SLM Solutions, the leading German provider of metal based additive manufacturing, listed on the Frankfurt stock exchange, has reported its financial results for the first quarter of 2016. The company, based in Luebeck, is led by Markus Rechlin. It made its IPO in 2014. Since then the share price has increased by over 30%. This is a noticeable performance among 3D Printing listed companies.
The company has 18M shares outstanding for a market capitalisation of $500M.
Strong revenue growth – high valuation
In the first quarter 2016, SLM Solutions received orders for 25 machines (17 in Q1/15). The order book position comprised 24 machines (leased machines and R&D-machines not included) worth TEUR 15,559 as of 31 March 2016.
Important strategic partnerships were also agreed during the reporting period. Firstly, SLM Solutions entered the powders business, in order to be able to supply exactly the right consumables for given customer applications in the additive manufacturing process. SLM Solutions would also like to position itself strategically in the software area: together with CADS GmbH from Perg, Austria, a company was also formed in February 2016 to focus on developing design and construction software to make it easier for customers to develop components.
Total revenue increased 63% year on year in the first quarter 2016 to €13.8M, from €8.5M. Machine sales increased from €6.9M to €11.8M, while after sales were up by €0.5M moving from €1.5M to €2M.In light of the strong performance and considering the business seasonality, the management reiterated its revenue guidance for 2016, with revenue expected betweem €85M and €90M. A rising EBITDA margin (in relation to consolidated revenue), after adjusting for one-off effects, is also anticipated. In 2015 the company achieved a €8.1M EBITDA, so a 12.2% margin. Based on the revenue forecast, EBITDA over €10M is achievable in 2016. With an market valuation at €400M, the company is priced 40 times its expected 2016 EBITDA. This significant multiple demonstrates the high level of interest from investors in one of the largest metal 3D Printer manufacturer in the world.
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