Tekna Reports Q1 2025 Results: Strong Materials Order Intake and Operational Progress Despite Uncertainty from U.S. Tariffs

08.05.2025 07:00 CET | Tekna Holding ASA | Half yearly financial reports and audit reports/limited reviews

ARENDAL, NO / SHERBROOKE, QC. 8 May 2025 – Tekna (OSE: TEKNA), a world-leading provider of advanced materials to industry, today announced its financial results for the first quarter ended March 31, 2025. The company delivered robust order intake – particularly in its Materials business area – while navigating geopolitical uncertainties and advancing strategic changes to improve long-term efficiency and transparency.

“Despite the challenging start to the quarter, we closed Q1 with strong momentum in our Materials business area, a streamlined organization, and a clear path forward,” said Claude Jean, newly appointed CEO of Tekna. “Our strong order intake in Materials signals healthy end-market demand. As we look ahead, we remain focused on operational discipline and capturing value from reshoring trends and expanding applications for advanced materials.“

Highlights

Tariff-related uncertainty early in the quarter temporarily slowed activity. Confidence returned following confirmation that Tekna products are exempt under the United States-Mexico-Canada Agreement (USMCA).
Strong order intake of CAD 12.8 million, a 73% increase over Q1 2024, driven primarily by growth in the Materials business area.
Organizational restructuring implemented to reduce overhead, improve accountability, and simplify reporting lines, supporting long-term agility.
Appointment of new CEO Claude Jean, effective April 28, 2025, replacing Luc Dionne.
Geopolitical and tariff-related risks viewed as short-term headwinds, but ultimately supportive of the macro trend toward reshoring and local manufacturing, a net positive for Tekna’s business model.

Financial Performance

Total revenue was CAD 8.4 million (CAD 8.7 million Q1 2024), reflecting a CAD 0.7 million decline (-25%) in Systems revenue and a CAD 0.4 million increase (+7%) in Materials.
Adjusted EBITDA improved to CAD -0.8 million, compared to CAD -2.8 million in Q1 2024, supported by a stronger product mix and cost reductions. Contribution margin rose to 51% from 45% year-over-year, largely due to improving margins in the Materials business area.
Cost of goods sold includes a CAD 0.4 million expense related to U.S. tariffs, expected to be recovered in 2025.
Operating cash flow was negative CAD -4.4 million, impacted by unfavorable net working capital movements (CAD -2.2 million) and non-recurring costs of CAD 0.9 million.

Outlook

Tekna maintains a focus on profitability, operational discipline, and capital efficiency. While U.S. tariffs introduced short-term volatility, management sees them as reinforcing the macro shift toward local production and advanced manufacturing.

Business upside potential: Tekna continues development of nanomaterials for MLCC applications in coordination with prospective customers. These efforts position the company to capitalize on growing demand for high-performance, miniaturized microelectronics components.

Tekna will not host a webcast this quarter.

Attachments

Disclosure regulation

This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act.

Contacts

Arina Van Oost, Investor Relations | VP Corporate Strategic Development & Innovation, Tekna Holding ASA,

+33670115190, [email protected]

About Tekna

Tekna is a world-leading provider of sustainable, advanced material solutions, headquartered in Sherbrooke, Canada. The company specializes in high-purity metal powders used in critical applications such as additive manufacturing (3D printing) across the aerospace, defense, medical and consumer electronics industries. The company is positioning itself in the fast-growing market of advanced nanomaterials for the microelectronics sector.

Tekna also develops cutting-edge induction plasma systems designed for both industrial research and production. Its unique, IP-protected plasma technology is powering its hypersonic wind tunnels, PlasmaSonic, which enable simulating material exposure conditions in space.

With over 30 years of experience, Tekna is a trusted partner to a broad portfolio of multinational blue-chip customers for its high-quality products and innovation. Its material solutions help enhance productivity, enable more efficient use of materials and support the transition to more resilient supply chains and a circular economy.

https://www.www.tekna.com
Follow us on LinkedIn: https://www.linkedin.com/company/1358990/ #investinTekna

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