Tekna Holding (TEKNA) Q2 2025 earnings summary

Executive summary

• Materials business area saw strong order intake and backlog growth, with record H1 2025 orders and increased defense sector activity.

• Systems business remains volatile but showed improved order intake in Q2, with a maturing pipeline and new product launches planned.

• CEO prioritizes transition to cost-efficient manufacturing, margin management, and operational excellence to achieve sustainable profitability.

• Cost-saving measures implemented, targeting CAD 1 million in H2 2025 savings.

Financial highlights

• Q2 2025 revenue declined 20% YoY to CAD 9.0m; Materials down 15%, Systems down 29%.

• Adjusted EBITDA for Q2 was CAD -2.0m, down CAD 0.5m YoY, with a negative FX impact of CAD 0.7m.

• Contribution margin improved YoY from 42% to 45%, driven by better product mix in Materials.

• Cash flow from operations was positive at CAD 0.4m in Q2; free cash flow was CAD 0.1m.

• Net loss for Q2 was CAD -3.9m; basic and diluted EPS at -0.03.

Outlook and guidance

• Strong Materials order intake supports a cautiously positive outlook for H2 2025.

• U.S. tariffs and geopolitical risks create short-term uncertainty but are expected to drive reshoring and long-term demand.

• Capex for 2025 expected at CAD 1.5m, significantly lower than 2024, with further cost reductions planned.

• Targeting powder qualification in Microelectronics (MLCC) by 2026 due to industry delays.