Mycronic AB (publ) (MYCR) Earnings Call Transcript
August 31, 2026
Earnings Call Speaker Segments
With regards to cash flow profile of the business, I think there is nothing that significantly or dramatically changes. We will continue to invest where we see it being appropriate, but there is nothing that is really fundamentally different going forward from the past.
Thank you. Now Ina Djupsund, SEB.
Yes. So you talked a little bit about the margin mix between the divisions, but I still wanted to ask about growth. So do you still think that Pattern Generators will be the majority of earnings in the longer term? So will it be significantly kind of more balanced between the divisions?
We will make sure that all divisions are contributing substantially. That's what we said already last time and what we see now as well and what we focus on. Pattern Generators are expected to continue to run on the highest operating margin going forward as well. So in that sense, yes, it will be important, but it will have a lesser total impact the way we have done the planning for it, yes.
And then do you think the EBIT margin will fluctuate much around 25%? And can we kind of still think of 20% at some kind of bottom line?
Who knows in the cyclicality of the business. But I mean, we will aim to be at the level where we are now, which is the 25%, and we will not be happy with less.
Any more questions? Yes, we have Anders Akerblom, Nordea again.
One final one. In Global Tech, PCB Test today, if I'm not mistaken, accounts for the majority of the sales in the business. Going forward, I mean, is that a split you're comfortable with? And if you just look a few years out, how do you sort of envision that split actually looking like?
Currently, the split is roughly half, as you were indicating, a little bit more than half actually on PCB Test, but that's roughly where we are right now. I think we will stay there for some time. But long term, I envision that the emerging markets will be a larger portion of Global Technologies revenue.
Okay. We have Oliver Wong, Bank of America with a question.
Just wondering for the 25% EBIT margin target, how much upside do you potentially see from that? And if there was to be upside, where do you think it would most likely come from?
I mean we have been running earlier on in this year above 30%, and we have -- we are doing that from time to time. We see now very high profitability in Global Tech as well as we have in the Pattern Generators because of the mix of shipments that we have had in the first half of the year in Pattern Generators. So if we would be much above the 25%, it's likely that we have shipped some bigger PG machines in that period. So I guess that's the main upside. But we do see higher numbers than the 25% as well within the Global Technologies for now and are expecting to see that going forward as well. But equally, as we improve the profitability in High Volume and in PCB Assembly Solutions, that will also contribute.
Another question.
I just focus on the Global Technology margins. I think in the target, it was set to be over 30% EBIT margin for Global Technology. I think previously, you have disclosed that Surface is having -- is on gross margin accretive to the segment. Can you just confirm that? And for the other emerging tech like Photonics interconnect and the connected testing, could you also confirm the gross margin profile roughly give us indication whether it is accretive or dilutive to segment margins on the gross margin level?
Is, of course, a bit of a moving target. But yes, at the time of the acquisition, Surfx was definitely above the average for Global Technologies. We are somewhat below on the -- today with the volumes we have on Photonic Interconnects and more or less on par with the Magnetic Testing.
Okay. If that is the case. And since the expectation is for the next maybe 18 to 24 months, we should expect strong growth from this emerging tech. It sounds like Surfx should be the first one to basically ramp. Shouldn't that drive margin higher from the exit rate we have in H1 for GT?
I believe that Surfx is a little bit earlier in the growth cycle than some of the other technologies, yes. But will it have a material impact on the division -- interdivisional mix? I'm not so sure it will have a major impact on that.
Okay. And just on the PCB Test, the growth potential of PCB Test, could you just help us understand the underlying end market volume demand for the next 3 to 4 years, given we've got the trend of more complicated PCBs being produced. And of course, you've got volume growth on top of that as well. Just help us to understand that would be great.
Then I will pass this to Magnus. He is even closer to the business on this one.
I think some of the growth is actually because of the build-out and specifically the build-out in Southeast Asia. So they're building new factories for PCBs, and that will not continue forever. So I think the growth will continue for some time, but it is -- it will not continue forever for sure.
Thank you. And with that, I think we've reached the end of the Q&A session. We've overdrawn a bit, but there's been a lot of interest from the audience, which is great. So thank you very much, and thank you very much for attending over the live stream. Thank you.
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