Tekna Holding (TEKNA) Q3 2025 earnings summary

Executive summary

• Achieved first profitable and EBITDA-positive quarter since IPO, driven by strong materials performance and cost reductions.

• Q3 revenues grew 9% year-over-year to CAD 8.3 million, with materials revenue up 28% and systems revenue down 37% due to a low backlog.

• Record backlog and materials order intake, with a 78% YoY surge and significant growth in aerospace and defense.

• Announced a strategic partnership to supply advanced materials for over 50,000 satellite components, supporting aerospace growth.

• Launched a fully underwritten rights issue and refinancing plan to strengthen the balance sheet and fund growth.

Financial highlights

• Q3 adjusted EBITDA reached CAD 0.5 million (5.6% margin), a CAD 1.9 million improvement YoY.

• Contribution margin increased from 45% to 58% YoY, driven by the materials segment.

• Free cash flow for the quarter was CAD -0.5 million, but improved by CAD 10.1 million TTM YoY.

• Net loss for Q3 was CAD -0.9 million, a significant improvement from CAD -3.7 million in Q3 2024.

• Cash position at quarter-end was CAD 7.2 million, with pro-forma liquidity of CAD 27 million post-refinancing.

Outlook and guidance

• Targeting double-digit annual revenue growth and 15–20% EBITDA margin by 2030, mainly from materials for additive manufacturing.

• AM market expected to grow at 18–20% CAGR through 2029; materials to be main revenue driver.

• Capex for 2025 expected at CAD 1.5 million, with focus on cost control and working capital reduction.

• Rights issue to repay shareholder loan and increase cash, boosting equity ratio from 28% to 77%.

• Cautiously positive outlook for the rest of the year and early next year, supported by record backlog and strong order intake.