Kromek Posts First-Ever Profit, Beating Expectations with Siemens Healthineers Deal

Kromek’s first-ever profit: what changed and why it matters

Kromek has posted its maiden profit and it is a meaningful pivot. Revenue rose 37% to £26.5m, gross margin jumped to 81%, adjusted EBITDA hit £10.3m, and profit before tax landed at £3.1m versus a £3.5m loss last year. The big swing factor was the Siemens Healthineers agreement in Advanced Imaging, coupled with tight cost control and a cleaner balance sheet.

On top of that, Kromek repaid its £5.5m term loan and £5.9m of short-term facilities in February 2025. Year-end cash was £1.7m, with a $5.0m cash receipt after the year end and an undrawn £6.0m revolving credit facility secured with HSBC to support growth.

Key numbers investors should bookmark

Metric	FY 2025	FY 2024	Notes
Revenue	£26.5m	£19.4m	+37% year-on-year
Advanced Imaging revenue	£20.3m	£9.0m	Driven by Siemens Healthineers
CBRN Detection revenue	£6.2m	£10.4m	Slow H1 due to UK/US elections, stronger H2
Gross margin	81%	55%	Elevated by Siemens Enablement Agreement
Adjusted EBITDA	£10.3m	£3.1m	Excluding one-offs, £13.1m
Profit before tax	£3.1m	£(3.5)m	First profit in Kromek’s history
EPS (basic/diluted)	0.6p	(0.6)p	Reflects positive after-tax profit
Cash at 30 April	£1.7m	£0.5m	$5.0m received post year end
Borrowings at 30 April	£0.5m	£8.1m	Term and short-term loans repaid
Operating cash flow	£15.9m	£(2.8)m	Working capital improved
Siemens Enablement revenue recognised	£16.5m ($20.5m)	n/a	Expect $11.7m in FY 2026; $2.5m in FY 2027

Siemens Healthineers deal – the engine of the turnaround

What the agreement covers

Kromek signed multi-year agreements with Siemens Healthineers for SPECT imaging that include patent licensing, an Enablement Agreement worth $37.5m over four years, and a supply agreement for CZT detector tiles. The company received $25.0m during the year and a further $5.0m post year end. Importantly, the deal is non-exclusive and limited to SPECT, leaving the larger CT market open for other OEM partnerships.

Why it matters

• Kromek is the only independent commercial-scale producer of CZT globally, a material shift enabler for higher resolution, spectral imaging.
• PCCT (photon-counting CT) work progressed with a Tier 1 health tech OEM and others, moving into early-stage commercialisation.
• The breast imaging programme supported by Innovate UK has a prototype under evaluation, with the full-size detector due by end of calendar 2025.

Revenue recognition is milestone based: £16.5m was recognised in FY 2025, with $11.7m guided for FY 2026 and $2.5m expected in FY 2027. That should keep margins elevated next year, albeit lower than FY 2025.

CBRN Detection – slow H1, sharp H2 recovery and a busier FY 2026

CBRN Detection revenue fell to £6.2m after government spending pauses around the UK and US elections. H2 revenue was more than double H1 from a low base. The order backdrop has strengthened:

• £2.0m MoD contract for D5 RIID and Alpha Beta Probe, delivered within the year.
• Selected on two UK frameworks for four years – the Resilience Framework and the Radiological Nuclear Detection Framework. First RNDF order post year end worth £1.7m.
• Further nuclear security orders of approximately £2.9m received post year end across the UK, Europe, the US, Japan and Canada.
• Biothreat R&D continued with UK and US agencies, plus a new £250k contract from the MoD’s Defence Science and Technology Laboratory.

Management expects strong year-on-year growth from CBRN Detection in FY 2026 as these framework awards convert and deliveries ramp.

Margins, cash and balance sheet – the moving parts

Why the 81% gross margin will normalise

The jump to 81% gross margin is largely the Siemens Enablement mix. The company guides to an elevated margin again in FY 2026, but lower than FY 2025, with a return to normalised levels in FY 2027 as the Enablement contribution tapers and product mix shifts.

Debt down, flexibility up

• Borrowings cut to £0.5m at year end from £8.1m, after repaying the £5.5m term loan and short-term facilities.
• Post year end, Kromek secured a £6.0m three-year revolving credit facility and a £0.5m asset finance facility with HSBC.
• Interest of about £0.7m on the repaid term loan was settled in shares, resulting in 13,440,514 new Ordinary Shares being issued post year end.

Costs and one-offs – the fine print

Distribution and administrative expenses rose to £16.7m, reflecting a prior-year US tax credit that boosted FY 2024, £1.8m of one-off fees tied to the Siemens deal, a £1.2m increase in bad debt provisions, and higher share-based payments. Adjusted EBITDA includes £1.4m of Siemens-related one-offs and £1.3m of bad debt costs; excluding these, adjusted EBITDA would be £13.1m.

Options outstanding were 36,286,141 at 16 September 2025, representing 5.5% of issued share capital. Executive option grants linked to Siemens milestones were detailed, and investors should factor potential dilution into forward thinking.

What I like about this update

• First profit before tax at £3.1m and materially ahead of market expectations.
• Balance sheet reset – borrowings down to £0.5m and fresh liquidity via the £6.0m RCF.
• Strategic positioning in CZT with a marquee partner, and non-exclusive terms that preserve CT opportunities.
• CBRN momentum building through multi-year UK frameworks and international orders.
• Operational discipline – manufacturing automation and more than 180 patents underpin defensibility.

What gives me pause

• Revenue concentration – £16.5m recognised from Siemens in FY 2025. The next phases need to land as planned and broader OEM traction must scale.
• Margins will step down as the mix normalises beyond FY 2026.
• CBRN declined year-on-year; the ramp needs to translate into sustained deliveries, not just orders.
• Share-based payments, director option awards and a 5.5% option overhang are dilutive.
• Year-end cash was £1.7m; while the RCF mitigates this, execution against milestones and working capital management remain important.

What to watch in FY 2026

• Siemens Enablement revenue recognition of $11.7m and progress toward the third milestone ($2.5m expected in FY 2027).
• Additional OEM wins in CT and evidence of PCCT detector orders transitioning from pilots to commercial volumes.
• CBRN deliveries under the UK frameworks, including the £1.7m RNDF order, and conversion of the c. £2.9m post year-end orders.
• Breast imaging full-size detector delivery by end of calendar 2025 and any early clinical data readouts.
• Gross margin trajectory as the sales mix evolves and the impact of process automation on cost per unit.

Bottom line

This was a pivotal year for Kromek. The Siemens Healthineers deal did the heavy lifting, but the company also used the moment to clean up the balance sheet and secure flexible funding. Management guides to further revenue growth and profitability in FY 2026, with CBRN set for a strong rebound and Advanced Imaging growing on a like-for-like basis. The task now is clear: diversify beyond Siemens, turn frameworks into repeatable shipments, and manage the inevitable margin step-down with volume, mix and manufacturing gains. If they can do that, today’s first profit can become the first of many.