Back to MediaNorsk Titanium First Quarter Operational Update
Oslo, 8 May 2025: Norsk Titanium AS (Euronext: NTI, OTCQX: NORSF), a global leader in additive manufacturing for aerospace-grade structural titanium components using its patented Rapid Plasma Deposition® (RPD®) technology, provides an operational update summarizing first quarter developments.
- Limited revenue of USD 0.6 million in seasonally slow Q1, up from USD 0.4 million in Q1 2024
- No new parts transitioned to serial production in the quarter
- Continuing discussions with Airbus Aerostructures on a third production order under the Master Supply Agreement signed last year, but decision process delayed to H2 2025
- Temporary pause in industrial orders due to semiconductor slowdown
- Targets of 120 parts in serial production and USD 70-90 million in estimated ARR by year-end remain attainable, but the timing of transition impacts revenue in 2025
- Customer delays postpone projected revenue and increase the timing risk related to the 2026 revenue target of USD 150 million
- Proactively managing financial position to remain fully funded to execute the business plan
Although progress in Q1 was slower than expected, the company’s targets of 120 parts in serial production and USD 70-90 million in estimated annual recurring revenue (ARR) by year-end remain attainable. This is grounded in a maturing of the portfolio of qualified aerospace parts, as well as an anticipated broadening of the industrial customer base. Customers in both commercial aerospace and defense have identified adequate part numbers that show an attractive business case sufficient to warrant transition to RPD® and meet our ARR goals. The business development team continues to work with these customers to accelerate their transition timelines by proposing alternate part transition strategies and identifying shortages caused by legacy manufacturing capacity constraints that Norsk Titanium can address. Nevertheless, Norsk Titanium acknowledges the increasing risks to 2025 revenue as timing of parts transition is pushed into the second half of 2025.
Carl Johnson, CEO of Norsk Titanium, comments, “While the timing of certain programs has shifted, our value proposition continues to resonate within our targeted end markets. We are actively engaged with Airbus and other key customers to drive new parts into serial production and expect to see those efforts being rewarded in the second half of the year. The long-term outlook and value creation opportunity for Norsk Titanium remain strong.”
The anticipated demand growth in the aerospace market remains a cornerstone of Norsk Titanium’s growth strategy. At the 9th Annual Manufacturing Forum in Berlin in March, Airbus Aerostructures reconfirmed their intention both to significantly expand the size and complexity of parts produced using Directed Energy Deposition (DED) and to start deploying titanium wire additive manufacturing across all aircraft programs starting in 2026. Norsk Titanium already supplies Airbus with the first fatigue critical and largest primary structure additively manufactured part in commercial aviation. Other customers in aerospace and defense have publicly indicated a similar commitment to expand the use of DED in a variety of applications.
Norsk Titanium entered into a long-term Master Supply Agreement with Airbus Aerostructures to support A350 production in April 2024. The company has delivered titanium serial production parts under two production orders and is continuing discussions with Airbus Aerostructures on new serial production parts that could be part of a third production order. The decision on third production order size and scope is now expected in the second half of 2025, but an award is still expected to significantly contribute to parts in serial production and ARR growth in 2025 and 2026.
The company continues to look to transition additional parts from Boeing, which has been limited by Boeing’s ongoing restructuring of operations. Other development efforts with customers such as Safran Landing Systems show progress towards further penetration of the aerospace market in large landing gear structures.
Changes in the timing of US government funding caused delays in the prime contractor’s procurement schedule, impacting progress in the defense sector. Multiple parts for manned and unmanned aircraft were expected to transition in early 2025 but are now shifting to later this year.
In the industrial sector, a key customer’s demand forecast has decreased, temporarily pausing orders for parts scheduled to be delivered on a monthly basis. Production is expected to resume in the fourth quarter of 2025 at previous rates.
To broaden its customer base and diversify its revenue mix, the company is actively targeting new industrial segments beyond semiconductor applications, where customers can benefit from the advantages of DED without lengthy approval cycles. These efforts are led by Boyd Adams, the company’s recently hired Chief Commercial Officer, who brings extensive experience in our target end markets from FRISA, a global leader in customized forging solutions. Boyd is spearheading the strengthening of our global sales team to better support these initiatives.
Financial Review and Outlook
As per March 31, 2025, Norsk Titanium and its customers had successfully transitioned 54 parts into serial production, with estimated ARR of USD 12.2 million. Revenue in the first quarter 2025 amounted to USD 0.6 million, up from USD 0.4 million in the same period the year before.
The company’s cash balance stood at USD 15.8 million as of March 31, 2025, down from USD 22.8 million at the end of 2024. The average monthly cash burn of USD 2.3 million was in line with expectations. Spending remains disciplined, with resources being allocated to commercial activities.
While the company confirms that its 2025 year-end targets for 120 parts in serial production and estimated ARR of USD 70–90 million remain attainable, there is increased risk to the timing of revenue due to shifts in customer schedules. In particular, recent delays to expected production order decisions in aerospace and a pause in industrial demand have pushed several key transitions into the second half of the year and postponed 2025 revenue generating activity. These factors also materially increase the timing risk associated with the company’s previously communicated 2026 revenue target of USD 150 million.
Norsk Titanium is proactively managing its financial position to adapt to rapidly changing market dynamics. The company continues to negotiate a working capital facility, as well as a term loan facility, with a combined availability of up to USD 15 million. Based on current forecasts and prudent cost management, the company expects to remain fully funded. The company has strengthened its commercial sales team and is actively pursuing market opportunities in aerospace while diversifying into industrial markets and remains confident in its ability to achieve long-term growth and success.
For more information, please contact:
Carl Johnson, CEO Norsk Titanium AS
Email: carl.johnson@norsktitanium.com
Tel: +1 518 324 4010
Ashar A Ashary, CFO Norsk Titanium AS
Email: Ashar.Ashary@norsktitanium.com
Tel: +1 518 324 4010
Important notice:
This information is considered to be inside information pursuant to the EU Market Abuse Regulation (MAR) and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act. The stock exchange announcement was published by Anne Lene Gullen Bråten, VP Finance of Norsk Titanium AS, at the time and date stated above in this announcement.
Forward Looking Statements:
Matters discussed in this announcement may constitute forward-looking statements. Forward-looking statements are statements that are not historical facts and may be identified by words such as "anticipate", "believe", "continue", "estimate", "expect", "intends", "may", "should", "will" and similar expressions. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although the Company believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors which are difficult or impossible to predict and are beyond its control. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this release by such forward-looking statements. The information, opinions and forward-looking statements contained in this announcement speak only as at its date and are subject to change without notice, and the Company and its affiliates expressly disclaim any obligation or undertaking to update, review or revise any statement contained in this announcement whether as a result of new information, future developments or otherwise.
