Norsk Titanium (NTI) H1 2024 earnings summary

Executive summary

• Achieved major commercial milestones, including long-term supply agreements with Airbus and Boeing, and first serial production order for the US Department of Defense; expanded recurring orders in the semiconductor industry.

• Serial production parts increased from 8 to 28 year-over-year, tripling annual recurring revenue to $11 million.

• Raised $46.1 million in gross proceeds, strengthening financial position and fully funding business plan through break-even, with strong investor support.

• Focused on scaling production, cost efficiencies, and accelerating customer adoption to meet ambitious growth targets.

• Transitioned 15 new part numbers into serial production, doubling the total to 26 by end of H1 2024.

Financial highlights

• H1 2024 revenue grew to $1.3 million from $0.9 million year-over-year; serial production revenue rose to $0.9 million.

• EBITDA loss was $12.1 million, similar to prior year; net loss increased to $27 million, mainly due to a $14–$20.5 million warrant-related expense.

• Cash position improved from $1.2 million at start of year to $23.9 million at end of first half.

• Cash burn increased to $2.3 million per month, in line with production ramp-up.

• Operating expenses rose to $13.4 million, driven by higher raw material costs.

Outlook and guidance

• Targeting 60 parts in serial production by year-end 2024, with $10–$12 million in full-year production revenue.

• $50 million annual recurring revenue expected in Q1 2025, with 60 parts in production.

• Break-even revenue projected at $70–$80 million by end of 2025; positive EBITDA and gross margin targets for 2026.

• 2026 guidance: 120 parts in production, $120–$160 million revenue, 30% EBITDA margin, and 50% gross margin.

• Revised 2024 revenue forecast to $10–12 million (from $15 million) due to delays in contract negotiations and product development.