Australian-listed metal cladding specialist LaserBond says it is well-positioned for a strong second half of fiscal 2026 with mining equipment cycles “normalising” and proactive investment in tungsten carbide stocks expected to help the company capitalise on a robust order book.
LaserBond booked A$23 million of revenue for the six months to the end of December 2025, up 13.4% year-on-year, while net profit of $2.2 million was 117% higher yoy but down on the $2.8 million reported for the second half of FY25.
The company’s services division generated $14.3 million revenue, up 10% yoy, with gross margins increasing to 58.3% from 50.8% previously. “Mining sector weakness, with extended equipment cycles delaying maintenance, moderated growth. However, core demand for specialist surface engineering remains intact and LaserBond’s market leadership positions it favourably for recovery as mining capital spending normalises,” management said.
LaserBond’s products arm delivered 34.25 higher revenue of $8.4 million. It said 47.1% margins reflected “tungsten price volatility from geopolitical supply challenges”.
The company said it prepaid $1.8 million for tungsten carbide in a “proactive response to global supply constraints” to enable it to maintain uninterrupted supply to customers. It lowered its cash-at-hand position to $4 million from $5.6 million six months earlier.
Management said LaserBond was well-positioned for a recovery in mining sector capital expenditure. Meanwhile, interest in licensing and using its laser cladding technology was creating pathways to diversify the company’s revenue base beyond mining into additional industrial sectors. LaserBond said its order book was 70% ahead of the prior year at the start of January.
“Growth avenues in oil and gas, international markets and innovation provide expansion opportunities,” it said.
Management said a $2.4 million licensing agreement with construction and mining equipment heavyweight Komatsu, creating a new revenue stream, was “on track for delivery in the second half of FY26”.
“The Komatsu licensing delivery will add technology revenue,” the company said. Additional original equipment manufacturer, or OEM, deals were in advanced stages of negotiation.
Meanwhile, LaserBond said its new X-Clad surfacing product was “on track for full market release” this half.
“X-Clad provides exceptional abrasion, wear and corrosion resistance, especially in rotational wear applications,” it said.
“Multiple field customer trials have begun including one of LaserBond’s largest global customers.
“LaserBond’s internal and third-party testing is modelling better wear outcomes than the current coating they have used from LaserBond for 10-plus years.
“A large German manufacturer is preparing to begin trials in March-April.”
LaserBond has a current market capitalisation of about $72 million, up circa-30% in the past 12 months.
