Freemelt (FREEM) Q1 2026 earnings summary

Executive summary

• Revenue more than doubled year-over-year in Q1, up 116%, driven by conversion of prior orders, strategic customer projects, and high activity in customer collaborations, with one machine order received and 41 machines sold since inception.

• Strengthened position in E-PBF technology and fusion energy, with new and repeat customers, and ongoing transition from research to industrial applications in fusion and defense.

• Closed Q1 with seven active customer projects across multiple application areas, reducing dependence on any single vertical.

• Important MoU signed with Novatron Fusion Group and project order from UK Atomic Energy Authority.

• Healthy sales pipeline and positive start to Q2 with two new orders, including a follow-on from a leading defense customer and post-period order from Sirris.

Financial highlights

• Q1 net sales reached SEK 6.33 million, up 116% year-over-year from 2.93 million.

• Last 12-month revenue stands at SEK 58 million, reflecting strong underlying growth.

• Gross margin for the quarter was 57%, attributed to a favorable sales mix with higher aftermarket and project revenue.

• Operating result was -26.48 million SEK, a 10% decline year-over-year.

• Cash at bank at quarter end was SEK 27.43 million, down from SEK 32 million at year end.

Outlook and guidance

• Focus remains on growing order intake and moving customers toward longer-term commercial commitments, with ambition to accelerate transition from development to industrial application.

• The hybrid business model, combining machine sales and component manufacturing services, is seen as key to sustainable scaling.

• The company expects the aftermarket segment to grow as serial production and repeat orders increase.

• TO1 warrants, if exercised, will strengthen financial flexibility and support journey toward positive EBITDA.

• U.S. market shows slight improvement in stability, especially in academia, but remains uncertain.