Nanosonics Earnings: Strong Performance in Higher-Margin Consumables

As we expected, narrow-moat Nanosonics’ interim fiscal 2025 sales rose 4% sequentially on the second half of last year to AUD 94 million. This was driven by consumables revenue growth of 10%, more than offsetting an 8% decline in capital sales. In addition to improved ultrasound procedure volumes, management spoke to cross-selling other consumable products used in the reprocessing workflow such as wipes and covers. We increase our fair value estimate by 2% to AUD 4.30, largely due to slightly higher forecast consumables revenue in North America, though our long-term estimates are largely unchanged. We forecast EBIT to grow at a five-year CAGR of 53% to AUD 72 million by fiscal 2029.