I-Tech (ITECH) investor relations material

Executive summary

• Achieved third strongest quarter ever, with 10% organic sales growth year-over-year and stable upward trend in volumes and sales, despite currency and customer-specific headwinds.

• Q3 marked the third-best quarter on record for volume, with notable growth among key customers and new partnership discussions underway.

• Hosted the International Antifouling Conference, reinforcing leadership in sustainable marine coatings and fostering industry collaboration.

• Regulatory uncertainty persists regarding EU re-registration of Selektope, with significant advocacy costs incurred and clarity expected before year-end.

Financial highlights

• Net sales increased by 0.5% year-over-year to SEK 40,964k; organic growth was 10% with even higher volume growth.

• Gross margin improved to 57% from 52% year-over-year; EBITDA margin was 32%.

• Operating profit increased 18% to SEK 11,093k, with a net profit margin of 23%.

• Operating cash flow reached SEK 23,185k, up 121% year-over-year, resulting in a robust cash position of SEK 135,734k.

• Significant external costs of SEK 2–2.5 million this quarter related to EU regulatory processes, above the usual SEK 1.5 million run rate.

Outlook and guidance

• Continued positive market outlook, with improved sentiment in the tanker segment and less turbulence post-summer.

• Ongoing currency headwinds and market volatility are noted, but further gross margin improvements are expected as cost actions are fully implemented.

• New product launches, strategic partnerships, and margin improvement measures are anticipated to drive future growth, with several projects close to market introduction.

• Strategic uncertainties persist due to geopolitical factors and decarbonization pace.

• No specific guidance on matching previous record quarters due to customer-specific volume reductions.