XRF Scientific Builds Momentum Across Orbis, CGA and International Sales

September Quarter Breaks Seasonal Pattern

XRF Scientific Ltd (ASX:XRF) has posted a 38% increase in September-quarter revenue to $21.1 million, while profit before tax rose 30% to $4.4 million. The unaudited result is notable because September has historically been the company’s least profitable quarter.

All divisions contributed to the performance, according to XRF, with growth spanning consumables, capital equipment and precious metals. The result also includes costs associated with integrating CGA, meaning the company has not stripped out the expense of bringing the acquired product line into its operations.

Orbis Drives Capital Equipment Momentum

Consumables revenue increased to $5.6 million from $4.4 million a year earlier, with customers in Australia and overseas supporting what XRF described as positive trading conditions into early October. Capital equipment sales rose to $5.9 million from $5 million.

Within that division, Orbis revenue surged 66% to $2.4 million. XRF attributed the increase to commercial laboratories and the gold sector, while noting that Orbis crushers are increasingly being incorporated into robotic sample-preparation cells. Two products were released during the quarter: the OM25 crusher for smaller laboratories and the Standalone RSD/LSD.

The company expects Orbis to have a strong December quarter and said its already large order book is expected to grow significantly. That outlook is company guidance rather than a quantified earnings forecast, leaving the eventual conversion of orders into reported revenue as the more important measure.

CGA Integration Moves Towards Perth Production

The next leg of growth is expected to come from CGA instruments, with production scheduled to begin in Perth during December. XRF said a large backlog of CGA instrument orders is building and should begin converting into sales during the next quarter, while spare-parts and servicing revenue continues as normal.

The update advances the integration described in the CGA business acquisition, which added Bruker’s Combustion Gas Analysis product line to XRF’s portfolio. The company said all major distributors have been retained, creating additional channels for products including xrTGA and CS-1232.

Precious Metals Sales Include One-Off Transaction

Precious metals revenue rose to $9.6 million from $5.9 million. XRF said sales of new metal products returned to normalised levels as the platinum price declined, while recycling activity remained positive and was primarily driven by mining-sector activity.

That division’s headline revenue included a $2.05 million sale linked to the closure of a platinum inventory lease, but the transaction generated only $0.1 million in margin. XRF said the off-balance-sheet lease was no longer required because the business had built its own platinum inventory position over the past decade. The transaction therefore lifts revenue more than it lifts profit, an important distinction when assessing the quarter’s underlying momentum.

December Quarter Carries Several Tests

XRF expects another strong December quarter, with CGA instrument revenue coming online and Orbis growth providing the main stated supports. Its India office was profitable during the September quarter and continues to grow sales, extending the international expansion described in the India office expansion.

The immediate tests are practical rather than promotional: whether Perth production starts as planned, how quickly the CGA backlog converts into sales, and whether Orbis orders translate into sustained revenue. The company’s next report should also show more clearly how much of the September performance came from repeatable operations rather than the one-off precious metals transaction.