Spectra Systems H1 hit by order delays and year-ago contract boost

Spectra Systems

30/09/2026 07:17

Overview
US banknote authentication firm's H1 revenue fell 38% yr/yr after prior sensor contract boost
Adjusted EPS for H1 dropped 68% yr/yr as profits normalized post-contract
Company expects security printing losses in H1 to reverse with higher H2 orders

Outlook
Company expects security printing group to deliver a small full-year profit in 2026
Company has increased internal forecast for tax stamp volumes in 2027
Spectra Systems anticipates further Fusion substrate sales and potential large central bank orders in H2 2026

Result Drivers
SENSOR CONTRACT NORMALIZATION - Revenue and profit declined as prior year results were boosted by completion of a major sensor production contract, which was not repeated in H1 2026
SECURITY PRINTING DELAYS - Lower H1 revenue and profit were also attributed to delays in security printing orders and a delivery delay of paper for other security printing work
HIGHER ENGINEERING COSTS - Additional spending on contract employees to resolve technical issues for a sensor customer increased costs in H1

Company press release: ID:nRSd8445Wa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
 
$21.62 mln
 
H1 Net Income
 
$2.90 mln
 
H1 EBIT
 
$3.54 mln
 
H1 Gross Profit
 
$10.63 mln
 
H1 Operating Expenses
 
$7.09 mln
 
H1 Pretax Profit
 
$3.75 mln
 

Analyst Coverage
Wall Street's median 12-month price target for Spectra Systems Corp is GBp231.50, about 54.8% above its September 29 closing price of GBp149.50

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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.)