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The business performance of Siltronic AG in the first six months of the year was in line with communicated expectations. In a market environment that remains challenging for the wafer industry, sales in H1 2025 amounted to EUR 674.8 million, slightly below the previous year’s level (H1 2024: EUR 694.8 million). Sales in Q2 2025 totaled EUR 329.1 million, down by 4.8 percent compared to the previous quarter (Q1 2025: EUR 345.8 million).
“The visible growth in end markets has so far not led to a normalization of inventory levels at chip manufacturers. As a result, there is still no noticeable recovery in demand at Siltronic. However, in order to participate sustainably and profitably in the medium-term demand growth expected in the future, we are consistently implementing key strategic initiatives. In the first six months, we completed important customer qualifications for our new fab in Singapore and finalized the last steps in the cessation of wafer production for small diameters up to 150 mm at the Burghausen site,” said Dr. Michael Heckmeier, CEO of Siltronic AG.
Business development in Q2 2025 influenced by increased wafer area sold and exchange rate effects
In Q2 2025, Siltronic AG generated sales of EUR 329.1 million. This corresponds to a decline of EUR 16.7 million compared to EUR 345.8 million in Q1 2025. The increase in wafer area sold could not fully offset the negative impact by exchange rate effects, and to a lesser extent, by price effects.
On the cost side, both cost of sales (Q2 2025: EUR 268.9 million, Q1 2025: EUR 290.9 million) and selling -, general administration -, as well as research and development expenses (Q2 2025: EUR 34.3 million, Q1 2025: EUR 38.3 million) declined noticeably quarter-over-quarter. This positive development was mainly driven by improved fixed cost dilution due to the increased wafer area sold and lower write-downs on spare parts.
The loss in other exchange rate effects amounted to EUR 3.2 million in Q2 2025, compared to EUR 2.5 million in Q1 2025. While in Q1 the stronger average US dollar against the euro mainly led to a loss from currency hedging transactions, in Q2 the key factor was the reporting date valuation of receivables – with the US dollar significantly weaker at 1.17 per euro (compared to 1.08 on March 31, 2025, and 1.04 on December 31, 2024).
As a result, EBITDA in Q2 2025 amounted to EUR 86.4 million, showing a noticeable increase compared to the previous quarter (Q1 2025: EUR 78.3 million), despite the decline in sales. Accordingly, the EBITDA margin rose to 26.3 percent (Q1 2025: 22.6 percent). This improvement was also reflected in EBIT, which increased to EUR 23.7 million in Q2 2025 (Q1 2025: EUR 14.9 million) with depreciation remaining nearly unchanged. Net profit rose from EUR 4.3 million in Q1 2025 to EUR 14.6 million in Q2. Earnings per share increased from EUR 0.08 in Q1 2025 to EUR 0.38 in Q2.
H1 2025 impacted by higher wafer area sold and negative price and product mix effects
In H1 2025, sales totaled EUR 674.8 million (H1 2024: EUR 694.8 million). The clear increase in wafer area sold could not offset the negative price and product mix effects. Exchange rate developments had no material impact on sales compared to the previous year’s period.
Cost of sales rose slightly from EUR 554.1 million in H1 2024 to EUR 559.8 million in H1 2025. The improved fix cost dilution resulting from the increased wafer area sold and lower write-downs on spare parts in inventories were offset by higher depreciation due to investments.
Exchange rate effects, reported under other operating income and expenses, resulted in a net loss of EUR 5.7 million, compared to a gain of EUR 4.7 million in H1 2024 and significantly reduced year-over-year profitability. While the previous-year period still benefited from a gain from currency hedging transactions, Q2 was particularly impacted by the reporting date valuation of the EUR/USD exchange rate. EBITDA fell to EUR 164.6 million (H1 2024: EUR 181.4 million), and reached a margin of 24.4 percent in H1 2025 (H1 2024: 26.1 percent).
Net profit for the period decreased from EUR 50.1 million in H1 2024 to EUR 18.8 million in H1 2025. In addition to the decline driven by the operating performance, a lower financial result due to investment-related effects also added to the reduction. Earnings per share amounted to EUR 0.46 in H1 2025 after EUR 1.59 in H1 2024.
Net assets and financial position affected by high investments
In H1 2025, capex including intangible assets decreased significantly to EUR 250.1 million, compared to EUR 411.2 million in the previous year’s period. As expected, both free cash flow (H1 2025: EUR -169.5 million; H1 2024: EUR -239.8 million) and net cash flow (H1 2025: EUR -157.0 million; H1 2024: EUR -252.8 million) clearly improved compared to the previous year’s period. However, the continued high level of investment, particularly in connection with the new fab in Singapore, once again resulted in both figures remaining negative.
Nonetheless, Siltronic’s balance sheet quality remained robust as of June 30, 2025, reflected in a stable equity ratio of 43.3 percent (December 31, 2024: 43.6 percent). The net financial debt increased to EUR 902.8 million. Net payments for capex including intangible assets totaling EUR 250.1 million were offset by cash flows from operating activities of EUR 80.6 million.
Guidance for 2025 with adjusted exchange rate assumptions
The Executive Board of Siltronic AG confirms the guidance for the full year 2025 with a constant exchange rate (original assumption: 1.08 EUR/USD). However, based on an adjusted exchange rate of 1.15 EUR/USD for H2 2025, the guidance has been revised. Adjusted for the new exchange rate assumption, sales for full year 2025 are now expected to be in the mid-single-digit percentage range below the previous year (previously: in the region of the previous year). For Q3 2025, sales are expected to be below the level of Q2. This development is mainly due to shifts in delivery volumes within 2025, most of which have been postponed to Q4. The EBITDA margin for the full year is still expected in the range of 21 to 25 percent.
Due to improved insights gained over the course of the year and a weaker Singapore dollar, depreciation is now expected to be between EUR 340 million and EUR 400 million (previously: EUR 380 million to EUR 440 million). The guidance for EBIT (significant decline), capital expenditures including intangible assets (EUR 350 million to EUR 400 million), and net cash flow (significant improvement, but still negative) remains unchanged.
Original – Siltronic
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Vishay Intertechnology, Inc. announced that it has been honored by DENSO, a leading mobility supplier, with a 2025 North America Business Partner Award in the Value Leader category.
DENSO’s Business Partner Awards are given to companies that demonstrate exceptional supplier partnership in such areas as quality, service, technology, value, and sustainability. Vishay earned a Value Leader Award for consistently proposing innovative components that enhance DENSO’s designs, while providing exceptional supplier support.
“With all the change currently facing our industry, we must remain flexible and resilient to deliver for our customers,” said Kim Buhl, vice president of the North America Purchasing Group at DENSO. “We can only do this with the help of our suppliers. So, this year, as we congratulate those who have performed exceptionally in creating new value for DENSO, we also thank our entire supplier network. We call on each partner to continue to take on new challenges, and opportunities, with us as we strive to contribute to a better world.”
“It’s a tremendous honor to receive the 2025 Value Leader Award from DENSO — a recognition that underscores the strength of our customer-first collaboration,” said Bill Boldt, senior vice president of sales and marketing, Americas, at Vishay. “This award reflects our growth-driven commitment to innovation and to building strategic partnerships that help customers succeed, even amid today’s market uncertainties. We’re proud to support DENSO’s mission to advance cleaner, safer mobility and are ready to meet the growing demand for our components.”
Original – Vishay Intertechnology