Titomic (TTT) H2 2024 earnings summary

Executive summary

• Achieved foundational growth in FY2024, focusing on high-pressure cold spray technology for advanced metal component manufacturing and repair solutions, with significant progress in project execution and a record order backlog entering FY2025.

• Commercial strategy targets becoming a preferred supplier for aerospace and defense primes, expanding adoption of coating and repair systems across industries.

• Multiple revenue streams established: part production, machine sales, powder sales, service, and consultancy.

• Strategic focus on expanding manufacturing and service capabilities in the U.S. and Europe, including a new 3,000 sqm facility in Holland operational in early 2025.

• Key customers include Sabanci University, Triton Systems, OMIC R&D, Repkon, French Navy, Airbus, Volvo, and Royal Netherlands Army.

Financial highlights

• FY2024 revenue from customers rose 126% to $5.9m, with total revenue up 71% to $7.7m year-over-year.

• Orders totaling over AUD 11.5 million in the last 14 months, with AUD 8 million in the most recent six months.

• Loss after tax improved to $(12.9)m from $(15.7)m in FY2023, with nearly half being non-cash items.

• Operational cash outflows reduced from AUD 10.7 million in FY2023 to AUD 6.2 million in FY2024; cash at year-end was $2.7m, up from $1.5m.

• FY2024 cash receipts from customers totaled $6.3m, up from $3.6m in FY2023; Q1FY2025 underpinned by $2.6m in July/August cash receipts.

Outlook and guidance

• Strong sales pipeline and order growth expected to drive increased revenue and cash flow in FY2025, with unprecedented demand and strong order book.

• Focus on closing the gap to operational cash flow break-even, with further improvement expected in FY2025 and strict cost discipline.

• Fully funded for FY2025, with no immediate need for capital raising.

• Expansion plans in the Netherlands and U.S. to support growth and localize production.

• Anticipates growth in lease model for cold spray systems as corporates shift to OPEX solutions.