NanoXplore (GRA) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 sales of CAD 38.1 million, up 14% year-over-year, and full-year sales of CAD 101.3 million, driven by higher product volumes and tooling revenue.

• Advanced Materials, Plastics, and Composite Products segment drove all revenue growth and delivered CAD 5.2 million adjusted EBITDA, a significant year-over-year improvement.

• Gross margin reached a record 23.6% in Q4, with full-year average margin at 21.1%, reflecting manufacturing efficiencies and increased graphene-enhanced product sales.

• VoltaXplore gigafactory project postponed due to unfavorable EV battery market; focus shifted to silicon graphene material R&D, supported by government grants.

• Management highlights successful execution of expansion and margin improvement plans, with continued customer base growth.

Financial highlights

• Q4 adjusted EBITDA (excluding VoltaXplore) was CAD 3.3 million; consolidated Q4 adjusted EBITDA was CAD 2.6 million.

• Battery Cells segment (VoltaXplore) posted a Q4 loss of CAD 820,000, higher than last year due to pre-engineering expenses.

• Cash and equivalents at quarter-end were CAD 26.5 million, with total liquidity of CAD 36.5 million.

• Net loss for Q4 was CAD 2.4 million; full-year net loss narrowed to CAD 11.7 million.

• Long-term debt reduced by CAD 1.5 million year-over-year.

Outlook and guidance

• Expect continued sales and gross margin growth in fiscal 2025, with margin expansion of 100–200 basis points for the year.

• Tooling revenues to remain elevated into fiscal 2025, with parts revenue increasing as new programs start production.

• Ongoing execution of a five-year strategic plan, with focus on innovation and manufacturing expansion.

• Guidance for top-line growth to be provided at the end of Q1 2025.