Freemelt (FREEM) Q1 2025 earnings summary

Executive summary

• Q1 2025 focused on revenue streams, business model evolution, and new shareholder interests, with core E-PBF 3D printing technology targeting defense, energy, and medtech sectors.

• Rights issue raised SEK 90 million, with potential for SEK 53 million more via warrants in 2026, strengthening financial position.

• Record-high order book of SEK 19.3 million at quarter end, up from SEK 3 million year-over-year, driven by new project and machine orders.

• Strategic progress in defense and energy, including new orders from Saab Dynamics, UKAEA, and expanded collaborations in fusion energy and MedTech.

• Customer base expanding from academia to industry, with new industrial machine (eMELT) launched and feasibility studies underway.

Financial highlights

• Q1 2025 net sales were SEK 2.9 million, mainly from projects and aftermarket; no machine deliveries occurred in the quarter.

• Net sales for Q1 2025 were SEK 2,926k, up from SEK 816k in Q1 2024.

• Operating result was SEK -24,084k (Q1 2024: SEK -23,439k); result after financial items SEK -24,056k.

• Cash at bank at period end was SEK 71,822k (Q1 2024: SEK 17,460k), with cash flow for the period at SEK 55,355k, mainly due to the rights issue.

• Record high order book at SEK 19.3 million, primarily composed of machine orders.

Outlook and guidance

• Strong demand expected to continue in defense and energy, supported by geopolitical trends and EU defense ramp-up.

• Focus remains on advancing additive manufacturing in defense, energy, and MedTech sectors, with ongoing collaborations and feasibility studies positioning for future serial production contracts.

• Anticipates further growth in order book and conversion to sales as projects and machine deliveries progress.

• Market trends in fusion energy and MedTech expected to drive demand.