Unlock stock picks and a broker-level newsfeed that powers Wall Street.

Jenoptik AG (JNPKF) Q4 2024 Earnings Call Highlights: Navigating Growth Amidst Geopolitical ...

In This Article:

  • Revenue Growth: Single-digit sales growth, approximately 5% increase, purely organic.

  • EBITDA Margin: Almost 20% of sales.

  • Order Intake: EUR1.03 billion, down by 6% year-over-year.

  • Book-to-Bill Ratio: 0.92.

  • Order Backlog: Reduced by about 10% year-over-year.

  • Advanced Photonic Solutions Revenue: EUR866.8 million, 5.6% growth.

  • Advanced Photonic Solutions EBITDA: Almost EUR192 million.

  • Smart Mobility Solutions Order Intake: Positive development, particularly in North America.

  • NPC EBITDA Margin: 17.5%, up from 14.1% last year.

  • Earnings Per Share: EUR1.62, up by almost 28% year-on-year.

  • ROCE: Improved by 120 basis points to 10.8%.

  • Net Debt Position: Improved, leverage at 1.8 times compared to 2 times a year earlier.

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) 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.