Kromek Posts Stellar H1 Turnaround: Revenue Soars 300% on Back of Siemens Deal

Kromek H1 2026 Results: A Sharp Turnround Driven by Siemens and Strong Margins

Kromek has delivered a genuine step-change in its first half to 31 October 2025. Revenue jumped to £15.0m from £3.7m, the Group swung to a £3.1m profit before tax from a £5.7m loss, and gross margin lifted to 71.7%. The catalyst was execution under the Siemens Healthineers enablement agreement, with meaningful progress elsewhere too.

For context: CZT means cadmium zinc telluride, a detector material that enables higher-resolution “spectral” imaging. SPECT is single photon emission computed tomography (a nuclear medicine imaging technique). PCCT is photon-counting CT, the next generation of CT imaging using CZT. CBRN stands for chemical, biological, radiological and nuclear detection.

Key Numbers at a Glance

Metric	H1 2026	H1 2025
Revenue	£15.0m	£3.7m
Gross margin	71.7%	56.9%
Adjusted EBITDA	£6.0m	£2.3m loss
Profit before tax	£3.1m	£5.7m loss
Cash	£1.2m	£0.6m (31 Oct 2024)
RCF (undrawn/drawn)	£6.0m facility; £1.0m drawn at period end	n/a
Advanced Imaging revenue	£10.8m	£1.7m
CBRN Detection revenue	£4.3m	£2.0m
Licensing mix	£8.35m (55% of revenue)	£0.0m
EPS (basic)	0.5p	(0.9)p

Where the Growth Came From: Siemens Enablement plus Underlying Momentum

Advanced Imaging did the heavy lifting, with revenue of £10.8m. Of this, £8.3m was recognised from the Siemens Healthineers enablement agreement for CZT SPECT detectors. Importantly, the underlying Advanced Imaging business also grew 41% to £2.5m (from £1.7m), helped by renewed customer engagement post-deal and ramping deliveries to Spectrum Dynamics.

On cash timing: Kromek received a $5.0m cash instalment in the half, bringing receipts under the agreement to $30.0m to date. A remaining $7.5m is due over c.3 years, with the next instalment expected in FY 2027. Given the high margin on licensing, Advanced Imaging moved from a £4.1m H1 loss last year to a £3.5m operating profit this time.

CBRN Detection Recovery: UK Framework Win and Global Orders

CBRN Detection revenue rose to £4.3m (from £2.0m), reflecting a post-election recovery in government procurement and Kromek’s strategy to broaden its customer base. The segment is still loss-making, but the operating loss narrowed to £0.3m from £0.7m.

Highlights include a first order worth £1.7m under the UK Radiological Nuclear Detection Framework for the D3S-ID wearable detector, plus a £250k MoD/DSTL contract to develop enhanced methods for detecting biological agents. Kromek also expanded its distributor footprint to 39 countries and has received c.£4.8m of CBRN orders year-to-date from the UK, Europe, the US, Japan, Canada and Australasia, with around half still to deliver in the current year.

Margins and Earnings Quality: High, But Mix-Driven

Gross margin improved to 71.7% (from 56.9%), largely due to the licensing-heavy revenue mix. On an underlying basis, divisional gross margins were comparable with last year. Administrative and distribution costs rose modestly to £7.6m (from £6.9m) as revenues scaled, with share-based payments, property and travel the main drivers.

The Group delivered an operating profit of £3.2m (vs a £4.8m loss) and adjusted EBITDA of £6.0m (vs a £2.3m loss). It’s a strong turnaround, though investors should note that 55% of revenue came from licensing. Sustaining profitability will depend on converting the Advanced Imaging pipeline and CBRN order flow into repeatable product and contract income.

Cash, Debt and Liquidity: Facility in Place, Cash Tight

Cash at 31 October 2025 was £1.2m (30 April 2025: £1.7m). The Group generated £1.5m of operating cash, spent £2.5m on development, patents and capex, and had a £0.3m net financing inflow. Working capital moved against the Group mainly due to the accounting treatment and timing under the Siemens agreement, which reduced payables and deferred income by £5.4m.

To support growth, Kromek secured a three-year £6.0m revolving credit facility at Bank of England base rate +2.75%, with £1.0m drawn at period end and a further £2.0m drawn post-period. Total borrowings at period end were £1.1m. The facility provides flexibility, but the low cash balance means execution and collections need to remain tight while investment continues.

Medical Imaging Pipeline: PCCT Progress and Breast Imaging Validation

Kromek reports early-stage commercialisation of its PCCT detector development, with projects advancing with a Tier 1 OEM and three other companies. Industry adoption of CZT in CT is accelerating, which, if maintained, should broaden revenue beyond licensing.

In parallel, the ultra-low dose molecular breast imaging programme delivered “excellent” validation results with a leading US medical clinic, and a prototype detector has been installed in a Newcastle hospital for evaluation. These are encouraging clinical milestones for future commercialisation.

Geography, Mix and IP: Concentration Now, Moat Building for Later

Revenue was weighted to North America (£10.3m), with the UK and Europe contributing £2.3m each. The mix was 55% licensing, 33% product and 12% R&D contracts. That concentration underlines why delivering new scanners with OEMs – and scaling PCCT – matters for diversifying income.

On defensibility, Kromek filed three new patents and had three granted in the half, taking total patents to over 190. Manufacturing automation continued, particularly in US CZT operations, to improve yield and scalability – the right focus given expected demand.

Outlook: On Track With Market Expectations

The Board says trading is in line with market expectations and H2 momentum should continue, supported by a good order book and active customer engagement. In CBRN Detection, the backdrop of heightened national security spending remains supportive. In Advanced Imaging, adoption of CZT in PCCT and SPECT by major players is progressing, which should help underpin timelines and opportunities.

What I’m Watching Next

• Conversion of Advanced Imaging programmes into product revenue beyond licensing, particularly PCCT detector wins and validation milestones.
• CBRN margin improvement as volumes ramp under the UK framework and new international orders.
• Cash discipline versus investment needs; RCF utilisation and working capital movements.
• Timing of remaining Siemens cash receipts and any new strategic agreements of similar quality.

My Take: A High-Quality Step Forward, With Execution Still Key

This is a stellar interim performance, no two ways about it. The Siemens enablement agreement has transformed the P&L and given Kromek the financial headroom to push ahead in PCCT and bio-security. The CBRN business is recovering nicely and the UK framework win is a strong reference for further government work.

The main watch-out is the revenue mix: over half of H1 was licensing, so broadening the base is crucial to sustaining profits. Cash remains tight, albeit with a sensible £6.0m RCF now in place. If Kromek converts its advanced imaging pipeline and keeps CBRN orders flowing, today’s high-margin half could be the start of a more durable earnings profile. For now, it’s a genuinely positive inflection point, delivered with improving operational discipline.