Freemelt (FREEM) Q2 2024 earnings summary

Executive summary

• Q2 2024 saw high activity in commercial and technical development, including the first eMELT industrial machine installation and increased engagement in defense, fusion, and tungsten applications.

• Net sales for Q2 2024 were 2,410 KSEK, down from 5,540 KSEK in Q2 2023, with two machines delivered during the quarter.

• Strategic collaborations and feasibility studies ramped up, especially in the U.S. and Europe, with a focus on defense and energy sectors.

• The company is leveraging partnerships to address capacity constraints and meet growing demand.

• Accelerated demand in Defense, Energy, and MedTech sectors, focusing on tungsten, copper, and titanium applications.

Financial highlights

• Net sales for Q2 were 2,410 KSEK, with two machine deliveries at lower values than typical.

• Aftermarket recurring revenues increased year-over-year, reflecting a growing installed base.

• Order book stood at 9,473 KSEK at quarter-end, rebounding from a Q1 slump.

• Operating cash flow was SEK -11 million, impacted by higher inventory and receivables.

• Cash at period end was 47,179 KSEK, supported by a rights issue.

Outlook and guidance

• Long sales cycles (12–18 months) are expected as customers transition from traditional to additive manufacturing.

• Ahead of 2030 plan due to accelerated customer demand for feasibility studies and application development.

• Increased commercial focus and a stronger U.S. team are expected to accelerate order conversion.

• No specific forecasts provided, but management anticipates harvesting more orders as the pipeline matures.

• Strategic partnerships and increased capacity to address urgent demand from industrial manufacturing companies.