Impact Coatings (IMPC) Q3 2025 earnings summary

Executive summary

• Q3 2025 saw net sales drop to SEK 13.7 million from SEK 31.7 million year-over-year, mainly due to delayed customer investments and system orders, while Coating Services revenue grew significantly, especially in China and North America, with China operating at high capacity.

• Strategic pivot underway from green hydrogen mobility to SOFC power generation for data centers, leveraging existing technology and customer relationships, and broadening to new application areas.

• Rights issue of SEK 87 million announced to secure liquidity and support future growth.

• Cost-saving measures, including staff reductions and procurement optimization, have been implemented to improve efficiency and cash flow.

Financial highlights

• Q3 net sales were SEK 13.7 million, down from SEK 31.7 million in Q3 2024, mainly due to absence of system deliveries; total revenue was SEK 16.1 million, down from SEK 23.0 million.

• Coating Services sales rose to SEK 10.6 million from SEK 6.6 million year-over-year; aftermarket sales were SEK 3.1 million.

• Gross margin for Q3 was 56%, down from 69% in Q3 2024.

• Net loss for Q3 was -SEK 12.1 million, compared to -SEK 6.5 million last year.

• Cash at quarter-end was SEK 12.9 million, down from SEK 65.1 million a year earlier.

• Cash flow from operations for Jan–Sep 2025 was SEK -36.0 million, improved from SEK -39.4 million in the prior year.

• Cumulative net sales for Jan–Sep 2025 were SEK 29.7 million, down from SEK 67.5 million in 2024; net loss for the period was -SEK 42.1 million.

Outlook and guidance

• System sales expected to resume as market uncertainty clears; strong order backlog and pipeline in Coating Services.

• Management expects liquidity to be sufficient for at least the next 12 months, assuming the rights issue is completed.

• Cost reductions and operational efficiencies expected to bring positive EBITDA and EBIT at 2024 sales levels.

• Strategic focus on SOFC market for data centers, with anticipated commercial progress updates in coming months.

• The company remains confident in long-term growth, citing increased demand in Coating Services and new application areas, despite ongoing delays in major system orders.