3D printing finance: SLM shows mixed results for 2021 – 3DPrint.com

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Metal additive manufacturing technology provider SLM Solutions (TEN: AM3D) reported a better-than-expected 22% revenue increase in 2021 despite continued supply chain constraints. In its latest financial statement, released on March 24, 2022, the company recorded significant revenue growth for the second consecutive year and mitigated headwinds by delivering all planned machines during the fourth quarter of 2021.

However, the revenue growth contrasts with SLM’s net loss of 20.4 million euros or 90 cents per share. Overall, this showed a 33% improvement on the previous year, when losses amounted to €20.3 million or €1.53 per share. Still, company executives reaffirmed continued growth and suggested revenue in 2022 could be around 100 million euros.

For the full year, SLM recorded revenue of €75.1 million, a 22% year-on-year increase, above its target of 15%. Even if today the company is losing money, Simply Wall Street suggests that German machinery analysts expect SLM Solutions to be close to breaking even. An article published by the stock market and sector analysis site predicts that the company “will suffer a final loss in 2022, before generating positive profits of 5 million euros in 2023”.

This is in line with SLM’s own guidance which suggests EBITDA breakeven in the second half of 2022, based on the strong order backlog position through 2022, and reaffirms continued revenue growth, which would drive ultimately the company to break even by 2023.

Last year, order intake exceeded €70 million, up 53% year-on-year, customer engagements through SLM’s core portfolio and its revolutionary NXG XII 600 machine at 12 lasers contributing to the company’s largest order backlog of €43 million.

Designed for high-volume mass productions, the highly anticipated platform launched in November 2020 is up to 20 times faster than a standard single laser system and was launched at a time when companies were very eager to change. forever common supply chains and inventory models. Since then, SLM has continued its NXG XII 600 beta program and received purchase orders from the automotive, energy, space, civil aviation and service office sectors.

A few of the companies that have turned to SLM for their massive 12 laser system include Morf3D; Porsche, which used it to print an E-Drive demo component for a sports car front axle; Collins Aerospace; MAN Energy Solutions and Divergent Technologies with the purchase of three NXG XII 600 production printers for automotive manufacturing. Additionally, a leading California space company has ordered two machines to make its space missions more affordable and efficient by creating lighter, faster and more robust space components.

With its latest addition, SLM is not only one of the pioneers of the 3D printing industry, but is experiencing strategic growth thanks to its installed base of more than 750 machines.

Porsche’s E-drive box was printed on the NXG XII 600 in just 21 hours. Image courtesy of SLM Solutions/Porsche.

Commenting on SLM’s performance for the full year, CEO Sam O’Leary said: “In 2021, we saw strong order intake across our product portfolio, with particularly strong interest in SLM. 500. During the year, we also successfully expanded the beta program for the NXG XII 600 while taking multiple orders from leading industrial companies for this unique system. Looking ahead, I am confident that our technology leadership position, combined with our open architectural business philosophy, will allow SLM Solutions to be at the forefront of the ongoing industrialization of additive manufacturing.

Last year saw the largest backlog in company history, up 42% from December 2020. Additionally, O’Leary explained to investors on an earnings call that SLM “outpaces market growth”. According to the executive, the machine element of the overall metal AM market grew by 11% in 2021, a rate that SLM far exceeded. As SLM begins deliveries of its NXG production machines, they hope to generate new demand. Along with this, the company remains firmly focused on investing in new technologies, devoting approximately 20% of its revenue to R&D activities, and is focused on adopting and penetrating the important manufacturing market. traditional.

Launch of the NXG XII 600 machine from SLM Solutions.

Launch of the NXG XII 600 machine from SLM Solutions. Image courtesy of SLM Solutions

In addition to sharing financial results for 2021 and guidance for 2022, O’Leary also focused on current developments in the Ukrainian and Russian crises. Like the more than 400 foreign companies that have left the Eastern European country, SLM has also decided to stop all activities in this market until further notice.

“Although the Russian market is of no importance to SLM Solutions, the impact of the crisis on the global economy and already strained supply chains remains unclear. The company will continue to monitor the situation closely and take measures if necessary”, underlined the CEO.

Looking to the full year 2022 with a turnover of 100 million euros and reaching a balanced EBITDA position during the second half, SLM expressed confidence in maintaining its position as technological leader and to remain at the forefront of the “ongoing industrialization of additive manufacturing”. .”

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