Ascom (ASCN) H2 2024 earnings summary

Executive summary

• 2024 was marked by significant headwinds, with net revenue down 1.6% at constant currencies and net profit falling to CHF 3.7 million, well below growth ambitions amid macroeconomic volatility.

• Regional performance was mixed: strong growth in Nordics and DACH, but underperformance in France and the UK.

• Order backlog grew 9% year-over-year to CHF 301.5 million, providing a strong base for 2025.

• Despite setbacks, the company maintains a solid balance sheet, positive cash position (CHF 18.6 million), and strong equity ratio (nearly 40%).

• Cost measures initiated mid-2024 are expected to show benefits in 2025, with a focus on profitable growth, operational excellence, and innovation.

Financial highlights

• Revenue declined by 1.6% at constant currencies and 3.6% at actual currencies year-over-year, with currency headwinds accounting for a 2% negative impact.

• EBITDA margin dropped to 7.4% from 10.1% in 2023; net profit was CHF 3.7 million, both substantially lower than initial expectations.

• Operating cash flow reached CHF 20 million; CapEx was CHF 15.5 million; dividend paid was CHF 10.8 million.

• Order backlog increased to CHF 301.5 million, with about 50% expected to convert to revenue in 2025.

• Incoming orders decreased 1.5% at constant currencies.

Outlook and guidance

• 2025 guidance targets low single-digit revenue growth and an EBITDA margin of 9–10% at constant currencies.

• Focus remains on cost base improvement, operational efficiency, and growing recurring revenues.

• No midterm guidance due to market volatility; update expected at end of 2025 or early 2026.

• Strong order backlog expected to convert to revenue in 2025; cost actions to yield run-rate effects.