Comet (COTN) H2 2025 earnings summary

Executive summary

• Net sales grew 2.6% year-over-year to CHF 457.0 million, with 7.3% growth in constant currency, driven by semiconductor market recovery and new product traction despite macroeconomic volatility and FX headwinds.

• Profitability declined, with EBITDA margin down to 10.1% from 13.0% in FY24, mainly due to FX, product/regional mix, and strategic investments in semiconductors.

• Free cash flow dropped to CHF 8.5 million, reflecting higher capex for Penang and Flamatt facilities, funded from operating cash flow.

• Strategic focus sharpened on semiconductors, with restructuring and discontinuation of non-semi activities, and major milestones in Synertia and CA20 commercialization.

• Penang, Malaysia site handover completed, with operations planned for H2 2026 to support Asian market growth.

Financial highlights

• Net sales: CHF 457.0 million, up 2.6% year-over-year (7.3% in constant currency).

• Gross profit margin declined to 38% from 42.8% in the prior year, mainly due to FX and unfavorable mix.

• EBITDA was CHF 46.3 million (margin 10.1%), down from 13% in 2024.

• Net income fell to CHF 12.2 million from CHF 32.8 million, impacted by deferred tax asset changes and FX; EPS at CHF 1.57 (FY24: CHF 4.22).

• CapEx rose to CHF 42.5 million (9.3% of sales), mainly for Penang and Flamatt facilities.

• Free cash flow: CHF 8.5 million, down from CHF 41.4 million in prior year.

• Dividend proposed at CHF 0.5 per share (31.9% payout ratio), down from CHF 1.50.

Outlook and guidance

• 2026 expected to see significant sales and adjusted EBITDA margin improvement, excluding one-off costs of ~3 percentage points for Penang ramp-up and efficiency program.

• No quantitative guidance provided due to ongoing market volatility and limited visibility.

• Semiconductor market outlook is bullish, with wafer fab equipment spend projected to grow 10–20% year-over-year.

• Cost reduction and efficiency program to impact 2026 EBITDA by ~1.5 percentage points, with benefits expected from 2027.

• Strategic targets for 2030: CHF 670–770 million net sales, 22–27% EBITDA margin, 27–32% ROCE.