Tekna reports strong growth in revenues and profitability in Q3 2023
The company generated total revenue of CAD 9.1 million (about 6.5 million USD)
Tekna Holding ASA, a provider of advanced materials to industry, generated total revenue of CAD 9.1 million (about 6.5 million USD) in Q3 2023, an increase of 53% compared to the third quarter of 2022. Sales growth in the quarter was driven by a 121% increase in Systems and a 25% in Advanced Materials.
Year-to-date revenues are up 47%. The adjusted EBITDA in the third quarter of 2023 improved year-on-year by CAD 2.2 million to CAD -1.7 million. The adjusted EBITDA improvement is resulting from an increase in revenues and improved contribution margin showing clear effects of organizational efficiency and cost control measures. Year-to-date the EBITDA is improved by CAD 6.3 million.
“Once again we deliver strong growth in quarterly revenues. Revenues are up more than 50% from last year, driven by strong growth in both the Systems and Materials business lines. I am also very pleased that the EBITDA was again significantly improved from last year. We experience a continued strong interest in the market where leading customers are approaching the industrial manufacturing phase,” said Luc Dionne, CEO of Tekna Holding ASA.
Order intake for Tekna in Q3 2023 was CAD 10.4 million in the quarter, up from 6.5 million in Q2. The total order backlog was CAD 23.7 million, supporting the previous guidance of revenue growth for 2023 in both Materials and Systems.
Tekna enjoys a 9% market share in metal AM materials and is growing in a global market where additive manufacturing is on track to outperform traditional machining. With over five years of commercial experience and a 54% compound annual growth rate the company attained millions in revenues from vertical in 2020 and secured qualification and sales with the majority of aerospace original equipment manufacturers.
One of the orders received in the quarter is a significant order valued at CAD 2.9 million for titanium powder for the manufacturing, at scale, of consumer electronic components by metal injection molding. The order will be supplied from material readily available in inventory, improving the company’s cash position. It plays an important role in Tekna’s strategy to secure sales of the entire production capacity and aligns with the company’s ambitious growth objectives.
“We are reiterating our guidance of a substantial improvement in margins in 2023 compared to 2022, supported by the strong order backlog, increased production capacity and organizational efficiency,” said Mr. Dionne.
