LaserBond posts record FY26 revenue of $48.2m as profit jumps 27.7%
In its FY26 full-year results presentation released on 20 August 2026, LaserBond Limited (ASX:LBL) reported record revenue of $48.2m, up 10.8% on the prior corresponding period (pcp), alongside net profit after tax (NPAT) of $4.9m, a rise of 27.7%.
Founded in 1992, LaserBond is a specialist surface engineering company focused on extending the wear life and performance of capital-intensive machinery components. The Company reissued the presentation to correct earlier balance sheet commentary.
With profit growing faster than revenue and a fully franked dividend declared, the FY26 result pointed to operational momentum and margin leverage across the business.
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FY26 financial highlights at a glance
The full-year scorecard showed LaserBond delivered growth across every headline metric, with earnings expanding at a materially faster pace than revenue, an indicator of operating leverage.
| Metric | FY26 | FY25 / pcp | Change |
|---|---|---|---|
| Revenue | $48.2m | — | +10.8% |
| EBITDA | $10.4m | — | +15.1% |
| NPBT | $6.5m | — | +30.0% |
| NPAT | $4.9m | — | +27.7% |
| EPS | 4.17cps | — | +27.2% |
| ROCE | 13.05% | 10.88% | Improved |
| DPS (fully franked) | 1.6c | — | 0.8c interim + 0.8c final |
Cash and cash equivalents reduced to $2.9m from $5.6m in FY25. According to the presentation, this reflected ongoing strategic investment in tungsten carbide powders, with collections improving significantly from FY25 and partly offsetting higher inventory balances.
Segment performance: where the growth came from
The result was underpinned by contrasting trends across LaserBond’s three operating divisions, plus its associate stake in Gateway.
Services
Services revenue eased marginally to $27.3m from $27.7m, amid a slower than expected recovery in the mining industry. Despite flat revenue, gross margin expanded to 58% from 53.6%, which the presentation attributed to improved cost control and operational efficiency.
Products
Products revenue rose 18.8% to $17.5m from $14.7m, supported by strong demand from global original equipment manufacturer (OEM) customers.
Margins came under pressure, with the Products gross margin falling to 36.9% as sharp tungsten price rises outpaced pricing pass-through. US OEM destocking and the material impact of tariffs on steel industry customers also weighed on second-half sales.
Technology
Technology revenue jumped to $3.4m from $1.1m. The modular laser cell for Komatsu was completed on time and on budget, passing factory acceptance in June 2026, with site operation expected to commence in Q1 FY27.
Gateway (40% owned)
Gateway contributed $1.0m NPAT, up from $0.7m in the pcp, supported by strong parts and services growth and rising laser cladding revenue. Key ownership terms detailed in the presentation include:
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LBL gained 40% ownership of Gateway in March 2024.
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A Right to 51% ownership in March 2027, at the same multiple of 4.5 times EBITDA as the original purchase consideration.
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Original Gateway shareholders have an option to sell their shares to LBL at any time and any volume at the same 4.5 times EBITDA multiple.
What is surface engineering, and why the IP matters
Surface engineering addresses a specific problem: almost all machinery components fail at the surface through abrasion, erosion, corrosion, heat and impact. By applying tailored surface metallurgy, LaserBond aims to extend component life and lower the total cost of ownership for operators of capital-intensive equipment.
The Company monetises this capability through three paths. Services covers reclamation and re-engineering of high-wear components. Products manufactures consumables embedded with LaserBond’s patented technologies. Technology licenses Laserbond® cladding technology to customers under long-tail licensing agreements covering equipment supply, technology usage and consumables.
For investors, in-house research and development, proprietary powder formulations and the Komatsu OEM validation combine to form a defensible position. The high-margin, capital-light nature of licensing offers a scalable avenue for future growth.
Balance sheet strength and the tungsten carbide investment
The presentation detailed a balance sheet that strengthened over the year despite the reduction in cash. Net assets rose to $45.1m from $41.1m, total liabilities fell 13.6% to $18.8m, and the Company carried no financial debt.
Trade receivables reduced to $9.3m from $13.5m when normalised for Komatsu revenue, reflecting progress on OEM collections. Working capital increased 11.9% to $16.9m.
Elevated inventory holdings were positioned as a deliberate strategic decision rather than a concern, providing flexibility to continue investing in capability, equipment and business opportunities.
Strategic intent (from the presentation)
“Position Laserbond as a globally relevant technology and solutions leader.”
FY27 growth drivers and strategic roadmap
Management outlined a series of forward-looking drivers expected to support the next phase of growth:
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Technology licensing expansion, with discussions underway for additional laser cells in new global markets.
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Tungsten carbide alternatives, as X-Clad coatings progress from trial toward commercial application, with field validation targeted for FY27, and hard chrome replacement technology progressing toward market.
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Products momentum, with continued OEM demand anticipated as US customers work through current stock positions.
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Gateway diversification, through continued laser cladding growth and additional expected revenue streams.
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Mining sector recovery, with anticipated normalisation of equipment replacement and maintenance cycles.
The presentation framed this roadmap across three horizons: strengthening the core in the near term, scaling what works in the medium term, and pursuing global leadership over the longer term.
The investment case
The presentation summarised the key reasons the FY26 result supports the broader thesis:
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Proprietary IP validated by the Komatsu OEM licensing deal.
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Multiple revenue streams with evident operating leverage.
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A strong balance sheet, with net assets of $45.1m and no financial debt.
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A scalable, capital-light technology licensing model.
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An innovation pipeline, with X-Clad launched and new products targeted for 2H FY27.
As at 14 August 2026, LaserBond traded at $0.57 per share, giving a market capitalisation of approximately $68.0m across 118.6m shares on issue.
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