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Metal 3D printer manufacturer SLM Solutions (AM3D) has announced the generation of record-breaking revenue within its 9M 2022 financial results.
Over the first nine months of 2022, SLM Solutions generated revenue of €69.4 million, a 35.8% increase on the €51.1 million it brought in during Q3 2021. The company says this growth has been driven in large part by demand for the NXG XII 600, which continues to see “robust interest across a broad spectrum of customer segments,” and is “expected to drive further growth” in the quarters to come.
“Building on the strong momentum in the first half of 2022, we were able to deliver impressive results for Q3 2022,” said Sam O’Leary, CEO of SLM Solutions. “We posted another record revenue performance, while further improving our operational profitability. Despite ongoing challenges we continue to innovate and deliver value for our customers by redefining manufacturing.”
SLM Solutions’ 9M 2022 financials
It wasn’t just SLM Solutions’ revenue which grew in 9M 2022, as several of its other key sales metrics also rose significantly over the period. The company’s order intake increased 46.5% from the €42.8 million it generated in 9M 2021, to €62.7 million. For the fourth consecutive quarter, SLM Solutions also reported its largest ever backlog position, finishing Q3 2022 with €50.8 million in unfulfilled orders.
Almost all the company’s annual growth was driven by its Machine Sales division, which itself was mainly boosted by NXG XII 600 demand, and the strong US dollar. That said, SLM Solutions’ 9M investors’ presentation showed that 63% of its install base is still made up of SLM 280 customers, thus its legacy machine portfolio remains an important part of its business.
Unfortunately, the firm also saw a few sales slip into Q4 due to material shortages, an issue that eased over the last quarter but “remains challenging.” By contrast, the revenue brought in by SLM Solutions’ After Sales business was flat year-on-year, something it puts down to “larger one-offs in Q3 last year.” The company expects the division to return to growth in Q4, though it anticipates its gross profits will still be affected by issues sourcing materials.
On its earnings call, SLM Solutions CFO Dirk Ackermann said that in some instances it had to pay six times its selling price to get hold of materials from third parties. Moving forwards, he added that one of the firm’s key electronics suppliers continues to struggle with its own supply chain, suggesting that disruption could be an ongoing problem.
|Financials (€)||9M 2021||9M 2022||Difference (€)||Difference (%)||9M 2019||9M 2022||Difference (€)||Difference (%)|
|End of Q3 Backlog||34.0m||50.8m||+16.8m||+49.4||18.4m||50.8m||+32.4m||+176.1|
A busy nine months for SLM Solutions
Though O’Leary didn’t directly name any of its clientele on the firm’s earnings call, it was revealed earlier this year that Divergent Technologies has bought multiple NXG XII 600 systems. The company, which is responsible for building the Czinger 21C hypercar, entered a long-term Service Level Agreement to install six of the machines in August.
In Q4, it was also announced that Atlantic XL had installed an SLM 280, boosting SLM Solutions’ backlog, and that the company was bringing a new system to market. Known as the ‘NXG XII 600E,’ this larger version of the NXG XII 600 features an extended 1.5-meter build envelope in the Z-axis, in a way that’ll open up larger-format applications to its first user, Concurrent Technologies, from 2023.
Elsewhere, during the last month of Q3, it was announced that Nikon had bid $622 million for SLM Solutions. Taking the opportunity to provide an update on the takeover, O’Leary said the acceptance rate for Nikon’s offer was around 75% as of November 1, 2022, meaning that it has now secured over 86% of the company’s shares. FDI approval has also been granted in Germany, the UK, France and Canada, with only the US now outstanding, and final acceptance rates will be published this month.
Forecasting FY revenue growth
Due to its strong order backlog position, SLM Solutions is reiterating its previously issued revenue guidance for FY 2022 of ‘at least €100 million.’ When it comes to EBITDA, the company achieved break-even in Q2 2022, before repeating this feat in Q3 2022. That said, the firm has stated that it’s “working towards the continuous improvement of its operational profitability,” and making this a key focus point.
In his closing remarks, Ackermann added that material sourcing “may impact performance in the last quarter,” but 3D printing is continuing to benefit from a “multitude of trends” that improve its value proposition against traditional technologies, giving him confidence in his company’s prospects.
“We continue to make progress on all fronts of the business with order intake, backlog and revenue at record highs,” concluded Ackermann. “Looking forward, we are well positioned to further develop our top line while also making meaningful improvements to our operational profitability.”
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Featured image shows an SLM Solutions showroom. Photo via SLM Solutions.