Freemelt (FREEM) Q2 2026 earnings summary

Executive summary

• Record order intake of 22.2 million SEK in Q2, up 11% year-over-year, with a stable order book at 25.6 million SEK.

• Net sales reached 9.039 million SEK, down 53% compared to the previous year, mainly due to timing of machine deliveries.

• Strategic progress in MedTech, defense, and fusion segments, including new orders and alliances in the U.S., Europe, and China.

• SEK 35 million was raised through warrant subscription, with 97% of outstanding warrants exercised, bolstering financial stability.

• Expansion of manufacturing capabilities for extreme materials like tungsten, with new leadership roles and funding partnerships.

Financial highlights

• Gross margin was strong at 60% in Q2, driven by a favorable sales mix and high-margin aftermarket and secondhand sales.

• Operating result for Q2 was SEK -23,370k; result after financial items was SEK -23,425k.

• Operating expenses decreased to 37.5 million SEK, down from 46.8 million SEK year-over-year.

• Cash at bank stood at 41.6 million SEK at the end of June, supported by warrant exercise proceeds.

• Cash flow for the period was SEK 14,132k, a significant improvement from SEK -17,814k in Q2 2025, mainly due to warrant conversion proceeds.

Outlook and guidance

• Majority of the 25.6 million SEK order backlog expected to be recognized as revenue in the second half of the year.

• High activity in customer projects and a strong orderbook position the company for continued growth in the second half of 2026.

• Strategic focus remains on expanding the industrial platform for advanced metal components and leveraging partnerships in Europe, the US, and China.

• Lead time from order to revenue recognition for machines is typically three to four months.

• Cash burn and liquidity needs will be managed through expanded debt financing if growth continues.