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:

Key Details

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.)