--- title: "Lower Q3 2024 Tekna revenues due to reduced Plasma Systems demand" url: https://www.voxelmatters.com/lower-q3-2024-tekna-revenues-due-to-reduced-plasma-systems-demand/ date: 2024-11-08 modified: 2024-11-08 lang: en author: "Davide Sher" description: "Tekna (Tekna, OSE: TEKNA), a provider of advanced and additive materials, reported Q3 2024 revenue of CAD 7.6 million, down 16% from Q3 2023 revenue of CAD 9.1 million. Despite..." categories: - "3D Printing Processes" - "Advanced Materials" - "AM Industry Analysis and Market Data" - "AM Powders" - "Financial Reports" - "Materials" - "Metals" - "Money & Funding" tags: - "insights" image: https://www.voxelmatters.com/wp-content/uploads/2024/04/Tekna-Materiaux-Avances-2-640x383.jpg word_count: 796 --- # Lower Q3 2024 Tekna revenues due to reduced Plasma Systems demand [Tekna (Tekna, OSE: TEKNA), a provider of advanced and additive materials](https://www.voxelmatters.directory/company/tekna/), reported Q3 2024 revenue of CAD 7.6 million, down 16% from Q3 2023 revenue of CAD 9.1 million. Despite industry-wide volatility and seasonal challenges, the company pointed out that it delivered strong operational improvements and demonstrated resilience across its business lines, in particular, its AM material business continued to be driven by growing demand in medical and aerospace, in spite of slowing demand from 3D printer hardware OEMs. Other indicators include progress in profitability, including a year-over-year (“YoY”) increase in contribution margin to 46% (up from 38% in Q3 2023), and a narrowing of adjusted EBITDA loss to CAD 1.4 million from CAD 1.7 million. These results reflect the company’s continued focus on cost control, operational streamlining, and driving growth in its core sectors of advanced materials and plasma systems. “We are encouraged by the progress we’ve made in a challenging market environment,” said Luc Dionne, CEO of Tekna. “Our strategy to increase efficiency, focus on high-margin product sales, and address customer needs in key high-growth industries such as aerospace, medical, and consumer electronics position us well for the future. Our aim remains profitable growth.” ![Learn about Q3 2024 revenue at Tekna, with CAD 7.6 million in sales and a good performance in the AM material business for medical and aerospace](https://www.voxelmatters.com/wp-content/uploads/2023/05/product-tekna__titanium.jpg) Tekna Advanced Materials reported revenues of CAD 5.5 million in Q3 2024, an increase of 5% compared to the same quarter last year, remaining steady at CAD 19.0 million year-to-date. The contribution margin closed at 33%, up 9 percentage points year-over-year. The order intake totaled CAD 2.9 million in the period and the backlog stands at CAD 11.5 million at the end of the quarter. “As previously guided, the quarter was affected by lower activity due to summer vacation as well as continued lower demand from one specific customer segment, the 3D printer manufacturers. Revenues from the other main customer segments medical and aerospace were higher than last year, confirming our view that Tekna is maintaining its solid market position,” said Luc Dionne. Tekna's production efficiency also improved, with metal powder production up 39% year-to-date compared to 2023. This increase was driven by enhancements in Overall Equipment Effectiveness (OEE) and the addition of new production systems, which have positioned the company to meet increasing customer demand and rapidly respond to spot opportunities. Tekna remains focused on managing its liquidity, with a careful approach to cash flow and working capital. Net working capital improved by CAD 1.1 million since Q2 and capital expenditures remain tightly controlled, with spending expected to be a total of approximately CAD 2.5 million for the full year (excluding IFRS 16). The cash balance at the end of the quarter was CAD 7.6 million. ![Learn about Q3 2024 revenue at Tekna, with CAD 7.6 million in sales and a good performance in the AM material business for medical and aerospace](https://www.voxelmatters.com/wp-content/uploads/2022/06/Tekna-Uniformity-Labs.jpg) After a few weeks into the fourth quarter, the order book for Advanced Materials is showing signs of recovery – an indication that the growth in demand is picking up again. The pipeline for new orders for Plasma Systems is strong, but the timing of these orders is somewhat uncertain due to delays in the execution of the customer’s project. In addition to increased revenues, the ongoing profitability improvement program will have a significant effect on the EBITDA going forward. The cash preservation measures will also continue to have a positive effect on cash flow. In Plasma Systems, Tekna faced a 43% year-over-year decline in revenues to CAD 2.2 million in Q3 2024, compared to CAD 3.8 million in Q3 2023. This was driven by a 51% reduction in order backlog, as slower order intake and delays in project execution impacted revenue recognition. However, the contribution margin improved significantly, rising by 19 percentage points to 76%. Order intake for Plasma Systems was CAD 2.9 million for Q3 2024, up slightly from CAD 2.8 million in Q3 2023. Despite delays in the sales cycle, Tekna remains confident in the long-term prospects for Plasma Systems, particularly in aerospace, space technologies, and hypersonic flight applications. The company currently has a Plasma Systems pipeline valued at over CAD 300 million, with an expected CAD 35 million worth of orders over the next three years. Tekna anticipates that customer demand in these high-growth sectors will drive future revenue growth, with a potential PlasmaSonic order expected in 2025. In Microelectronics (MLCC), Tekna continues to develop its nanomaterials while maintaining close relations with its potential customers. Recent validation tests conducted on samples delivered have yielded promising outcomes. Tekna will deliver an adjusted version of the product in the fourth quarter with feedback expected early next year. Tekna’s technology and products are well-positioned in a global market characterized by geopolitical uncertainty, economic instability, and an increasing emphasis on sustainable production. Additive manufacturing remains Tekna’s core business focus, with the market projected to grow by more than 20% annually. “While we continue to manage the short-term challenges in some of our businesses, we are positioned for long-term profitable growth,” said Luc Dionne.