EPS of $-150.00 decreased by 1% from previous year
Gross margin of -583.7%
Net income of -317.30M
"Not available" - N/A
Meyer Burger Technology AG (0QQ7.L) QQ2 2024 Results Analysis – Solar technology ramp, CHF liquidity position, and profitability transition
Executive Summary
Meyer Burger Technology AG (0QQ7.L) reported QQ2 2024 results that underscore a transition phase characteristic of a capital-intensive solar technology player still in early-stage scaling. Revenue for the quarter was CHF 48.69 million, but cost of revenue was CHF 332.88 million, resulting in a gross loss of CHF 284.19 million and a gross margin of -5.84%. The quarter produced an operating loss of CHF 322.74 million and a net loss of CHF 317.30 million, translating to an EPS of -CHF 150.00. The combination of negative profitability and a still-elevated cost structure signals a phase where scale-up costs and fixed investments are compressing near-term margins, even as the company continues to deploy substantial capital toward manufacturing capability and R&D enhancements. On the liquidity side, Meyer Burger ended the period with CHF 158.64 million in cash and equivalents and a net debt position of CHF 198.68 million, with total liabilities of CHF 545.59 million and equity of CHF 54.51 million. Free cash flow was negative at CHF -194.84 million, while cash flow from operations was also negative (CHF -52.39 million), reflecting working capital dynamics and the ramp of capital expenditures (Capex of CHF -142.45 million) related to capacity expansion. Financing activities contributed CHF +181.70 million, aiding liquidity. The company’s leverage metrics remain elevated (debt to capitalization around 86.8% and debt to equity around 6.55x). These dynamics, set against a longer-term growth narrative around HJT-SmartWire technologies and potential perovskite tandem integration, imply that near-term investors should focus on the path to gross-margin improvement, unit cost reductions, and capital-structure optimization as precursors to sustainable profitability.
Key Performance Indicators
Revenue
48.69M
QoQ: 0.00% | YoY:-49.74%
Gross Profit
-284.19M
-5.84% margin
QoQ: 0.00% | YoY:-943.06%
Operating Income
-322.74M
QoQ: 0.00% | YoY:-478.08%
Net Income
-317.30M
QoQ: 0.00% | YoY:-389.93%
EPS
-150.00
QoQ: 0.00% | YoY:-1 850.59%
Revenue Trend
Margin Analysis
Key Insights
Revenue: CHF 48.685 million (YoY change: -49.74%; QoQ: 0.00%).
Net Income: CHF -317.301 million; Net Margin: -6.52%; EPS: CHF -150.00.
Financial Highlights
Revenue and profitability:
- Revenue: CHF 48.685 million (YoY change: -49.74%; QoQ: 0.00%).
- Gross Profit: CHF -284.193 million; Gross Margin: -5.84% (strong negative swing vs. revenue).
- Operating Income: CHF -322.740 million; Operating Margin: -6.63%.
- EBITDA: CHF -121.867 million.
- Net Income: CHF -317.301 million; Net Margin: -6.52%; EPS: CHF -150.00.
- YoY deterioration driven by revenue compression and elevated cost of revenue lifting the loss profile, with depreciation & amortization contributing to negative EBITDA despite a high asset base.
Balance sheet and liquidity:
- Cash and cash equivalents: CHF 158.635 million; Total assets: CHF 600.101 million; Total liabilities: CHF 545.591 million; Total equity: CHF 54.510 million.
- Net debt: CHF 198.675 million; Debt (long-term + short-term): CHF 357.310 million; Debt-to-equity: 6.55x; Debt-to-capitalization: 86.8%; Current ratio: 1.589; Quick ratio: 1.071; Cash ratio: 0.773.
- Working capital indicators signal near-term liquidity support from financing activity, but the business remains funded by external sources as operating cash flow is negative.
Cash flow and capital expenditure:
- Operating cash flow: CHF -52.392 million; Free cash flow: CHF -194.840 million.
- Capital expenditure: CHF -142.448 million; Investing cash flow: CHF -123.386 million (net investing activities).
- Financing activities: CHF +181.701 million, contributing to net cash increase of CHF 8.41 million for the period.
Efficiency and asset utilization:
- Asset turnover: 0.081; Inventory turnover: 3.13; Receivables turnover: 0.864; Days sales outstanding: 104.18 days; CCC: 132.93 days, indicating extended working capital cycles in a growth deployment phase.
- Cash flow to debt ratio: -0.147; Free cash flow to operating cash flow ratio: 3.72 (indicative of substantial depreciation/amortization support in cash flows but not enough to offset higher capex and working capital needs).
Valuation and earnings framework:
- Price-to-book: 3.07x; Enterprise value multiple: -3.00x; Price-to-sales: 3.43x; Price-to-operating cash flows: -3.19x; Price-to-free cash flows: -0.858x. The negative earnings context and high leverage imply a high-risk, growth-oriented capital allocation story rather than a traditional valuation benchmark.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
48.69M
-49.74%
0.00%
Gross Profit
-284.19M
-943.06%
0.00%
Operating Income
-322.74M
-478.08%
0.00%
Net Income
-317.30M
-389.93%
0.00%
EPS
-150.00
-1 850.59%
0.00%
Key Financial Ratios
currentRatio
1.59
grossProfitMargin
-584%
operatingProfitMargin
-663%
netProfitMargin
-652%
returnOnAssets
-52.9%
returnOnEquity
-582%
debtEquityRatio
6.55
operatingCashFlowPerShare
$-2.48
freeCashFlowPerShare
$-9.21
priceToBookRatio
3.07
priceEarningsRatio
-0.13
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Note: The input data provided does not include an earnings transcript. As a result, the following highlights are derived from the reported numbers and typical management emphasis for a scale-up solar technology company in Meyer Burger’s position:
- Strategy and technology roadmap: Management is likely focusing on ramping HJT-SmartWire technology adoption and scaling module production, including any collaboration with Oxford Photovoltaics for perovskite tandem developments, as indicated by the company’s stated strategic partnerships and technology platform focus. Expect commentary on cost reduction trajectory, yield improvements, and capital investment cadence tied to capacity expansion.
