Nanosonics shares soar as FY25 profit beats expectations
Make us a preferred source
Make us a preferred source on Google
More news: Shares in Nanosonics surged in morning trade after the disinfection technology provider reported better-than-expected profit and revenue for FY25 as well as FY26 guidance that is in line.
At 10:58am AEST, shares in Nanosonics had lifted 11% to $4.56, meaning the stock was up 51.5% in the year to date.
RBC Capital Markets analyst Craig Wong-Pan said Nanosonics’ FY25 result “has exceeded consensus numbers”. He flagged that the stock had been “trading weakly into this result” and so he expects it “to outperform the market today on a relief rally”.
Wong-Pan highlighted that total revenue beat the market consensus estimate by 3% and was above the FY25 guidance range for year-on-year growth. Net profit after tax also beat the consensus by 18%.
He also flagged that guidance for revenue, gross margin and operating expense are in line with consensus estimates. This includes the direct impact of US tariffs, which is expected to be $4 million.
Nanosonics records 59% boost in full-year profit on trophon business growth
The news: Disinfection technology provider Nanosonics posted a full-year net profit of $20.7 million, 59% higher than the $13 million reported in the previous year as its core trophon business grew 6% to 37,000 units worldwide.
The numbers: The market consensus estimate for FY25 net profit was $17.5 million, according to Visible Alpha.
Total revenue came in at $198.6 million, which is 17% higher than the $170 million reported in FY24. The market consensus estimate was for $100.4 million.
Trophon — Nanosonics' flagship device for disinfecting ultrasound probes — was a key driver of the result, as the company installed 2,210 new devices during the year.
No dividend was declared. This is consistent with FY24 and market expectations.
The company is guiding FY26 revenue in the range of $215 million and $223 million, a 8% to 12% increase on FY25, and a operating expenses in the range of $147 million to $151 million, a 6% to 9% increase on FY25. Gross margin for FY26 is also expected to be between 75% and 77%.
The context: Trophon3 and a software package upgrade for Trophon2 were launched to customers in the US, Canada, the UK, Ireland, Australia and New Zealand in FY25. The company has also seen its cumulative installed base tick up 6% year on year to around 37,000 units.
The company also increased its profitability while continuing research and development investments in as well as operational investment such as its "US manufacturing facility, digital capabilities and a new [enterprise resource management] system to support the business into the future," Nanosonics CEO and president Michael Kavanagh said.
Nanosonics expects to commence a controlled market release of its CORIS device, for automating cleaning of flexible endoscopes, throughout FY26 in Europe and Australia.
Manufacturing of Trophon and CORIS consumables is expected to commence at Nanosonics' Indianapolis facility during FY26.
The sources: ASX, RBC Capital Markets research
