Cicor Technologies (CICN) H1 2024 earnings summary

Executive summary

• Net sales rose 16.1% year-over-year to CHF 231.3 million, driven by acquisitions despite a 4.4% organic decline and negative currency effects, positioning the company among Europe's top electronics manufacturers.

• EBITDA increased 15.9% to CHF 24.7 million, with the margin stable at 10.7% despite one-off negative acquisition effects.

• Net profit surged 53.9% to CHF 11.9 million, with EPS up to CHF 2.69 from CHF 1.74 year-over-year.

• Acquisitions contributed 22.1% to sales growth, with three completed in H1: STS Defence (UK), Evolution Medtec (Romania), and TT Electronics IoT Solutions (UK/China).

• Order backlog remains robust at about one year’s sales, though new orders fell to CHF 201.1 million (book-to-bill ratio 0.87).

Financial highlights

• Net sales reached CHF 231.3 million (+16.1% year-over-year), with organic sales down 4.4%.

• EBITDA was CHF 24.7 million (+15.9%), EBIT CHF 15.1 million (+13.1%), and net profit CHF 11.9 million (+53.9%).

• Free cash flow before acquisitions quadrupled to CHF 21.1 million; after acquisitions, free cash flow was CHF -30.0 million.

• Equity ratio at 31.4% (down from 38.2% at year-end 2023), mainly due to goodwill offset against equity.

• Net debt increased to CHF 79.6 million, with leverage (net debt/EBITDA) at 1.50.

Outlook and guidance

• Full-year 2024 sales guidance raised to CHF 470–510 million, with EBITDA forecast at CHF 50–60 million and margin target of 10–13%.

• Management expects above-average growth in revenue, operating income, and EPS, assuming stable macro and FX conditions.

• Expecting increased order intake in H2, especially in aerospace & defense and medical, with industrial sector returning to growth.

• Midterm EBIT margin target remains 10–13%, with current performance at the upper end excluding one-offs.