• Total Sales: USD 671 million for the full year 2024.
• Semiconductor Business Growth: 9% increase, marking a record year.
• RAC, Auto Market Growth: 2% increase, also a record year.
• Security and Energy Growth: 21% increase, marking a record year.
• Operating Income: USD 136 million, representing 20.3% of sales.
• Gross Margin: Improved by 1.2 percentage points year-on-year to 47.1%.
• Operating Cash Flow: Stable at USD 116.5 million for the full year.
• R&D Investment: Nearly 8% of sales, totaling USD 51.5 million.
• Capital Expenditure: USD 28.4 million, a 21% increase from the previous year.
• Net Profit: USD 112.8 million, a 6.7% increase, representing 16.8% of sales.
• Dividend Proposal: CHF 21 per share, a 5% increase, with a 51% payout ratio.
• Share Split: Proposed 1:10 share split to enhance liquidity and tradability.

• Warning! GuruFocus has detected 4 Warning Signs with XSWX:IFCN.

Release Date: March 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Inficon Holding AG (XSWX:IFCN) reported record sales in three of its four end markets: Semiconductor, RAC (Refrigeration, Air Conditioning, and Automotive), and Security and Energy.
• The company achieved a 9% growth in its semiconductor business, marking a record year for this segment.
• Operating income improved to USD 136 million, reaching a record high of 20.3%.
• Inficon Holding AG (XSWX:IFCN) continues to invest heavily in R&D, allocating nearly 8% of its sales to future innovations.
• The company successfully launched the first commercial mass spectrometer from Earth to the moon, marking a significant achievement in its space and robotics segment.

Negative Points

• Orders remained relatively slow, with a book-to-bill ratio below 1, indicating potential future sales challenges.
• The General Vacuum segment experienced a decline, bouncing back only slightly above 2022 levels after significant growth in 2023.
• Europe showed a reduction in sales by 5%, reflecting market weaknesses in the region.
• The semiconductor market recovery is slower than expected, with uncertainty around the timing and shape of a potential ramp in 2025.
• Geopolitical uncertainties and trade wars pose significant risks to the company's future growth and market dynamics.

Q & A Highlights

Q: Why is there no expected margin expansion for 2025 despite higher sales compared to 2021 or 2022? A: Oliver Wyrsch, CEO, explained that the lack of margin expansion is due to significant investments in new products and platforms. Additionally, INFICON has maintained a cost structure to be ready for a ramp-up in demand, particularly in the semiconductor sector, which requires readiness to scale up quickly when the market recovers.

Q: How significant is China in your Semiconductor and Vacuum Coating sales, and do you expect growth in 2025? A: Oliver Wyrsch, CEO, stated that China typically accounts for about a quarter of INFICON's overall sales. While the solar and EV battery markets in China have slowed, the semiconductor sector has shown resilience. INFICON remains moderately optimistic about growth in China's semiconductor sales in 2025.

Q: What will trigger the expected ramp in the semiconductor market in the second half of the year? A: Oliver Wyrsch, CEO, noted that the ramp could be driven by investments in AI, HPC, and HBM, particularly in leading logic and high-bandwidth memory. However, the timing and shape of the recovery remain uncertain, with mixed signals from OEMs and chipmakers.

Q: Are the space and moon launch projects profitable, and how do they compare to company averages? A: Oliver Wyrsch, CEO, confirmed that these projects are profitable and above the company average. Although currently small, the space economy is growing rapidly, and INFICON's involvement in space projects is expected to contribute positively to profitability.

Q: What is the outlook for the General Vacuum market in 2025? A: Oliver Wyrsch, CEO, indicated that the General Vacuum market has stabilized and is expected to be flat to mildly up in 2025. The solar market is undergoing consolidation, but channel partners are showing steady improvement, contributing to a moderately optimistic outlook.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.