Company Interview / Nanosonics's growth pipeline in a troubled trade environment

Key points:

Constant currency lens indicates stronger revenue and EBIT performanceTrophon franchise in North America underpins profitability and upgrade-driven growthTariffs and freight costs expected to weigh on margins despite solid outlook

Michael Kavanagh, CEO of Nanosonics (ASX:NAN) outlines a mixed FY26 result, with reported revenue rising 2.7% to $203.9 million while net profit declines almost 14% to $17.8 million. Kavanagh states that constant currency provides a better lens, suggesting revenue would be up 6% to $211.5 million and EBIT up 21% to $21.6 million. He highlights a strong balance sheet with about $155 million in cash and no debt, and points to the core Trophon franchise as the key profitability engine funding new products.

Kavanagh notes that the Trophon business generates EBIT of more than $56 million on a constant currency basis, supported by an expanding installed base in North America and a strong upgrade cycle to Trophon 3 and Trophon 2 Plus. Around 34,000 devices are in operation globally, with about 8,000 first-generation units still to be upgraded. He expects continued growth in upgrades after 32% growth in the US this year.

Looking ahead, Kavanagh positions Coris, an automated endoscope reprocessing solution, as the next growth leg. Initial launches are set for the UK, Ireland and Australia, followed by the US. He points to tariff increases, higher freight and oil prices as margin headwinds, while guiding to constant currency revenue growth of 8–12% and gross margins of 74–76%.