SÜSS MicroTec SE Reports Record Sales and Strategic Growth

Suess Microtec Se ((DE:SMHN)) has held its Q4 earnings call. Read on for the main highlights of the call.

In the latest earnings call, SÜSS MicroTec SE reported a robust performance for 2024, marked by record sales and profitability. The company achieved significant growth in its Photomask and Bonding segments, which were key drivers of its success. Despite facing challenges such as a decline in Chinese orders, high operational costs, and potential market saturation in the HBM segment, the company remains optimistic about its future, supported by strategic investments and growth plans.

Record Sales and Profitability

SÜSS MicroTec SE achieved record sales of €446 million in 2024, marking a 46.6% increase from the previous year. This impressive growth exceeded the company’s planned targets for 2025, which included a sales goal of €400 million and an EBIT margin of 15%, both of which have already been met.

Strong Performance in Photomask and Bonding Business

The Photomask and Bonding segments were standout performers, with order intake reaching a record €147.5 million in Q4. Bonding sales, in particular, more than tripled compared to the previous year, underscoring the strength of these business areas.

Improved Gross and EBIT Margins

The company reported a significant improvement in its gross and EBIT margins, with the gross profit margin increasing by 5.9 percentage points and the EBIT margin improving by 7.7 percentage points from 2023. The Advanced Backend Solutions segment saw its gross profit margin rise to 42.2%, with an EBIT margin increase to 19.2%.

Net Profit and Cash Flow

SÜSS MicroTec SE’s net profit amounted to €110.3 million, supported by a strong net cash position of €122 million and a free cash flow of €96.1 million, highlighting the company’s solid financial health.

Upcoming Production Site in Taiwan

The company is on track to open a new production site in Taiwan by October 2025, with anticipated investments of approximately €20 million. This expansion is part of the company’s strategic growth initiatives.

Dividend Increase

Reflecting its strong financial performance, SÜSS MicroTec SE proposed a 50% increase in its dividend to €0.30 per share, representing approximately 23% of the free cash flow from continuing operations.

Decline in Chinese Orders

Orders from China fell by €41.4 million compared to the previous year, with a notable decrease in the Photomask business segment, posing a challenge to the company’s growth in this region.

High OpEx and IT Costs

While the OpEx ratio decreased by 2.5 percentage points, concerns remain about continued high spending, particularly in IT projects, which are expected to increase costs by €4 million to €7 million in 2025.

Potential HBM Market Saturation

Despite strong demand for AI-related bonding orders, there are signs of market saturation in the HBM segment, which could impact future order volumes.

Capacity Utilization Concerns

The company expressed concerns about capacity utilization in 2025, especially in the Photomask segment, with potential order intake decline due to normalized demand from China.

Forward-Looking Guidance

For 2025, SÜSS MicroTec SE provided guidance indicating a sales range of €470 million to €510 million, representing approximately 10% growth from 2024’s record sales. The company anticipates an EBIT margin of 15% to 17%, considering several one-off expenses and strategic growth investments. The planned investments include a new facility in Taiwan, contributing to an expected CapEx volume of €30 million.

In conclusion, SÜSS MicroTec SE’s earnings call highlighted a year of strong performance and strategic growth, despite facing some challenges. The company’s record sales and profitability, coupled with its forward-looking guidance, paint an optimistic picture for its future. Investors and stakeholders can look forward to continued growth, driven by strategic investments and a focus on expanding key business segments.