Laserbond delivered strong FY26 growth despite higher tungsten costs and soft mining demand, while securing a second Komatsu licensing agreement and a new international collaboration with Metal 7. The company is now positioning lower-tungsten products, new coatings and expanded capacity for a much larger market.
- FY26 revenue rose 10.8% to $48.2 million and NPAT increased 27.7% to $4.9 million
- Second Komatsu licensing agreement signed for a modular laser cladding cell in Perth
- Metal 7 collaboration opens potential markets across the Americas, Europe, Middle East, North Africa and India
- X-Clad has moved from field trials into customer orders with materially lower tungsten exposure
- Yatala facility expected to begin production in the final quarter of FY27 with twice current capacity
Strong FY26 growth despite tungsten and mining pressures
Laserbond Ltd (ASX:LBL) has emerged from a difficult operating year with revenue up 10.8% to $48.2 million and net profit after tax up 27.7% to $4.9 million. Net profit before tax rose 30.0% to $6.5 million, even as elevated tungsten prices reduced gross margin from 52.4% to 51.0%.
The result builds on the
Second Komatsu cell strengthens licensing model
The most immediate commercial development is a second licensing agreement with Komatsu for another modular laser cladding cell at the equipment maker’s Perth facility. The terms are described as comparable to the first agreement, signed in August 2025 and valued at $2.4 million, but the value of the new contract was not disclosed.
Laserbond said the first cell was delivered on time and on budget and is now operating. The return order provides commercial evidence that the initial installation is meeting Komatsu’s needs, although the announcement does not quantify the revenue timing or profit contribution from the second cell. Management expects further licensing contracts in FY27, both in Australia and overseas, building on the
Metal 7 opens an international route to market
A new Collaboration Agreement with Canadian company Metal 7 gives Laserbond a potential distribution and customer pathway across the Americas, Europe, the Middle East, North Africa and India. Metal 7 already supplies products and services to mining and steel customers in those regions, allowing Laserbond to pursue markets it says would take longer to develop independently.
Metal 7 will retain the customer relationships, while Laserbond keeps its intellectual property and supplies licensed technology, powders and finished products. The commercial terms for individual opportunities will be agreed separately, and Laserbond expects Metal 7 to become another major OEM customer within one to two years. That is an expectation rather than a contracted revenue outlook, and the agreement does not disclose financial commitments.
X-Clad and hard chrome replacement expand the product ambition
Laserbond is also trying to reduce the influence of tungsten on both costs and customer demand. Its X-Clad product uses substantially less tungsten carbide, has completed field trials that exceeded management expectations and is now attracting customer orders. The company says greater use of recycled powders and new coating formulations should improve material yields and help protect margins as volumes develop.
A larger opportunity is being targeted through coatings expected for release in early 2027. Laserbond is working to bring the cost of laser cladding closer to hard chrome plating, which it says could expand its addressable market by 10 to 12 times. That figure is management’s internal estimate, and the commercial opportunity will depend on the coatings being released, adopted by customers and manufactured at competitive cost.
Yatala prepares Laserbond for higher volume
The capacity plan is centred on the new Yatala facility in Queensland, which remains on track to begin production in the final quarter of FY27. The site is designed to operate continuously, seven days a week, and provide twice the company’s current capacity. Laserbond expects efficiency benefits to begin flowing from FY28.
Mining orders have moved back towards more typical levels since August, while US OEM orders began rebuilding towards the end of September after softer demand in July and August. Those improvements are early, and customer concentration remains a stated weakness: a significant share of Products revenue still comes from two OEM customers. The second Komatsu agreement, Metal 7 collaboration and pursuit of another OEM partner are intended to broaden that base, but the next test is whether new capacity and products convert into recurring orders without recreating dependence on a small number of customers.
Bottom Line?
Laserbond has assembled several credible growth levers, but FY27 will show whether licensing, X-Clad and new coatings can translate into recurring revenue while tungsten costs and customer concentration remain unresolved.
Questions in the middle?
- How much revenue and margin will the second Komatsu cell contribute, and when will that contribution be recognised?
- Will the Metal 7 collaboration produce specific commercial agreements within the expected one-to-two-year timeframe?
- Can X-Clad and the planned hard chrome replacement coatings reduce tungsten exposure while supporting the higher volumes planned for Yatala?