Laserbond FY26 slides: profit jumps 28% as tech licensing gains traction

Laserbond Limited (ASX: LBL) published its FY26 financial results on August 20, 2026, revealing robust profit growth outpacing revenue expansion. The Australian surface engineering firm reported a net profit after tax of $4.9 million, marking a 27.7% year-over-year increase. Meanwhile, revenue rose 10.8% to $48.2 million, positioning the stock near the upper range of its 52-week trading window of $0.485 to $0.67.

The company declared a fully franked dividend of 1.6 cents per share. Management highlighted the successful completion of a modular laser cell for Komatsu, a pivotal moment in its technology licensing strategy. The company showcased improvements across most performance metrics, with EBITDA reaching $10.4 million, up 15.1% year-over-year, and net profit before tax increasing 30% to $6.5 million.

Earnings per share surged 27.2% to 4.17 cents, while return on capital employed improved to 13.05% from 10.88% in FY25. The company's revenue growth, from $30.7 million in FY22 to $48.2 million in FY26, demonstrates consistent expansion, with a compound annual growth rate of approximately 12%. However, gross margin compressed to 51% due to higher tungsten carbide prices that exceeded the company's pricing adjustments.

Laserbond's balance sheet saw a strategic shift, with total assets increasing 1.6% to $63.9 million and total liabilities decreasing 13.6% to $18.8 million, resulting in a net asset value of $45.1 million. The company remains debt-free, providing financial flexibility for growth. The three business segments – services, products, and technology licensing – each contribute uniquely to Laserbond's performance.

The services division, providing surface engineering techniques, generated $27.3 million in revenue, down slightly from the previous year but showing strong margin expansion. The products division, manufacturing and selling surface engineering products, delivered $17.5 million in revenue, up 18.8% year-over-year, despite a sharp compression in gross margins to 36.9% due to tungsten carbide price increases and tariff impacts.

Technology licensing emerged as a significant growth driver, with revenue surging to $3.4 million, up from $1.1 million in FY25, driven by the delivery of a modular laser cell for Komatsu. The company's R&D investments, particularly in tungsten carbide alternatives and hard chrome replacements, position it competitively for future growth.