VAT Group (VACN) H1 2024 earnings summary

Executive summary

• Orders surged 74% year-over-year to CHF 507 million in H1 2024, while sales remained flat at CHF 450 million, reflecting strong semiconductor demand and Chinese localization.

• EBITDA margin improved to 30.1% (+0.9ppt), and net income rose 12% to CHF 94 million, with EPS at CHF 3.14.

• Free cash flow declined 29% to CHF 26 million, mainly due to higher CapEx and inventory build-up for ERP implementation.

• Book-to-bill ratio at 1.1x; order backlog reached CHF 346 million.

• 48 spec wins in H1 2024, up 17% YoY, mostly in semiconductor segment, expected to convert to sales in 2–5 years.

Financial highlights

• H1 2024 order intake: CHF 507 million (+74% YoY); net sales: CHF 450 million (-0.9% YoY); book-to-bill ratio above 1.

• EBITDA: CHF 135 million (+2% YoY), margin at 30.1% (+0.9ppt); EBIT: CHF 114 million, margin at 25.3%.

• Gross profit: CHF 298 million (+6% YoY), margin at 66% (+4pp YoY).

• Net income: CHF 94 million (+12% YoY); net income margin: 20.9%.

• Free cash flow: CHF 26 million (-29% YoY); capex: CHF 40 million (+28% YoY).

Outlook and guidance

• Full-year 2024 EBITDA margin expected at lower end of 32%-37% target band; capex forecast at CHF 70-80 million.

• Q3 2024 sales guidance: CHF 235–255 million, reflecting ERP-related production impacts.

• Orders and sales expected to grow sequentially in H2 2024; 2025 anticipated as a strong year, driven by AI and China investments.

• Advanced Industrials sales to remain flat; Global Service to benefit from higher fab utilization and ESG-driven upgrades.

• FY 2024 guidance: higher sales, EBITDA, margin, net income, and free cash flow expected versus 2023.