Summary of Titomic 2024 Earnings Call 02/09/24

Here’s a summary of the ten most relevant points from the Titomic 2024 Earnings Call 02/09/24:

1. Technological Advancements: Titomic’s cold spray technology is proving transformative, offering significant advantages over traditional casting and forging, particularly for titanium, Inconel, and Invar components. This includes faster time-to-market, cost reductions, and enhanced sustainability through repair and recycling capabilities.
2. Industry Applications: The technology is making strong inroads in aerospace, defense, oil and gas, and railways. Notable projects include partnerships with Airbus for sustainable repair solutions and collaborations with companies like Woodside in oil and gas.
3. Revenue Streams: Titomic is generating revenue through machinery sales, powder sales, services, and consultancy. For example, Airbus has invested in equipment for aircraft repair, and the company has multiple streams in place for future growth.
4. Market Expansion Plans: The company plans to expand operations into the U.S. and Netherlands to meet growing demand, particularly in aerospace and defense. Strategic hiring in the U.S., including experts with Boeing and Raytheon experience, is expected to bolster market penetration.
5. Financial Highlights: Titomic reported $11.5 million in orders over 14 months, including $8 million in a recent six-month period. While FY2024 posted a loss of $11 million, strong sales growth and cost control measures have set the stage for improved financial performance in FY2025.
6. Competitor Landscape: Cold spray technology positions Titomic against traditional manufacturing methods like casting and welding, rather than other additive manufacturing players. The company believes it is two years ahead in expertise.
7. Sustainability and Efficiency: The cold spray process significantly reduces waste compared to traditional methods, saving up to 95% of material in some cases. Repair solutions for oil rigs and railways highlight the technology’s environmental benefits and cost efficiencies.
8. Strategic Partnerships and Customer Trust: Collaborations with high-profile clients like Airbus, Boeing, and KLM showcase trust in Titomic’s technology. Qualification processes for repair and manufacturing applications are underway, aiming for global rollouts.
9. Supply Chain and Geopolitical Considerations: The company sources titanium powders from non-restricted regions, including collaborations with U.S. suppliers, ensuring geopolitical compliance and reliability.
10. Outlook and Funding: The company is fully funded for FY2025 and expects continued growth in orders, partnerships, and global presence. Long-term plans include expanding production capacity and accelerating market penetration.