Insights overview

NTS reports solid 2023 financial results

- May 21, 2024

Today, NTS, first-tier supplier in high-tech manufacturing, reports solid financial annual results over 2023. Under challenging market circumstances, caused by a slowdown of the worldwide demand in the semiconductor market, the Eindhoven (NL) based company reported an increase in net revenues by 2% to € 420 million. EBITDA, grew with 6% to € 43 million representing a healthy 10% of net revenues.

Key highlights:

  • Net revenues: € 420 million (+2%)
  • EBITDA: € 43 million (+6%)
  • Investments in fixed assets: € 14 million
  • Increase in group equity: € 63 million
  • Increase in solvency to 39% (from 25% in 2022) 
  • Increase in staff: 56 FTEs to 1723 (+3%)

In 2023, annual turnover of NTS amounted to € 420 million, an increase of 2% versus prior year. A decrease in net revenues in Asia - due to a slowdown in market demand in the semiconductor industry - was more than offset by increased turnover in Europe, where the company could make good use of investments done in manufacturing capacity over the past years.

According to Frans van Lierop who joined NTS as the new CEO on 1 May 2024, the 2023 results are robust and underline the Group’s resilience even in contracting markets: “We owe our steady results to our committed clients, the unparalleled engagement of our staff, ongoing internal process improvements and operational efficiency, and capacity expansion at the same time. We are committed to continue to grow with our customers and invest in talented people, innovation and our network of development and production facilities across the globe. Our shareholders, the Wintermans family, converted a € 35 million shareholder loan into equity in December 2023 to further support this growth strategy in the coming years.”

Over the last three years NTS has made strategic investments of over € 100 million in new development and production facilities, machinery and equipment and attracting talented professionals, positioning itself for future success. In 2023, the company welcomed 56 new colleagues across locations and opened a new office in the US to be closer to its North American customers. Major developments also included preparations for the opening of new facilities in Drachten, the Netherlands (April 2024) and Singapore (September 2024), as well as investments in ultra-precise machining competencies in the Czech Republic and additive manufacturing (3D metal printing) competences aimed at the high-tech industry in Hengelo, the Netherlands.

Going concern and outlook

In the first quarter of 2024, demand in the semiconductor markets in general was still under pressure. Most customers, however, foresee a ramp-up in the coming twelve months with further growth in 2025 and 2026. The Group’s turnover in the first 3 months of 2024 was slightly above previous year in the same period. “We have anticipated this upcoming market upturn and inherent growth and are well-prepared for it. In 2022 and 2023, we have strengthened our organization by investing in talented people and internal processes and new facilities. With the new premises in Drachten accommodating 150 people, we now have a modern 4,000 m2 facility for ultra-precise components. Similarly, the new facility in Singapore, set to open in the third quarter of 2024, will offer a total capacity of 20,000 m2 and employment for approximately 300 people active in the fields of development and engineering, production and assembly”, concludes Van Lierop.

Accelerating the future
About the Author

In case you would like to contact us, you can fill in the contact form here. We will respond to you as soon as possible.