Mycronic (MYCR) Q2 2024 earnings summary

Executive summary

• Q2 2024 saw order intake rise 22% to SEK 2,125 million and net sales increase 23% to SEK 1,527 million, with EBIT more than doubling to SEK 348 million and a margin of 23%.

• Order backlog reached SEK 4,700 million, covering more than eight months of orders and including 30 Pattern Generators systems as of June 30.

• Pattern Generators led growth, with two major product launches: Prexision 8000 Evo and MMX/MMX, and the closing of the Vanguard Automation acquisition, forming a new business line.

• Science Based Targets initiative approved new climate targets, aiming for a 56% reduction in Scope 1 & 2 and 52% in Scope 3 emissions by 2030.

• For H1 2024, order intake grew 12% to SEK 3,770 million and net sales rose 31% to SEK 3,219 million.

Financial highlights

• Net sales increased 23% year-over-year to SEK 1,527 million in Q2, with three consecutive quarters above SEK 1.5 billion.

• EBIT margin for Q2 was 23%, up from 14% last year; rolling 12-month EBIT margin reached 28%.

• Gross margin improved to 51.3% in Q2, driven by a higher share of Pattern Generators; Pattern Generators gross margin at 67%.

• Cash flow from operations YTD at SEK 1,119 million; net cash position at SEK 2,322 million, with cash at period end SEK 2,535 million.

• Aftermarket revenue R12 at SEK 1,663 million, representing 26% of net sales.

Outlook and guidance

• Full-year 2024 net sales guidance was raised to SEK 6.5 billion from SEK 6.25 billion, reflecting improved certainty and positive trends, especially in China.

• Management remains positive on long-term prospects for Pattern Generators and die bonding, expecting gradual improvement in Global Technologies.