Ion Beam Applications (IBAB) H2 2024 earnings summary

Executive summary

• Achieved record revenue of €498.2 million in 2024, up 7% year-over-year, with a 4.5 percentage point gross margin improvement to 33.3% due to favorable product mix and strong Other Accelerators performance.

• Returned to profitability with net income of €9.3 million, reversing a €9.1 million loss in 2023.

• Backlog remains at a record €1.5 billion, providing strong visibility for future revenues.

• Transformation of internal structure into three focused entities: IBA Clinical, IBA Technologies, and IBA Corporate, to enhance execution and reporting.

• Proposed dividend increased to €0.24 per share, up from €0.17.

Financial highlights

• REBIT increased 170% year-over-year to €17.3 million, with a REBIT margin of 3.5% and strong performance in Other Accelerators.

• Gross margin improved to 33.3% from 28.8% in 2023.

• Operating expenses rose 16% due to higher R&D, S&M, and strategic investments.

• Gross cash at period end was €72.2 million; net financial position positive at €33.5 million, with €60 million in undrawn credit lines.

• Operating cash flow was -€10.6 million, impacted by working capital changes, but improved profitability is expected to enhance future cash generation.

Outlook and guidance

• 2025 guidance: REBIT expected to reach at least €25 million, with proton therapy returning to positive REBIT.

• Updated midterm outlook (2024-2028): revenue CAGR of 5-7%, targeting around 10% REBIT margin by 2028.

• Operational expenses to be capped at 30% of annual sales; continued capital-light investments in ventures such as PanTera and mi2-factory.

• Guidance reflects prudent approach amid global uncertainty and increased R&D investment in proton therapy and nuclear medicine.