NX Filtration (NXFIL) H2 2024 earnings summary

Executive summary

• Achieved 38% year-over-year revenue growth to €11.1 million in 2024, driven by repeat projects, new OEM onboarding, and both Clean Municipal Water and Sustainable Industrial Water business lines.

• Secured the largest order to date for a 17 million liters/day water treatment plant in Mexico; started up a new large-scale factory in the Netherlands, increasing production capacity and operational efficiency.

• Achieved B Corp certification, reinforcing ESG leadership and sustainability commitments.

• Strengthened leadership team with new CEO and CFO appointments effective in H2 2024.

• Expanded global footprint with sales offices in the U.S., China, and India, and projects in 38 countries.

Financial highlights

• Revenue increased by 38% to €11.1 million in 2024 from €8.1 million in 2023; gross margin improved to 61.0% from 59.6%.

• EBITDA loss widened to €15.7 million from €11.9 million, mainly due to investments in organizational growth and factory startup costs; net loss was €23.1 million.

• Capex totaled €25.9 million, primarily for the new factory, down from €43.9 million in 2023.

• Cash position at year-end was €53.4 million, supported by a €50 million debt and equity package.

• Working capital increased to €14.5 million at year-end, reflecting inventory build-up and lower payables.

Outlook and guidance

• Revenue growth for 2025 is expected in the range of 50%-70%, supported by a strong OEM pipeline, repeat projects, and new factory capacity.

• Gross margin sustainability depends on product and project mix, with high margins expected for unique initiatives.

• Limited OpEx growth anticipated for 2025, with most one-off costs related to the factory transition expected to subside after Q1.

• No significant increase in FTEs expected; focus remains on productivity and efficiency gains.

• Capital Markets Day scheduled for April 8, 2025, to provide further strategic updates.