- Operations and cost structure: The margin compression is evident in the QQ2 2024 data; expect discussions centered on elevating gross margins through volume leverage, supplier terms, and potential optimization of the cost of revenue while maintaining product quality and differentiation.
- Market conditions and demand: Solar module pricing and demand dynamics, particularly in Europe and selected export markets, would be a focal point. Management is likely to address competitive intensity, pricing environment, and any subsidies or policy shifts impacting demand.
- Capital strategy and liquidity: Given the negative free cash flow and sizable debt, management commentary would typically cover funding strategies, balance sheet optimization, and milestones for achieving sustained profitability without compromising liquidity.
Not available
— N/A
Not available
— N/A
Forward Guidance
There is no explicit forward guidance in the provided data. Based on QQ2 2024 results, the implicit guidance from the company should center on achieving a material improvement in gross margins and a path to positive operating cash flow as capacity expands and cost structures normalize. Key factors likely to influence achievability include: (1) unit cost reductions through scale, manufacturing efficiencies, and supplier terms; (2) ramp progress of HJT-SW production capabilities and yield improvements; (3) success of R&D programs with Oxford Photovoltaics around perovskite tandem integration and their impact on product mix and pricing power; (4) capital market access to fund ongoing capex without unsustainable leverage; (5) stability in customer demand and order book in Europe, Asia, and the United States. Investors should monitor quarterly progress on cost of revenue as a percentage of revenue, discipline in capex, to ensure that financing needs do not overwhelm cash flows; and watch for any management updates on capacity expansion timelines and potential efficiency programs.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
0QQ7.L Focus
-5.84%
-6.63%
-5.82%
-13.20%
MYBUF
0.00%
0.00%
0.00%
0.00%
MBTN.SW
-5.84%
-6.63%
-5.82%
-1.17%
INSP.L
0.00%
0.00%
-6.11%
-1.16%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Short-to-medium term, Meyer Burger presents a high-risk, high-uncertainty investment profile driven by its transition from development to scaled production of premium solar technologies. The QQ2 2024 results show meaningful top-line contraction and a pronounced margin gap that must be bridged to restore profitability. The investment thesis rests on successful scale-up of HJT-SW manufacturing, meaningful cost-of-revenue reductions, and progress on tandem perovskite integration to command premium pricing. Investors should scrutinize progress toward positive operating cash flow, reductions in debt burden, and credible milestones for gross-margin normalization. In a favorable scenario, continued partnerships and capacity expansions could unlock higher-margin growth, but the near term remains reliant on external funding and execution discipline.
Key Investment Factors
Growth Potential
Strategic positioning in high-efficiency solar technology (HJT-SmartWire) with a partnership framework (e.g., Oxford Photovoltaics) supports potential long-term growth in module efficiency and cost competitiveness. Success hinges on achieving scale-driven reductions in cost of revenue and progressing tandem perovskite integration to enhance product value and pricing power.
Profitability Risk
Key risks include a still-elevated cost base relative to revenue, negative near-term profitability, high leverage and limited cushion in operating cash flow, dependency on external capital to fund ongoing capex, and exposure to competitive pressure and macro solar demand volatility. Execution risk around ramping manufacturing capacity and achieving yield improvements is material.
Financial Position
Balance sheet shows CHF 158.6m cash, CHF 357.3m total debt, and CHF 54.5m equity, with net debt of CHF 198.7m. Leverage remains high (debt to capitalization ~86.8%; debt to equity ~6.55x), and negative free cash flow highlights ongoing liquidity scrutiny. The near-term financial position will hinge on financing flexibility and improving gross margins to support a sustainable capital structure.
SWOT Analysis
Strengths
Proprietary heterojunction and SmartWire (HJT-SW) technologies providing differentiation in high-efficiency module capabilities.
Strategic partnerships and collaboration potential with Oxford Photovoltaics for advanced tandem technologies.
Geographic reach across Switzerland, Europe, Asia, and the United States supports diversified demand channels.
Weaknesses
Significant near-term losses with negative gross margin and negative operating cash flow.
High leverage and limited equity base heighten financing risk and balance-sheet fragility.
Revenue scale currently small relative to cost base, limiting operating leverage.
Extended working capital cycle and elevated depreciation burden from capital investments.
Opportunities
Growing global solar deployment and demand for high-efficiency modules could improve pricing and volume.
Potential gross margin improvement from scale, supply chain optimization, and manufacturing efficiencies.
Advancement of perovskite-tandem integration could unlock higher-value product offerings.
Threats
Intense competition and pricing pressure in solar module manufacturing, particularly from larger global manufacturers.
Financing environment risk and potential dilution if external capital is constrained.
Technological and execution risk in achieving ramp-up without compromising quality or yield.
Meyer Burger Technology AG (0QQ7.L) QQ4 2023 Results — Severe profitability and liquidity challenges amid ramp of solar cell/module production (CHF)...