Oslo, Norway, August 28th 2024: Norsk Titanium AS (NTi), a global technology leader in additive manufacturing, is pleased to announce its financial results for the first half of 2024, marking a period of significant commercial momentum underscoring increasing market adoption of the Company’s proprietary Rapid Plasma Deposition® (RPD®) technology.
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• Signed Master Supply Agreement with Airbus: Norsk Titanium secured a long-term strategic agreement with Airbus, a major advancement in the Company’s Commercial Aerospace efforts. Multiple parts are being qualified to enter serial production, and initial revenues were generated in the first half of 2024. Norsk Titanium is the only qualified additive manufacturer in the large Commercial Aerospace titanium market.
• Secured Defense Market Contract: Norsk Titanium received a serial production order from a prime contractor for the US Department of Defense (DoD), demonstrating substantial progress in the Company’s second target market and diversification of revenue streams.
• Received Full-Rate Production Order for Semiconductor Industry Leader: Demonstrating the versatility of the technology for industrial applications, Norsk Titanium received a full-rate production order from Hittech for use in semiconductor chipmaking equipment. The order is expected to account for more than 15% of 2024 revenue.
• Scaled Production: Norsk Titanium transitioned 15 new parts into serial production, bringing the total number of parts in production to 26 at the end of the first half 2024. This marks significant progress toward our goal of scaling production across multiple industries.
• Solidified Financial Position: Norsk Titanium’s cash balance stood at USD 23.9 million as of 30 June 2024, reflecting successful equity capital raises on the back of positive commercial momentum. With proceeds from these capital markets transactions, and assuming exercise of warrants in November, the Company expects to be fully funded through to breakeven.
"I am immensely proud of our achievements as a technology leader in additive manufacturing. After a decade of rigorous qualification with some of the world’s most demanding customers and markets, we’ve established a significant competitive advantage that others will find difficult to replicate. We are at a critical inflection point where scaling up production will now take months instead of years,” said Carl Johnson, CEO of Norsk Titanium.
“As we begin to penetrate our large target markets, our focus on efficiently transitioning parts from development to serial production is vital for generating revenue growth, meeting long-term market demands, and delivering on our company objectives. I am confident that we will see a sharp increase in recurring revenue in the coming quarters as we transition parts, driving us toward our 2026 target of USD 150 million," continued Johnson.
Progress on Milestones
In April 2024, Norsk Titanium set a target to have 30 parts in serial production and to establish an annual recurring revenue (ARR) base of USD 10 million by the end of the first half. As of June 30, the Company was at 26 parts in serial production and ARR of approximately USD 7.4 million, versus 11 parts and USD 4.0 million ARR at the end of 2023. As of the release date of this report, the Company has 28 parts in serial production generating USD 11 million in ARR.
Financial Summary
Norsk Titanium generated total revenue and other income of USD 1.3 million during the first half of 2024, an increase from USD 0.9 million in the same period of 2023. Most notably, revenue from parts in serial production grew to USD 0.9 million, compared to USD 0.2 million in the prior year.
The Company’s average monthly cash burn was USD 2.3 million, up from USD 1.9 million for the full year 2023. This increase was driven by higher commercial activity, procurement of raw materials for ongoing production orders, and pre-production activities in anticipation of final customer orders.
Norsk Titanium’s financial position strengthened significantly in the first half of 2024, with the Company’s cash balance increasing to USD 23.9 million as of June 30, 2024, up from USD 1.2 million at the end of 2023.
Outlook
Norsk Titanium remains focused on scaling production and advancing its disruptive technology across industries. The Company reiterates its target of transitioning 60 parts into serial production by the end of 2024. However, due to delays in contract negotiations and product development timelines, some of the high-value and high-volume parts originally targeted for transition in 2024 are expected to slip into 2025. Newly identified opportunities are supplementing the originally forecasted part portfolio for 2024, enabling the Company to meet its 60 part target. In some instances customer demand is causing an accelerated transition of these newly identified parts to serial production.
As a result of delayed parts transitioning, Norsk Titanium is revising its full-year 2024 revenue forecast from USD 15 million to a range of USD 10-12 million, with delays also expected to push the achievement of its USD 50 million ARR target from the end of 2024 into 2025.
The Company remains confident in its long-term growth trajectory, driven by the increasing adoption of its RPD® technology. Norsk Titanium hence reiterates its 2026 revenue target of USD 150 million, supported by a robust pipeline of opportunities and an expanding presence across the Commercial Aerospace, Defense, and Industrial target markets.
Presentation of results
CEO Carl Johnson and CFO Ashar Ashary will present Norsk Titanium’s results this morning at 08.30 CEST, followed by a Q&A. Please use the following link to access the presentation: https://channel.royalcast.com/landingpage/hegnarmedia/20240828_8/
For more information, please contact:
Carl Johnson, President and CEO of Norsk Titanium
Email: carl.johnson@norsktitanium.com
Tel: +1 518 324 4010
Ashar Ashary, CFO Norsk Titanium AS
Email: Ashar.Ashary@norsktitanium.com
Tel: +1 518 556 8966
John Andersen, Chairman of Norsk Titanium AS
Email: John.Andersen@scatec.no
Tel: +47 90 17 40 80
Important notice:
This information is considered to be inside information pursuant to the EU Market Abuse Regulation (MAR) and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act. The stock exchange announcement was published by Anne Lene Gullen Bråten, Director Finance of Norsk Titanium AS, at the time and date stated above in this announcement.
About Norsk Titanium:
Norsk Titanium is a global leader in metal 3D printing, innovating the future of metal manufacturing by enabling a paradigm shift to a clean and sustainable manufacturing process. With its proprietary Rapid Plasma Deposition® (RPD®) technology and installed production capacity to generate annual revenues of approximately USD 300 million, Norsk Titanium offers cost-efficient 3D printing of value-added metal parts to a large addressable market. RPD® technology uses significantly less raw material, energy, and time than traditional energy-intensive forming methods, presenting customers with an opportunity to better manage input costs, logistics, and environmental impact. RPD® printed parts are already flying on commercial aircraft, and Norsk Titanium has gained significant traction with large defense and industrial customers.
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Forward Looking Statements
Matters discussed in this announcement may constitute forward-looking statements. Forward-looking statements are statements that are not historical facts and may be identified by words such as “anticipate”, “believe”, “continue”, “estimate”, “expect”, “intends”, “may”, “should”, “will” and similar expressions. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although the Company believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors which are difficult or impossible to predict and are beyond its control. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this release by such forward-looking statements. The information, opinions and forward-looking statements contained in this announcement speak only as at its date and are subject to change without notice, and the Company and its affiliates expressly disclaim any obligation or undertaking to update, review or revise any statement contained in this announcement whether as a result of new information, future developments or otherwise.
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