LaserBond's Margin Recovery Comes With a Record Technology Sale

A temporary margin collapse from investing in new labour gave way to a strong recovery, a record Japanese technology sale, and a new CEO's international growth plans.

30 Sep 2026 · 4 min read

LaserBond, an Australian surface engineering company extending the lifespan of high-wear metal components since 1992, resumed its historical growth trajectory after margins collapsed to as low as 5 percent while skilling up new labour, delivering strong recovery results, a record Japanese technology licence sale and a new CEO's encouraging international growth outlook.

A decade-long grower recovering from a rough patch

Underwood Capital said it acquired more LaserBond shares in a market crossing, believing that after a difficult few years the company now looks likely to resume its decade-long revenue compound annual growth rate of 16 percent, with the stock trading on a price to earnings ratio of 10 times at its purchase price, which it views as attractive for a business of this quality with a substantial runway for growth ahead. HD Capital Partners described LaserBond as an Australian surface engineering company that manufactures, repairs and reclaims high-wear metal components using advanced materials and technologies to extend their lifespan and reduce maintenance costs, founded in 1992 and serving capital-intensive industries globally including mining, energy, transport and manufacturing.

After a difficult few years, LBL now looks likely to resume its decade-long revenue CAGR of 16%. At our purchase price we estimate the stock was trading on a PE of 10x, which we view as attractive for a business of this quality, and with a substantial runway for growth ahead of it.

— Underwood Capital, Monthly Report, September 2025

A margin collapse and recovery, plus a record technology sale

Merewether Capital said it materially added to its position after a very strong AGM update, noting LaserBond typically earns profit before tax margins of 15 to 20 percent, but these fell to as low as 5 percent in the first half of FY25 as the company skilled up new labour and hired key executive roles, with the second half seeing a stark recovery in margins, while management confirmed a recent record $2.3 million technology licence sale to a Japanese heavy equipment manufacturer. Underwood Capital said the highlight was an AGM trading update showing $2.5 million profit before tax for the first four months of the financial year excluding Gateway, suggesting the business continues to resume its long-term growth trend, an update made even better given the recent technology division sale would only hit the revenue line in the second half of FY26.

LBL typically earns profit before tax margins of 15-20%, but these fell to as low as 5% in 1H25 as the company skilled up new labour and hired key executive roles; 2H25 saw a stark recovery in margins. LBL management confirmed the recent record $2.3m Technology license sale was to a Japanese heavy equipment manufacturer.

— Merewether Capital, Investor Update, November 2025

A strong first half, positioned for an even stronger second

Merewether Capital said LaserBond reported revenue up 13 percent to $23.0 million and net profit up 117 percent to $2.2 million, growth inflated by a weak prior-year comparison but nonetheless a good result, positioned for an even stronger second half underpinned by a healthy order book, full operating benefits of machinery replacements and the $2.3 million technology licence revenue, believing LaserBond could achieve $6 million to $7 million net profit for the financial year, leaving it trading at a very reasonable multiple against a $65 million enterprise value. Underwood Capital said the significantly improved first-half result was driven by continued growth in Services and a normalisation within the Product division, with management proactively managing supply shocks for key inputs like tungsten by building stockpiles.

I think LBL can achieve $6-7m net profit this financial year which leaves it trading at a very reasonable multiple against the current $65m enterprise value.

— Merewether Capital, Investor Update, February 2026

A new CEO outlines international growth opportunities

DMX Asset Management said LaserBond's new CEO, Rob Freeman, presented an encouraging outlook, highlighting significant international growth opportunities for the product division, with new components designed for the oil and gas sector gaining traction, while noting the Services business's equipment replacement cycle was normalising with improved efficiencies from recent machinery investment.

What fund managers say they are watching next is delivery of the forecast $6 million to $7 million net profit this financial year, continued international growth in the product division particularly oil and gas components, whether Services division efficiency gains from machinery investment continue, and whether the market re-rates the stock given its still-reasonable multiple against enterprise value.