Jenoptik (JEN) Q2 2024 earnings summary

Executive summary

• Q2 2024 showed strong performance with significant quarter-over-quarter improvements in order intake (+17%) and sales (+11%), and year-over-year sales growth of 7%.

• Achieved double-digit earnings growth in H1 2024, with a substantial increase in revenue and improved profitability, mainly driven by Non-Photonic Portfolio Companies.

• Demand picked up as anticipated, especially in the semiconductor equipment business, while some segments like optical test and measurement and life science/medical remained subdued.

• Construction of the new fab in Dresden is on schedule, supporting future growth in microoptics for semiconductor manufacturing.

• Full-year guidance for 2024 is confirmed, expecting a back-end loaded order intake.

Financial highlights

• Revenue rose 7.1% year-over-year to €540.8m, driven by Advanced Photonic Solutions and Non-Photonic Portfolio Companies.

• EBITDA increased 10.7% to €101.4m, with margin up to 18.8% from 18.1% year-over-year.

• Earnings per share rose to €0.69, up 23% quarter-over-quarter and year-over-year.

• Free cash flow before interest and tax rose 58.6% to €41.5m; capital expenditure at €42.9m.

• Net debt at €429.6m; leverage stable at 2.0x EBITDA; equity ratio at 54.2%.

Outlook and guidance

• 2024 revenue expected to grow in the mid single-digit percentage range; EBITDA margin forecast at 19.5–20.0%, including a 0.5pp negative impact from Dresden move.

• Expectation for higher order intake in H2 versus H1, with strong order backlog supporting revenue conversion.

• CapEx for 2024 expected slightly above previous year, with catch-up in H2 due to phasing.

• Guidance assumes stable political and economic conditions; portfolio changes not included.