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, new product traction, and advanced logic/AI infrastructure capex.

• Profitability softened due to FX headwinds, upfront investments, and market volatility; EBITDA margin declined to 10.1% from 13.0% in FY24.

• Strategic investments in products, platforms, and capacity, including high-volume Synertia orders and CA20 X-Ray System commercialization, position for the next semiconductor cycle.

• Free cash flow dropped to CHF 8.5 million, reflecting higher capex for Penang and Flamatt facilities and Asian expansion.

• Equity ratio stands at 61.6% with a net cash position of CHF 5.3 million and strong liquidity.

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% prior year, mainly due to FX and unfavorable mix.

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

• Net income was CHF 12.2 million, down from CHF 32.8 million, impacted by deferred tax asset changes and FX.

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

• Free cash flow remained positive at CHF 8.5 million.

• Net cash position of CHF 5.3 million and nearly CHF 100 million in cash and equivalents.

• Dividend per share reduced to CHF 0.50 (31.9% payout ratio).

Outlook and guidance

• Net sales and adjusted EBITDA margin for 2026 expected to significantly exceed 2025, excluding one-off costs of ~3 percentage points for Penang ramp-up and efficiency program.

• Semiconductor market outlook is bullish for 2026, with wafer fab equipment spend expected to grow 10–20% year-over-year.

• Strong order intake anticipated in Q1/26, with book-to-bill ratio notably above 1.

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

• No quantitative guidance provided for 2025 due to ongoing market volatility and limited visibility.