Impact Coatings (IMPC) Q2 2025 earnings summary

Executive summary

• Q2 2025 net sales dropped to SEK 6.5 million from SEK 31.7 million year-over-year, mainly due to no coating system deliveries as customers delayed investments amid market uncertainty.

• Coating services sales increased to SEK 4.4 million from SEK 2.8 million, with strong growth in China, now operating two shifts and expanded to 24 hours/day, 6 days/week to meet higher order volumes.

• Operating loss for Q2 was SEK -15.8 million versus SEK -3.8 million last year; cash at quarter-end was SEK 30.8 million.

• Cost reduction program implemented, reducing personnel costs by 20% and affecting 10 roles, with further decreases expected in H2; SEK 20 million in loans raised for Chinese operations.

• Significant agreements included a Letter of Intent from FTXT (China) and a supply agreement with a European PEM electrolyzer manufacturer.

Financial highlights

• Total Q2 revenue was SEK 14.7 million, down from SEK 24.7 million year-over-year; H1 2025 revenue was SEK 34.4 million (H1 2024: SEK 32.2 million).

• Gross margin for Q2 was 48%, lower than 75% last year, mainly due to lower net sales and higher work in progress without margin.

• Net loss for Q2 was SEK -15.8 million; for H1 2025, net loss was SEK -30 million compared to SEK -19.7 million in H1 2024.

• Cash flow from operations for H1 2025 was SEK -19.2 million, improved from SEK -25.8 million last year; total negative cash flow was SEK -2.8 million.

• Closing cash balance was SEK 30.8 million, down from SEK 85.7 million last year.

Outlook and guidance

• Long-term growth ambition remains firm, with a strong sales pipeline, prepared inventory, and new partnerships in electrolysis and solid oxide applications.

• Positive market signals in hydrogen, with policy clarity in the US and industrialization in China and Europe.

• Cost-saving measures and working capital reductions have improved financial sustainability.

• 2025 is expected to be challenging, but foundations are being laid for future growth.

• Continued focus on driving sales and maintaining cost control to achieve profitability.