Impact Coatings (IMPC) Q1 2025 earnings summary

Executive summary

• Q1 saw a cautious hydrogen market with delayed investment decisions, but structural demand drivers and technical advancements remain intact, supporting a positive long-term outlook.

• Net sales for Q1 2025 increased to SEK 9.5 million from SEK 4.0 million year-over-year, with total revenue at SEK 19.7 million versus SEK 7.5 million.

• Shift from pilot projects to mature, scalable solutions is evident, with fewer but more serious players in the market.

• Selected as preferred supplier by Feintool + SITEC and received a Letter of Intent from FTXT for continued fuel cell coating services in China.

• Strategic focus on converting sampling customers to recurring or machine customers, with systems in inventory to enable fast delivery.

Financial highlights

• Q1 net sales reached SEK 9.5 million, up from SEK 4.1 million in Q1 last year, with total revenue at SEK 19.7 million.

• Operating loss for Q1 2025 was SEK -14.2 million, an improvement from SEK -15.9 million in Q1 2024.

• Gross margin was 52% for the quarter, improved from 38% year-over-year, but not representative due to low net sales.

• Cash and liquid assets at period end were SEK 26.3 million, with negative cash flow of SEK -5.6 million.

• No coating system sales occurred in the quarter; growth was driven by coating services and aftermarket sales.

Outlook and guidance

• Long-term confidence in the hydrogen market remains strong despite current delays in system sales and cautious investment.

• The company is prepared for fast deliveries and expects to scale when market momentum returns.

• Focus remains on increasing sales, margin improvements, and capital efficiency.

• Measures to improve cash flow and reduce customer-specific inventory are underway, with full effects expected in coming quarters.

• 2025 is expected to be challenging, but a clear strategy and competitive offering position the company for growth.