London, August 20th (Argus) - Norwegian additive manufacturing company Norsk Titanium has postponed its expected break-even point due to the slower pace of transformation from titanium forgings to directed energy deposition (DED) titanium components by original equipment manufacturers (OEMs).
The company reported that its revenue for the 1-6 month period of this year increased by 54% year-on-year to $2 million, but its operating expenses soared from $1.34 million in the same period last year to $1.72 million, as the company expanded its capacity to meet expected order growth and prepared for mass production. Due to this cash consumption and the slower transformation speed of commercial aviation components, the company has postponed its expected break-even point to early 2027.
Based on confirmed contracts and mature business negotiations, the company expects a revenue target of $70 million in 2026, with a ratio of approximately 50:50 between the aerospace and defense sectors and the industrial sector.
The company continues to deliver components as per the contractual agreements to European OEM Airbus and has certified two additional machines to enhance production readiness. The company expects to reach a third production contract with Airbus in the second half of this year.
In the first half of this year, the company had 54 components in the mass production stage, an increase from 26 in the same period last year. After receiving a high-temperature titanium component order from the US Department of Energy, the number of mass-produced components has increased to 56.
During the first half of this year, the company continued its operational upgrades, including installing internal machining and heat treatment equipment to accelerate the component development speed.
The company's rapid plasma deposition (RPD) process precisely melts titanium wires in an inert argon atmosphere and builds up layer by layer to form near-net-shape preforms. This near-net-shape component requires far less mechanical processing than traditional forging processes, generating less than 10% of waste. The company's annual production capacity is 700 tons.
