ASX Stock Setting on a Growth Path by Expanding Capabilities

Team Veye | 23-Oct-2024

Titomic Limited (ASX: TTT)

Titomic Limited is one of the growing companies to invest in having announced a series of strategic initiatives and financial results that highlight its potential for significant growth. Effective January 1, 2025, Jim Simpson will take over as CEO, a leadership change that coincides with the relocation of the company’s headquarters to Huntsville, Alabama. This move is designed to establish a stronger U.S. manufacturing presence while maintaining ongoing operations in Australia and the Netherlands. The new Huntsville facility, spanning 18,000 sq. ft., is expected to be operational by Q1 2025, with low and medium-pressure manufacturing and coating capabilities ready by the same time, followed by high-pressure refractory metal manufacturing by Q3 2025. These expansions are being driven by growing demand from U.S. government and defense OEMs for titanium parts manufacturing, as well as coating and repair solutions.

In addition to its geographic expansion, Titomic has been invited to join DNV's flagship Joint Industry Project (JIP) – ProGRAM, an R&D initiative aimed at developing and standardizing additive manufacturing technologies for the oil and gas industry. This project presents a significant opportunity for Titomic to accelerate the commercialization of its cold spray technology within the oil and gas sector, which has long faced challenges related to corrosion, wear, and part failure. By participating in this project, Titomic is well-positioned to increase awareness of its cold spray technology, further establishing its reputation as a leader in providing innovative manufacturing solutions for industries facing critical operational challenges.

A notable commercial achievement during the year was the sale of Titomic’s D623 cold spray system for AUD 174,000 to United Industrial Solutions, marking the system’s first deployment in Australia. The D623 will be used for applying corrosion-resistant coatings to key oil and gas assets, particularly in Western Australia. This sale underscores the value of Titomic’s cold spray technology in extending the lifespan of critical infrastructure in harsh environments, further strengthening its presence in the energy and maritime sectors.

Titomic’s FY24 financial results reflect strong performance, with customer sales revenue up 127% to $5.9 million (FY23: $2.6 million). The company’s forward order book is also tracking ahead of revenue, with total orders for the year reaching $10.0 million, and over $8.0 million of orders received since March 2024. Total revenue grew by 71% to $7.7 million (FY23: $4.5 million). Despite reporting a statutory net loss after tax of $11.9 million, this represents an improvement from FY23’s loss of $15.7 million.

Titomic is one of the best growth stocks as its innovative technology and strong execution continue to drive revenue growth across key industries, including aerospace, defense, energy, and maritime. The company has secured substantial orders from major players such as Boeing, Airbus, Woodside Energy, Repkon, BAE Systems, and Triton Systems, which underscores its growing market presence. With its ability to produce large-scale, high-performance parts from advanced metals, Titomic is well-positioned to leverage its cold spray technology across multiple sectors, setting the stage for continued growth and long-term value creation for shareholders.

(Source: Company’s Report)

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