Equity Research Svenska Aerogel, Q3 2024: Lower than expected costs

Today, Svenska Aerogel published its interim report for Q3 2024. Below is a summary of our first impressions of the report’s outcome and the income statement’s deviations from our forecasts.

• Net sales for Q2 2024 totaled SEK 0.6 million, falling short of our estimate of SEK 1.3 million.
• EBIT amounted to minus SEK 9.0 million. Our EBITDA estimate was minus SEK 10.1 million. The deviation in estimates vs outcome for EBIT is due to lower than expected cost of sales which amounted to minus SEK 2.2 million compared to our estimate of minus SEK 3.3 million.
• The net result for Q2 2024 ended up at minus SEK 9.0 million compared to our estimate of minus SEK 10.1 million.

During the last month, Svenska Aerogel has announced new supplier agreements with Outlast® Technologies (“Outlast”) and Matrix Brands (“Matrix”) for specially developed aerogel materials. Outlast, a leader in temperature-regulating solutions for the textile industry, plans to introduce a new solution incorporating insulating fibers with Quartzene® as early as January 2025. Meanwhile, the agreement with Matrix spans a five-year period. Under this arrangement, Svenska Aerogel will receive SEK 1.5 million from Matrix to cover production modifications and costs associated with pilot production of the material.

We intend to publish a full research update on Svenska Aerogel shortly.

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