Australian surface engineering company Laserbond Limited (ASX: LBL) posted a 27.7% year-over-year increase in net profit after tax to $4.9 million for the fiscal year ended June 2026, while revenue rose 10.8% to $48.2 million.
The company attributed the earnings growth to strong performance in its technology licensing division, which generated $3.4 million in revenue—more than triple the $1.1 million recorded in the prior year—following the completion of a modular laser cell for Komatsu. Factory acceptance testing for the Komatsu project was completed in June 2026, with site operations scheduled to commence in the first quarter of fiscal 2027. The company also highlighted progress in developing X-Clad coatings and hard chrome replacement technology, with field validation targeted for fiscal 2027 and market introduction expected in the second half of that year.
Laserbond declared a fully franked dividend of 1.6 cents per share, while its shares rose 4.5% to $0.58 following the results presentation on August 20, 2026. The stock has traded between $0.485 and $0.67 over the past 52 weeks.
Earnings per share increased 27.2% to 4.17 cents, and return on capital employed improved to 13.05% from 10.88% in the prior year. EBITDA grew 15.1% to $10.4 million, though gross margin compressed to 51% amid rising input costs. The products division saw revenue rise 18.8% to $17.5 million, but gross profit margin fell sharply to 36.9% due to elevated tungsten carbide prices and tariffs affecting U.S. steel industry customers. The services division reported revenue of $27.3 million, slightly down from the prior year, but with an improved gross profit margin of 58%.
Laserbond’s 40% stake in the Gateway Group contributed $1 million to net profit after tax, up from $700,000 previously. The company retains the right to increase its ownership to 51% by March 2027 at a multiple of 4.5 times EBITDA. Gateway commissioned a laser cell in May 2025, and Laserbond acquired its stake in March 2024.
The company maintained a debt-free balance sheet with net assets of $45.1 million, though cash and equivalents declined to $2.9 million from $5.6 million a year earlier. Working capital increased 22.8% to $18.6 million, while operating cash flow fell to $3.3 million from a peak of $7.8 million in fiscal 2023.
