Impact Coatings (IMPC) Q3 2024 earnings summary

Executive summary

• Q3 2024 net sales reached SEK 31.7 million, more than doubling from SEK 14.8 million in Q3 2023, driven by strong system sales and improved production efficiency, especially in China.

• Rolling twelve-month sales surpassed SEK 100 million, reflecting robust growth.

• Delivery of an IC2000 system to Boyuan in China and increased coating services contributed to growth, with improved delivery speed.

• The company is relocating its headquarters and manufacturing to a new facility in Mjärdevi, Linköping, to boost capacity.

• Focus remains on expanding market leadership in electrolysis and fuel cell coatings, and growing in automotive antenna metallization.

Financial highlights

• Net sales for Q3 2024: SEK 31.7 million (Q3 2023: SEK 14.8 million); rolling twelve-month sales exceeded SEK 100 million.

• Gross margin improved to 69% in Q3 2024 from 54% in Q3 2023.

• Operating loss narrowed to SEK -6.7 million from SEK -13.8 million year-over-year.

• Cash and liquid assets at period end: SEK 65.1 million.

• Order backlog for coating services: SEK 3.9 million; rental arrangement adds SEK 10.7 million.

Outlook and guidance

• Management expects continued strong demand and positive momentum in both system sales and Coating Services, with a focus on improving delivery speed and production capacity.

• The new factory enables initial production of one machine per month, upgradeable to two.

• Sufficient liquidity is estimated for at least the next 12 months.

• No specific forecasts provided, but management is confident in IC2000 market fit and ongoing sales momentum.