SÜSS MicroTec (SMHN) Q2 2024 earnings summary

Executive summary

• Achieved strong growth in H1 2024, with sales up 45.6% year-over-year to €192.8 million and EBIT margin rising to 15.6% from 8.7%.

• Robust order book reached €450 million as of June 30, 2024, up 18% year-over-year, supporting continued growth.

• Raised full-year 2024 guidance for sales, gross profit margin, and EBIT margin following robust first-half performance and high order backlog.

• Significant divestment of the MicroOptics business contributed to a sharp increase in net profit and strengthened the balance sheet.

• Execution of a robust order book led to increased operational efficiency and capacity expansion, particularly in Germany and Taiwan.

Financial highlights

• H1 2024 sales reached €192.8 million, up 45.6% year-over-year; Q2 sales were €99.3 million.

• Gross profit margin improved to 39.8% (+4.2pp YoY); EBIT margin rose to 15.6% (+6.9pp YoY).

• Net profit for H1 was €80.8 million, including €58.3–58.8 million from discontinued operations (MicroOptics sale).

• Free cash flow from continuing operations increased to €22.6 million (+443.1% YoY); net cash position at €121.0 million.

• Basic EPS from continuing operations reached €1.18, up from €0.49 year-over-year.

Outlook and guidance

• 2024 sales guidance raised to €380–410 million (previously €340–370 million).

• Gross profit margin expected at 38–40% (up from 35–38%); EBIT margin forecasted at 14–16% (up from 10–12%).

• Confident in maintaining positive momentum into H2 2024, with high order book visibility through mid-2025.

• 2025 targets remain unchanged, with updated guidance expected by March 2025.

• High order book and strong demand, especially for AI-related microchips, underpin positive outlook.