Metal 3D printer manufacturer SLM Solutions (AM3D) has published its Q2 2022 financials which reveal that its revenue rose to record levels during the quarter.
The company generated €26.1 million in Q2 2022, 59.1% more than it reported in Q2 2021, while its order intake also doubled from €11.3 million to €22.6 million over the same period. The firm’s revenue rises were driven by the completion of its initial production SLM Solutions NXG XII 600 3D printers in the face of ongoing supply disruption, as well as automotive and aerospace demand for its wider portfolio.
“We are halfway through the year, and I am very pleased with the dedication and excellence all our teams displayed in this difficult operating environment,” said Sam O’Leary, CEO of SLM Solutions. “Thanks to their efforts, we have posted our best H1 revenue performance, delivered a notable improvement in operational profitability and are going into the second half of 2022 with strong order intake momentum.”
“Although the business continues to experience headwinds, we have managed to navigate the business well in the first half of this year, and we will continue to remain focused to continue our course.”
SLM Solutions’ Q2 2022 financials
SLM Solutions continues to report its revenue across two main segments: Machine Sales and After Sales, with the former remaining its highest earner during Q2 2022, bringing in €20.6 million, a 70.2% rise on Q2 2021. In addition to the fulfillment of its first NXG XII 600 production orders, the firm says its Machine Sales revenue growth was facilitated by the “robust performance of its existing portfolio.”
The company’s After Sales revenue also grew in Q2 2022, from the €4.2 million it generated in Q2 2021, to €5.4 million. According to SLM Solutions, the division’s income was not only boosted by the growth of its machine business, but the “improvement of its service quality” over the last two years, which culminated in the signing of “multiple multi-year service agreements” over the first half of the year.
When it came to profitability, the business’ gross profit and EBITDA rose from €6.6 million and -€4.1 million in Q2 2021 to €10.7 million and €1.3 million respectively in Q2 2022. The firm’s strong top-line performance coupled with its operational efficiency initiatives allowed it to make these bottom-line gains. That said, SLM Solutions’ gross profit was impacted by part shortages last quarter which caused low productivity. Though slightly offset by a positive product mix, this is expected to continue in H2.
| Financials (€) | Q2 2021 | Q2 2022 | Variance (€) | Variance (%) | H1 2021 | H1 2022 | Variance (€) | Variance (%) |
| Machine Sales | 12.1m | 20.6m | +8.5m | +70.2 | 23.4m | 32m | +8.6m | +36.8 |
| After Sales | 4.2m | 5.4m | +1.2m | +28.6 | 8.4m | 10.5m | +2.1m | +25.0 |
| Revenue | 16.4m | 26.1m | +9.7m | +59.1 | 31.7m | 42.5m | +10.8m | +34.1 |
| Gross Profit | 6.6m | 10.7m | +4.1m | +62.1 | 13.4m | 16.3m | +2.9m | +21.6 |
| EBITDA | -4.1m | 1.3m | +5.4m | +131.7 | -6.2m | -3m | +3.2m | +51.6 |
Unpicking SLM Solutions’ backlog
Ahead of its Q2 2022 earnings call, SLM Solutions has published a quarterly presentation that reveals the extent to which its sales and order backlog are being boosted by demand from automotive. In the document, the firm says the NXG XII 600 is being deployed by 3D printed Czinger 21C hypercar maker Divergent Technologies, as part of “several major global carmaker (OEM) programs.”
In fact, SLM Solutions’ technology is believed to be central to the productivity of the Divergent Adaptive Production System, and the firm now has 16 SLM systems including 5 NXG XII 600s, with more on order for delivery during H2.
Over in aerospace, Rolls Royce ordered two more SLM 500 3D printers during Q2 2022, expanding its existing install base of the machines. These systems are now being used to 3D print combustor tiles for the Pearl 10X engines that power the company’s Falcon 10X jet, in a way that enables it to achieve valuable weight and emission reductions.
German multinational BOSCH also installed two SLM 500s over the quarter, which it plans to deploy in the creation of aluminum powertrain parts for hydrogen technologies and electric vehicles (EVs). As a result of this strong automotive and aerospace demand, SLM Solutions finished H1 2022 with a €49.1 million backlog, 62.6% more than its H1 2021 backlog, thus positioning it well for the rest of the year.
As SLM Solutions moves into H2 2022, it says the difficult macroeconomic conditions it encountered last quarter will continue, but it hasn’t let this impact its outlook. The firm has reaffirmed its guidance of generating “at least €100 million” in revenue and achieving a positive EBITDA over FY 2022, citing its “strong backlog position” as well as its “continuous commercial strength” for this decision.
In a release issued alongside SLM Solutions’ results, its CFO Dirk Ackermann also indicated that while the “availability of electronic components remains a key concern” for the rest of the year, it plans to “take action to mitigate this risk.”
“Despite the ongoing significant challenges in our supply chain, we were able to deliver another strong performance in the second quarter of 2022,” concluded Ackermann. “Irrespective of the difficult environment, our business dynamic is positive and we remain optimistic regarding the second half of the year.”
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Featured image shows an SLM Solutions showroom. Image via SLM Solutions.
