Tekna Holding (TEKNA) Q4 2023 earnings summary

Executive summary

• Q4 revenue reached a record CAD 11.4m, up 66% YoY; FY23 revenue was CAD 40.9m, up 52%.

• Adjusted EBITDA improved to CAD -0.3m in Q4 from CAD -2.9m; FY23 adjusted EBITDA improved CAD 8.9m YoY to CAD -3.9m.

• Q4 order intake was CAD 11.2m and year-end backlog CAD 24.0m, supporting expected revenue growth in 2024.

Financial highlights

• Q4 Systems revenue was CAD 4.8m, up 125% YoY; Materials revenue was CAD 6.6m, up 40%.

• FY23 net loss was CAD 13.4m versus CAD 22.5m in FY22; Q4 net loss was CAD 4.5m versus CAD 5.1m in Q4 2022.

• Q4 contribution margin was CAD 4.9m, or 42.9% of revenue, versus 28.7% a year earlier; FY23 was 44.6% versus 34.8%.

Outlook and guidance

• 2024 outlook targets continued margin improvement through revenue growth and higher organizational productivity; quarterly results may vary.

• Backlog and available capacity support revenue growth in 2024; planned capex easing follows several capex-intensive years.

• Long-term priorities include following additive manufacturing market growth while maintaining share, and pursuing growing PlasmaSonic and microelectronics opportunities.