Contract manufacturer Fathom Digital Manufacturing reported a 17.9 percent year-over-year revenue decline in the second quarter of 2023. Revenue fell to $34.5 million.
First-half revenue also fell 15.8 percent to $69.5 million. Fathom says the slowdown in the economy is the main reason, particularly weak demand in the sheet metal processing sector.
U.S.-based Fathom specializes in digital contract manufacturing and addresses smaller batch sizes. Despite the drop in sales, CEO Ryan Martin sees Fathom on track. The number of orders has increased sequentially by 10 percent, he said.
Fathom has also launched an optimization program to ensure profitability. Second-quarter adjusted EBITDA increased 17.5 percent from the previous quarter. The EBITDA margin increased to 14 percent.
Fathom believes it is prepared for a downturn. The company plans to increase flexibility for customers with digital manufacturing. Weak demand is a burden in the short term, but in the long term Fathom is focusing on growth in contract manufacturing.