Q2 2024 results
Half-year 2024 results
Outlook for 2024
Guidance for Q3 2024
Q2 2024
Half-year 2024
Q2 2024 summary Since Q2 2023, investment conditions on capital equipment in the semiconductor industry have shifted in VAT’s favor. This has resulted in continued, sequential order and sales growth, including in the second quarter of 2024 with customer order flow increasing, as indicated by a book-to-bill ratio above 1.0x. While some short-term uncertainty remains across VAT’s end-markets, VAT reiterates confidence around the mid-term guidance provided at the Capital Markets Day (CMD) 2022, based on continued positive order momentum, fruitful interaction with our customers around specifications as well as industry-wide trends such as the number of semiconductor fabs being built, and the accelerating need for leading-edge logic and memory chips through AI applications. Our preparedness to serve the industry includes significant investments made in production capacity and technology enhancements through our R&D organization. In VAT’s Semiconductors business unit, VAT’s largest business unit, orders recovered with a strong growth of 140% compared to Q2 2023 and continued its sequential growth, increasing 23% over Q1 2024. Sales and orders from customers in In the Advanced Industrials (ADV) business unit, VAT continues to observe mixed dynamics as order intake in Q2 2024 declined by 23% vs. Q2 2023. Sales increased by 7% quarter-over-quarter but declined 24% over Q2 2023. In energy transition, demand for valves for solar applications remains constrained, as customers work through overcapacity; a weakness that is compensated partially by nuclear fusion and civilian nuclear fuel enrichment projects. Research-related orders remain strong and on track. Industrial applications also remain constrained, and valves related to scientific instruments and medical devices are seeing less demand than expected. The Global Service segment has continued to see improving market conditions. Chip fabs are seeing higher capacity utilization levels – with certain customer fabs reporting over 90% utilization, which in turn increases demand for VAT gates and spare parts. In particular, sales of replacement gates have grown strongly, where spares and repairs are showing slower, but continuous sequential growth. While demand related to logic tools was stable, demand increased for the service business from memory manufacturers. In the retrofit and upgrades business, VAT is currently engaged in qualification activities with fab customers who are creating capacity in anticipation of strong demand. As a result, second quarter Group orders amounted to The Valves segment reported net sales of Six-month 2024 summary During the first six months of 2024, VAT’s total order intake amounted to Orders in the Valves segment increased by 85% during the first half of 2024 vs. 2023 and amounted to The Global Service segment reported orders 37% higher year-on-year while sales decreased by 10% to Gross profit and EBITDA both increased over H1 2023 Gross profit[1] for the first six months of 2024 amounted to EBITDA for the first half of the year increased 2% to Below the EBIT line, net financial gains amounted to First-half 2024 net income amounted to On Increasing preparedness of the industry for record 2025 WFE spend Investment conditions in the semiconductor segment are expected to gradually improve throughout 2024, with an acceleration towards the second half of the year, followed by even stronger growth in 2025. This growth will be primarily driven by AI applications, with most of the activity focused on memory. Market observers believe that WFE spending in 2024 will increase slightly over 2023 and grow strongly in 2025. VAT continued to invest in technology innovation and operational improvements during H1 2024, including working with our clients on the next generation of tools. Specification wins, especially in high-end vacuum valves needed for the next generation of advanced semiconductors, continued growing and relate to tools that will be deployed in 2-5 years’ time. VAT recorded 48 wins during the first half of this year. This compares to 41 wins reported at H1 2023. Free cash flow reflects ERP-related finished goods inventory increase and continued capacity expansion Free cash flow in the first six months of 2024 amounted to At the end of Third Sustainability Report published Ahead of the AGM, VAT published its Sustainability Report 2023, providing stakeholders with detailed insights of its environment, social and governance (ESG) focus and the progress made vs. its inaugural ESG targets and an overview over its external ESG ratings. VAT believes that long-term business success can only be sustained by integrating a broad range of values into strategic and operational planning. This includes providing employees with opportunities to grow and develop, playing a positive role in the communities in which it operates and reducing the impact on the environment. As a key