Norsk Titanium Q1 2025 slides: Aerospace supplier maintains targets despite execution challenges

Introduction & Market Context

Norsk Titanium AS (OB:NTI) reported limited progress in its Q1 2025 update presentation, revealing execution challenges amid customer delays and market headwinds. The titanium components manufacturer saw modest year-over-year revenue growth but maintained ambitious targets for year-end despite a slow start to 2025. The stock closed at $1.94 on May 7, down 5.83%, reflecting investor concerns about the company’s near-term growth trajectory.

Quarterly Performance Highlights

Norsk Titanium reported revenue of $0.6 million in Q1 2025, representing a 50% increase from $0.4 million in Q1 2024, but a significant decline from $2.3 million in Q4 2024. The company attributed the sequential decline to longer-than-anticipated approval cycles with key aerospace customers and a temporary pause in industrial orders due to a semiconductor industry slowdown.

As shown in the following key figures chart, both the number of parts in serial production and annual recurring revenue (ARR) remained unchanged from year-end 2024 at 54 parts and $12.2 million respectively:

"Execution [was] slower than anticipated in Q1 due to longer than anticipated approval cycles with key aerospace customers and a temporary pause in industrial orders due to semiconductor industry slowdown," the company noted in its presentation.

Strategic Initiatives

Norsk Titanium’s partnership with Airbus remains central to its growth strategy, though discussions on a third production order under the Master Supply Agreement signed last year have been delayed to the second half of 2025. The company is working with Airbus to help execute their long-term global additive manufacturing plan, which aims to introduce Directed Energy Deposition (DED) technology across all aircraft platforms.

The company highlighted its value proposition compared to conventional forging methods, emphasizing significant efficiency gains and sustainability benefits:

Norsk Titanium already supplies Airbus with what it describes as "the first fatigue loaded and largest primary structure additively manufactured part in commercial aviation." The company’s Rapid Plasma Deposition® technology offers substantial advantages, including 90% less machining time, up to 75% less machining cost, and approximately 40% total cost savings compared to traditional manufacturing methods.

In response to execution challenges, the company has strengthened its commercial organization through the appointment of a new Chief Commercial Officer and is expanding its global sales network through strategic hires and partnerships. Additionally, Norsk Titanium is diversifying its revenue mix by actively targeting new industrial segments beyond aerospace.

Forward-Looking Statements

Despite the slow start to 2025, Norsk Titanium maintained its ambitious year-end targets of more than 120 parts in serial production and $70-90 million in annual recurring revenue. The company expects a pickup in part transitions in the second half of 2025.

The following chart illustrates the company’s projected growth trajectory through 2026:

However, the company acknowledged that customer delays increase the timing risk associated with its previously communicated 2026 revenue target of $150 million. To address financial concerns, Norsk Titanium is "proactively managing [its] financial position to adapt to changing market dynamics through prudent cost management and securing up to USD 15 million in debt financing to remain fully funded."

While market headwinds and customer delays present near-term challenges, Norsk Titanium emphasized that "customer interest and long-term market opportunity remains strong." The company’s unique position as the sole qualified additive manufacturer for the commercial aerospace market, combined with its substantial production capacity and intellectual property portfolio of over 200 patents, provides a foundation for potential long-term growth if execution improves in the coming quarters.

Full presentation:

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