Impact Coatings AB (publ), Interim Report January-March 2023



  • Net sales amounted to SEK 20,017 thousand (5,360)
  • Net sales, excluding noble metals for electrolysis, amounted to SEK 17,269 thousand (5,360) [1]
  • Total revenue amounted to SEK 20,137 thousand (9,464)
  • Operating profit amounted to SEK -9,131 thousand (-9,715)
  • Operating profit after financial items amounted to SEK -9,130 thousand (-9,716)
  • Cash flow amounted to SEK 132,191 thousand (-6,595)
  • Liquidity ratio amounted to 303% (630)
  • Order backlog coating systems amounted to SEK 21,988 thousand (21,132) [2]
  • Order backlog Coating Services, excluding noble metals for electrolysis, amounted to SEK 7,364 thousand [1] [2]
  • Order backlog Coating Services, including noble metals for electrolysis, amounted to SEK 16,800 thousand [1] [2]


  • Extension of Joint Development Agreement within hydrogen applications with Hyundai
  • Letter of Intent with Plug Power about coating services for electrolysis
  • Completed rights issue of approximately SEK 130 million after transaction costs


  • No significant events have occurred after the end of the period

[1] Noble metals are invoiced in a cost-neutral manner and do not affect operating profit
[2] Currency exchange rate at period end.
[3] Significant events refer to events that comprise insider information and shall be made public via press release.

Sales growth and commercial achievements

During the first quarter of the year, Impact Coatings took meaningful steps forward in our commercialization of the company. We signed a Letter of Intent for electrolysis coatings with a major manufacturer in the USA and, in parallel, continued production for the customer. We extended our Joint Development Agreement with Hyundai related to hydrogen. We delivered one coating system for radome coatings to a European customer and, at the end of the quarter, we received an additional system order for radome coatings from a European customer in the autonomous safety application area.

The rights issue completed in March raised approximately SEK 130 million after transaction costs, which positions us well to drive our efforts in technology development for green hydrogen and advance our position in the USA – an exciting growth opportunity.

Key figures with and without noble metals
The new application area electrolysis means that we perform coating services using noble metals, which affects the company’s sales volume without affecting profitability. The metals are invoiced in a cost-neutral manner in agreement with relevant customers. The metals are reported as revenue and raw material costs and do not affect operating profit.
To facilitate comparability with previous quarters we are, starting with this interim report, reporting net sales both with and without noble metals for electrolysis coatings.

It is worth noting that the company’s previous communications, in press releases and in the 2022 year-end report, have reported order values for Coating Services for electrolysis excluding noble metals, which represents the true value to the company.

Order backlog for Coating Services
As of the first quarter 2023, we are reporting the order backlog for Coating Services per the last day of the quarter in addition to the order backlog for coating systems. We are also in this case reporting the order backlog value with and without the effects of noble metals used in electrolysis.

The order backlog for Coating Services provides increased transparency into the company’s development, since Coating Services is an important pillar of our strategy with an increasing financial contribution. The flow of incoming and completed orders in Coating Services is much faster than that of coating systems. For example, a coating system can remain in the order backlog for 4-12+ months depending on the machine type and the customer’s delivery time preferences. Coating Services orders are typically registered and completed within 1-4 months. We ended the first quarter with nearly SEK 30 million in the combined order backlog, excluding noble metals for electrolysis coatings, and we aim to continue increasing order flows in both system sales and Coating Services.

A strong first quarter
The first quarter of the year delivered sharp revenue growth. Net sales, excluding noble metals, amounted to SEK 17,269 thousand during Q1 2023 (SEK 5,360). The growth is a result of the final delivery of a system for radome coatings for automotive radar for a European customer and a high level of activity in our Coating Service Center in Linköping. The comparison period did not include any coating system deliveries.

Operating expenses increased due to continued investments in expertise and headcount, ongoing development projects, and increased production capacity. By continuing to industrialize the company, we are building a foundation that will enable us to increase revenue at a faster pace than costs – a central aspect of reaching profitability and an important tool in strengthening our sustainable competitive advantage.

