Impact Coatings AB (publ), Interim Report July-September 2023



  • Net sales amounted to SEK 14,798 thousand (4,207)
  • Net sales, excluding metals for electrolysis, amounted to SEK 10,819 thousand (4,207) [1]
  • Total revenue amounted to SEK 17,628 thousand (13,863)
  • Operating profit amounted to SEK -13,777 thousand (-11,593)
  • Operating profit after financial items amounted to SEK -13,776 thousand (-11,592)
  • Cash flow amounted to SEK -15,263 thousand (-23,086)
  • Net cash, end of period, amounted to SEK139,083 thousand (82,919)
  • Liquidity ratio amounted to 169% (282)
  • Order backlog coating systems at period end amounted to SEK 36,478 thousand (32,964) [2]
  • Order backlog Coating Services, excluding metals for electrolysis, amounted to SEK 750 thousand [1] [2]
  • Order backlog Coating Services, including metals for electrolysis, amounted to SEK 750 thousand [1] [2]


  • Net sales amounted to SEK 59,933 thousand (13,945)
  • Net sales, excluding metals for electrolysis, amounted to SEK 50,763 thousand (13,945) [1]
  • Total revenue amounted to SEK 57,972 thousand (34,261)
  • Operating profit amounted to SEK -32,628 thousand (-34,616)
  • Operating profit after financial items amounted to SEK -32,624 thousand (-34,620) [3]
  • Cash flow amounted to SEK 77,617 thousand (-46,890)


  • No significant events have occurred during the period


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

[1] Metals for electrolysis are invoiced in a cost-neutral manner and do not affect operating profit.
[2] Currency exchange rate at period end.
[3] Includes a provision for severance pay for the departing CEO of SEK 2,960 thousand.
[4] Significant events refer to events that comprise insider information and shall be made public via press release.

Continued growth, first impressions as new CEO

I am honored and excited to have been appointed CEO of Impact Coatings, a role that I assumed on October 1. This interim report summarizes the company’s performance for the period July 1-September 30, thus prior to my arrival. However, I will provide my first impressions of the business as CEO and reflect on the strategic priorities I see ahead.

Third quarter net sales growth and commercial progress in line with our strategy
The third quarter of 2023 demonstrated continued growth in net sales and execution on the strategic plan communicated in conjunction with the March 2023 rights issue. Net sales amounted to SEK 10,819 thousand (4,207) during Q3 2023 and SEK 50,763 thousand (13,945) for the year to-date period, excluding metals for electrolysis. On a rolling 12-month basis, net sales at the end of Q3 2023 amounted to SEK 68,081 thousand, excluding metals for electrolysis.

Coating Services sales were roughly flat compared to Q2 2023, with robust sales activity compensating for the seasonally slower summer holiday period during the third quarter. Electrolysis coatings for green hydrogen remained the main sales driver. No coating systems were delivered during the third quarter, in line with previous communications.

At the end of the third quarter, the order backlog for coating systems was SEK 36,478 thousand while the order backlog for Coating Services was SEK 750 thousand, which is a snapshot at the end of the period. Although there was no order backlog for electrolysis at period end, a part of customer pre-payments for raw materials are intended for future Coating Services for electrolysis. We cannot, however, guarantee the timing or volume of future Coating Services orders. Electrolyzer stack manufacturing is in a ramp-up phase and coating orders vary in timing and size. We expect the activity level in Coating Services to remain high during Q4 2023 and into 2024.

In conjunction with hydrogen trade shows in Germany and South Korea, and at the official inauguration of our Coating Service Center in China, we launched a new premium coating for fuel cell plates in heavy duty applications during September. In parallel with our focus on electrolysis, the premium FC coating is an important step in strengthening our offering in the fuel cell segment. Heavy duty applications are driving the demand for long lifetime fuel cells, which require more durable bipolar plates. Today, China is the main market for fuel cells globally. Our Shanghai facility is therefore offering the premium FC coating initially while we provide samples and qualify the coating with customers in other regions.

