Mycronic (MYCR) Q3 2024 earnings summary

Executive summary

• Net sales rose 40% year-over-year in Q3 to SEK 1,780 million, driven mainly by Pattern Generators, with support from High Volume and Global Technologies.

• EBIT more than doubled to SEK 547 million, with EBIT margin improving to 31% from 21% in Q3 2023.

• Order intake declined 1% to SEK 1,459 million; order backlog at SEK 4,379 million due to higher sales than order intake.

• Acquisition of Modus High-Tech Electronics in Germany post-quarter enhances High Volume division's technical capabilities.

• For the first nine months, net sales increased 34% to SEK 4,999 million, and EBIT reached SEK 1,494 million, surpassing the full-year 2023 result.

Financial highlights

• Pattern Generators sales surged 86% year-over-year to SEK 807 million, with a gross margin of 73% and EBIT margin of 62%; order intake down 51%.

• High Flex division saw net sales down 7% to SEK 353 million, EBIT margin at 9%, and order intake down 5%.

• High Volume division reported net sales up 37% to SEK 336 million, EBIT margin at 14%, and order intake up 56%.

• Global Technologies division achieved net sales up 31% to SEK 284 million, EBIT margin at 5%, and order intake up 64%.

• Cash and cash equivalents at September end: SEK 2,532 million; net cash position: SEK 2,323 million.

Outlook and guidance

• Full-year 2024 net sales target of SEK 6.5 billion reaffirmed.

• No expectation of a quick turnaround in European High Flex markets; softness likely to persist for several quarters.

• Positive long-term outlook for display industry driven by shift to larger AMOLED screens, though timing of investments remains uncertain.