INFICON: Profitable growth in a demanding environment

INFICON Holding AG (SIX Swiss Stock Exchange: IFCN) reports 3.1% higher revenue of USD 172.2 million for the third quarter of 2024 compared to the previous quarter. This is the second best quarterly turnover figure ever. Compared to the same period last year, turnover increased by 1.3%. With negligible currency effects and 0.2 percentage points due to acquisitions, the organic increase was 1.1%. Gross profit increased by 3.6% from USD 78.8 million to USD 81.6 million, delivering an improved gross profit margin of 47.4%. After higher research and development expenses of USD 13.9 million (previous year: USD 12.3 million) and flat selling, general and administrative expenses of USD 32.8 million, INFICON achieved an operating profit of USD 34.9 million or 20 .3% of sales – an increase from 19.9% ​​a year ago. At $26.3 million, net profit for the period was on par with last year and amounted to 15.3% of sales, compared to 15.5% a year ago.

Cash flow and balance sheet

In the third quarter of 2024, INFICON generated strong operating cash flow of USD 45.9 million, compared to USD 37.6 million in the third quarter of 2023. This reflects strong net revenue generation combined with a clear focus on cash collections. The number of outstanding sales fell from 52.6 days last year to 48.7 days. Working capital remained stable at USD 221.4 million, despite a small increase in inventories. INFICON ended the quarter with a net cash position of USD 51.5 million. The equity ratio improved slightly from 64.0% at the end of June 2024 to 64.7% at the end of September 2024.

Developments in target markets and world regions

INFICON provides products and services to a wide range of global technology markets. With a turnover of USD 90.2 million and an increase of 27.1% compared to the same period last year, INFICON continues its growth path in the Semi and vacuum coating market with record sales. This target market contributed 52.4% to the Group’s turnover, mainly due to the strong development in Asia. Quarter on quarter, sales grew by 7.4%. The overall outlook for this market remains positive, despite some international trade uncertainties and a slower recovery in global semiconductor markets. The momentum here should accelerate in 2025. The sale to the General vacuum market where INFICON targets a wide range of industrial and research customers, decreased by 29.2% to USD 37.6 million in the annual comparison. This represents 21.9% of the Group’s turnover. A year ago, third quarter sales were at record levels, thanks to solid orders and the reduction of a significant order backlog after previous supply chain issues were resolved. This year’s sales reflect a normalized backlog situation in a generally sluggish global macroeconomic environment, especially in Europe and certain sectors such as the solar industry that are experiencing temporary slowdowns. However, quarter on quarter, incoming orders improved and sales increased again by 6.0% in the third quarter; INFICON is therefore moderately positive about further development. The Refrigeration, air conditioning and automotive industry market reports lower sales volumes year-over-year (-11.5%) and quarter-over-quarter (-9.4%), following an exceptional fiscal 2023 with 30% sales growth, record high sales in the third quarter and significant backlog reduction . Sales amounted to USD 32.9 million and represented 19.1% of the Group’s sales. Demand from the automotive and battery industries is temporarily weaker, especially in Europe, after excellent growth in recent quarters; the activities in Asia are developing quite positively in a difficult environment. The global air conditioning and refrigeration market was generally flat, with growth in a few select markets. INFICON’s smallest target market, Safety & Energy (6.7% of turnover) benefited from a strong order book. Revenue reached a new quarterly record, increasing 31.6% to USD 11.4 million year-over-year or 1.8% compared to the previous second quarter. INFICON is confident about the coming quarters for this market.

Outlook
INFICON is optimistic for the coming quarters. However, the company is aware of the overall macroeconomic dynamics, geopolitical tensions and especially the mixed signals about the size and timing of the next cycle in the semiconductor industry. INFICON expects a solid final quarter and now forecasts full-year 2024 revenue of $660 to $670 million (previously $660 to $690) million and an operating profit margin of approximately 20%.

Presentation and web conference

The third quarter results presentation is now available for download in the investor section of the INFICON website www.infocon.com bee https://ir.inficon.com/financial-results-and-presentations/.

INFICON discusses the third quarter 2024 results in more detail Today bee 0930 CEST during an English-language web conference. Go to the Microsoft Teams conference via the following link: www.inficon.com/web-conference

Communication calendar 2024/2025

INFICON’s communications calendar is continuously updated and available online in the Investors section of the INFICON website. https://ir.inficon.com/financial-calendar/.

Email alerts

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About INFICON

INFICON is a leading provider of innovative instrumentation, critical sensor technologies and Smart Manufacturing/Industry 4.0 software solutions that improve the productivity and quality of tools, processes and entire factories. These analysis, measurement and control products are essential for the detection of gas leaks in air conditioning/refrigeration and the automotive industry. They are vital to equipment manufacturers and end users in the complex manufacturing of semiconductors and thin film coatings for optics, flat panel displays, solar cells and industrial vacuum coating applications. Other users of vacuum-based processes include life sciences, research, aerospace, packaging, heat treating, laser cutting and many other industrial processes. We also leverage our expertise in vacuum technology to deliver unique, toxic chemical analysis products for emergency response, security and environmental monitoring. Headquartered in Switzerland, INFICON has world-class manufacturing facilities in Europe, the United States and China, as well as subsidiaries in China, Denmark, Finland, France, Germany, Italy, Japan, Korea, Liechtenstein, Malaysia, Mexico, Singapore, Sweden, Switzerland, Taiwan, the United Kingdom and the United States. INFICON registered shares (IFCN) are listed on the SIX Swiss Exchange. For more information about INFICON and its products, please visit www.infocon.com.

This press release and any oral statements or other written statements made or to be made by us contain forward-looking statements that do not relate solely to historical or current facts. These forward-looking statements are based on the current plans and expectations of our management and are subject to a number of uncertainties and risks that could materially affect our current plans and expectations, as well as future results of operations and financial condition. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.