Sensirion (SENS) H1 2024 earnings summary

Executive summary

• H1 2024 revenue reached CHF 128.0 million, up 3.9% year-over-year (8.9% organic growth), led by strong automotive and industrial markets, while medical and consumer segments declined due to destocking and weak demand.

• Growth was driven by new automotive projects and industrial air purifier recovery; medical and consumer segments remained weak due to destocking and economic headwinds.

• Strategic focus on ramping up A2L gas leakage sensors for HVAC and ceasing condition monitoring activities in Berlin.

• Profitability was significantly impacted by the discontinuation of Berlin condition monitoring activities, resulting in extraordinary impairment and restructuring costs fully recognized in H1 2024.

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

Financial highlights

• Revenue increased 3.9% year-over-year to CHF 128.0 million; organic growth in local currencies was 8.9%.

• Adjusted gross margin at 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), down from CHF 10.7 million (8.7%) in H1 2023.

• Extraordinary impairments of CHF 28.6 million (EBITDA) and CHF 33.4 million (EBIT) related to Berlin shutdown, mainly non-cash.

• Net loss for the period was CHF -36.0 million; adjusted net loss was CHF -2.6 million.

Outlook and guidance

• Full-year 2024 revenue guidance confirmed at CHF 250–280 million (7–20% organic growth at constant FX).

• Adjusted gross margin expected at 47–49% and EBITDA margin at 5–10% for the year.

• Growth in H2 2024 anticipated from A2L sensor ramp-up and automotive modules; 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.