Today’s in-line results headline with strong sales traction from new printhead products (+24%Y/Y) vs the decline in legacy Ceramics and EPS weakness. New product revenue has had a 26% CAGR since 2019, but this progress has been masked by the cyclical deterioration in the ceramics market. New products now account for 58% of H1 sales, and consequently the investment case pivots to growth and commercialising new products, as well as navigating legacy markets. The efficiency programme (Hubble) has delivered impressively; OpEx -24% Y/Y and the strengthened balance sheet are testimony to management as good custodians of shareholder funds. Xaar reiterates FY guidance. Notwithstanding H2 execution risk, we make no forecast changes. Trading on 1.1x EV/Sales 2024E, a sharp discount to the tech sector (2.9x), the risks appear more than ‘priced in’. When the macro improves, operational tailwinds will return, and until that point, this team is delivering on the transition.