Tekna Holding (TEKNA) Q4 2024 earnings summary

Executive summary

• Q4 revenue declined 15% year-over-year to CAD 9.6 million, mainly due to lower systems revenue, while advanced materials grew 14% to CAD 7.5 million.

• Full-year 2024 revenue was CAD 37.2 million, down 9% from 2023, with advanced materials up 3% and systems revenue down significantly.

• Advanced materials sales grew 25–30% across all sectors except 3D printer manufacturers, which were impacted by high interest rates.

• The company operates two business lines: plasma systems (30% of revenue) and advanced materials (70%).

• Financial strength improved with a stronger cash position and better cash flow from operations year-over-year.

Financial highlights

• Adjusted EBITDA for Q4 was negative CAD 1.5 million; full-year EBITDA declined 2.8% year-over-year.

• Adjusted EBITDA decreased by CAD 2.8 million over 2023, mainly due to lower systems revenues.

• Operating cash flow improved by CAD 10.4 million in 2024 versus 2023, driven by a CAD 5.1 million reduction in working capital.

• Cash balance at year-end was CAD 12.4 million, up CAD 4.8 million from the previous quarter, including CAD 2.9 million from a litigation win.

• CapEx for 2024 was CAD 2.2 million, excluding IFRS 16 leases.

Outlook and guidance

• Expecting higher revenue and improved EBITDA in 2025, with CapEx planned at CAD 2.5 million.

• Margin improvement anticipated in both systems and materials segments for 2025.

• Targeting CAD 40–70 million in revenue by 2027, leveraging existing equipment and productivity gains.

• Economic drivers such as increased demand for 3D printing materials, medical implants, and electronics support positive outlook.

• Systems revenue expected to rebound in 2025, with potential large PlasmaSonic system orders.