Optical and photonic technology group Jenoptik is preparing for a business year marked by more uncertainty than usual. As a result, the management has framed its outlook with relatively wide ranges. The company projects revenue to remain at the previous year's level of 1.1 billion euros, within a range of +/- 5%. The EBITDA margin is expected to be between 18% and 21%, roughly in line with the 2024 level of 19.9%.

The photonics-focused company expects a recovery in the second half of the year, particularly in semiconductor equipment, after a weak start. It also assumes that macroeconomic conditions, such as the economy, regulation, and issues like tariffs and wars, will not worsen further. „The overall market environment has become more difficult“, CEO Stefan Traeger said during an investors' call last week. He describes 2025 as a transition year. Investors gave a lukewarm response to this cautious outlook.

In November, Jenoptik pushed its original 2025 targets out to 2026. These included approximately 1.2 billion euros in revenue and an EBITDA margin of 21-22%. The reason given by the board was the expected delay in semiconductor equipment recovery.

Shareholders will receive a dividend of 0.38 euros per share for the 2024 fiscal year, 3 cents more than for 2023. Analysts had expected a slightly higher payout. A total of 21.8 million euros will be distributed to shareholders. The company posted a net profit of 94.2 million euros, a 28% increase compared to the previous year.

Jenoptik expects its new segment structure, which has been in place since the beginning of the year, to lead to stronger customer focus and more transparency for investors. The previous main business area of Advanced Photonic Solutions will be split into three divisions: Semiconductor & Advanced Manufacturing (optical components for semiconductor equipment, information, and communication technology), Biophotonics (optics for life sciences/medical technology, industrial applications), and Metrology & Production Solutions (inspection, measurement, and production solutions for optical, electronics, and automotive industries). The semiconductor segment is expected to generate 492 million euros in annual revenue, with the other two areas contributing around half that amount. The fourth business area is Mobility Solutions, with a revenue of 119.5 million euros in 2024. Prodomax, a company specialising in process automation in the automotive industry, is still for sale, but a disposal appears difficult due to uncertainties in the automotive sector, and ongoing global trade disputes. Traeger did not provide guidance on when a sale might occur.

The company plans to slow down investments, which are expected to be significantly lower than the 2024 level of 114.6 million euros. The new cleanroom factory for micro-optics and sensors in Dresden is completed, and production is expected to start as planned in early 2025.

The order backlog has dropped to 670.1 million euros, a 10% decrease compared to the end of 2023. The weak demand from the automotive industry, in particular, led to a 5.9% decline in order intake, amounting to 1.03 billion euros. Trade disputes have also played a role.

Revenue increased by 4.7%. The business performed particularly well in Germany, with a 16.9% increase in revenue, reaching 318.3 million euros.

Free cash flow before interest and taxes reached 102.9 million euros, which Jenoptik considers a „good level“ given the high investments, even though it fell short of the previous year's 127.3 million euros, which benefited from real estate sales. Net debt decreased from 423.1 million to 395.5 million euros. The EBITDA multiple dropped from 2.0 to 1.8.