Siltronic AG reported results for the first nine months of 2025 broadly in line with expectations against a challenging market backdrop. Sales for January to September totaled EUR 975.1 million, down 7.3% year on year, reflecting pricing and product-mix effects as well as a weaker US dollar. Third-quarter sales were EUR 300.3 million, an 8.7% sequential decline due mainly to scheduled delivery shifts into the fourth quarter and adverse currency movements.

Management said the company’s strategic initiatives and cost discipline are supporting resilience and underpin the full-year outlook. CEO Dr. Michael Heckmeier noted that Q3 performance was impacted by delivery timing and FX, but nine-month results remained solid and guidance for 2025 is confirmed.

Siltronic’s Q3 sales of EUR 300.3 million were affected by a lower wafer area sold and the depreciation of the US dollar from an average 1.13 per euro in Q2 to 1.17 per euro in Q3. Cost of sales rose 13.0% sequentially to EUR 303.9 million, driven by the start of depreciation and ramp-related costs for the new Singapore fab, and by a favorable spare-parts valuation in Q2 that did not repeat. Gross profit declined to EUR -3.6 million.

The company recorded a positive FX result of EUR 3.2 million in Q3, versus a EUR 3.2 million loss in Q2. EBITDA was EUR 65.7 million, with an EBITDA margin of 21.9% (Q2: 26.3%). EBIT decreased to EUR -31.4 million due to lower EBITDA and higher depreciation. The quarter’s result was EUR -43.9 million, with earnings per share of EUR -1.29.

For the first nine months, sales were EUR 975.1 million versus EUR 1,052.2 million a year earlier, mainly due to price and mix, partly offset by higher wafer volumes. Cost of sales rose 2.5% to EUR 863.7 million, reflecting increased volume and significantly higher depreciation, partly balanced by fixed-cost dilution and savings measures. Gross profit was EUR 111.4 million, with gross margin at 11.4% (prior year: 20.0%).

EBITDA for the period was EUR 230.5 million (prior year: EUR 270.7 million), equating to an EBITDA margin of 23.6% (prior year: 25.7%). Depreciation rose to EUR 223.3 million (prior year: EUR 172.9 million), taking EBIT to EUR 7.2 million (prior year: EUR 97.8 million). The period result was EUR -25.1 million (prior year: EUR 68.8 million), with earnings per share of EUR -0.83 (prior year: EUR 2.19). The FX result improved to EUR 3.2 million from EUR 0.1 million in the comparable period.

Siltronic maintained a solid equity ratio of 42.6% at September 30, 2025 (December 31, 2024: 43.6%). Capital expenditure remained high due to the Singapore fab, but net capex payments decreased to EUR 339.1 million (prior year: EUR 565.1 million). Free cash flow improved to EUR -202.6 million from EUR -324.1 million, and net cash flow to EUR -186.9 million from EUR -317.7 million. Operating cash flow declined by EUR 104.5 million year on year, driven by lower EBITDA and a planned inventory build ahead of Q4 deliveries. Net financial debt was EUR 932.7 million (December 31, 2024: EUR 733.5 million), which the company expects to be the peak level for the year.

Siltronic reaffirmed full-year guidance, incorporating a less favorable FX assumption of 1.17 EUR/USD for H2. Management continues to expect sales to be mid single-digit percent below 2024. The EBITDA margin outlook has been specified to 22–24% (previously 21–25%). Ranges for depreciation and capital expenditure have been narrowed to EUR 340–360 million and EUR 360–380 million, respectively. Expectations for EBIT (significant decline year on year) and net cash flow (considerable improvement, but still negative) remain unchanged.

The company said ongoing execution of strategic initiatives, cost measures, and the ramp of the Singapore fab position Siltronic to serve customer demand reliably as delivery timing normalizes in the fourth quarter.

Original – Siltronic