VAT Group (VACN) H2 2024 earnings summary

Executive summary

• 2024 marked a return to growth, led by the semiconductor segment, with orders up 84% and sales up 22%, and overall orders rising 49% year-over-year.

• Major investments completed in Malaysia and Romania, with new innovation centers and expanded manufacturing capacity positioning for future growth.

• Achieved record 132 spec wins, expanded market share in semiconductor valves by two percentage points to 70%.

• R&D spend hit a record CHF 61 million (6.5% of sales), supporting technology leadership.

• Asia accounted for two-thirds of sales, with China direct sales at a record 30%.

Financial highlights

• Gross profit margin improved to 66.4% from 61.7% year-over-year.

• EBITDA margin reached 31.2% for 2024, with H2 margin above 32%; EBITDA up 8%.

• EBIT was CHF 250 million (27% margin), net income up 11% to CHF 212 million.

• Free cash flow CHF 183 million, slightly down due to higher working capital and ERP transition.

• Dividend proposal of CHF 6.25 per share, unchanged from 2023.

Outlook and guidance

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

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

• CapEx for 2025 forecast at CHF 90–100 million, then expected to normalize.

• Market consensus for 2025 growth (~20%) seen as achievable, with acceleration in H2 and record 2026 anticipated.

• Dividend proposal of CHF 6.25 per share remains unchanged.