Tekna achieves record order intake in H1 2025 despite lower revenue
Tekna Holding ASA, headquartered in Sherbrooke, Quebec, Canada, has announced its financial results for the second quarter and half-year ended June 30, 2025. The company reported strong order intake, led by its Materials business. Despite a decline in revenue, the company generated positive operating cash flow and continues implementing cost and capital measures to meet its annual profitability targets.
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“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 defence”, said CEO Claude Jean. “We are proactively adjusting our cost base and spending to protect profitability, while positioning Tekna to capitalise on long-term trends such as reshoring, Additive Manufacturing growth, and increased defence spending. With a strengthened backlog and continued focus on execution, we remain cautiously optimistic for the second half of 2025.”
Q2 order intake was CA$9.1 million, up 42% from Q2 2024. This contributed to a record H1 2025 order intake of CA$21.9 million, up 59% from CA$13.8 million in H1 2024, fuelled by strong Q1 performance.
Revenue for Q2 2025 totalled CA$9.0 million, a 20% decline year-on-year, primarily due to reduced activity in the Systems business area. Year-to-date revenue reached CA$17.4 million, down 13% from CA$19.9 million in H1 2024.
Materials generated revenue of CA$6.6 million in Q2, with year-to-date revenue at CA$12.8 million, down 6% from CA$13.6 million in H1 2024, driven by short-term fluctuations in order timing.
Systems revenue in Q2 was CA$2.4 million, with year-to-date revenue at CA$4.6 million, down 27% from CA$6.3 million in H1 2024, primarily due to a low starting order backlog.
Adjusted EBITDA for Q2 was -CA$2.0 million, impacted by an unfavourable product mix, lower Systems volumes, and adverse foreign exchange effects. Year-to-date Adjusted EBITDA improved to -CA$2.8 million from -CA$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 CA$0.4 million, supported by a CA$2.7 million reduction in net working capital. Capital expenditure was disciplined at CA$0.3 million.
Tekna products continue to be exempt under the United States-Mexico-Canada Agreement (USMCA). While recent US tariffs have introduced short-term uncertainty and geopolitical risk, they are reportedly expected to reinforce reshoring and localised manufacturing trends, bolstering growth in Additive Manufacturing and long-term demand for Tekna’s products.
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. The increased defence spending trend should offer positive opportunities in both business areas, with defence OEMs progressing in the qualification of Tekna’s 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 expenditures for 2025 are expected to be around CA$1.5 million, significantly lower than those for 2024. Additional operating cost reductions will be implemented in early Q3 2025.
