Siltronic AG has issued its financial guidance for 2026 via an ad hoc announcement, warning of another challenging year marked by exchange rate headwinds and continued price pressure outside existing long-term agreements.

The Executive Board expects sales in 2026 to decline in the mid-single-digit % range compared with the preliminary 2025 figure of €1,347 million, with a subdued start to the year. The outlook is based on an assumed EUR/USD exchange rate of 1.18, compared with 1.13 in 2025.

On a comparable basis — excluding exchange rate effects and the closure of the SD line — revenue is expected to be roughly in line with the previous year.

While demand for 300 mm wafers is supported by AI-driven end markets, Siltronic anticipates a decline in 200 mm wafers due to intensified inventory reduction by customers in the power segment. Additionally, the full-year impact of the SD line closure will weigh on 2026 results for the first time.

“2026 will still be a challenging year, even though AI-driven end markets are clearly supporting our 300 mm volume,” said CEO Dr. Michael Heckmeier. He noted that positive developments in the memory segment have not yet fully translated into wafer demand, as customers remain capacity-constrained and inventory dynamics continue to affect downstream markets such as smartphones and PCs.

Siltronic expects its EBITDA margin to range between 20% and 24%, compared with a preliminary 23.5% in 2025.

Depreciation is projected to increase significantly in 2026 due to prior investments in the 300 mm business, reaching between €490 million and €520 million. As a result, EBIT is expected to be significantly below the 2025 preliminary figure of -€26 million.

Capital expenditures will be substantially reduced to between €180 million and €220 million, down from €369 million in 2025. However, as capex-related payments will exceed this level, net cash flow is expected to remain around the prior year’s preliminary figure of -€85 million.

Siltronic will publish its full audited Annual Report for 2025 on March 12, 2026.

Original – Siltronic