UK's Niox H1 revenue falls 5% on lower research sales

By Reuters News


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:


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


Reuters Recommended Reads

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  • Sept 28 - UK's Touchstar H1 revenue flat, gross margin falls

  • Sept 28 - UK floor coverings distributor Likewise Group H1 revenue and profit rise year on year


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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