Norsk Titanium (OTCQX:NORSF) has reaffirmed its revenue target of US$150 million by 2026, aiming to broaden its applications across aerospace, defense, and industrial markets.
During the third quarter the company added 26 new parts to serial production since mid-year, bringing the total to 54, including 22 parts for US Department of Defense projects.
These parts are anticipated to generate US$12.2 million in annual recurring revenue, the company said in a statement.
CEO Carl Johnson expressed confidence in the company’s long-term growth, despite a revised revenue forecast for 2024 due to delays impacting the aerospace and semiconductor sectors.
“The sharp increase to 54 parts in serial production highlights not only the acceptance of our technology to replace critical structures on both manned and unmanned aircrafts, but also the value we deliver to our customers,” Johnson said in a statement.
“We continue to see a high level of acceptance, and while we are currently experiencing some delays in the transition of high-volume parts, we do not see lower demand.”
The additive manufacturing leader has lowered its 2024 revenue target to approximately US$6 million, down from its previous projection of US$10 to 12 million, citing delays in transitioning high-value parts to serial production and slowing production rates. Factors such as supply chain consolidation and a prolonged strike at Boeing have contributed to the adjusted outlook.
Norsk Titanium (OTCQX:NORSF) is focusing on scaling production in 2025, expecting to bring over 120 parts into serial production with a projected ARR of US$70 to $90 million.
“Together with our customers, we have identified thousands of specific parts where our customers could significantly reduce costs, energy usage, and production lead times,” Johnson added.
Third-quarter revenue for Norsk Titanium (OTCQX:NORSF) was US$0.9 million, with the company’s cash position at US$20.3 million at quarter-end, supported by proceeds from a recent warrant exercise. The company has also bolstered its inventory in anticipation of rising demand and is exploring financing options to increase flexibility for working capital.