The company is indicating a year-on-year revenue growth of more than 30%, strong EBITDA improvement, and positive free cashflow for full year 2025. The company will deliver positive free cashflow for the full year 2024. The status on the Indonesian contract remains unchanged, with GomSpace in a strong position.
In March 2023, GomSpace revised its market guidance, shifting its focus from revenue and EBIT to free cashflow, with an ambition to achieve positive free cashflow in the second half of 2024. This strategic adjustment aimed to simplify communications while stabilizing and reshaping the company's operations.
GomSpace will deliver a positive free cashflow not only in the second half of 2024, but with an expected strong closing of the year, the company will deliver a positive free cashflow for the full year of 2024.
As part of its transformation, GomSpace reorganized into three distinct Business Units (BU), each operating with its own financial targets. These units are now fully operational and contribute to the company's clarity and performance.
Building on these changes, bolstered by a healthy improvement in the order backlog in Programs, and enhanced cashflow performance, the company will provide guidance on revenue, EBITDA, and free cashflow starting in 2025.
CEO Carsten Drachmann commented: "The past 18 months have been a rewarding journey of change. While there is still work to be done, I am very pleased that we now have sufficient control over the business to provide meaningful guidance on revenue and profitability. Starting in 2025, we will report EBITDA as a key performance indicator in our quarterly reports, underscoring our commitment to improving profitability".
Carsten continues:" Global demand for surveillance and marine domain awareness continues to grow as nations seek control over space assets for security and sovereignty. This is reflected in our contract with the Ministry of Fishery & Marine Affairs Indonesia. The status remains unchanged; GomSpace is well-positioned to close, pending execution of the financing agreement under the new government. Notably, the 2025 market guidance in this release does not rely on this contract, though its finalization would provide upside potential".
The company refers to the press release for details on the Indonesian contract from September 30, 2024.
2025 Guidance (All figures in Swedish Kronor)
- Revenue: 320M to 380M (2024 estimate: better than 245M)
- EBITDA: -2% to +10% (2024 estimate: better than -10%)
- Free cashflow: Positive for the full year of 2025 (positive for the full year 2024)
(Note: 2024 figures in parentheses are estimates and subject to revision as final results are confirmed.)
The company expects strong revenue performance in 2025, supported by a solid order backlog in Programs BU, with over 70% of revenue already contracted. North America BU anticipates high double-digit growth, driven by product sales, while Products BU forecasts low double-digit growth compared to 2024.
EBITDA will depend on order intake in Products and North America BUs, both benefiting from strong product margins. With an average delivery time of 3 months, the visibility to order intake is 3-4 months. Programs BU provides longer-term visibility but relies on timely execution and securing new contracts in H1 2025 to fill capacity in the second half of the year.
The company continues to enhance its product portfolio to remain competitive, while pursuing organic growth in North America through reinvestment of profits to expand regional presence. Additionally, the company will invest in digitalization, including AI implementation where beneficial, to improve efficiency and reliability.
Positive free cashflow is projected for 2025, factoring in planned growth investments. Quarter fluctuations are expected due to the timing of payment milestones and product order intake.
With the existing Programs backlog, 2025 targets do not depend on major new contracts. However, securing a significant contract, such as with Indonesia's Ministry of Fishery & Marine Affairs, could push results toward the upper guidance range.
With the ongoing transformation and market momentum, GomSpace is well-positioned to deliver sustainable growth and profitability, aligned with its vision of being a leading player in the evolving space industry and marine domain awareness market.
For more information, please contact:
Anne Breüner (Head of Corporate Affairs)
Tel: +45 40 200 192
E-mail: anbr @ gomspace.com
About GomSpace Group AB
The company's business operations are mainly conducted through the wholly-owned Danish subsidiary, GomSpace A/S, with operational office in Aalborg, Denmark. GomSpace is a space company with a mission to be engaged in the global market for space systems and services by introducing new products, i.e. components, platforms and systems based on innovation within professional nanosatellites. The company is listed on the Nasdaq First North Premier exchange under the ticker GOMX. FNCA Sweden AB is the Company's Certified Adviser. For more information, please visit our website on www.gomspace.com.
Miscellaneous
This information is information that GomSpace is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, 8:30 a.m. CET on December 18, 2024.
