GEVORKYAN: Forging Growth Beyond the Factory Floor

PRAGUE, Czech Republic – December 01, 2025 – For many investors, powder metallurgy is an obscure corner of the industrial sector, associated with automotive parts and little else. However, Prague Stock Exchange-listed GEVORKYAN is demonstrating that this specialized manufacturing process is a powerful engine for broad-based growth. The company’s latest announcements reveal a deliberate and aggressive strategy of diversification, leveraging its core technological expertise to penetrate high-value markets far beyond traditional manufacturing, from advanced medical implants to professional beauty equipment. This strategic pivot is not just a plan on paper; it's backed by robust financial results that suggest a resilient and adaptable business model taking shape.

Recent updates showcase a company firing on all cylinders. GEVORKYAN is expanding its reach into security systems, hand tools for the North American market, automotive components for brands with a significant U.S. presence, and critical systems for high-speed rail. This flurry of activity underscores a key theme: technological flexibility is unlocking new revenue streams and de-risking the company’s reliance on any single industry, a crucial advantage in a volatile global economy.

The Diversification Playbook in Action

GEVORKYAN's expansion is not a random collection of new projects but a calculated entry into sectors with strong underlying growth. The move to supply "special parts for modern security systems" for large facilities like hotels and office buildings, for instance, taps into a global commercial security market projected to grow at over 11% annually, reaching past $380 billion by 2030. As security solutions become more sophisticated, the demand for high-precision, durable components—a specialty of powder metallurgy—is set to rise.

Simultaneously, the company is making a significant push into North America with two new projects in the hand tools segment. While details on the partners remain confidential, the North American powder metallurgy market itself is a multi-billion dollar arena, with significant demand from the power tool and appliance industries. This move signals confidence in competing on a global stage and securing business in a highly competitive market.

The company is also deepening its footprint in the mobility sector, a traditional stronghold for powder metallurgy. Beyond standard automotive work, GEVORKYAN is developing components for global manufacturers with a strong American presence, positioning itself to benefit from shifts in that market, including the ongoing transition to electric vehicles (EVs). PM parts are critical for EVs, offering lightweight and complex components for electric motors and battery systems. Furthermore, its expansion into systems for modern high-speed trains aligns with massive government investments in sustainable infrastructure worldwide, a market expected to exceed $90 billion within the next decade.

High-Value Frontiers: Medical and Beauty

Perhaps the most compelling aspects of GEVORKYAN's strategy lie in its ventures into the medical and beauty sectors, which carry high barriers to entry and the potential for superior margins. The company is not just making parts; it is leveraging "innovative production technologies and the gradual launch of in-house material production" to create specialized components for medical implants and equipment.

This is a significant move. Powder metallurgy is ideal for producing complex, biocompatible parts from materials like titanium and stainless steel, which are essential for orthopedic and dental implants. By developing materials in-house, GEVORKYAN can ensure the high purity and specific properties required to meet stringent regulatory standards from bodies like the FDA and EMA. While the path to regulatory approval is long and arduous, success would create a powerful competitive moat and position the company as a key supplier in the high-stakes medical device field.

In a similarly ambitious move, the company has established a new branch in Poland to target the European beauty sector. This is a shrewd strategic decision. Poland is the fifth-largest cosmetics market in the European Union and one of its most dynamic, with a reputation for innovation. By acquiring local talent and focusing on products for "professional use," GEVORKYAN is likely targeting the B2B market, potentially supplying components for advanced beauty tech devices or premium packaging. With the European beauty tech market forecast to grow at a CAGR of over 16%, this venture diversifies the company’s portfolio into a non-cyclical consumer-facing industry.

Underpinning Growth with Financial Fortitude

A strategy of ambitious expansion is only viable if supported by a strong financial foundation, and GEVORKYAN's latest figures suggest exactly that. The company’s interim report for the third quarter of 2025 highlighted an impressive EBITDA margin of 36% and year-over-year EBITDA growth of more than 17%. These are not outlier results. A look at the company's recent history shows a consistent trend of high profitability; its full-year 2023 results showed a comparable EBITDA margin of nearly 35% and YoY EBITDA growth of approximately 27%.

This track record lends credibility to the company's forward-looking estimates, which project revenue growth of 11-18% and EBITDA growth of 15-23% for the coming years. In an industry where margins are often under pressure, maintaining profitability in the mid-30s while funding expansion is a testament to operational efficiency and the value-added nature of its products. This financial strength provides the necessary fuel for its investments in R&D, new facilities like the one in Poland, and the lengthy development cycles required for sectors like medical devices.

For investors, this combination of disciplined financial management and aggressive, intelligent diversification presents a compelling case. The company is not merely growing; it is building a more resilient enterprise. By spreading its risk and opportunity across automotive, security, medical, beauty, and infrastructure, GEVORKYAN is less susceptible to a downturn in any single market. This strategy, powered by a core competency in a highly specialized technology, is what separates industrial leaders from the pack and is a key driver for the market to watch moving forward.