Tekna’s fourth quarter results highlight continued growth in powder business
February 6, 2025
Tekna Holding ASA, Sherbrooke, Quebec, Canada, has announced its results for the fourth quarter of 2024, reporting growth across nearly all customer segments in its metal powder Advanced Materials business. Despite this growth, the company reported headwinds in its Systems business and posted overall revenue of CA $9.6 million, down 15.4% from Q4 2023.
“Our Plasma Systems product line faced headwinds, with reduced order intake and revenues as some projects in the pipeline have been delayed. However, our focus on operational efficiency and price management has resulted in sustained contribution margins in 2024 YoY”, said Luc Dionne, CEO of Tekna Holding ASA.
Dionne continued, “In Advanced Materials, the industry dynamics remained positive despite challenges stemming from global economic conditions, interest rates, and market fluctuations. In 2024, we have experienced growth across nearly all customer segments, with Medical up 29%, Aerospace up 24%, and Consumer Electronics up 24%. However, sales to 3D printer manufacturers reduced by 40%.”
The company’s adjusted EBITDA for Q4 2024 stood at negative CA $1.4 million (compared to negative CA $0.5 million in Q4 2023), reflecting the challenges in the Systems business. In 2024, cash flow from operations improved by CA $10.4 million compared to 2023. Much due to a reduction of net working capital by CA $5.1 million during the year and CA $2.9 million from litigation settlement. This achievement comes despite the negative impact of CA $2.9 million on EBITDA due to a substantial reduction in Plasma systems revenue in the year.
“The strategic changes we have implemented—including restructuring and cost reductions—are aimed at driving profitability and long-term sustainability. These actions are even more critical given the current geopolitical landscape and short-term uncertainties caused by the recent US administration threat of tariffs on imports from Canada. As we move into 2025, our commitment to innovation and capital discipline remains unwavering. We look forward to strengthening our market position in both Advanced Materials and Systems,” Dionne concluded.
