Elmos Semiconductor (ELG) Q2 2024 earnings summary

Executive summary

• Q2 2024 sales increased by 4.4% year-over-year to €142.0 million, with continued robust performance despite challenging market and geopolitical conditions.

• EBIT margin improved to 25.3% in Q2 2024, and adjusted free cash flow turned positive at €1.7 million.

• Achieved strategic milestones including TecDAX index inclusion, ongoing fabless transformation, and a €0.85/share dividend approval.

• Benefited from structural growth in automotive semiconductors and strong design wins, with minimal impact from flat global car production volumes.

• Net income after non-controlling interests rose 5.9% year-over-year to €24.3 million in Q2 2024.

Financial highlights

• Q2 2024 group sales reached €142 million, up 4.4% year-over-year; H1 2024 sales totaled €278.8 million, up 4.4% year-over-year.

• Gross margin was 45.2% in Q2 2024, down from 48.9% in Q2 2023; H1 2024 gross margin was 45.5%.

• EBIT reached €35.9 million in Q2 2024 (25.3% margin); H1 2024 EBIT was €69.7 million (25.0% margin).

• Capital expenditures dropped to €14.4 million in Q2 2024 (10.1% of sales), reflecting ongoing optimization.

• Adjusted free cash flow was €1.7 million in Q2 2024, mainly influenced by working capital development.

Outlook and guidance

• Full-year 2024 sales expected at €605 million ± €25 million; operating EBIT margin guidance at 25% ± 2 percentage points, excluding wafer fab sale effects.

• Capital expenditures forecast for 2024 is 12% ± 2 percentage points of sales, down from 20% in 2023.

• Positive and significantly higher operating adjusted free cash flow expected for 2024.

• Guidance unchanged since February 2024; outlook may be affected by geopolitical events, trade restrictions, and market influences.

• Guidance based on stable economic and geopolitical conditions; risks include conflicts, sanctions, and supply chain issues.