Tekna Reports Q2 / H1 2025 Results: Record Order Intake in H1 2025 and positive Operating Cash Flow Amid Revenue Decline and Continued Cost Discipline

14.08.2025 07:00 CET | Tekna Holding ASA | Half yearly financial reports and audit reports/limited reviews

ARENDAL, NO / SHERBROOKE, QC. 14 August 2025 – Tekna (OSE: TEKNA), a world-leading provider of advanced materials to industry, today announced its financial results for the second quarter and half-year ended June 30, 2025. The company achieved strong order intake—led by the Materials business— and despite the revenue decline, the company achieved positive operating cash flow and continues to implement cost and capital measures to align with its annual profitability targets.

“While the second quarter reflected a temporary revenue decline, our record order intake—up 59% year-to-date—underscores strong underlying demand and the growing relevance of our technology in critical sectors like defense”, says CEO Claude Jean. He continues: “We are proactively adjusting our cost base and spending to protect profitability, while positioning Tekna to capitalize on long-term trends such as reshoring, additive manufacturing growth, and increased defense spending. With a strengthened backlog and continued focus on execution, we remain cautiously optimistic for the second half of 2025.“

Highlights

Tekna products continue to be exempt under the United States-Mexico-Canada Agreement (USMCA).
Q2 order intake was CAD 9.1 million and grew by 42% compared to Q2 2024, contributing to a record H1 2025 order intake of CAD 21.9 million, up 59% from CAD 13.8 million in H1 2024, fueled by strong Q1 performance.
The Materials order intake in Q2 of CAD 7.0 million (5.9 million) improved by 20% compared same quarter last year. H1 2025 at record due to the strong intake in Q1. The backlog increased by 30% year-on-year, reaching CAD 18.2 million, supported by growing demand and early signs of opportunities from increased defense spending. Tekna remains well-positioned in the defense supply chain in North America and Europe due to prior qualifications.
For Systems the Q2 order intake improved to CAD 2.1 million from CAD 0.2 million in Q1, reflecting a positive shift compared to H1 2024. However, the backlog for this business area remains low at CAD 2.7 million. Uncertainty around public funding and tariffs continues to impact timing of new orders.
While recent U.S. tariffs have introduced short-term uncertainty and geopolitical risk, they are ultimately expected to reinforce reshoring and localized manufacturing trends, bolstering growth in additive manufacturing and long-term demand for Tekna’s products.

Financial Performance

(Figures in parentheses refer to the same period the previous year)

Revenue for Q2 2025 totaled CAD 9.0 million (11.2 million), a 20% decline year-on-year, primarily due to reduced activity in the Systems business area. Year-to-date revenue reached CAD 17.4 million, down 13% from CAD 19.9 million in H1 2024.
Materials generated revenue of CAD 6.6 million (7.8 million) in Q2, with year-to-date revenue at CAD 12.8 million, down 6% from CAD 13.6 million in H1 2024, driven by short-term fluctuations in order timing.
Systems revenue in Q2 was CAD 2.4 million (3.4 million), with year-to-date revenue at CAD 4.6 million, down 27% from CAD 6.3 million in H1 2024, primarily due to a low starting order backlog.
Adjusted EBITDA for Q2 was CAD -2.0 million (-1.5 million), impacted by an unfavorable product mix, lower Systems volumes, and adverse foreign exchange effects. Year-to-date Adjusted EBITDA improved to CAD -2.8 million from CAD -4.1 million in H1 2024, driven by strong Q1 Materials performance and savings from cost reductions implemented in late 2024.
Operating cash flow was positive at CAD 0.4 million, supported by a CAD 2.7 million reduction in net working capital. Capital expenditure continued disciplined at CAD 0.3 million.

Outlook

The ongoing trade war is creating uncertainty in the markets; however, strong YTD Materials order intake in the first half of 2025 supports a cautious positive outlook for the remainder of the year. Increased defense spending trend should offer positive opportunities in both business areas with defense OEMs progressing in qualification of our powders for their additive manufacturing development, as well as for our PlasmaSonic systems.

Tekna remains focused on profitability, working capital reduction and disciplined capital management. Capital expenditure for 2025 is expected around CAD 1.5 million, significantly lower than 2024. Additional operating cost reductions are implemented early Q3 2025.

Tekna will not host a webcast this quarter. Management will be available for face-to-face meetings in Oslo the first week of September.

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
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