Norsk Titanium Fourth Quarter 2024 Operational Update

Oslo, 4 February 2024: 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 fourth quarter developments.

• USD 2.3 million in revenue in Q4, up from USD 0.9 million in Q3 2024
• Preliminary full-year 2024 sales totalled USD 4.8 million, up 118% from 2023
• 54 parts remained in serial production at year-end 2024, with an expected ARR of USD 12.2 million.
• Delay in Q4 part transitions due to longer than anticipated customer internal approval cycles
• Significant growth expected in 2025, with parts in serial production projected to exceed 120 and estimated ARR of USD 70-90 million by year-end
• Reiterating longer-term objective of achieving USD 150 million in revenue in 2026

During Q4 2024, Norsk Titanium focused on customer deliveries and expanding parts in serial production. The company generated approximately USD 2.3 million in revenue, up from USD 0.9 million in Q3 2024. For the full year, sales totalled USD 4.8 million, with approximately USD 4.4 million recognized as revenue and approximately USD 0.4 million as deferred revenue. This was below the USD 6 million guidance owing to delays at Norsk Titanium’s downstream supply chain partners that negatively affected revenue by USD 0.9 million.

Carl Johnson, CEO of Norsk Titanium, remarked, “The fourth quarter brought both challenges and opportunities as we continued to scale operations and reinforced Norsk Titanium’s position as a critical partner in the aerospace, defense, and industrial markets. While we maintained on-time deliveries to our customer schedules, we identified bottlenecks in our downstream supply chain which meant we did not meet our internal schedule.” The company has taken proactive measures to expand its vendor base to ensure a more efficient and reliable delivery schedule.

Johnson continued, “Looking ahead, we are well-positioned for significant growth in 2025. We have strengthened our financial position in 2024 and expect an increase in parts transitioning from our main aerospace customers, while expanding pipeline in other sectors. Although customers were slower to issue purchase orders for additional serial production parts developed during 2024, we expect those orders in 2025 and remain confident we will achieve our ambitious growth targets.”

Throughout 2024, Norsk Titanium demonstrated an expanded range of potential applications for its RPD® technology, with an increasing the number of titanium parts transitioned into serial production, validation of higher-value and more complex parts, demonstration of development and production capabilities with new metals, and an expanding number of use cases in new areas such as the energy industry. Norsk Titanium also expanded its funded development work with Boeing and Safran Landing Systems, highlighting its broadening portfolio of capabilities and access to large markets.

As of December 31, 2024, Norsk Titanium and its customers had successfully transitioned 54 parts into serial production, with an expected ARR of USD 12.2 million. While the company aimed to exceed 60 parts with an expected ARR of USD 15.0 million by year-end, customer transition timelines have led to a slight delay. The company continues to work with customers to transition parts with several parts now awaiting only the formal purchase order before being moved into serial production.

The company’s cash balance stood at USD 22.8 million as of December 31, 2024, up from USD 20.3 million at the end of the third quarter 2024. The company strengthened its financial position through final exercise of warrants in November of 2024, raising approximately NOK 145 million (USD approximately 13 million). Approximately USD 1.3 million of the capital raised was used to repay the remaining shareholder debt, as part of the structure agreed in late 2023 in connection with the rights issue. Norsk Titanium’s average net monthly cash burn in the fourth quarter was USD 2.6 million, in line with expectations. Additionally, the cash flow report reflects a USD 1.3 million unrealized loss due to the strengthening US Dollar against the Norwegian Kroner.

Guidance & Outlook

The company anticipates strong growth in 2025, reaffirming its target of transitioning over 120 parts into serial production with estimated ARR of USD 70–90 million. The company’s expansion plan is supported by long-term demand growth as global aircraft production ramps up in 2025 and beyond, as well as the increasing applications of RPD® technology in other industries. The company is also in the process of strengthening its commercial team and sales capabilities in both the aerospace and industrial sectors.

The company continues to evaluate alternatives for working capital financing to provide more financial flexibility as operations scale during 2025. With available cash on hand and a working capital facility alongside continuous cost and supply chain optimization, the Board and management assess that Norsk Titanium will be funded to cash flow breakeven.

Norsk Titanium reaffirms its longer-term revenue target of USD 150 million and an EBITDA margin of 30% by 2026.

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, Director 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.