Svenska Aerogel (AERO) Q3 2024 earnings summary

Executive summary

• Became exclusive supplier for two key customers, marking significant commercial milestones and strengthening market position.

• Signed a five-year supply agreement with Matrix Brands for a unique aerogel material in a personal care product.

• Outlast® Technologies filed a patent for a new temperature-regulating textile using Quartzene®, with launch planned for early 2025.

• Launched Quartzene® Z-Slurry in Europe, targeting water-based manufacturing processes.

Financial highlights

• Net sales for Q3 2024 were SEK 0.6 million, up from SEK 0.4 million in Q3 2023; YTD net sales SEK 1.6 million (2.2).

• EBITDA for Q3 2024 was SEK -7.0 million (Q3 2023: -7.5); EBIT was SEK -9.0 million (Q3 2023: -9.6).

• Result after tax for Q3 2024 was SEK -9.0 million (Q3 2023: -10.7); YTD result after tax SEK -26.5 million (-33.9).

• Total assets at September 30, 2024, were SEK 52.2 million (69.1); cash and cash equivalents SEK 6.8 million (15.6).

• Equity at period end was SEK 41.6 million (35.8); equity ratio 80% (52%).

Outlook and guidance

• Commercialization phase for key projects expected in 2025, including launches with Outlast® Technologies and Matrix Brands.

• Cost reduction program implemented, expected to reduce annual costs by SEK 10 million and accelerate path to positive cash flow.