Freemelt (FREEM) Q3 2024 earnings summary

Executive summary

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

• Increased paid feasibility studies to 17 in 2024, up from 3 in 2023, reflecting growing market engagement and demand for additive manufacturing solutions.

• Expanded industrial exposure through strategic partnerships, new feasibility studies, and a strong presence in defense, energy (especially fusion reactors), and medtech sectors in Europe and North America.

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

• Established a U.S. application center in collaboration with Hamr Industries to drive adoption in defense and energy applications.

Financial highlights

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

• Two machines delivered in the quarter: 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.

• No external financial debt; equity ratio at 92%.

Outlook and guidance

• Long-term target of SEK 1 billion in revenue by 2030, with 25% recurring revenue from aftermarket, aiming for over 40% in the long run.

• 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 sales in late 2025 as proof of concept projects mature, especially in orthopedic and tungsten applications.

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