XRF Scientific delivers record first half as mining demand drives 9% revenue surge
XRF Scientific (ASX: XRF) has reported XRF Scientific Record Half Results for the December 2025 half-year, with revenue climbing 9% to $31.3m and profit before tax rising 8% to $7.5m. The Perth-based mining and industrial equipment supplier benefited from strong sector demand, delivering a particularly robust December quarter with $4.1m in profit before tax from $16.0m in revenue.
The half-year result demonstrates business momentum across XRF’s diversified operations, with operating cash inflow surging 44% to $6.4m from $4.4m in the prior corresponding period. Net profit after tax increased 5% to $5.3m, up from $5.0m in H1 FY25.
| Metric | H1 FY26 | H1 FY25 | Change |
|---|---|---|---|
| Revenue | $31.3m | $28.7m | +9% |
| Profit Before Tax | $7.5m | $6.9m | +8% |
| Net Profit After Tax | $5.3m | $5.0m | +5% |
| Operating Cash Inflow | $6.4m | $4.4m | +44% |
The 44% improvement in operating cash flow signals strong earnings quality beyond accounting profit, with the business converting revenue growth into tangible cash generation. This record half-year result positions XRF to capitalise on continued mining sector activity and international expansion opportunities.
What does XRF Scientific actually do?
XRF manufactures equipment and chemicals used in sample preparation for mining and industrial laboratories. The company supplies the tools that mines and construction material companies use to test and analyse materials, functioning as a “picks and shovels” provider to the resources sector rather than taking direct commodity price exposure.
The business operates manufacturing, sales and support facilities across Australia, Europe, Canada and India, complemented by a global distributor network spanning the United States, South America, Africa, the Middle East and Asia. This geographic footprint services a blue-chip customer base including:
- BHP Billiton and Rio Tinto (mining majors)
- Vale, South 32 and Glencore (diversified miners)
- Alcoa, Lafarge and Holcim (industrial materials)
- CSIRO, Intertek, Bureau Veritas, SGS and ALS (analytical laboratories)
XRF’s technology measures material composition and purity, primarily applied in quality control and process control for manufacturing. The company’s products help customers improve product quality, increase productivity and yield, and reduce downtime and waste. A significant portion of revenue derives from recurring consumables, adding stability to the business model alongside capital equipment sales.
Divisional performance reveals Precious Metals as standout performer
XRF’s three operating divisions delivered varied but collectively strong performances during the half, with the Precious Metals business achieving record profitability:
- Consumables Division
- Revenue: $8.4m
- Profit Before Tax: $3.0m
- Continued robust demand from the mining sector, with Asia emerging as a key growth market. Certain customers purchased lower volumes during the half due to timing of export orders, however management noted strong incoming orders in the first part of H2 FY26.
- Precious Metals Division
- Revenue: $12.6m
- Profit Before Tax: $2.5m (record)
- Margins expanded driven by high precious metals prices, including platinum and other minor metals used in production. The increasing platinum price affected customer orders for new products in Q2, though management expects this to normalise as platinum price volatility subsides.
- Capital Equipment Division
- Revenue: $12.1m
- Profit Before Tax: $2.2m
- Orbis delivered profit before tax of $819k, up from $697k in H1 FY25, with sales primarily driven by the gold sector.
The diversified revenue streams reduce concentration risk, whilst the Precious Metals division demonstrates how XRF can benefit from elevated metal prices through margin expansion rather than direct commodity exposure. The Capital Equipment pipeline, bolstered by new product releases, suggests potential revenue tailwinds beyond the current product suite.
New product momentum building
XRF released two new products during the half, with a full pipeline of additional machines currently under development. Sales for the company’s xrTGA product are gaining momentum, with the first repeat orders received from two large global companies.
Repeat orders from major customers validate product-market fit and indicate customer satisfaction with performance. The development pipeline suggests XRF is investing in innovation to expand its addressable market and capture additional wallet share from existing customers.
International expansion and outlook
International sales growth remains management’s key strategic focus, with initiatives including the new India office expected to accelerate regional market penetration. The cross-selling strategy is gaining traction, with customers increasingly purchasing multiple products across XRF’s range rather than single-category purchases.
Managing Director Vance Stazzonelli
“We currently expect 2H26 to be positive, as we focus our efforts on international sales growth, new product releases and M&A opportunities.”
The company has identified Asia as a key growth market for its Consumables division, with the India office representing a concrete expansion initiative in this region. Management’s reference to M&A opportunities suggests the company is exploring inorganic growth options to complement organic expansion.
Geographic diversification reduces XRF’s reliance on the Australian market, whilst cross-selling improves customer lifetime value by deepening relationships beyond single product lines. The M&A optionality provides potential for accelerated growth should suitable acquisition targets emerge, though no specific transactions have been announced.
Dividend policy note
The Board has maintained its policy of paying one annual dividend based on the full-year result. Income-focused investors should note the company distributes returns on an annual rather than semi-annual basis.
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