Coating Services – our growth engine
At the end of September, Regional President Yaowen Wang hosted the inauguration of the Coating Service Center in Shanghai together with customers, local officials and team members, and visitors from our Swedish headquarters. The facility in Shanghai is the cornerstone of expanding our Coating Services offering and will help meet the growing demand for fuel cells in the Chinese market.

The Shanghai facility launched operations during late spring 2023 and activity has been high throughout the third quarter. Production volumes have increased while we have in parallel performed customer qualifications of the new premium FC coating for heavy duty applications. The premium coating strengthens our offering for the growing fuel cell vehicle industry in the region. The sales pipeline in China is strong and growing, comprising regional stack producers as well as global automotive and industrial OEM’s.

The advanced, efficient facility in Shanghai will serve as a template for the planned North American Coating Service Center. The Shanghai facility also offers lessons and best practices for the new headquarters in Linköping to be opened during 2024. Having Coating Service Centers in three distinct global regions will over time yield meaningful synergies in terms of sales and service levels to global customers, cost and quality management, and production processes.

The Coating Service Center in North America will bring us closer to current and potential customers, accelerate delivery times, and increase market awareness. The facility will be located in Upstate New York. Proximity to customers, inbound/outbound logistics, and access to employees with coating and vacuum equipment experience are key considerations in our facility search. With Regional President Robert Mamazza leading the efforts, we aim to have the facility operational during the first half of 2024.

At our Capital Markets Update held on September 18, Yaowen Wang and Robert Mamazza described the company’s market assessments and commercial progress in China and North America, respectively. China is a commercially active market for fuel cells – still in its early stages but with a viable industry ecosystem and functioning supply chains. North America is emerging quickly, with electrolysis (more so than fuel cells) driving demand initially. We expect strong commercial and regulatory drivers in the hydrogen segment to stimulate activity in these regions during the coming years. Impact Coatings is well-positioned to capitalize on the resulting growth in the market’s pursuit of robust coatings.

First impressions and a look ahead
After just three weeks as Impact Coatings CEO, I am deeply impressed with the expertise and drive of our team members; with the rigorous demands and technological leadership of our customers; and with the size of the commercial opportunities before us.

Looking ahead, I see several areas where I hope to make a lasting difference together with my new colleagues.

We can do more for our customers after they have purchased and installed INLINECOATER™ systems, driving increased after-market sales. This is an area that has received increased attention in recent years, but looking at the average revenue generated per system over its useful life, there is more we can do. As with all our activities, we will start by listening to our customers and adapt our offering to help them do more for longer with our market-leading PVD coating systems.

To facilitate sales growth and increase margins, I look forward to working with the team to reduce machine delivery lead times, so that we produce coating systems according to qualified market forecasts more so than reacting to incoming orders. We will work closely with our suppliers and other partners to accelerate production while reducing our bill of materials and labor costs.

In the organization, we have world-class coating experts that help our customers develop tailored coating solutions that solve emergent problems in, for example, water electrolysis or waveguide antenna production. We can work more closely with these customers at an early stage in their product development, then stay with them through commercial growth and long-term support to deliver value during an entire product life cycle. By working closely with our customers, we can help them translate their business and technical requirements into coating solutions that help create competitive advantages in the marketplace. We can also extend our technical expertise into a larger qualified sales team that drives more revenue, with deep technical expertise relevant for our most promising application areas.

These are only a few early thoughts after a busy but energizing first three weeks at the helm. In the next several weeks, I will continue my one-on-one conversations with the team and will be meeting customers visiting Linköping while also traveling abroad to see customers and prospects.

I look forward to further elaborate on the company, our progress, and priorities in the coming quarters. Once again, I am very happy to be here and thankful to be entrusted to lead the company in the next step of its journey.

Jonas Nilsson, CEO

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