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 Aug 2025 07:00 CEST

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.

More information:
Access the news on Oslo Bors NewsWeb site

652741_Tekna 25Q2 interim report vFF.pdf
652741_250814 PR 25Q2 vF.pdf