Sensirion (SENS) H1 2024 earnings summary

Executive summary

• H1 2024 revenue grew 3.9% year-over-year to CHF 128.0 million, with strong growth in automotive and industrial markets, while medical and consumer segments remained weak due to destocking and low demand.

• Growth was driven by new automotive projects and industrial recovery, especially air purifiers and initial A2L sensor sales; medical and consumer segments were impacted by inventory corrections and economic headwinds.

• Strategic focus on ramping up A2L gas leakage sensors for HVAC in the US, with product launches and ramp-ups planned for H2 2024, and optimizing productivity across operations and R&D.

• Discontinuation of condition monitoring activities in Berlin (AiSight) executed as planned, with all extraordinary impairment and restructuring costs fully recognized in H1 2024.

• Management changes include a new CFO and VP Sales to take office in H2 2024.

Financial highlights

• Revenue increased 3.9% year-over-year to CHF 128.0 million (8.9% organic growth in local currency), with a -5.0% FX impact.

• Adjusted gross margin was 47.5% (down from 56.3% in H1 2023) due to underutilization, product mix, and lower-margin modules.

• Adjusted EBITDA was CHF 5.9 million (4.6% margin), with reported EBITDA impacted by CHF 28.6 million in extraordinary impairments from the Berlin closure.

• Net loss was CHF -2.6 million adjusted (CHF -36.0 million reported) after extraordinary items; adjusted EBIT was CHF -2.8 million.

• Operating cash flow was CHF 7.2 million, but free cash flow was negative at CHF -15.5 million due to high investments and CapEx.

Outlook and guidance

• Full-year 2024 guidance confirmed: revenue target CHF 250–280 million (7–20% organic growth at constant FX), adjusted gross margin 47–49%, and adjusted EBITDA margin 5–10%.

• H2 2024 growth expected from automotive modules and A2L gas leakage sensor ramp-up; air purifier recovery to level off.

• Medical destocking expected to persist through year-end; visibility for 2025 remains low.

• 2024 remains a transition year for profitability due to product mix and underutilization.

• Medium-term outlook positive, supported by structural megatrends in the sensor market.