Release Date: March 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Jenoptik AG (JNPKF, Financial) reported robust growth in revenue and earnings for 2024, with single-digit sales growth and an EBITDA margin close to 20%.
- The company successfully expanded its profit margins, achieving an EBITDA of almost 20% of sales.
- Strong performance in the Advanced Photonic Solutions division and Non-Photonic Portfolio Companies contributed to higher earnings.
- Jenoptik AG (JNPKF) saw strong growth in Germany and Europe, with the APS segment being a key growth driver.
- The company maintained a strong financial position, with a slight improvement in net debt and leverage reduced to 1.8 times.
Negative Points
- Order intake declined by mid-single digits, particularly in the former NPC segment, due to turmoil in the automotive market.
- Geopolitical tensions and discussions around tariffs have created a challenging market environment, impacting Jenoptik AG (JNPKF) as an export-oriented organization.
- The company reported a reduction in order backlog by about 10% year-over-year, with a book-to-bill ratio of 0.92.
- The semiconductor order intake showed a downward trend, particularly in the second half of 2024, affecting strategic targets.
- Prodomax, part of the NPC segment, faced challenges due to geopolitical tensions and tariff discussions between the US and Canada, impacting order intake.
Q & A Highlights
Q: Why was the EBITDA margin in Q4 for the Semiconductor and Advanced Manufacturing division lower than other quarters?
A: Stefan Traeger, CEO, explained that the decline was due to slower business overall and the first part of the costs related to moving into the new factory. There was also a mix impact between classical optics and micro-structured optics. These factors are expected to continue affecting Q1 2025.
Q: What is the outlook for the semiconductor business in terms of order patterns and customer forecasts?
A: Stefan Traeger, CEO, indicated that the worst of the inventory adjustments impacting order inflow is expected in Q1 2025. A new order pattern is anticipated to emerge in subsequent quarters. Long-term customer forecasts for 2026 and 2027 remain unchanged.
Q: How is the geopolitical situation affecting Prodomax, and is there a possibility of selling it?
A: Stefan Traeger, CEO, stated that the uncertainty due to potential tariffs between the US and Canada makes it difficult to predict the future of Prodomax. The geopolitical tensions are causing significant uncertainty, making it challenging to proceed with a sale at this time.
Q: Can you provide more details on the new segment structure and any seasonality in the Semiconductor and Advanced Manufacturing (SAM) division?
A: Stefan Traeger, CEO, confirmed that there is typical seasonality in the semiconductor business, though not as pronounced as in the past. The biophotonics segment showed strong margins in H2 2024, but quarterly figures should not be overly interpreted due to project-driven volatility.
Q: What are the expectations for the Metrology & Production Solutions (MPS) division, given the challenges at Prodomax?
A: Stefan Traeger, CEO, clarified that Prodomax is not part of the MPS division. MPS includes TRIOPTICS, laser processing, and HOMMEL, which are expected to have stable sales and EBITDA. Prodomax will be reported separately under group functions.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
