline

XRF is positioning itself for further growth in FY27 by integrating the CGA product line, expanding sales of Orbis crushers and xrTGA instruments, and launching six new machines currently in advanced development stages. The company also plans to leverage new distributors from the CGA acquisition to cross-sell complementary products, particularly in the gold sector.

Geographic expansion remains a priority, with the new offices in India and the USA expected to drive sales momentum. Management continues to explore acquisition opportunities in adjacent laboratory product markets to complement organic growth.