After a turnaround in 2H25 it was pleasing to see LBL maintain that momentum into 1H26. The headline numbers were strong (revenue up 13%, NPAT up 117%) though benefited from a weak comparable period. Operationally the core Services segment saw gross margins expand massively to 58% from 51% last year, while Products saw strong revenue recovery (up 34%) but gross margins took a hit as it is more exposed to the volatile tungsten price as a key input.

Beyond a solid 1H result though, it is the near term outlook that should have investors excited. Credit to new LBL management, I thought they summed it up well in their result presentation:

On the call management said a key focus is the delivery of the Technology unit to Komatsu in their Perth facility. They didn't want to get dragged into overly bullish forecasts, but they did confirm that if delivery and testing is successful there is the potential to roll out more units to Komatsu globally.

Beyond FY26 the new X-Clad product is due for commercial release late in the year and Gateway is growing strongly though profits are muted as they re-invest capital back into the business for growth.

I still think LBL can hit the $6-7m NPAT I am forecasting for FY26, the trading multiple remains low but I can't help but feel in a market where investors are looking outside of tech/growth, LBL emerging from a capex/investment cycle and trading on10-11x forward earnings will start looking very attractive.