Based on preliminary and unaudited figures, VAT’s full-year 2023 results are below the record level of 2022 and in line with the outlook given last year, and the developments observed through 2023.

In the Valves segment, the business unit Semiconductor reported the expected lower results for 2023, as the softer investment environment in the semiconductor industry prevailed throughout the year. Sequentially improving order intake across all geographies over the past three quarters indicates that the market is slowly recovering. The Advanced Industrials business benefited from overall positive dynamics across all its end markets, in particular in energy transition. As lower utilization rates in the semiconductor fabs negatively impacted demand for spares and repairs as well as consumables, the Global Service segment showed similar developments as the Semiconductor business unit despite the high installed base.

Q4 2023 results

VAT recorded preliminary fourth quarter orders of around CHF 237 million, down 5% compared with the result posted a year earlier but up 44% sequentially compared to the third quarter of 2023. The Q4 order intake confirms the gradual improvement of the semiconductor investment cycle going into 2024 after the trough at the beginning of 2023 but was also boosted by significant project wins in the Advanced Industrials business unit. Preliminary fourth quarter net sales came in slightly above the mid-point of the guidance range of CHF 200 to 230 million provided in October 2023, and amounted to approximately CHF 221 million, down 24% compared with the same quarter a year earlier. Compared with the third quarter of 2023 sales were up 6% sequentially. The fourth quarter book-to-bill ratio amounts to 1.1 and the order book at year-end amounted to approximately CHF 292 million, 3% higher than at the end of the third quarter of 2023 but 44% lower than at the end of 2022.

Full-year 2023 results

For the full-year 2023, preliminary orders amounted to approximately CHF 692 million, down 43% compared to a year earlier and net sales decreased by 23% at current FX rates to approximately CHF 885 million. Preliminary figures indicate that VAT achieved a full-year EBITDA margin of approximately 30.5%. This reflects the impact of the lower sales and adverse foreign exchange developments especially of the Swiss franc against the US Dollar. The EBITDA margin in the second half of 2023 amounted to approximately 32%. Preliminary free cash flow for the full-year 2023 reached approximately CHF 185 million.

A more detailed update on the outlook for 2024 will be provided with the release of the company’s final full-year 2023 results on March 5, 2024.

¹ Quarter-on-Quarter; ² Year-on-Year