Meyer Burger Technology (0QQ7.L) Q4 2023 Earnings Report

Meyer Burger’s QQ4 2023 results illustrate a pronounced revenue shortfall and intensifying profitability pressures as the company advances its manufacturing ramp. Quarter revenue of CHF 19.1 million was overwhelmed by cost of revenue of CHF 42.7 million, resulting in a gross loss of CHF -23.6 million and a gross margin of -123.7%. This negative gross profitability fed into a broader operating loss, with operating income at CHF -65.9 million and EBITDA of CHF -60.4 million, culminating in a net loss of CHF -113.6 million and an EPS of CHF -23.99 for the quarter. The YoY deterioration in key metrics—revenue down 78.9%, net income down 293.8%—reflects not only weak near-term demand/volume but also the costs required to scale manufacture and optimize the HJT/SW technology platform in a capital-intensive environment. From a liquidity and balance-sheet perspective, the company entered this quarter with CHF 150.2 million of cash and equivalents and reported total debt of CHF 347.5 million (net debt CHF 197.3 million). Cash used in operating activities was CHF -58.7 million, with free cash flow of CHF -94.3 million. The cash burn, combined with significant working-capital investments (notably inventory of CHF 132.1 million and a large deferred-revenue balance of CHF 107.1 million), underscores heightened liquidity risk unless additional financing or restructuring actions are secured. The balance sheet shows a substantial accumulated deficit and a high leverage profile, with long-term debt of CHF 326.2 million and total liabilities of CHF 489.8 million against CHF 191.4 million in equity. In short, QQ4 2023 marks a challenging transition phase: the business remains in a heavy investment cycle, demanding meaningful cost take-out and revenue ramp to achieve a meaningful deleveraging and a path to sustainable profitability. Management commentary, where available, signals a continued emphasis on manufacturing-scale efficiency, product mix optimization, and potential strategic partnerships to support long-term value, but explicit forward guidance for the near term was not disclosed in the materials provided. Investors should weigh the near-term cash burn and leverage against the longer-term potential from HJT/SW technologies and any anticipated operating leverage from higher-volume production.