24.3.2025 08:00:01 CET | Tekna Holding ASA | Non-regulatory press releases

(Arendal, NORWAY / Sherbrooke QC, CANADA) Tekna Holding ASA (Tekna, OSE:Tekna) a world-leading provider of advanced materials to industry, today publishes a trading update, in light of the uncertainty created by the tariffs introduced by the U.S. administration.

Recent Tariff Decrees

The U.S. administration has recently enacted a series of tariffs affecting Canadian imports. On March 4, 25% tariff on the import of all Canadian goods came into effect. On March 12, the tariffs under Section 232 on imports of Steel and Aluminum were expanded. For Aluminum, the tariffs were increased from 10% to 25%.

For Tekna, sales to the U.S. represented 46% of total sales in 2024, of which 70% were materials.

Impact from Steel and Aluminum Tariffs

Tekna does not foresee significant financial impact from the tariffs on steel and aluminum, which were enforced on March 12. Tekna does not sell steel products and given the company’s 2025 sales outlook for aluminum in the U.S., the tariffs on these materials are expected to have a limited effect on overall performance.

Impact of 25% Tariffs on All Canadian Imports

On March 6, the U.S. administration announced that all goods covered by the U.S.-Mexico-Canada Agreement (USMCA) would be exempt from this new tariff with effect from March 7 until April 2. It is currently uncertain whether this exemption will be extended.

Both Tekna’s systems and materials are covered by the USMCA and are thus currently exempt from this tariff.

During the short period from March 4 to March 7, when the tariffs were briefly in effect, one Tekna shipment of a system to a customer in the U.S. was subject to this tariff. Tekna is actively pursuing efforts to reclaim these tariffs and mitigate any permanent financial effects.

The tariffs imposed by the U.S. administration have created a lot of uncertainty in the marketplace. The tariffs will in effect increase the cost of Tekna materials and systems for U.S. buyers. However, there are currently no real alternatives from non-Canadian sources for plasma generated titanium powders or plasma systems. Thus, it is difficult to say to what extent, if any, the tariffs will have an impact on sales and margins for Tekna.

At this point of time, there are no additional systems planned for delivery to the U.S. in 2025. Also, the process to potentially secure a large order for a PlasmaSonic system in the U.S. does not appear to be impacted by tariff uncertainty.

Current Trading and Order Intake

The uncertainty surrounding tariffs and global geopolitics had a negative effect on order intake and sales at the beginning of the year. The time horizon of the customers for placing orders has become shorter – reflecting the uncertainty in the market. This will have a negative impact on financial performance for the quarter.

Despite the continued uncertainty, there has been a positive development in order intake for materials in March.  There have not been any new orders for systems so far in the quarter. In total, the company’s year-to-date order intake for Q1 2025, compared with Q1 2024, has increased by 37%. In a separate press release Tekna announced new orders totalling CAD 5.2 million for titanium to be applied in consumer electronics using metal injection molding.

The company has also noted that, despite tariff pressures, some customers have opted to extend their annual material orders for 2025 and are factoring in the potential impact of tariffs. This reflects the ongoing demand for Tekna’s high-quality products.

The nano nickel for microelectronics development is not impacted by the imposed tariffs and this development is progressing well.

“We understand the challenges presented by these tariff decrees and remain vigilant in assessing their potential impact on our business. However, we are confident in Tekna’s ability to navigate these dynamics effectively, as we have built a strong, long-term position in the market over the past decade,” said Luc Dionne, CEO of Tekna. “Our commitment to being a qualified supplier remains a key differentiator in a competitive industry. Our diversified product portfolio and geographical spread of customers, position us well to mitigate risks and capitalize on opportunities across various markets. We remain optimistic about the continued growth in demand for our products and will continue to adapt to the evolving market conditions.”

Looking Ahead

Tekna remains focused on its strategic priorities for 2025 and beyond, with an emphasis on customer satisfaction, profitability, operational efficiency, and innovation. The company will continue to monitor the situation closely and will update stakeholders as new developments occur.

Tekna will release its annual report on April 10, 2025. The Q1 interim report will be available on May 8, 2025.

Disclosure regulation

This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act.

Contacts

• Arina Van Oost, Investor Relations | VP Corporate Strategic Development & Innovation, Tekna Holding ASA, +33 6 7011 5190, investors@tekna.com

About Tekna Holding ASA

Tekna is a world-leading provider of advanced materials to industry, headquartered in Sherbrooke, Canada.

Tekna  produces high-purity metal powders for applications such as 3D printing in the aerospace, medical and automotive sectors, as well as optimized induction plasma systems for industrial research and production. With its unique, IP-protected plasma technology, the company is well positioned in the growing market for advanced nanomaterials within the electronics and batteries industries.

Building on 30 years of delivering excellence,  Tekna is a global player recognized for its quality products and its commitment to its large base of multinational blue-chip customers. Tekna’s powder products increase productivity and enable more efficient use of materials, thereby paving the way towards a more resilient supply chain and circular economy.

https://www.tekna.com

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