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
• 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).
• Strong order intake of CAD 12.8 million, a 73% increase over Q1 2024, driven primarily by growth in the Materials business area
• Organizational restructuring implemented to reduce overhead, improve accountability, and simplify reporting lines, supporting long-term agility
• Appointment of new CEO Claude Jean, effective April 28, 2025, replacing Luc Dionne.
• 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
• 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
• 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.
• Cost of goods sold includes a CAD 0.4 million expense related to U.S. tariffs, expected to be recovered in 2025
• 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.