Feintool International (FTON) H2 2023 earnings summary

Executive summary

• Strengthened global market position as a leading supplier of high-precision parts, with strong growth in Asia and the USA, while Europe underperformed but secured major new orders and restructured sales organization.

• Significant expansion into growth markets for hydrogen and battery-powered mobility, including first major order for bipolar plates in China and multi-year order in Europe for electric main drive.

• Divestment of the capital goods business completed in June 2023, focusing the group on the parts business.

• Launched a global employer branding campaign and achieved a strong ESG rating, ranking in the top 19% of peers.

Financial highlights

• Revenue reached CHF 847.7 million in 2023, up 1.7% year-over-year, with strong inorganic growth in Europe but headwinds from a strong CHF.

• EBITDA margin was 10.2%, down from 12.6% in 2022, reflecting margin pressure.

• EBIT margin improved to 3.5% from 3.3% in 2022, despite high input costs.

• Net income from continuing operations was CHF 17.8 million; discontinued operations (sale of capital goods business) resulted in a CHF 22.1 million expense.

• Proposed dividend of CHF 0.34 per share.

Outlook and guidance

• Sales for 2024 expected at CHF 800–850 million with an EBIT margin of approximately 4%.

• Medium-term targets confirmed: sales over CHF 1 billion and EBIT margin of 6–8% by 2026.

• Anticipates further improvement in profitability and continued transformation toward green energy markets.