Comet (COTN) H1 2025 earnings summary

Executive summary

• Net sales grew 20% year-over-year to CHF 227.2 million in H1 2025, led by a 42.4% surge in the PCT division driven by AI and high-performance computing demand, while IXM saw gains and IXS faced an 11.8% contraction and negative EBITDA margin due to weak demand.

• EBITDA margin improved to 9.1% from 6.9% in H1 2024, with profitability impacted by adverse currency effects and product/regional mix.

• Net income nearly doubled year-over-year to CHF 7.9 million, with ROCE increasing to 7.1%.

• Free cash flow declined sharply to CHF 1.3 million from CHF 8.1 million, mainly due to resource allocation for strategic growth, notably the Penang, Malaysia facility.

• Strategic cost efficiency and restructuring programs are underway, particularly in IXS, to improve margins and align with future market needs.

Financial highlights

• Group net sales increased by CHF 37.9 million (+20%) despite a CHF 6 million FX headwind.

• EBITDA rose 59.5% to CHF 20.7 million, with margin up 2.2 points to 9.1%.

• Earnings per share surged 94.2% to CHF 1.01.

• Net cash position improved to CHF 0.4 million from net debt of CHF 16.1 million at year-end 2024.

• CapEx rose to CHF 12.1 million (5.3% of sales), mainly for Penang facility and R&D.

Outlook and guidance

• Full-year 2025 net sales guidance reduced to CHF 460–500 million, with EBITDA margin expected at 10–14%.

• Wafer fab equipment CapEx growth projected at 3–5% for 2025 over 2024.

• Anticipates flat or slower sequential sales H2 vs. H1, with order push-outs into 2026 and continued cautious CapEx in semiconductors.

• Strategic focus remains on AI-related products, cost efficiency, and margin improvement.

• Industrial markets expected to remain subdued except for aerospace and defense.