Tekna Holding ASA (Tekna, OSE:TEKNA), the world-leading provider of advanced materials to industry, increased order intake for materials by 69% to CAD 6.1 million when compared to the first quarter of 2021. The materials order backlog increased by 54% in the same period as customers are securing their supply chain for long-term commitments.
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With further machine capacity upgrades, Tekna can meet the strong and increasing demand for its advanced materials for additive manufacturing. A successful trial period completed in the first quarter this year points to a likely 70% increase in machine capacity by year-end 2022.
The first quarter of 2022 was characterized by:
* Total revenues amounted to CAD 6.5 million, representing a 17% decrease from Q1 2021
* Materials revenue amounted to CAD 4.6 million and grew by 5% from Q1 2021
* Total order backlog amounted to CAD 14.2 million, of which CAD 10.8 million came from materials, representing a 54% increase from Q1 2021
* Adjusted EBITDA amounted to CAD -2.8 million compared to CAD 0.6 million in Q1 2021
“I am pleased to report the results for the first quarter of 2022, representing the third quarter of consecutive revenue growth. In the quarter, we continued to experience a rise in the demand for our advanced materials, further confirming Tekna’s position in the market,” commented Luc Dionne, Chief Executive Officer of Tekna Holding.
Expanding capacity
In 2021, Tekna’s Additive Manufacturing powder sales grew by 41%, outperforming the market for metal powders which, according to Wohlers Report 2022, grew by 23.5%.
“To ensure that we successfully meet global demand, we are continuing the program to expand overall machine capacity. Having already tested the upgrades on a machine, we are confident we will see a capacity increase, which we can convert to higher revenues,” added Mr. Dionne.
Tekna is expanding its machine capacity by increasing existing machine performance and adding additional machines. In the period 2015-2021, Tekna’s machine capacity increased by 140% through continued innovation. The
implementation phase of a further round of upgrades will start in the second quarter of 2022 and progress through the rest of this year. The upgrades will involve software and hardware enhancement on the machines and auxiliary systems. By year-end 2022, Tekna expects a 70% increase in machine capacity.
With two revenue-generating segments, sales of advanced materials and sale of R&D systems, Tekna’s total revenues decreased by 17% from the first quarter of 2021. This is the result of reduced systems sales following two years of
continued Covid-19 related travel restrictions.
Strategic development projects
Tekna has continued to invest in developing its position in the Printed Electronics market with sustained development conducted with customers and potential partners. With several ongoing trials evaluating Tekna nickel nano (80nm) powder, customer feedback is expected by the end of the second quarter of 2022 as projects are scheduled to pass important milestones, according to current plans.
The Company’s joint development agreement with LG Chem for battery materials is developing positively with ongoing trials at the LG site. Tekna is also expecting new samples of its enhanced silicon materials, which are showing increased energy density from 350 to 600 mAh/g, to be provided to 150 prospects at the beginning of the third quarter of 2022.
“We are experiencing strong demand for our materials, which is reflected by our advanced materials gaining market share with additional orders over CAD 6 million for two consecutive quarters. This is an exciting time for the business and I look forward to providing additional updates to the market in the future,” added Dionne.
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