Key Highlights

  • Laserbond (ASX:LBL) shares were up 8.33% at $0.585 during the Trading session on 22 October 2026.
  • FY26 Revenue rose 10.8% to $48.2 million, with net profit after tax up 27.7% to $4.9 million.
  • A second Komatsu licence and a Metal 7 Collaboration Agreement were announced, with Yatala production due in the final quarter of FY27.

Laserbond Ltd (ASX:LBL) shares were up 8.33% at $0.585 during the trading session on 22 October 2026, at 11:55 am. The move came as the broader market traded lower, with the S&P/ASX 200 at 8,774.90, down 0.64% (56.40 points), and the All Ordinaries at 8,897.80, down 0.66%. Laserbond is a specialist surface engineering company that develops materials, technologies and methods to extend the wear life of capital-intensive machinery components. On 22 October 2026 it released the Chair's and CEO's addresses for its 2026 Annual General Meeting.

About the Company

Laserbond was founded in 1992 and trades on the ASX under the ticker LBL. It focuses on materials, technologies and methodologies that improve operating performance and wear life. Its sites are in Smeaton Grange (Sydney), Bethania (Brisbane), Cavan (Adelaide) and Altona (Melbourne).

Business Overview

The company describes an integrated platform spanning three areas: Services, Products and Technology Licensing. Products are sold largely through Original Equipment Manufacturer (OEM) partners, while Technology covers laser cladding systems and licensing. Laserbond formulates its own powders and designs its own laser systems. It also holds a 40% interest in Gateway, a Western Australian Business that has expanded into laser cladding and other services.

Komatsu Licence and Metal 7 Collaboration

In its announcement dated 22 October 2026, Laserbond said it had signed a second licensing agreement with Komatsu on commercial terms comparable to the first. It covers a second modular laser cladding cell for Komatsu's Perth facility. The first agreement, signed in August 2025 and valued at $2.4 million, produced a cell that is now in operation.

The same announcement disclosed a Collaboration Agreement with Metal 7 Inc, a Canadian provider to the Mining and steel industries. Under the framework, Metal 7 owns the customer relationships while Laserbond retains its intellectual property and provides it under licence. The arrangement reaches the Americas, Europe, the Middle East, North Africa and India, with terms for each project to be set in separate agreements.

FY26 Results and Tungsten Exposure

The address reported that FY26 revenue rose 10.8% to $48.2 million, including $25.2 million in the second half. The gross Margin was 51.0%, compared with 52.4% a year earlier, a difference largely attributed to the higher cost of tungsten. Net profit before tax increased 30.0% to $6.5 million and net profit after tax rose 27.7% to $4.9 million.

Management said tungsten prices stayed high and unsettled through the year, mining sector Demand was soft, and US Tariff changes and the conflict in Iran added uncertainty. A significant share of revenue comes from two OEM customers. Since August, mining orders have moved back towards more typical patterns, and US OEM orders are rebuilding.

X-Clad, New Coatings and Yatala Facility

Laserbond said its X-Clad product, which relies far less on tungsten, performed above expectations in field trials and customers are now placing orders. In early 2027 it expects to release new coatings that bring the cost of laser cladding closer to hard chrome plating. The company estimates that competing for hard chrome replacement work could increase its addressable market by 10 to 12 times.

The new Queensland Facility at Yatala is on track to begin production in the final quarter of FY27. The current site runs five days a week in daylight hours, while Yatala is designed to operate around the clock with twice the present capacity, with efficiency benefits expected from FY28.

Related Sector Context

Industrial surface engineering supplies wear-resistant coatings and cladding to mining, equipment Manufacturing and other capital-intensive industries. Demand is linked to activity in those sectors and to input costs such as tungsten carbide. During the session on 22 October 2026 the S&P/ASX 200 was down 0.64% and the All Ordinaries down 0.66%, a direction opposite to the move in Laserbond at 11:55 am.

Risks to Weigh In

The company identifies several uncertainties in its own address. Tungsten prices and Supply can change quickly and affected both margins and a major customer's ordering in FY26. Revenue concentration in two OEM customers has contributed to year-to-year variation. The new coatings and the Yatala start-up depend on delivery to stated timelines, and terms for Metal 7 projects are yet to be agreed.

Catalysts on Watch

The address lists several milestones. Further licensing contracts are expected to be signed during FY27, following the second Komatsu agreement. X-Clad orders are expected to keep building. The release of new coatings is expected in early 2027, and production at Yatala is scheduled to begin in the final quarter of FY27. Management expects Metal 7 to become a major OEM customer within one to two years.

Putting It Together

Laserbond shares were up 8.33% at $0.585 during the 22 October 2026 session while both major indices were lower. The AGM addresses, dated the same day, set out FY26 revenue of $48.2 million, a second Komatsu licence, the Metal 7 collaboration and a timetable for Yatala and new coatings.