Nine months 2024: Jenoptik remains on course of growth

“Jenoptik achieved solid revenue and earnings growth in the first nine months. While demand had improved significantly in the second quarter, we are now seeing a market environment marked by greater uncertainty, particularly in the automotive sector. Nevertheless, given our good order backlog, we remain confident of achieving our 2024 targets,” says Stefan Traeger, President & CEO of JENOPTIK AG. “However, the cyclical upturn in the semiconductor equipment industry is expected to take place later than we originally anticipated. In view of this, we expect to achieve our 2025 targets in 2026,” Traeger continued.

Revenue up 6.0 percent – profitability significantly improved

The photonics group Jenoptik continued on its course of growth in the first nine months of 2024, with revenue up by 6.0 percent to 815.1 million euros (prior year: 768.7 million euros), driven by the Advanced Photonic Solutions division and Non-Photonic Portfolio Companies. The Group saw strong growth both in Germany and across Europe, while revenue in the Americas and Asia/Pacific fell short of the prior year’s levels. Overall, 70.6 percent of revenue was generated abroad (prior year: 74.9 percent).  

The Group’s EBITDA again grew faster than revenue, mainly due to higher profits of the Non-Photonic Portfolio Companies and a good performance in the Advanced Photonic Solutions division, and at 160.6 million euros was 12.2 percent up on the prior-year figure of 143.0 million euros. The EBITDA margin was 19.7 percent (prior year: 18.6 percent). EBIT increased by 18.6 percent from 88.1 million euros to 104.6 million euros. At 66.8 million euros, group earnings after tax were also significantly higher than the prior year’s figure of 54.2 million euros; earnings per share amounted to 1.15 euros (prior year: 0.94 euros).

Demand weakness at Non-Photonic Portfolio Companies weighed on order intake

In particular due to weakened demand for the Non-Photonic Portfolio Companies, the order intake in the first three quarters amounted to 781.9 million euros, below the prior-year figure of 835.3 million euros, which had been supported by a major order. In contrast, demand in the semiconductor equipment sector was stable. The Group’s book-to-bill ratio was 0.96, down from 1.09 in the prior year. The order backlog remained solid at 709.2 million euros (31/12/2023: 745.0 million euros).

In view of the strong medium-term growth potential in the three future markets of semiconductor & electronics, life science & medical technology, and smart mobility, Jenoptik is further expanding its production capacities as planned, mainly through the construction of a new factory in Dresden for the semiconductor equipment industry, but also with capital expenditure in machinery and equipment. Investments in the first nine months amounted to 72.6 million euros, compared to 77.9 million euros in the same period last year.  

Financial and balance sheet position remained very robust

The free cash flow before interest and taxes rose to 62.3 million euros in the first nine months, primarily due to higher earnings (prior year: 56.9 million euros). In the first three quarters of 2024, the cash conversion rate came to 38.8 percent, compared with 39.8 percent in the prior-year period. With an equity ratio of 55.9 percent (31/12/2023: 54.2 percent), net debt of 421.4 million euros (31/12/2023: 423.1 million euros), and leverage (net debt in relation to EBITDA) of 1.9x (31/12/2023: 2,0x), Jenoptik continues to have very solid financial and balance sheet ratios.

Business performance in the divisions

The Advanced Photonic Solutions division saw continued positive development, with revenue increasing 7.2 percent from 594.3 million euros to 636.9 million euros. In particular, business with the semiconductor equipment industry saw significant growth in the first nine months of 2024. The division’s EBITDA increased to 138.5 million euros (prior year: 133.2 million euros), with an EBITDA margin of 21.4 percent, down from 22.1 percent in the prior year. The order intake grew slightly to 624.7 million euros, compared to 622.1 million euros last year.

The Smart Mobility Solutions division posted revenue of 83.0 million euros in the reporting period (prior year: 82.7 million euros). At 6.2 million euros, EBITDA was slightly down on the prior-year figure of 6.7 million euros; the margin came to 7.4 percent (prior year: 8.1 percent). The division’s order intake, subject to typical project business fluctuations, was worth 90.1 million euros (prior year: 87.7 million euros). 

At 93.6 million euros, revenue of the Non-Photonic Portfolio Companies was 4.8 percent up on the prior year (prior year: 89.3 million euros). Thanks to higher earnings contributions from both Prodomax and HOMMEL ETAMIC, EBITDA improved to 17.2 million euros (prior year: 12.2 million euros), the EBITDA margin from 13.2 percent in the prior-year period to 18.0 percent. Due to weak demand in the automotive market, however, the order intake was notably lower at 65.4 million euros, down from last year’s 122.5 million euros, which included a major order worth over 30 million euros.

Revenue and earnings guidance for fiscal year 2024 confirmed / Targets for 2025 postponed by one year

Despite a more challenging market environment, the Executive Board of JENOPTIK AG expects to achieve further profitable growth in the fiscal year 2024, given the continued good order backlog and the Group’s solid positioning in its core markets. The Executive Board therefore still expects revenue growth in the mid-single-digit percentage range in 2024 (2023: 1,066.0 million euros) and an EBITDA margin of 19.5 to 20.0 percent (2023: 19.7 percent), including an expected impact of approximately 0.5 percentage points for the relocation to the new semiconductor site in Dresden. However, due to the increasingly challenging market environment, the order intake for 2024 is likely to be slightly below the prior year’s level.

Jenoptik had previously targeted revenue of around 1.2 billion euros and an EBITDA margin of 21 to 22 percent for fiscal year 2025. In particular due to the expected delay in the upturn in the semiconductor equipment industry, these targets are now expected to be achieved in 2026.

This forecast is subject to the assumption that political and economic conditions do not deteriorate, including economic trends, the war in Ukraine, the conflict in the Middle East, European and international regulations, and macroeconomic developments. Potential portfolio changes are not considered in this forecast.

Conference call for journalists, analysts, and investors

The Executive Board of JENOPTIK AG will hold a conference call with analysts, investors, and journalists (in English) on November 12, 2024 at 11:00 am (CET).

The presentation on the first nine months of 2024 and the Quarterly Statement for January through September 2024 are available on the Jenoptik website on the Investors / Reports and Presentations page.

Images are available for download in the Jenoptik image database at media.jenoptik.com.

Key figures at a glance (PDF attached)

This press release may contain statements relating to the future which are based on current assumptions and forecasts made by the corporate management of the Jenoptik Group. A variety of known and unknown risks, uncertainties, and other factors may cause the actual results, the financial situation, the development, or the performance of the company to diverge significantly from the information provided here. Such factors may include geopolitical conflicts, changes in currency exchange rates and interest rates, pandemics, the introduction of competing products, or a change in business strategy. The company does not assume any obligation to update such forward-looking statements in the light of future developments.