I-Tech Q1 2025 slides: Revenue surges 49% as Asian markets drive growth

Introduction & Market Context

I-Tech AB presented its Q1 2025 financial results on May 8, 2025, showcasing continued strong performance with significant revenue growth and margin expansion. The company’s stock has responded positively to these results, with shares trading near 102.5 SEK as of May 12, 2025, despite a recent 1.46% pullback from its 52-week high of 104.5 SEK.

The marine technology company, which specializes in antifouling solutions through its Selektope technology, continues to benefit from shipping industry trends focused on fuel efficiency and emissions reduction, though management noted increasing market uncertainty ahead.

Quarterly Performance Highlights

I-Tech reported impressive financial results for Q1 2025, with net sales reaching 56.9 MSEK, representing a 49% increase compared to 38.3 MSEK in Q1 2024. The company’s gross margin improved to 56%, up from 53% in the same period last year.

As shown in the following financial summary table, profitability metrics showed even stronger growth than revenue:

EBITDA surged 76% year-over-year to 19.6 MSEK, resulting in an EBITDA margin of 35%. Operating profit (EBIT) saw the most dramatic improvement, jumping 94% to 17.7 MSEK. The company also reported strong cash generation with operating cash flow of 26.1 MSEK, a 79% increase from Q1 2024, contributing to a healthy cash balance of 126.2 MSEK.

The company’s rolling 12-month performance demonstrates the consistent upward trajectory in revenues and profitability:

Geographically, I-Tech’s sales remain heavily concentrated in Asia, which accounted for 99% of total sales in Q1 2025. Within the Asian market, Japan led with 35% of sales, followed by China (31%), Korea (27%), and Singapore (6%).

Detailed Financial Analysis

I-Tech’s asset-light business model continues to deliver strong financial results. The significant improvement in gross margin from 53% to 56% reflects the company’s successful supply chain optimizations and economies of scale as volumes increase. However, management noted negative short and medium-term currency effects, likely related to the depreciation of the US dollar mentioned in the earnings call.

The company’s operating cash flow growth of 79% outpaced revenue growth, indicating improved working capital management. With a cash balance of 126.2 MSEK, I-Tech maintains excellent liquidity to fund future growth initiatives and navigate potential market uncertainties.

During the earnings call, CEO Markus Jönsson highlighted the industry’s current volatility, stating, "We see increased uncertainty and market turbulence that is affecting the sentiment in the industry." Despite these challenges, the company’s financial performance remains robust.

Competitive Industry Position

I-Tech operates in a market with significant growth potential driven by environmental regulations and fuel efficiency demands. The company presented data showing that more than 33% of inspected ships have unacceptable levels of barnacle fouling, which can increase fuel consumption by 30-40%.

The company’s Selektope technology provides a unique solution to this problem, with a non-lethal mode of action that temporarily prevents barnacles from attaching to ship hulls. This technology has gained significant market traction and is now:

• Used in more than 30 commercial paints
• Adopted by 6 of the 9 largest marine paint companies
• Applied on over 3,000 vessels globally

The value proposition for Selektope is compelling, as demonstrated by the company’s analysis of hull performance degradation. I-Tech presented data showing that premium antifouling solutions can limit speed loss to just 1% over a 5-year period, compared to an industry average of 7%. This performance difference translates to significant cost savings in fuel consumption and operational efficiency.

Forward-Looking Statements

The shipping market outlook presents a mixed picture for I-Tech. While overall shipping markets remain 17% above the 10-year average, charter rates are falling. Seaborne trade grew by 5.9% in tonne-miles during 2024, but North America is expected to see significant declines in exports and imports in 2025.

A key driver for I-Tech’s future growth is the International Maritime Organization’s (IMO) target for net-zero emissions by 2050. This regulatory framework includes intermediate targets of a 70% reduction in total annual greenhouse gas emissions by 2030 and a 40% reduction in CO2 per transport work by 2040.

Management identified several factors that will influence business performance in the coming quarters:

• Increased market uncertainty and currency headwinds
• New customer product launches and business development activities
• Operational improvements
• Regulatory advocacy efforts

The company is also navigating the re-registration process for Selektope in the European Union, with a timeline extending through late 2025. This regulatory process represents both a challenge and an opportunity for the company to strengthen its market position.

Despite these challenges, I-Tech’s strong Q1 2025 performance demonstrates the company’s ability to execute its strategy effectively in a dynamic market environment. With its unique technology, strong financial position, and growing market adoption, I-Tech appears well-positioned to capitalize on the shipping industry’s increasing focus on efficiency and environmental compliance.

Full presentation:

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.