How Does Xaar Company Work?

Xaar's primary operations revolve around the creation of sophisticated industrial inkjet printheads, including series like Nitrox, Aquinox, and Irix. These are complemented by integrated print systems through its Engineered Print Systems (EPS) subsidiary and fluid management solutions from Megnajet. The company's manufacturing process is precision-driven, with key facilities located in the UK and Sweden.

The company's value proposition centers on enabling customers to adopt digital inkjet technology for enhanced efficiency and performance. Xaar's solutions cater to a global customer base of Original Equipment Manufacturers (OEMs) and User Developer Integrators (UDIs).

Xaar printheads are utilized across a wide spectrum of industries, including ceramics, labels, packaging, textiles, coding and marking, graphics, and 3D printing. The company also serves advanced manufacturing sectors such as electric vehicle battery production and automotive coatings. Over 85% of Xaar's production is exported globally.

A key differentiator for Xaar is its 'Ultra High Viscosity Technology,' which allows for the precise jetting of materials with high viscosity and particle loading. This capability is crucial for advanced manufacturing applications, offering benefits like superior print quality and increased speed.

Xaar has shifted focus from ceramics to new, high-growth sectors. This strategic move is vital as ceramics revenue declined significantly, falling from £15.5 million in 2023 to £7.5 million in 2024, now representing only 17% of total Printhead revenue.

The launch of Xaar eX and Nitrox eX printheads in July 2024 marked Xaar's entry into EV battery coating. Partnerships with Shifang and Omijia for Xaar-enabled coating lines, and an exclusive agreement with Axalta and Dürr for automotive coatings, highlight this expansion.

Despite a 13% overall revenue decline in 2024 due to OEM delays and market shifts, Xaar implemented proactive cost management. Adjusted operating expenses were reduced by 16% to £21.6 million, while maintaining a 36% gross profit margin.

Xaar's competitive edge lies in its technology for jetting high viscosity and particle-loaded materials with precision. Continuous R&D and the development of turnkey solutions for OEMs further enhance its market position.

Xaar holds a prominent position in the industrial inkjet market, driven by its advanced piezoelectric printhead technology. The company is strategically pivoting from its historically significant ceramics sector, which accounted for just 17% of printhead revenue in 2024, towards emerging, high-potential applications.

Significant risks include the ongoing cyclical nature of the ceramics market and potential impacts from global trade disputes, particularly concerning its operations in China. The company has also faced challenges related to dependency on large, singular customer orders, as evidenced by a 27% revenue decrease at its EPS subsidiary following the completion of a major project.

Entering 2025, the company is optimistic, with strategic initiatives focused on accelerating adoption in EV battery coating, evidenced by partnerships like the one with Sokan New Materials Group in June 2025. Continued development in automotive and desktop 3D printing markets is also a priority, with projections of multi-million pound revenue from the latter by capturing a small fraction of the market.

The company maintains a strong balance sheet, reporting net cash of £5.1 million in H1 2025, and is committed to investing in technology for sustained growth. Its rebaselined ESG Roadmap, targeting Net Zero emissions by 2050, highlights a dedication to sustainable operations and long-term value creation.