Equity Research Svenska Aerogel, Q3 2025: Lower costs improve profitability

During the past six months, Svenska Aerogel Holding AB (“Svenska Aerogel” or “the Company”) has shown an increasing order intake despite lower-than-expected sales in Q3 2025. At the same time, lower-than-expected costs in resulted in better profitability than we had anticipated. 

Strong pipeline, but lower than expected revenues

In Q3 2025, Svenska Aerogel generated sales of just over SEK 0.9 million. Our estimate for sales was SEK 2.2 million, based on the container order from Novcoat as well as the larger order of 2.6 tons of Quartzene® delivered to a customer in the Advanced segment early in Q3. Thus, we had expected higher sales in Q3 than what was realized. The Company reported an EBIT result of minus SEK 7.1 million, compared to our estimate of minus SEK 7.5 million.

During Q3 2025, as mentioned, Svenska Aerogel delivered a major order of 2.6 tons of Quartzene® to a North American manufacturer in the outdoor industry. The Company also completed an order of 1.5 tons of aerogel material to Matrix Brands. Both orders were mentioned in our previous research update after the Q2 2025 report. In early October 2025, the Company received an additional order of 2 tons of Quartzene® from the North American manufacturer in the outdoor industry, which was included in the Q3 2025 figures.

Svenska Aerogel has recently provided an update on the Quartzene® samples delivered at the end of 2024 to Isoltech, an Italian company operating in lightweight concrete. The material was tested as part of Isoltech’s research and development program focused on thermal insulating cellular lightweight concrete. The tests showed that the addition of Quartzene® affected the concrete’s thermal properties, with measured thermal conductivity values down to 0.031 W/m·K. According to the Company, the results indicated that improved insulation performance could be achieved without compromising the material’s strength. In addition, a development project is ongoing where Quartzene® is being used as a thermal insulating barrier in the latest generation of battery technology, focusing on EV batteries. At the end of Q3 2025, the cash position amounted to SEK 15.7 million. In our updated scenario, the Company will need to raise SEK 25–30 million before profitability is achieved.

In our updated scenario, revenue estimates for 2025 and 2026 have been revised downward due to uncertainty regarding order values and the timing of revenue recognition from recent orders. Margin estimates remain unchanged since the update following the Q2 2025 report.

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