Letter of Intent strengthens our position in North America
In November 2022, we received a pilot order for coating services for electrolysis plates from an American company, one of the world’s leading producers of hydrogen fuel cells and electrolyzers. In February 2023, we took a step towards formalizing the cooperation when we signed a Letter of Intent regarding a supply or frame agreement with a value of USD 2-3.5 million during 2023. The total value is conditional on Impact Coatings’ fulfilling the customer’s technical requirements, and that Impact Coatings demonstrates delivery capabilities for the number of plates corresponding to the stated value range. We are continuously producing coatings for electrolysis plates for the customer in our Coating Service Center.

This development is an important catalyst for our efforts in the North American market. In a short period of time, following strong commercial and regulatory development, the USA has become a key market for hydrogen applications. Through our recent commercial progress, we also have a strengthened position heading into our planned establishment of a new Coating Service Center in the USA. With a Coating Service Center in place, we will be able to offer an attractive ramp-up solution with a high degree of flexibility and service for North American customers.

Extension of Hyundai partnership
In February, we extended the Joint Development Agreement from 2019 with Hyundai Motor Company in South Korea. The agreement involves joint research and development of new materials and processes for fuel cells and electrolysis. Hyundai, like several of our other fuel cell customers, has a well-developed strategy to expand in electrolysis. It is a natural development since fuel cells involve hydrogen utilization while electrolysis involves hydrogen production. For a hydrogen-electric vehicle to be free of fossil fuels, the hydrogen must be made using renewable energy sources. We expect many vehicle manufacturers and other fuel cell adopters to also develop technology for green hydrogen production.

There are similarities between PEM (proton exchange membrane) fuel cells and PEM electrolyzers. For example, both processes use metal plates that require advanced coatings for conductivity and durability. Impact Coatings has the advantage of providing machines and coating technology that meet rigorous customer requirements for both applications. We therefore see opportunities to grow with our existing fuel cell customers as many of them extend their scope into electrolysis.

New machine in place in China
In March, we shipped an INLINECOATER™ IC500 machine from Linköping to our Coating Service Center in Shanghai. We expect to start production later this spring. Coating Services at our own facility in Shanghai increases our ability to meet the needs of existing as well as new customers in the dynamic Chinese market. With the new machine, we will be able to continuously deliver to fuel cell customers in China, where there is a well-developed supply chain for fuel cell vehicles.

High activity level in Linköping
There was a high level of activity during the first three months of the year at our facility in Linköping. Our Coating Service Center has, as reported earlier, been running with a high utilization, which is why we plan to increase capacity with a second shift during the second quarter. Three coating machines were completed and shipped from Linköping during the quarter, of which one has been delivered and installed at the customer; a second will be delivered and installed at the customer during the second quarter; and the third will be deployed at our own Coating Service Center in Shanghai. Development activities have also been running at a higher level during the past several quarters than previously, facilitated by, among other dynamics, the dedicated R&D machine that was deployed during 2022. Our development work is both customer-specific and focused on our long-term coatings roadmap that supports our strategic business areas.

Rights issue accelerates hydrogen initiatives
We are pleased with the completion of the rights issue during the quarter. Accendo Capital – our largest shareholder since 2017 – increased its ownership stake through the transaction, which contributes to stability and continuity in the company, benefiting all stakeholders.

With financing secured and an active start to the year, we have created a solid platform for a strong 2023 and beyond. The completed rights issue will accelerate investments in the rapidly growing market for green hydrogen as well as expansion in North America – a strategic region that will play a key role in the future, both for Impact Coatings as a company and for our industry as a whole.

We have achieved a strong competitive position and are capturing the compelling business opportunities that hydrogen presents. Combined with our commercial activities in autonomous safety and other applications where our coating expertise delivers customer value, we have an exciting growth journey ahead.

Torbjörn Sandberg, CEO

The full report is attached, and can be retrieved on the company’s website at