ELES Semiconductor Equipment (ELES) H1 2024 earnings summary

Executive summary

• Revenue grew by 5% year-over-year to €15.3 million in H1 2024, with strong contributions from CBL Electronics S.r.l., expansion into the Indian market, and business diversification.

• EBITDA increased by 8% to €2.2 million, representing 14.5% of sales, driven by higher volumes, improved contribution margin, and strong Aerospace & Defense performance.

• Net profit rose 13% to €256 thousand, despite higher amortization and personnel costs.

• The group maintained a solid financial position, reducing net financial debt by 50% to €1.86 million.

• Strategic focus on innovation, R&D, and expansion into new markets, including India, reinforced competitive positioning.

Financial highlights

• Total revenue: €15.3 million (+5% YoY); EBITDA: €2.2 million (+8% YoY); Net profit: €256 thousand (+13% YoY).

• EBITDA margin improved to 14.5% from 14.1% YoY.

• Operating profit decreased to €746 thousand (4.9% of sales) due to increased amortization and provisions.

• Net financial debt reduced to €1.86 million from €3.7 million at year-end 2023, with €3.8 million operating cash flow generated.

• Export accounted for 44.8% of sales, down from 57% YoY, with domestic sales up 35%.

Outlook and guidance

• Anticipates continued growth in H2 2024, supported by new orders in high-power and high-voltage segments and ongoing R&D projects.

• Market recovery expected in semiconductor test equipment, especially in back-end, with 4.9% growth forecast for 2024 and acceleration in 2025.

• Focus on expanding in mission-critical applications, evolving the RETE methodology, and leveraging EU Chips Act and major industry investments.

• Optimism for future growth based on business diversification, long-term industry relationships, and significant sector investments in Italy and Europe.

• Continued investment in R&D and developing new geographic areas and customers.