Nanosonics’ first-half result is being described as “sound but mixed” by Morgans analyst Iain Wilkie. The company reported 9 per cent revenue growth, which, while positive, fell short of forecasts. Strong cost control, however, supported better-than-expected operating leverage. Nanosonics specialises in infection prevention and control products, including its flagship trophon device, which automates high-level disinfection of ultrasound probes. The company aims to improve patient safety and reduce healthcare costs through its innovative technology.
Revenue reached $102.2 million, below Morgans’ forecast of $106 million and consensus estimates. The gross margin also narrowed to 76.3 per cent, which the company attributes to tariffs and product mix. Despite the revenue shortfall, operating expenses increased by only 4 per cent. This allowed earnings before interest and taxes (EBIT) to reach $8.4 million, exceeding consensus expectations.
Wilkie pointed to a 46 per cent increase in trophon upgrades as a significant positive, along with over 1000 new unit installations. He noted that both are important indicators of demand, supporting future consumables revenue. While gross margin pressure from tariffs appears to be a persistent issue in the short term, reaffirmed full-year guidance, strong trophon economics and progress on the CORIS platform are underpinning confidence in the medium-term outlook.
Wilkie stated that the result should be seen as operationally stable and strategically on track, even if it is unlikely to cause a significant re-rating. Following the announcement, Nanosonics’ shares experienced a decline, falling by 6 per cent.
