Huber+Suhner (HUBN) H1 2024 earnings summary

Executive summary

• Order intake grew 14.9% year-over-year to CHF 521 million, with a book-to-bill ratio of 1.21 and a 41.5% increase over H2 2023, signaling strong demand recovery.

• Net sales for H1 2024 were CHF 430.6 million, down 9.8% year-over-year, but up 15.2% sequentially from H2 2023.

• EBIT margin was 9.6%, within the midterm target range, supported by improved gross margin and cost reductions.

• Net income reached CHF 34.8 million, down from CHF 38.2 million, aided by a low tax rate.

• Free operating cash flow nearly doubled to CHF 19.4 million, with net liquidity increasing to CHF 152 million.

Financial highlights

• Organic net sales declined 7.3% year-over-year, with additional impact from copper and currency.

• Gross margin improved to 36.2%–36.5% due to lower production costs and normalized supply chain.

• Free operating cash flow increased 100.7% year-over-year to CHF 19.4 million.

• Net liquidity rose by CHF 40 million year-over-year, reaching CHF 151.7–152 million.

• Equity ratio remained strong at 75%–75.4%.

Outlook and guidance

• Guidance for 2024 is confirmed: organic net sales growth and EBIT margin in the lower half of the 9–12% target range.

• Slight sales growth expected in H2 2024 versus H1, supported by a strong order backlog.

• Guidance assumes no excessive negative impact from inflation, FX, or macroeconomic/geopolitical factors.