Freemelt (FREEM) Q3 2024 earnings summary

Executive summary

• Achieved first industrial eMELT/e-MELT® installation in Italy, marking a transition to industrial applications and serial production, and secured a major order from a global orthopedic implant OEM for proof-of-concept serial production.

• Focused on scaling advanced 3D metal printing for defense, energy, and medtech sectors using E-PBF technology, with a strategic goal of SEK 1 billion revenue by 2030 and increasing aftermarket share to 25% by then.

• Expanded industrial exposure through strategic partnerships, a U.S. application center with Hamr Industries, and membership in Georgia Tech Manufacturing 4.0 Consortium.

• Increased paid feasibility studies from 3 in 2023 to 20 in 2024, with 11 ongoing and 10 completed, reflecting growing demand and market traction.

• Installed 28 printers at prestigious institutions and industrial manufacturers, with a growing pipeline of feasibility and proof-of-concept projects.

Financial highlights

• Q3 2024 net sales were 8,650 KSEK, up from 8,152 KSEK in Q3 2023, with 86% of sales from machine deliveries.

• Two machines delivered in Q3: one to the University of North Texas and one to the University of Birmingham.

• Order book reached nearly SEK 12 million at quarter end, more than double the previous year, with 80% related to machine sales.

• Operating result for Q3 2024 was -18,157 KSEK; result after financial items was -17,972 KSEK.

• Cash flow for Q3 2024 was -21,330 KSEK; end of period cash at bank was 25,797 KSEK.

Outlook and guidance

• Long-term target to reach SEK 1 billion in revenue by 2030, with 25% from recurring aftermarket services.

• Anticipates continued growth in feasibility studies and proof-of-concept projects, with 25–30% of completed studies expected to advance to the next phase.

• Expects potential for eMELT serial production machine orders by late 2025, especially in non-regulatory sectors.

• Strategy focuses on a capital-light model, outsourcing production, and expanding in defense, energy, and medical technology markets.

• Sees strong demand tailwinds in defense, energy, and medtech due to geopolitical shifts and demographic trends.