Comet (COTN) H1 2024 earnings summary

Executive summary

• Net sales for H1 2024 were CHF 189.3 million, down 8.6% year-over-year, with a weak Q1 followed by a Q2 recovery driven by the semiconductor cycle turnaround.

• Semiconductor market recovery led to a 22% year-over-year increase in incoming orders and a book-to-bill ratio of 1.1, up from 0.8 in H1 2023.

• Free cash flow improved from -CHF 15.3 million to +CHF 8.1 million, supported by lower working capital and CapEx.

• Net income rose to CHF 4.1 million, up 109.6% year-over-year, driven by improved financial results and lower costs.

• All divisions are on track for H2 growth, with PCT benefiting from semiconductor recovery, IXS focusing on advanced packaging, and IXM positioned for batteries and electronics.

Financial highlights

• Net sales: CHF 189.3 million (-8.6% year-over-year); EBITDA: CHF 13.0 million (-9.1%); EBITDA margin: 6.9% (stable year-over-year); net income: CHF 4.1 million (+109.6%).

• Gross profit margin improved to 40.1% (+0.9pp year-over-year), aided by cost controls and lower idle costs.

• Free cash flow: CHF 8.1 million (H1 2023: CHF -15.3 million); capex as % of sales: 2.5% (down from 9.4%).

• Cash and cash equivalents: CHF 84.6 million; net debt: CHF 12.4 million; equity ratio: 61.9%.

• Earnings per share: CHF 0.52 (up 108% year-over-year).

Outlook and guidance

• Full-year 2024 guidance confirmed: net sales expected between CHF 440–480 million, EBITDA margin 15–17%.

• Semiconductor equipment industry forecasted to grow 3–5% in 2024, accelerating to 14% in 2025.

• Anticipates further increase in incoming orders and sales in H2, with high backlog and operational readiness.

• Expects a significantly better result for FY 2024 than the previous year.

• CapEx expected to accelerate in H2 but end below initial guidance.