Half Year 2026 Comet Holding AG Earnings Call Transcript
Key Points
- Comet Holding AG (XSWX:COTN) delivered solid net sales growth of 5.6% year-on-year in H1 2026, with a significant acceleration to 25.7% growth in Q2, underscoring strong business momentum.
- The company's gross margin returned above 40%, driven by operating leverage and initial price adjustments, leading to EBITDA growth of 36.5% and an EBITDA margin expansion to 13.1% from 10.1%.
- Order intake remains robust with a book-to-bill ratio of 1.48 for H1, supported by strong demand in the semiconductor sector, including a starting recovery in NAND CapEx and a growing sales funnel for advanced packaging.
- The new Penang manufacturing facility is completed and ramping up, expanding capacity to support long-term growth, with CapEx expected to normalize to 4%-7% of sales once fully operational.
- The efficiency program is on track, targeting a sustainable EBITDA improvement of CHF20-30 million per year from 2028, while the IXM division shows signs of recovery and the CA20 platform has received over 10 orders, confirming successful market entry.
- Management expects to generate positive economic value for the full year 2026, with a strong outlook for H2 driven by continued semiconductor upswing and improved profitability.
- Comet Holding AG (XSWX:COTN) faced significant currency headwinds, particularly from the US dollar, which negatively impacted reported sales growth and IXM's EBITDA margin, with a 12.7% constant currency growth versus 5.6% in Swiss francs.
- The IXS division remains EBITDA negative due to continued heavy investments in the CA20 product portfolio, with break-even not expected until fiscal year 2028 at the latest.
- Free cash flow was negative CHF19.3 million in H1, driven by high capital expenditures for the Penang facility and a buildup of inventory and receivables, leading to a temporary net debt position.
- The company's H1 ROSI of 8.7% was below its cost of capital of roughly 9%, indicating that economic value creation was not achieved in the first half.
- The full-year 2026 guidance includes one-off costs of approximately 3 percentage points on EBITDA margin (CHF15-18 million), related to the efficiency program and Penang ramp-up, which will weigh on profitability.
- Geopolitical tensions and trade disputes continue to create uncertainty in the semiconductor supply chain and industrial markets, with manufacturing activity remaining subdued and volume markets like smartphones and PCs recovering at a muted pace.
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At this time, I'd like to hand over to Ulrich Scheiner, VP, Investor Relations. Please go ahead.
Thank you, Valentina. Good morning, everyone, and welcome to Comet's webcast and conference call on the first half results 2026.
Thank you for joining us. We appreciate your interest in our company and are pleased to have you with us today. Before we begin, I would like to draw your attention to the disclaimer included in today's presentation. During this call, we may make forward-looking statements based on our current expectations and assumptions.
These statements are subject to risks and uncertainties that could cause actual results to differ materially
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