JENOPTIK delays 2025 financial targets amid semiconductor equipment industry downturn
Guidance for 2024 remains unchanged
German photonics and semiconductor technology specialist JENOPTIK AG has announced a delay in the realisation of its 2025 financial goals, citing an anticipated slowdown in the semiconductor equipment industry. The company's sales and earnings forecasts for 2024, however, remain unaffected.
Revised 2025 Targets
JENOPTIK's original 2025 financial targets included a revenue growth rate of 10% and an increase in earnings before interest and taxes (EBIT) margin to 12%. The company has now revised these targets, postponing their achievement by one year to 2026. According to the revised plan, JENOPTIK expects to accomplish a 6-8% annual revenue growth rate and an EBIT margin in the double-digit percentage range by 2026.
Semiconductor Industry Headwinds
The decision to adjust its long-term financial targets is attributed to JENOPTIK's assessment of the semiconductor equipment industry's current and projected challenges. The company anticipates a slowdown in the industry, particularly in the second half of 2023 and extending into 2024. This downturn is expected to impact demand for JENOPTIK's semiconductor equipment products, hence the need to adjust its financial expectations.
Confirmed 2024 Outlook
Despite the revised 2025 targets, JENOPTIK has reaffirmed its sales and earnings guidance for 2024. The company anticipates a revenue growth of approximately 6% and an EBIT margin of 6-7% for the year. This reflects JENOPTIK's confidence in its ability to mitigate the impact of the industry slowdown on its 2024 performance.
Maintaining Long-term Strategy
While the company adjusts its financial targets, JENOPTIK emphasises its commitment to its long-term strategy. The company intends to continue investing in research and development, with a focus on its core competence in optical and digital technologies, to maintain its competitive edge in the semiconductor equipment market.
CFO Hans-Dieter Schumacher expressed confidence in the company's ability to navigate the current market challenges and emerge stronger in the future: "We are convinced that the measures we have initiated will enable us to master the current challenges and to continue our profitable growth in the long term."
