UK's Niox H1 revenue falls 5% on lower research sales
UK's Niox H1 revenue falls 5% on lower research sales
Overview
UK medical device maker's H1 revenue fell 5% yr/yr due to lower research revenue
Adjusted EBITDA and adjusted EPS declined from H1 2025
Company announced £12.5 mln share buyback via tender offer
Outlook
Niox expects H2 2026 to be stronger than H1, driven by Niox Pro rollout and higher Japan pricing
Company maintains expectation for 2026 revenue and adjusted EBITDA in line with current market consensus
Niox expects to have about £9.0 mln cash at December 31, 2026, assuming tender offer is fully subscribed
Result Drivers
RESEARCH REVENUE DROP - Co said research revenue fell as clinical trial activity normalized after a strong prior period and inventory was prioritized for Clinical business
CLINICAL SALES MIX - Gross margin rose to 71% due to a higher proportion of Clinical sales
REGIONAL VARIATION - Americas sales grew 6% while APAC fell 1% due to lower China sales on reimbursement cuts, more competition, and reduced FeNO testing rates
Company press release: ID:nRSc6478Wa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Net Income |
| GBP 5.90 mln |
|
H1 Adjusted EBITDA Margin |
| 34.60% |
|
H1 EBIT |
| GBP 5.50 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the pharmaceuticals peer group is "buy"
Wall Street's median 12-month price target for Niox Group PLC is GBp82.50, about 25.8% above its September 28 closing price of GBp65.60
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 17 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)