ARENDAL, NO / SHERBROOKE, QC. 8 May 2025 - Tekna (OSE: TEKNA), a world-leading
provider of advanced materials to industry, today announced its financial
results for the first quarter ended March 31, 2025. The company delivered robust
order intake - particularly in its Materials business area - while navigating
geopolitical uncertainties and advancing strategic changes to improve long-term
efficiency and transparency.
"Despite the challenging start to the quarter, we closed Q1 with strong momentum
in our Materials business area, a streamlined organization, and a clear path
forward," said Claude Jean, newly appointed CEO of Tekna. "Our strong order
intake in Materials signals healthy end-market demand. As we look ahead, we
remain focused on operational discipline and capturing value from reshoring
trends and expanding applications for advanced materials."
Highlights
o Tariff-related uncertainty early in the quarter temporarily slowed activity.
Confidence returned following confirmation that Tekna products are exempt under
the United States-Mexico-Canada Agreement (USMCA).
o Strong order intake of CAD 12.8 million, a 73% increase over Q1 2024, driven
primarily by growth in the Materials business area
o Organizational restructuring implemented to reduce overhead, improve
accountability, and simplify reporting lines, supporting long-term agility
o Appointment of new CEO Claude Jean, effective April 28, 2025, replacing Luc
Dionne.
o Geopolitical and tariff-related risks viewed as short-term headwinds, but
ultimately supportive of the macro trend toward reshoring and local
manufacturing, a net positive for Tekna's business model.
Financial Performance
o Total revenue was CAD 8.4 million (CAD 8.7 million Q1 2024), reflecting a CAD
0.7 million decline (-25%) in Systems revenue and a CAD 0.4 million increase
(+7%) in Materials
o Adjusted EBITDA improved to CAD -0.8 million, compared to CAD -2.8 million in
Q1 2024, supported by a stronger product mix and cost reductions. Contribution
margin rose to 51% from 45% year-over-year, largely due to improving margins in
the Materials business area.
o Cost of goods sold includes a CAD 0.4 million expense related to U.S. tariffs,
expected to be recovered in 2025
o Operating cash flow was negative CAD -4.4 million, impacted by unfavorable net
working capital movements (CAD -2.2 million) and non-recurring costs of CAD 0.9
million
Outlook
Tekna maintains a focus on profitability, operational discipline, and capital
efficiency. While U.S. tariffs introduced short-term volatility, management sees
them as reinforcing the macro shift toward local production and advanced
manufacturing.
Business upside potential: Tekna continues development of nanomaterials for MLCC
applications in coordination with prospective customers. These efforts position
the company to capitalize on growing demand for high-performance, miniaturized
microelectronics components.
Tekna will not host a webcast this quarter.