5N Plus Inc. Reports Strong Financial Results for Q4 2024 and FY 2024

5N Plus Inc. (TSX: VNP), a leading global producer of specialty semiconductors and performance materials, has reported its financial results for the fourth quarter of fiscal 2024 ("Q4 2024") and fiscal year ("FY 2024") ended December 31, 2024. The company's strong performance was driven by its strategic focus on higher margin, value-added advanced materials and being a critical supplier without being a critical cost to customers operating in growing markets.



Financial Highlights

* Revenue in Q4 2024 increased by 9% to $70.9 million, compared to $65.1 million in Q4 2023, driven by strong growth under Specialty Semiconductors.
* Revenue in FY 2024 reached $289.3 million, compared to $242.4 million in FY 2023, supported by the terrestrial renewable energy and space solar power sectors under Specialty Semiconductors.
* Adjusted EBITDA in Q4 2024 increased by 38% to $12.5 million, compared to $9.0 million in Q4 2023, driven by higher volume from the terrestrial renewable energy and space solar power sectors, and better prices over inflation.
* Adjusted EBITDA was $53.3 million in FY 2024, representing a 39% increase compared to $38.3 million in FY 2023.
* Adjusted gross margin increased by 26% to $23.4 million in Q4 2024, favourably impacted by the same factors as above. Adjusted gross margin as a percentage of sales was 33.0% in Q4 2024, compared to 28.5% in Q4 2023.
* Adjusted gross margin reached $91.3 million for FY 2024, or 31.6% of sales, compared to $70.2 million in FY 2023, or 29.0% of sales.
* Net earnings in Q4 2024 were $1.0 million, compared to $2.3 million in Q4 2023. For FY 2024, net earnings were $14.7 million, compared to $15.4 million in FY 2023.
* Backlog stood at $252.8 million, representing 326 days of annualized revenue as at December 31, 2024, 37 days higher than the previous quarter and 34 days higher than at the end of last year, primarily due to the timing of contract signings and renewals.
* Net debt was $100.1 million as at December 31, 2024, compared to $73.8 million as at December 31, 2023, reflecting an increase in working capital and planned capital expenditures in 2024 under Specialty Semiconductors. The Company's net debt to EBITDA ratio stood at 2.02x as at December 31, 2024.

Market Outlook

In Specialty Semiconductors, 5N Plus continues to benefit from its unique position as the leading global supplier of ultra-high purity semiconductor compounds outside China, with long-term partnerships with key customers. Growing demand remains the rule, particularly in terrestrial renewable energy and space solar power. The Company also anticipates growth under imaging and sensing applications including in the security, defence and medical sectors. The anticipated transition to photon counting detector (PCD) technology for medical imaging is anticipated to provide a promising growth avenue in the med

5N Plus Inc. has increased its 2025 Adjusted EBITDA guidance to a range of $55 to $60 million, reflecting its confidence in its ability to maintain momentum and capitalize on future opportunities in these high-growth sectors. The company's strong financial performance, strategic focus, and unique position in the market make it an attractive investment opportunity for those seeking exposure to the growing demand for specialty semiconductors and performance materials.