Aspocomp Reports Strong Q1 2025: Significant Sales Growth and Return to Profitability

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Aspocomp Group Plc announced its interim report for the first quarter of 2025, demonstrating a significant turnaround with substantial increases in both order book and net sales, and a clear return to profitability. The company's strategic efforts to strengthen its order backlog and streamline production have yielded positive results, setting a strong foundation for the remainder of the year.

January-March 2025 Highlights

• Net sales EUR 10.3 (6.2) million, increase of 66%
• Operating result EUR 0.8 (-1.6) million, 8.0% (-25.9%) of net sales
• Earnings per share EUR 0.10 (-0.24)
• Operative cash flow EUR 1.8 (-2.0) million
• Orders received EUR 11.4 (7.5) million, increase of 52%
• Order book at the end of the review period EUR 21.0 (11.8) million, increase of 79%
• Equity ratio 55.1% (64.5%)

Outlook for 2025

In 2025, the demand for Aspocomp’s products is expected to remain solid. In particular, demand in the semiconductor market is anticipated to develop favorably thanks to significant investments in AI applications and data centers. Good growth in demand is also expected to continue in the Security, Defense and Aerospace customer segment.

Aspocomp reiterates the guidance that was published on February 26, 2025. Aspocomp estimates that its net sales for 2025 will grow significantly from the 2024 level, and that its operating result for 2025 will turn clearly profitable. In 2024, net sales amounted to EUR 27.6 million and the operating result was a loss of EUR 4.0 million.

CEO’s Review

“In January-March, Aspocomp came close to achieving an all-time net sales record and the company’s operating result turned clearly profitable. In addition, the company’s order book remained at a high level. The systematic work that has continued since last spring to increase the order book and streamline production has borne fruit, and we can finally move on to renewing the company’s strategy.

A strong order book and high production capacity utilization increased Aspocomp’s January-March net sales to EUR 10.3 million. Net sales increased year-on-year by 66%. With production profitability and yield also at a good level, the company’s operating profit rose clearly into the black, reaching EUR 0.8 million.

Demand for Aspocomp’s products remained at a good level, and the order book increased year-on-year by nearly 80%. Demand remained high, especially in the Semiconductor Industry customer segment, but demand growth continued in the Security, Defense and Aerospace customer segment as well. The order book at the end of the review period was a record EUR 21.0 million.

In October-November 2024, there was a strong focus on streamlining and stabilizing production throughput. During the early part of the year, we maintained the utilization rate of production capacity at an excellent level; coupled with our robust order book, we almost managed to break our previous net sales record in January-March.

Since the autumn of last year, systematic work has been done to improve production throughput and yields, and this has also raised profitability to a good level. Thanks to these measures, the company’s operating result has been turned from a loss to substantial profit. With the increase in production volumes, net working capital has been kept at a moderate level, and this, together with the robust growth in net sales, has turned the operating cash flow strongly positive. Operating cash flow increased year-on-year by nearly EUR 4 million and amounted to EUR 1.8 million.

With the improvement in production throughput, delivery reliability has also improved. We expect delivery reliability to return to a good level during April-June 2025, and during the rest of the year we will focus on qualitative factors in production.

We expect demand for Aspocomp’s products to remain at a good level in 2025. In particular, demand in the semiconductor market is expected to develop favorably due to large investments in artificial intelligence applications and data centers, for instance. Demand in the Security, Defense and Aerospace customer segment is also expected to continue to grow well.

We reiterate the guidance that was published on February 26, 2025. Aspocomp estimates that its net sales for 2025 will grow significantly from the 2024 level, and that its operating result for 2025 will turn clearly profitable. In 2024, net sales amounted to EUR 27.6 million and the operating result was a loss of EUR 4.0 million.”

Net Sales And Earnings

January-March 2025

January-March 2025 net sales amounted to EUR 10.3 (6.2) million. Net sales increased year-on-year by 66% and growth came mainly from the Semiconductor Industry customer segment.

The Semiconductor Industry customer segment’s January-March net sales increased year-on-year by 382% to EUR 5.2 (1.1) million. Demand in the customer segment remained at a high level in the first quarter of the year.

The Industrial Electronics customer segment’s January-March net sales decreased year-on-year by 73% to EUR 0.3 (1.2) million. The decrease in net sales in the customer segment was due to weak demand from the end customers and limited production capacity.

The Security, Defense and Aerospace customer segment’s January-March net sales increased by 24% year-on-year and amounted to EUR 2.0 (1.6) million. Demand for the customer segment continued to grow in the first quarter of the year.

The Automotive customer segment’s January-March net sales increased by 19% year-on-year and amounted to EUR 2.1 (1.8) million.

The Telecommunication customer segment’s January-March net sales increased by 12% year-on-year and amounted to EUR 0.7 (0.6) million.

The five largest customers accounted for 74% (58%) of net sales. In geographical terms, 64% (83%) of net sales were generated in Europe and 36% (17%) on other continents.

The operating result for January-March 2025 amounted to EUR +0.8 (-1.6) million. The operating result was improved by strong demand, especially in the Semiconductor Industry customer segment, high utilization of production capacity, favorable product mix and improved production throughput and yields.

Operating result was +8.0% (-25.9%) of net sales.

Net financial expenses amounted to EUR 0.1 (0.0) million. Earnings per share were EUR +0.10 (-0.24).

The order book at the end of the review period was EUR 21.0 (11.8) million. The order book grew especially due to strong demand from the Semiconductor Industry customer segment.