Comet back on growth trajectory.

In fiscal year 2024, the anticipated upswing in the semiconductor cycle materialized, giving Comet positive momentum. At the same time, traditional industries, particularly the automotive sector, faced a challenging environment characterized by stagnation or even decline, creating headwinds for Comet’s x-ray business. Despite these mixed market conditions, Comet successfully navigated the year and delivered a significantly improved performance compared to the year before.

The semiconductor industry experienced a highly dynamic and uneven growth curve across its various segments in the past year. While artificial intelligence (AI) and high-performance computing (HPC) applications saw strong expansion driven by rising demand for advanced processing power and data infrastructure, consumer-oriented segments – including smartphones, PCs, and automotive – remained subdued.

In this business environment, Comet achieved net sales growth of 12.1% year-over-year in 2024 to CHF 445.4 million. Operating earnings at EBITDA level grew by 34.2% to CHF 60.4 million, reflecting improved profitability. Net income increased by 128.2% to CHF 35.1 million, translating to earnings of CHF 4.52 per share.

Stronger operating performance led to a significant improvement in free cash flow, which rose to CHF 41.4 million, recovering from a slight deficit of CHF 0.6 million in the previous year. The company’s equity ratio of 61.3% and a debt factor of minus 0.27 underscore Comet’s robust financial position and continued balance sheet strength.

Comet’s long-term growth outlook remains bright, driven by the ever-expanding adoption of semiconductors across a wide range of industries. This positive market trend is expected to fuel further improvements in the company’s business performance. Strategically well-positioned to leverage the increasing demand for semiconductor manufacturing equipment, the company maintains a disciplined approach to targeted investments in growth and efficiency.

The Plasma Control Technologies (PCT) division remained the largest contributor to Group sales, achieving net sales growth of 28.1% to CHF 247.4 million (previous year: CHF 193.2 million). In contrast, the two x-ray divisions, X-Ray Systems (IXS) and X-Ray Modules (IXM), saw lower net sales compared to the prior-year period. IXS’s net sales were only slightly below the previous year’s level, with a small decline of 0.9% to CHF 115.9 million from CHF 117.0 million in the year before. Meanwhile, net sales at IXM consolidated to CHF 94.6 million, a decrease of 5.7% following the previous year’s record result.

The increase in net sales was entirely driven by the high-margin PCT business, positively impacting EBITDA. In 2024, EBITDA reached CHF 60.4 million, up from CHF 45.0 million in the prior year, with the EBITDA margin improving to 13.6% from 11.3% in the year before. This increase was primarily attributable to higher sales volumes, reflecting strong demand and operational scalability.

The Group’s net income of CHF 35.1 million was 128.2% above the year-earlier figure of CHF 15.4 million. Return on capital employed (ROCE) increased to 10.4% (prior year: 6.6%), exceeding Comet’s cost of capital again after a weak previous year.

Plasma Control Technologies (PCT), the Group’s largest division and the most exposed to the semiconductor cycle recovery, was the primary driver of EBITDA growth. EBITDA for the division increased by 181.7% year-over-year to CHF 52.7 million, with the EBITDA margin expanding by 11.6 percentage points to 21.3%.

In the Industrial X-Ray Systems (IXS) division, the strategic shift toward the semiconductor industry gained momentum, marked by the introduction of a new inspection system exclusively for this market. However, this was not yet sufficient to fully offset the reduction in net sales that was due to cautious investment sentiment encountered across various other traditional industries. EBITDA for IXS was a deficit of CHF 4.3 million, compared to a CHF 4.9 million profit in 2023, with the EBITDA margin declining to a negative 3.7% from a positive 4.2% one year earlier.

Meanwhile, the Industrial X-Ray Modules (IXM) division was also impacted by subdued demand in traditional markets, its net sales consolidating at a high absolute level following a record year. With EBITDA of CHF 14.6 million, the division fell short of the previous year’s figure of CHF 23.8 million. The EBITDA margin declined by 8.4 percentage points to 15.4%, reflecting ongoing investments in the strategic repositioning toward the semiconductor and battery markets.

The improved demand environment and resulting higher net income drove stronger operating cash flow. With reduced capital expenditures, free cash flow thus increased to CHF 41.4 million, compared to a small deficit of CHF 0.6 million in the prior year.

At the 2024 Annual Shareholder Meeting, Paul Boudre, an existing member of the Board of Directors, was elected to serve as the new Chairman of the Board, succeeding Heinz Kundert. Heinz Kundert was re-elected as a member of the Board for another year to ensure a smooth transition. In addition, Benjamin Loh was newly appointed to the Board as successor to Tosja Zywietz, who did not stand for re-election. With extensive international experience and over 30 years of capital equipment experience in high-tech industries, Benjamin Loh brings a wealth of valuable expertise to Comet’s Board.

Christian Witt was appointed Chief Financial Officer (CFO) and member of the Executive Committee, effective January 1, 2025. The seasoned finance professional with 28 years of experience in the industrial and technology sector and a strong international background will be executing Comet’s financial strategy and leading the global finance organization. He takes over from interim CFO Nicola Rotondo, who is focusing on his role as Vice President of Group Accounting & Controlling again.

At the Annual Shareholder Meeting on April 10, 2025, the Board of Directors will propose a dividend of CHF 1.50 per share (prior year: CHF 1.00). This represents a distribution of 33.2% of the Group’s net income (prior year: 50.5%).