Elmos Semiconductor (ELG) Q4 2024 earnings summary

Executive summary

• Achieved record sales of EUR 581.1 million in 2024, up 1.1% year-over-year, marking the fourth consecutive annual sales record despite a challenging market with destocking and short-term order visibility.

• Operating EBIT margin reached 25.1%, with reported EBIT at EUR 172.6 million (29.7% of sales) including special items, demonstrating a robust operating model.

• Completed transformation to a fabless model with the sale of the Dortmund fab for EUR 93 million, focusing on high-value automotive IC applications and global expansion, especially in China.

• Strong design win momentum and new project acquisitions in 2024 exceeded the high value of the previous year, supporting future growth.

• Maintained leadership in key automotive semiconductor segments, with increasing content per vehicle and a robust product pipeline.

Financial highlights

• Group sales increased to EUR 581.1 million in 2024 (+1.1% YoY); Q4 sales declined to EUR 145.7 million due to customer destocking and short-term order behavior.

• Gross margin for 2024 was 44%, with Q4 margin impacted by year-end accounting and conservative valuation; annual gross margin trended lower than previous years.

• Operating EBIT for 2024 was EUR 145.8 million; reported EBIT including special effects was EUR 172.6 million.

• CapEx reduced to EUR 44.3 million (7.6% of sales), significantly lower than prior year, reflecting improved equipment utilization and efficiency.

• Adjusted free cash flow was positive at EUR 5.1 million, with Q4 impacted by over EUR 100 million in tax payments.

Outlook and guidance

• 2025 sales expected at EUR 580 million ± EUR 30 million, with a flattish trend and better performance than peers.

• EBIT margin guided at 23% ±3 percentage points; CapEx and adjusted free cash flow both expected at 7% ±2 points of sales.

• Second half of 2025 anticipated to be stronger, with sequential growth expected from Q2 onward.

• Tax rate for 2025 expected in the 25%-27% range.

• Expectation of continued customer inventory adjustments and ongoing geopolitical and economic uncertainty.