Fathom FY 2021 revenue results show real potential of AM

Wisconsin-based Fathom has been driving the use of AM from prototyping to tooling to production for three decades. The company is now one of the largest on-demand digital manufacturing platforms in North America, serving the comprehensive product development and low- to mid-volume manufacturing needs of the largest and most innovative companies in the world. The best part is that Fathom is now a public company and that means we get to know exactly how much the company makes and how much of that is AM-related. Spoiler: Fathom FY 2021 revenue was $152 million in 2021 and AM was worth about $17 million (12%). The odd part is that, in FY 2020, AM represented an even (much) higher percentage of revenues. But we’ll get to that.

Fathom is now part of CORE Industrial Partners, a Chicago-based private equity firm focused on investing in lower middle-market manufacturing, industrial technology, and industrial service companies. CORE completed the initial listing on the New York Stock Exchange for Fathom Digital Manufacturing Corp. (“Fathom”) through a business combination with Altimar Acquisition Corp. II (“Altimar”), a special purpose acquisition company. Fathom now trades under the FATH ticker and last April 20th the company even got to ring the NYSE bell.

With more than 25 unique manufacturing processes and a US footprint with nearly 450,000 square feet of manufacturing capacity across 12 facilities, Fathom can blend in-house capabilities across many different state of the art plastic and metal additive technologies, CNC machining, injection molding & tooling, sheet metal fabrication, and design and engineering. With over 35 years of industry experience, Fathom is at the forefront of the Industry 4.0 digital manufacturing revolution serving clients in the technology, defense, aerospace, medical, automotive and IOT sectors.

As we were saying at the beginning of this article, Fathom reported revenues of $152 million in FY 2021 (closed last March) and will soon report its Q1 2022 results. The report said that the company grew by an impressive 150% in FY 2021, from $61 million in FY 2020. It also may appear paradoxical, but AM remained rather stable with other advanced manufacturing technologies like CNC and precision sheet metal growing four- and five-fold. The apparent reason for this is that as supply chains have been disrupted driving increased reshoring efforts, more established technologies such a CNC and sheet metal have proven better suited to immediately provide solutions than AM technologies have.

The good news for AM is that 12% of overall revenues is an excellent perspective for advanced manufacturing service providers and one that can be achieved. Today, for most such companies, AM still represents a much smaller percentage of revenues.

For the full year 2022, Fathom expects reported revenue to range between $182 million and $192 million, representing a year-over-year increase of approximately 23% at the midpoint. The company also expects Adjusted EBITDA to range between $40 million and $45 million, representing a year-over-year increase of approximately 26% at the midpoint and an implied Adjusted EBITDA margin of 22.0% to 23.4%. This outlook, as of March 4, 2022, reflects management’s current projections and excludes the impact of any potential new acquisitions. On May 16th we will get a first view of how much AM will help to drive this organic growth.

If you are interested in working with the company on manufacturing projects, Fathom’s certifications include ITAR Registered (Denver, Hartland, Ithaca, Newark, Oakland, Tempe), ISO 9001:2015 Design Certified (Elk Grove, Miami Lakes, Oakland), ISO 9001:2015 (Denver, Hartland, Newark, Pflugerville, Round Rock, Tempe), ISO 13485:2016 (Miami Lakes, Round Rock), AS9100:2016 (Hartland, Newark, Pflugerville, Tempe), and NIST 800-171 (Oakland, Tempe).