Cymat Technologies Ltd. (TSXV: CYM, OTCQB: CYMHF) has announced impressive results for the first quarter of its fiscal 2025 year, ending July 31, 2024. The company achieved record-setting quarterly revenue of $2 million and generated positive cash flow from operations, marking a significant turnaround after a challenging previous fiscal year. This positive performance was driven by strong sales in both Cymat’s architectural and SmartMetal™ divisions.
Cymat’s architectural business led the way with $1.8 million in sales of Alusion™ panels. This includes the company’s first major order for the NEOM development in Saudi Arabia, cladding for a new Italian energy company headquarters, and a significant restocking order for its China-based Alusion™ distributor.
While SmartMetal™, Cymat’s custom engineered stabilized aluminum foam (SAF), contributed more modestly to the quarterly revenue, it achieved initial deliveries under long-term contracts in key industry verticals, including defense and security. The company shipped its first 24 SmartMetal™ underbelly protection kits to an Asian military vehicle manufacturer, marking the initial phase of a potential 350-kit order. These vehicles are being procured by the customer’s national military for a fleet expansion of approximately 700 vehicles. While this order is currently on a quoted-price basis, Cymat is nearing final approval for a definitive 3-year supply contract with an anticipated value of $4 million to $5 million. The OEM’s marketing efforts for this vehicle are expected to extend to the broader global military customer base, where earlier vehicle variants are already in service.
Another key market for SmartMetal™ is the energy infrastructure sector. Cymat recently announced a major order for SmartMetal™ panels from NUVIA, a global nuclear technology specialist based in France. These panels will be integrated into NUVIA’s NuFoam™ system to provide enhanced protection for sensitive nuclear power generation equipment from external threats. This represents the first $1 million phase of a total $2.7 million order, and France’s ongoing nuclear power plant life extension programs are expected to generate future similar orders. This order demonstrates Cymat’s ability to meet the rigorous manufacturing standards of the nuclear energy industry. Building on the success of SmartMetal™ within the NuFoam™ platform, Cymat is actively engaging with other entities interested in enhancing the resilience of new energy infrastructure projects.
Furthermore, Cymat remains focused on business development efforts targeting the automotive industry, particularly electrified vehicle platforms. Recognizing the challenges facing automotive OEMs with the expense of manufacturing battery electric vehicles (BEVs) and softening consumer demand, Cymat sees an opportunity to contribute to cost reduction through its SmartMetal™ technology. Independent dynamic testing of a SmartMetal™-based prototype has successfully demonstrated its ability to protect the underside of battery enclosures from object impact while offering a reduced component weight, increased energy absorption, and reduced post-crash deflection. This component can deliver cost savings and support battery system simplification goals, making it a compelling solution for automotive OEMs. Cymat is actively engaging with several automotive OEMs and Tier One suppliers to highlight these advantages.
For fiscal 2025, Cymat plans to further invest in its manufacturing, testing, and information systems to further demonstrate its capabilities in meeting the demanding requirements of the automotive manufacturing environment.
Cymat CEO and Chairman Michael Liik expressed his satisfaction with the company’s significant turnaround, stating, “We are extremely pleased with this significant turn around in our business after a challenging fiscal 2024. While Alusion continues to generate a significant portion of our revenues, the beginnings of long-term contractual revenue from our SmartMetal division should provide a much higher degree of predictability to our financial performance going forward.” He added, “It is particularly satisfying to see our long-term business and product development efforts in the nuclear and defence industries begin to yield results. We anticipate that these two business verticals will lay a strong and growing foundation to our business going forward.”
Michael Liik will lead an Investor Update call and presentation on Tuesday, October 1st at 11:00 AM Eastern Time (ET), hosted by Investor Cubed. For full event details, please visit: [https://us06web.zoom.us/webinar/register/WN_9BKqPPs5TYWj4Pd7t-JGTw](https://us06web.zoom.us/webinar/register/WN_9BKqPPs5TYWj4Pd7t-JGTw).
Cymat Technologies Ltd. holds global rights, through patents and established know-how, to manufacture and sell Stabilized Aluminum Foam (SAF), a unique, ultra-light, cellular metallic material. This advanced, lightweight, recyclable material exhibits unique characteristics, including customizable density and dimensions, mechanical energy absorption, thermal and acoustic insulation, and time, temperature, and strain-rate insensitivity. Its continuous foam production process is scalable and cost-effective, making it suitable for various industries. Cymat markets its architectural SAF under the Alusion™ brand and its automotive and military SAF under the SmartMetal™ brand. For more information, please visit their website at www.cymat.com.