Comet (COTN) H2 2024 earnings summary

Executive summary

• Revenue/net sales increased by 12.1% year-over-year, driven by a semiconductor market upswing and strong PCT division performance.

• EBITDA margin improved to 13.6% (from 11.3% in FY23), with free cash flow of CHF 41.4 million and ROCE of 10.4%.

• Net income more than doubled, and dividend per share increased by 50% to CHF 1.50.

• Major milestones included Synertia generator qualifications, new product launches (Matchbox, CA20 X-ray system), and expansion in Malaysia.

• Over 70% of revenue now comes from the semiconductor and electronics industry, expected to rise above 80%.

Financial highlights

• Net sales reached CHF 445.4 million (+12.1% vs. FY23); EBITDA CHF 60.4 million (+34.2%); net income CHF 35.1 million (+128.2%).

• Gross margin improved to 43.4% (from 41.0%); ROCE increased to 10.4% (from 6.6%).

• Free cash flow yield reached 9.2%, nearing the midterm target of 10-15%.

• Cash and cash equivalents rose 31.2% to CHF 113.7 million; net debt shifted to net cash of CHF -16.1 million.

• Dividend increased by 50% to CHF 1.50 per share, payout ratio at 33%.

Outlook and guidance

• FY25 revenue guidance: CHF 480–520 million; EBITDA margin: 17.0–20.0%.

• Cautiously optimistic outlook for 2025, with semiconductor demand driven by AI, logic, and DRAM.

• Fab equipment spending projected at $100-116 billion, up 0-5% from 2024.

• Anticipates a soft Q1 2025 due to inventory adjustments, with stronger growth expected in H2.

• Focus on commercialization, efficiency, and scaling new products, especially in Malaysia.