Comet (COTN) H2 2024 earnings summary

Executive summary

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

• EBITDA margin improved to 13.6%, with net income more than doubling and free cash flow of CHF 41.4 million.

• Major product launches included the Synertia Matchbox line and CA20 X-ray system fab version, supporting innovation and market expansion.

• Expansion in Malaysia and strengthened presence in Asia enhanced scalability and future growth prospects.

• Dividend per share increased by 50% to CHF 1.50, supported by strong free cash flow.

Financial highlights

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

• Gross margin improved to 43.4% (from 41.0%), and 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.

• EPS more than doubled to CHF 4.52; dividend 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, leading-edge logic, and DRAM.

• Fab equipment spending projected to grow 0-5% to $100-116 billion.

• Anticipated stronger second half of 2025, with all divisions expected to contribute to growth.

• Continued investments in R&D, sales, and marketing to drive new product commercialization and Malaysia expansion.