Spirent Communications (SPT) H2 2024 earnings summary

Executive summary

• Positioned for 2025 with a robust balance sheet and innovative product portfolio, showing broad-based momentum in H2 2024 despite challenging market conditions.

• Achieved progress in customer diversification and executed strategic new product releases, including high-speed Ethernet and Wi-Fi 7 solutions.

• Maintained strong financial management and disciplined cost control, with EMEA sales and channel reorganization delivering cost savings and order growth.

Financial highlights

• Orderbook increased to $312.1m (from $293.7m), with order intake at $479.0m (vs $477.0m) and revenue at $460.2m (down from $474.3m) compared to 2023.

• Gross margin held steady at 72%, with gross profit at $331.5m (vs $343.6m).

• Adjusted operating profit rose to $46.2m (from $45.2m), while profit before tax declined to $13.8m (from $22.9m).

• Adjusted EPS increased to 7.75 cents (from 7.55 cents); cash balance improved to $141.8m (from $108.1m).

Outlook and guidance

• Anticipates attractive long-term market trends, with 5G growth expected in 2025 and beyond.

• Strong operating orderbook and balance sheet position the company well for the year ahead.