Tekna Holding (TEKNA) Q4 2024 earnings summary

Executive summary

• Q4 revenue fell 15.4% year over year to CAD9.6m, while Advanced Materials revenue rose 13.8% to CAD7.5m; lower Systems revenue drove the decline.

• FY2024 revenue declined 9.1% to CAD37.2m; Advanced Materials grew 3.2%, while Plasma Systems revenue fell 29.8%.

• 2025 priorities include profitability, cost discipline and Advanced Materials growth, with a gradual Systems recovery expected.

Financial highlights

• Q4 net profit was CAD0.1m versus a CAD6.1m loss in Q4 2023; FY net loss narrowed to CAD11.1m from CAD15.0m.

• Adjusted EBITDA was negative CAD1.4m in Q4 and negative CAD6.9m for FY2024, versus negative CAD0.5m and negative CAD4.1m, respectively, in 2023.

• FY operating cash flow improved by CAD10.4m year over year to negative CAD2.4m; Q4 net cash from operating activities was CAD4.2m.

• Year-end cash rose CAD4.8m from the prior quarter to CAD12.4m, including CAD2.9m of litigation compensation received in December.

• FY CapEx excluding IFRS 16 was CAD2.2m, down from CAD7.8m in 2023; Q4 CapEx was CAD0.1m.

Outlook and guidance

• Advanced Materials revenue target is CAD70m by 2027, with limited CapEx; the medium-term adjusted EBITDA margin target is 20%.

• Higher revenue and improved EBITDA are expected in 2025, with planned CapEx of CAD2.5m and margin improvement anticipated in both segments.

• Plasma Systems demand is expected to recover gradually; the PlasmaSonic pipeline exceeds CAD300m, with CAD35m of prospects anticipated over the next three years.

• Additive manufacturing market growth is projected above 20% annually; medium-term estimates for the segment are 20%–25%.