VAT Group (VACN) H2 2024 earnings summary

Executive summary

• 2024 marked a strong recovery with orders up 49% and sales up 6%, driven by semiconductor market rebound, major investments in global capacity, and expanded manufacturing in Malaysia and Romania.

• Semiconductor segment led growth, with orders up 84%, sales up 22%, and market share gains of 2 percentage points; record R&D investment and spec wins achieved.

• EBITDA margin reached 31.2%, with H2 margin above 32%; net income increased 11% to CHF 212 million; dividend proposal of CHF 6.25 per share, unchanged from 2023.

• Major transformation included successful ERP implementation in Switzerland and new facilities in Penang, Romania, and Haag, with an Innovation Center opening in 2025.

• 2025 is expected to bring further growth, driven by technology transitions, AI, and increased process complexity in semiconductors.

Financial highlights

• Full-year 2024 order intake reached CHF 1,033 million (+49% YoY); net sales CHF 942 million (+6% YoY); Q4 sales CHF 283 million.

• Gross profit margin improved to 66.4% (up from 61.7%); EBITDA margin at 31.2%; EBIT CHF 250 million (27% margin); net income CHF 212 million (+11%).

• Free cash flow CHF 183 million, slightly down due to higher working capital and ERP transition; CapEx CHF 56 million, mainly for Malaysia and Haag.

• Net debt at CHF 84 million, net debt/EBITDA at 0.3x, equity ratio at 58%.

• Dividend proposal of CHF 6.25 per share, totaling CHF 187.5 million.

Outlook and guidance

• 2025 expected to deliver higher orders, sales, EBITDA, margin, net income, and free cash flow, driven by semiconductor technology transitions and robust demand.

• Q1 2025 sales guidance: CHF 275–295 million.

• CapEx for 2025 forecast at CHF 90–100 million, with continued investment in automation and capacity expansion.

• Market expects acceleration in H2 2025 and record 2026.

• Confident in achieving long-term targets, with further details at May 2025 Capital Markets Day.