NX Filtration (NXFIL) H2 2024 earnings summary

Executive summary

• Revenue for 2024 reached €11.1 million, a 38% increase year-over-year, driven by repeat projects, new OEM partnerships, and both Clean Municipal Water and Sustainable Industrial Water business lines.

• Secured the largest order to date for a 17 million liters/day water treatment plant in Mexico.

• B Corp certification achieved, reinforcing ESG leadership and sustainability commitments.

• New large-scale factory in the Netherlands started up as planned, supporting future growth and operational efficiency.

• Leadership strengthened with new CEO and CFO appointments effective in H2 2024.

Financial highlights

• Gross margin improved to 61.0% in 2024 from 59.6% in 2023, reflecting strong technology positioning and operational efficiency.

• EBITDA loss increased to €15.7 million from €11.9 million, mainly due to investments in organizational growth and factory startup costs.

• Net loss was €23.1 million, nearly flat year-over-year, with 2023 impacted by a one-off deferred tax derecognition.

• Capex totaled €25.9 million, mainly for the new factory, down from €43.9 million in 2023.

• Cash position at year-end was €53.4 million, supported by a €50 million debt and equity package secured in March 2024.

Outlook and guidance

• Revenue growth for 2025 is expected in the range of 50%-70%, based on a robust OEM pipeline, repeat projects, and new factory capacity.

• Gross margin sustainability depends on product mix and project size, with competitive pricing expected for larger projects.

• OpEx growth will be moderate in 2025, with limited one-off costs related to the final production transfer.

• Capital Markets Day scheduled for April 8, 2025, to provide further strategic updates.

• Inventory levels are targeted for reduction as operational efficiencies increase post-factory consolidation.