Norsk Titanium (OTCQX:NORSF), a leader in the additive manufacturing of titanium parts, is forecasting strong growth in 2025, with plans to dramatically increase its serial production and recurring revenue.
The company’s outlook is bolstered by significant achievements in 2024, positioning it for continued success across its key markets in aerospace, defense, and industrial sectors.
CEO Carl Johnson reflected on the company's progress in 2024 in its annual report, emphasizing the growth of its operations and customer base.
"Our commitment to innovation and excellence has positioned us as a critical partner to customers in our core aerospace, defense, and industrial markets," Johnson wrote in the report.
"Despite challenges and some delays versus plan, a significant number of parts entered serial production in 2024, and we began to recognize commercial revenue from the customer relationships we have built over many years."
In 2024, Norsk Titanium successfully transitioned 54 parts into serial production, marking a notable increase from just 11 parts in 2023. This expansion is expected to contribute an annual recurring revenue (ARR) of $12 million, up from $4 million last year.
Key milestones reached in 2024 include the company’s qualification with Airbus, culminating in a Master Supply Agreement that solidifies Norsk Titanium’s position as a critical supplier in the commercial aerospace market. The company also secured recurring production orders in the semiconductor industry, diversifying its customer base and enhancing its long-term growth prospects.
Norsk now plans to exceed 120 parts in serial production by the end of 2025, resulting in a substantial boost in ARR.
Proprietary technology
Norsk Titanium’s proprietary RPD wire DED technology has been a game-changer for the company, enabling it to produce high-quality metal alloys with greater efficiency and lower material costs compared to traditional methods. Norsk said that the technology has already attracted attention from major commercial aerospace players and is expected to drive significant future revenue.
The company holds 204 patents globally, with an additional 55 patent applications pending.
Looking ahead, the company anticipates a rapid growth trajectory. By the end of 2025, Norsk Titanium expects to achieve an ARR of approximately $70-$90 million from its existing customer base, with additional revenue from new parts transitioned to serial production. This strong foundation will serve as a springboard for Norsk Titanium’s 2026 revenue target of $150 million.
“The road ahead is exciting and motivating, and we are confident that our strong market position and knowledge and our enhanced organizational capabilities will enable us to achieve our goals,” Johnson added.
“Our focus on innovation, operational excellence, and customer satisfaction will lead to successful commercialization and high value creation for our shareholders over the years to come.”