U-blox Reports Resilient Half-Year 2024 Results Despite Weaker Market

Thalwil, Switzerland – u-blox AG, a leader in positioning and wireless communication technologies, announced its financial results for the first half of 2024. Although revenue reached CHF 121.1 million, it declined year-over-year, particularly in the connectivity and industrial segments. However, a 16% increase in Q2 revenue compared to Q1 suggests early signs of recovery.

EBIT amounted to CHF -40.9 million, while adjusted EBIT was CHF -36.2 million. Positive free cash flow stood at CHF 15.7 million, aided by a cost optimization program that saved CHF 4.9 million. The company aims for annual savings exceeding CHF 20 million by expanding this program in H2 2024.

Despite facing a tough economic environment, u-blox sees potential growth in the automotive sector, driven by its Locate business. The company also emphasized its long-term strategy in AI applications through collaborations, such as joining the NVIDIA Jetson Partner Ecosystem for autonomous and AI-powered machines.

For Q3 2024, u-blox projects revenues between CHF 75-85 million and an adjusted EBIT margin of -10% to -5%, reflecting a gradual recovery.