Tekna Holding (TEKNA) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenues reached CAD 11.2 million, up 1.9% year-over-year and 30% sequentially from Q1, with Additive Manufacturing materials hitting a record CAD 7.8 million.

• Adjusted EBITDA for Q2 was -CAD 1.5 million, improved sequentially but down year-over-year, impacted by one-off costs and absence of JV service income.

• The company is executing a profitability program targeting CAD 2 million in adjusted EBITDA savings in 2024, focusing on cost reduction and sales mix optimization.

• Order intake for Advanced Materials rose 22% and backlog increased 28% year-over-year, while Plasma Systems order intake and backlog declined due to large prior deliveries.

• Full-year guidance for growth and margin improvement is maintained, with a positive long-term outlook.

Financial highlights

• Q2 2024 revenues: CAD 11.2 million (+1.9% YoY); trailing twelve-month revenue: CAD 40.3 million.

• Adjusted EBITDA for Q2: -CAD 1.5 million; H1 2024: -CAD 4.1 million.

• Net cash from operating activities in Q2 was negative CAD 0.5 million, aided by a CAD 2.9 million working capital reduction.

• Q2 capital expenditures were CAD 0.9 million; full-year CapEx guidance reduced to CAD 4 million.

• Cash balance at June 30, 2024, was CAD 9.3 million, down CAD 0.7 million from the previous quarter.

Outlook and guidance

• Pipeline for systems projects remains strong, with CAD 2 million in new orders in July and August and a positive mid-term outlook.

• Advanced Materials segment expected to slow in Q3 due to seasonality but targets year-over-year growth.

• Cost-saving program expected to contribute CAD 2 million in adjusted EBITDA in H2 2024, with full effect in Q4.

• Long-term target: CAD 70 million in Advanced Materials revenue by 2027 with limited CapEx.

• Additive manufacturing market forecasted to grow 25–30% annually, supporting growth ambitions.