player in our industry, VAT and its customers are working together towards minimizing the impact on the environment. To highlight the importance of sustainability in our overall corporate strategy, VAT has also formed a separate The improvements in several ESG areas demonstrate the clear focus given to VAT’s sustainability and ESG performance by the Board of Directors and executive management. The execution of the ESG measures and targets from the company’s mid-term strategic plan back in 2022 have gained companywide traction, including further improvements in the data granularity in areas such as GHG emissions, energy consumption, and waste generation. Today, VAT includes sustainability considerations in how it operates the business and it has embedded sustainability performance criteria at the core of its corporate strategy seeing it also as one of the key drivers of sustainable commercial success. Outlook 2024 – Continued sequential growth in orders and sales expected for H2 2024 VAT continues to expect investments in semiconductor manufacturing equipment to continue to grow over the rest of 2024. With elections in numerous countries scheduled in H2 2024, uncertainties remain on the timing of a market ramp. The global economy has been resilient as global activity picked up at the start of 2024, reflecting solid activity in emerging and developing economies. Market research companies are estimating semiconductor WFE spend in 2024 of between VAT’s Based on these factors, VAT continues to expect higher sales, EBITDA, EBITDA margin, net income, and free cash flow for FY 2024. The company now expects its full-year 2024 EBITDA margin to be at the lower end of the 32–37% target band set at the 2022 CMD and based on a USD/CHF rate of 0.95. VAT intends to continue ramping up production and engineering services at its facilities in Guidance for Q3 2024 VAT expects sales of [1] Gross profit is calculated as net sales minus costs of raw materials and consumables used plus/minus changes in inventory of finished goods and work in progress. Segment results Q2 and half-year 2024 Valves
(1) Quarter-on-quarter; (2) Year-on-year; (3)Segment EBITDA margin as a percentage of Segment net sales Global Service
(1) Quarter-on-quarter; (2) Year-on-year; (3)Segment EBITDA margin as a percentage of Segment net sales Additional information The analyst presentation of the half-year results 2024 and the half-year report are available on VAT’s website at www.vatvalve.com. VAT will host a remote media and investor event today at Please follow the link below to access the webcast: For the conference call, please dial: +41 58 310 50 00 (
Financial calendar 2024
Financial calendar 2025
ABOUT VAT We change the world with vacuum solutions – that is our purpose as the world’s leading supplier of high-end vacuum valves. The Group reports in two segments: Valves and Global Service. The Valves segment is a global developer, manufacturer and supplier of vacuum valves for the semiconductor, displays, photovoltaics and vacuum coating industries as well as for the industrial and research sector. Global Service provides local expert support to customers and offers genuine spare parts, repairs and upgrades. VAT reported net sales of
FORWARD-LOOKING STATEMENTS Forward-looking statements contained herein are qualified in their entirety as there are certain factors that could cause results to differ materially from those anticipated. Any statements contained herein that are not statements of historical fact (including statements containing the words “believes,” “plans,” “anticipates,” “expects,” “estimates” and similar expressions) should be considered to be forward-looking statements. Forward-looking statements involve inherent known and unknown risks, uncertainties and contingencies because they relate to events and depend on circumstances that may or may not occur in the future and may cause the actual results, performance or achievements of the company to be materially different from those expressed or implied by such forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond the company’s ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behavior of other market participants, the performance, security and reliability of the company’s information technology systems, political, economic and regulatory changes in the countries in which the company operates or in economic or technological trends or conditions. As a result, investors are cautioned not to place undue reliance on such forward-looking statements. Except as otherwise required by law, VAT disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this report. End of Inside Information |
Language: | English |
Company: | |
Seelistrasse 1 | |
9469 Haag | |
Phone: | +41 81 771 61 61 |
Fax: | +41 81 771 48 30 |
E-mail: | reception@vat.ch |
Internet: | www.vatvalve.com |
ISIN: | CH0311864901 |
Listed: | |
EQS News ID: | 1948655 |
End of Announcement |
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1948655 18-Jul-