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% year-over-year 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, supporting long-term growth ambitions, with 30 Pattern Generators systems in backlog as of June 30.

• Pattern Generators led performance, launching Prexision 8000 Evo and MMX, and the Vanguard Automation acquisition closed, 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 rolling 12 months reached SEK 6,461 million, with a group EBIT margin of 28%.

• Aftermarket revenue represented 26% of net sales, showing continued growth in recurring revenues.

• Q2 EBIT reached SEK 348 million (up from SEK 170 million), with earnings per share at SEK 2.94.

• Cash position remained strong at SEK 2,535 million after the Vanguard acquisition and SEK 441 million dividend.

• Book-to-bill ratio at 1.4 for Q2.

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.

• Management remains optimistic about long-term growth, particularly in Pattern Generators and High Volume segments.