Impact Coatings AB (publ), Interim Report January-March 2024



  • Net sales amounted to SEK 4.0 million (20.0)
  • Net sales, excluding metals for electrolysis, amounted to SEK 4.0 million (17.3) [1]
  • Total revenue amounted to SEK 7.5 million (20.1)
  • Operating profit amounted to SEK -15.9 million (-9.1)
  • Operating profit after financial items amounted to SEK -15.9 million (-9.1)
  • Cash flow amounted to SEK -22.5 million (132.2)
  • Net cash, end of period, amounted to SEK 97.2 million (193.6)
  • Liquidity ratio amounted to 151% (303)
  • Order backlog coating systems at period end amounted to SEK 4.8 million (22.0)
  • Order backlog Coating Services, excluding metals for electrolysis, amounted to SEK 2.0 million (7.4) [1]
  • Order backlog Coating Services, including metals for electrolysis, amounted to SEK 2.0 million (16.8) [1]


  • Production line for metallization of waveguide antennas installed at the Coating Service Center China, in accordance with five-year leasing agreement with Waveland Technology Co., Ltd. from November 2023


  • Official approval as volume supplier of Coating Services from fuel cell manufacturer in China, relating to Premium FC coating for heavy duty fuel cell vehicles

[1] Metals for electrolysis are invoiced in a cost-neutral manner and do not affect operating profit.

A time of challenges and exciting opportunities

We are now a bit into 2024, a time of both challenges and exciting opportunities. Impact Coatings continues to be affected by delayed orders in electrolysis, and as a result of the strategic decision to deliver what we had in the order backlog at the end of last year, Q1 2024 shows an expected decline in sales. We are not satisfied with the outcome but have maintained a high pace in sales development and have increased our presence in the market. During the quarter, we strengthened existing relationships and welcomed seven new customers into our entry-stage business, Coating Services.

As expected, the first quarter was weaker than the corresponding period last year. The quarter was partly affected by the strategic decision to deliver the system orders we had in the order backlog at the end of 2023, which meant that we entered the new year with a nearly empty order backlog, with some effects from delayed orders for electrolysis within Coating Services. Net sales during the first quarter amounted to SEK 4.0 million (20.0). Excluding metals for electrolysis, net sales amounted to SEK 4.0 million (17.3). First quarter net income after financial items amounted to -15.9 MSEK.

No system deliveries were completed during the quarter. The slower pace in Coating Services from Q4 2023 remains unchanged. We are getting indications that planned electrolysis volumes are still expected and we are ready to resume full production capacity as soon as we see volumes return. Such uncertainty is one of the challenges of being at the forefront of an emerging market. However, we are well adapted to the market's conditions and, thanks to the composition of our production team, we can adapt the business to the prevailing order flow. Continuous tactical operational decisions as the market changes, and quickly ramping up and down the production rate help ensure cost control and adaptation to increased demand. Aftermarket has had a stable development and is in line with the previous year.

Seven new paying customers in entry-stage business
We developed a strong sales pipeline during the quarter with a continued sharp commercial focus. We have started the year with many customer visits and other sales activities in our prioritized growth markets. There is pace and energy in the sales organization, and during the quarter we welcomed seven new paying customers to our entry-stage business, Coating Services.

All seven are serious players in the hydrogen space with potential to become machine customers or Coating Service volume customers. We are proud that several of the new customers come to us due to our market position. We are well-known in the field of noble metal coatings for electrolysis and for the fact that our fuel cell coatings are qualified at major stack manufacturers. Impact Coatings is a reliable supplier choice for plate manufacturers.

Our business model, with delivery of Coating Services, coating systems, or combinations of these, has proven effective. Coating Services works as an attractive first-stage offering for new customers. Through Coating Services, new customers can test coating samples and initial volumes and then increase volumes or purchase and install INLINECOATER™ systems in their own factories. We regard on-boarding each new customer in Coating Services as an important step towards building a long-term business relationship.

Expansion and increased presence
Coating Service Center China has been in full operation since summer 2023 and demonstrates how Coating Services and system sales complement each other and meet customers' flexibility needs. In terms of revenue, China is our single largest geographic market and accounted for 27 percent of the company's total revenue in 2023.

The Waveland production line described in a press release on November 14, 2023, is now installed in the Coating Service Center China and commissioning is in process.

In the fourth quarter 2023 we added six new paying customers, of which two in China. After the end of the first quarter 2024, we received approval from one of these new customers in China for volume production with Coating Services using our new Premium FC coating for heavy duty fuel cell vehicles. This approval shows we are advancing our position in the growing fuel cell market. It also shows that our combined business model offering Coating Services as an entry stage business is working as intended.

As part of our strategy to increase our global presence and meet the growing demand in the green hydrogen market, we are planning, as previously communicated, a Coating Service Center in the USA. Considering the historical fluctuations in the market, we are keen to time correctly the start-up of planned operations in the USA. We have prepared well. With a registered subsidiary, an identified location and a machine ready to ship, we are ready to start up our third Coating Service Center as soon as the market need is there.

Our head office and Coating Service Center Sweden in Linköping will be relocated later this year. We are moving into completely new premises with the advantage that we can influence the facility design according to our business needs with, among other things, cleanroom and other adapted production spaces. The move is required due to the residential conversion of the area where our current facility is located. The current facility is not going to be rented out again, which facilitates a flexible and smooth transition to the new facility.

Standardized modules for increased efficiency
We are starting to see the results of increasingly standardized coating system production. A reorganization during the fourth quarter laid a good foundation for the work and is now bearing fruit. We have work to do still to set the new production routines and adapt standardized modules, but are well on our way to improved working methods and shortened delivery times.

We are developing the modular platform on which our INLINECOATER™ models are based in order to start producing systems according to market forecasts. The systems generally consist of machine bodies, electrical cabinets and coating sources. By producing the parts of the system as standardized building blocks, we achieve a flexible and efficient production while we can offer upgrade possibilities and adaptation according to new coating needs, for example upgrading to Premium FC coating.

As expected, the first quarter saw negative growth that was a departure from the positive growth rate of 2023. We are not satisfied with the outcome, but have a clear plan for increased net sales, which is our most important metric.

Full focus is now on customer-facing activities, the transition to standardized coating system production, and development of our offering. We are convinced that our hard work and a strong customer focus will create the long-term relationships and growing pipeline of new customers that will help us reach profitable growth.

Jonas Nilsson, CEO

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