Company Interview / Nanosonics scrubs up healthy profits despite tariff concerns

Key points:

- 59% profit increase and 17% revenue growth for Nanosonics (ASX:NAN)

- Recurring revenue up 20%, driven by strong international adoption of trophon technology

- FDA-cleared trophon3 and CORIS endoscopy system slated for further expansion

- Strong cash balance, prudent capital deployment, and focus on automation and traceability

Nanosonics (ASX:NAN) reports a strong financial performance, revealing a 59% rise in full year net profit to $20.7 million and nearly doubling earnings to $17.8 million. Revenue grew by 17% to $198.6 million, driven by a 20% increase in recurring revenue, guided by robust adoption of its infection prevention technologies internationally, particularly in the United States.

CEO Michael Kavanagh points out that the market remains positive despite the company electing not to pay a final dividend, with guidance for FY26 revenue projected between $215 to $223 million and gross margins expected at 75-77%.

Kavanagh highlights the expansion of the company’s installed base, now with approximately 37,000 trophon units in operation worldwide. The recent FDA clearance for the next-generation trophon3 device and the upcoming controlled market release of the CORIS system in endoscopy reprocessing present further growth avenues.

New software upgrades for existing users underscore a strategy focused on enhancing value for both new and current customers. Addressing macroeconomic uncertainty, Kavanagh insists that recurring revenue streams, automation, and traceability are core strengths that position Nanosonics well amid global tariff risks. With continued investment in R&D and product launches, he argues that reinvesting profits will deliver better long-term value for shareholders, rather than immediate dividends.