For Siltronic AG Q1 2025 continued to be characterized by ongoing weak demand for wafers, resulting in a sales decline of around 4 percent compared to Q4 2024, mainly due to slightly negative product mix and price effects.

“The start of the year was within expectations. However, visibility remains limited on when our customers’ inventories will recover and thus demand for wafers will increase. Added to this are uncertainties due to the tightening of American tariff policies and the corresponding countermeasures. The impacts on end-markets and FX rates are not yet foreseeable. However, we do not currently expect any significant direct impact of tariff policies on Siltronic,” commented Dr. Michael Heckmeier, CEO of Siltronic AG, on the development.

Siltronic achieved sales of EUR 345.8 million in Q1 2025, a decrease of 4.1 percent compared to Q4 2024. This development was within expectations and was mainly due to slightly negative product mix and price effects. The average FX rate of the Euro to the US dollar in Q1 2025 was 1.05 (Q4 2024: 1.07), which slightly supported sales.

Cost of sales decreased by 1.4 percent compared to the previous quarter. Due to the disproportionate decline compared to sales, the gross margin decreased from 18.2 percent (Q4 2024) to 15.9 percent (Q1 2025).

Operating expenses for selling, general administration, research and development increased slightly by EUR 1.5 million compared to the previous quarter. FX effects reported in the balance of other operating income and expenses amounted to EUR -2.5 million compared to EUR -0.4 million in Q4 2024.

As a result, EBITDA for Q1 2025 was EUR 78.3 million, below the level of the previous quarter (Q4 2024: EUR 93.0 million). The EBITDA margin decreased from 25.8 percent to 22.6 percent.

These effects were also reflected in the development of EBIT, which decreased from EUR 27.4 million in Q4 2024 to EUR 14.9 million in Q1 2025.

Income tax expense decreased significantly to EUR 3.2 million (Q4 2024: EUR 20.6 million), but the tax rate remained at an elevated level (Q1 2025: 43 percent, Q4 2024: 109 percent).

The result for the period was EUR 4.3 million compared to EUR -1.6 million in Q4 2024. Of this amount, EUR 2.4 million is attributable to Siltronic AG shareholders, with earnings per share of EUR 0.08 (Q4 2024: EUR -0.08).

With equity of EUR 2,179.2 million on March 31, 2025 and an equity ratio of 43.8 percent (December 31, 2024: 43.6 percent) Siltronic continues to have a good balance sheet quality. 

The decrease in trade payables mainly related to investments that were already accounted for in 2024 and were due for payment in Q1 2025.

The reduction in cash flow from operating activities compared to the previous quarter is mainly due to the already described EBITDA decline and based on working capital effects related to the reporting date.

In the quarter under review, Siltronic made net payments for capital expenditure including intangible assets of EUR 139.1 million. As expected, payments for capex including intangible assets significantly exceeded additions to the statement of financial position (Q1 2025: EUR 96.5 million). The payments and additions mainly related to the new fab in Singapore.

As a result, both free cash flow at EUR -81.8 million (Q4 2024: EUR 1.1 million) and net cash flow at EUR -74.2 million (Q4 2024: EUR 20.7 million) were negative in Q1 2025. Consequently, net financial debt increased from EUR 733.5 million at the end of 2024 to EUR 819.1 million as of March 31, 2025.

Siltronic is convinced of a significantly increasing medium- and long-term demand for silicon wafers driven by megatrends and is ready to participate in this growth. However, 2025 will continue to be characterized by elevated inventory levels at customers and the associated volume shifts.

The company now expects H1 2025 to be in the mid to high single-digit percentage range below H2 2024. Overall, the sales guidance for the full year 2025 remains unchanged, although it is not yet possible to estimate the impact of American tariff policies and the corresponding countermeasures on expected end-market growth and FX rates for the remainder of the year (assumption for guidance: EUR/USD 1.08).

Additionally, Siltronic AG refines its guidance for the EBITDA margin due to expected negative price effects outside of long-term agreements and adverse product mix developments to 21 to 25 percent. Expectations for the development of capex including intangible assets, depreciation, EBIT, and net cash flow for 2025 remain unchanged.

Original – Siltronic