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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
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Mitsubishi Electric Corporation has announced its consolidated financial results for fiscal year 2025 (April 1, 2024 – March 31, 2025), reporting an overall strong performance despite global economic uncertainties.
Total revenue rose 5% year-over-year to 5,521.7 billion yen, with operating profit increasing by 19% to 391.8 billion yen. Among its business segments, the Semiconductor & Device division remained a key contributor to the company’s stability and future growth prospects.
Semiconductor & Device Business Highlights:
- Revenue: 259.9 billion yen, flat year-on-year
- Operating Profit: 40.6 billion yen, up 36% year-on-year
While the semiconductor business line faced headwinds in industrial applications, Mitsubishi Electric recorded solid growth in power modules for railway and power transmission applications, as well as optical communication devices, helping offset some sectoral declines.
The segment’s sharp improvement in profitability was driven by:
- Better product mix with stronger contributions from high-margin sectors.
- Strategic cost control measures and operational efficiency improvements.
- Benefits from favorable currency exchange rates.
This strong performance was achieved even as demand for industrial power modules softened, highlighting Mitsubishi Electric’s resilience in the face of market shifts.
Mitsubishi Electric projects further expansion of its semiconductor operations into critical growth areas, including:
- Railway electrification
- Power infrastructure upgrades
- High-speed data communication networks
The company continues to invest in its semiconductor technology, targeting new innovations to support energy efficiency, mobility, and communication infrastructure solutions.
For fiscal 2026, Mitsubishi Electric expects to maintain steady revenue across its Semiconductor & Device segment and aims to enhance profitability through continued technological advancements and market diversification.
Original – Mitsubishi Electric
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Renesas Electronics Corporation announced its financial results for the first quarter ended March 31, 2025.
Key Highlights:
- Revenue: 366.7 billion yen (approximately $2.37 billion), representing a 1.7% year-over-year increase.
- Gross Margin: 57.8%, maintaining strong profitability levels.
- Operating Income: 96.9 billion yen (approx. $627 million), a 6.4% increase year-over-year.
- Net Income: 70.5 billion yen (approx. $455 million), up 5.8% compared to Q1 2024.
Company’s focus on enhancing profitability and maintaining operational discipline allowed it to deliver a resilient performance despite mixed demand conditions in key end markets, including automotive and industrial sectors.
Strategic Progress: Renesas continues its investment in innovation and strategic initiatives:
- Advancements in power management, analog, and microcontroller products.
- Strengthening leadership in automotive solutions, including ADAS and electrification.
- Expanding its reach into the industrial automation and energy sectors.
Outlook for Q2 2025:
- Revenue Guidance: Approximately 380 billion yen.
- Gross Margin Forecast: Around 58.0%.
Renesas remains committed to navigating global economic uncertainty through cost optimization, diversified product offerings, and a strong focus on next-generation technologies.
Original – Renesas Electronics
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STMicroelectronics has announced its financial results for the first quarter of 2025, reflecting both the challenges of a shifting market and the company’s strategic transformation efforts.
Key Highlights:
- Net Revenues: $2.52 billion, down 27.3% year-over-year
- Gross Margin: 33.4%
- Operating Income: $3 million
- Net Income: $56 million, representing an 89.1% drop compared to Q1 2024
CEO Jean-Marc Chery acknowledged that while Q1 revenues aligned with expectations, the decline was mainly attributed to lower performance in the Automotive and Industrial sectors, partially offset by stronger results in Personal Electronics.
Despite the decline, ST’s book-to-bill ratio improved, particularly within Automotive and Industrial, signaling stronger order intake compared to shipments.
Looking Ahead:
- ST expects Q2 2025 net revenues of approximately $2.71 billion, a sequential growth of 7.7%.
- Gross margin is forecasted to remain steady at around 33.4%, impacted by unused capacity charges.
- The company is maintaining its 2025 net CapEx target between $2.0 billion and $2.3 billion to support its manufacturing reshaping initiatives.
Strategic Initiatives: STMicroelectronics is pushing forward with its company-wide restructuring program, aiming to reshape its manufacturing footprint and resize its global cost base. The program targets annual cost savings in the high triple-digit million-dollar range by the end of 2027.
Chery emphasized that ST views Q1 2025 as the bottom of the cycle and is focused on innovation, manufacturing efficiency, and cost control to navigate the uncertain global environment.
Segment Performance:
- Analog, Power & Discrete, MEMS and Sensors (APMS): Revenues down 28% YoY
- Power and Discrete Products (P&D): Revenues fell 37.1% YoY, operating margin turned negative
- Embedded Processing (EMP): Revenues declined 29.1% YoY
- RF & Optical Communications (RF&OC): Revenues down 19.2% YoY
Financial Strength:
- Free cash flow turned positive at $30 million, compared to a negative $134 million a year ago.
- Net financial position remained robust at $3.08 billion.
Original – STMicroelectronics
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Texas Instruments Incorporated reported first quarter revenue of $4.07 billion, net income of $1.18 billion and earnings per share of $1.28. Earnings per share included a 5-cent benefit that was not in the company’s original guidance.
Regarding the company’s performance and returns to shareholders, Haviv Ilan, TI’s president and CEO, made the following comments:
- “Revenue increased 11% from the same quarter a year ago and increased 2% sequentially. All of our markets grew sequentially with the exception of a seasonal decline in personal electronics.
- “Our cash flow from operations of $6.2 billion for the trailing 12 months again underscored the strength of our business model, the quality of our product portfolio and the benefit of 300mm production. Free cash flow for the same period was $1.7 billion.
- “Over the past 12 months we invested $3.8 billion in R&D and SG&A, invested $4.7 billion in capital expenditures and returned $6.4 billion to owners.
- “TI’s second quarter outlook is for revenue in the range of $4.17 billion to $4.53 billion and earnings per share between $1.21 and $1.47. In addition, in second quarter, we now expect our effective tax rate to be about 12% to 13%.”
Original – Texas Instruments
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Aehr Test Systems announced financial results for its third quarter of fiscal 2025 ended February 28, 2024.
Fiscal Third Quarter Financial Results:
- Net revenue was $18.3 million, compared to $7.6 million in the third quarter of fiscal 2024.
- GAAP net loss was $(0.6) million, or $(0.02) per diluted share, compared to a GAAP net loss of $(1.5) million, or $(0.05) per diluted share, in the third quarter of fiscal 2024.
- Non-GAAP net income, which excludes the impact of stock-based compensation, acquisition-related costs and adjustments, and charges related to an executive officer’s death related accelerated benefits, was $2.0 million, or $0.07 per diluted share, compared to a non-GAAP net loss of $(0.9) million, or $(0.03) per diluted share, in the third quarter of fiscal 2024.
- Bookings were $24.1 million for the quarter.
- Backlog as of February 28, 2025 was $18.2 Effective backlog, including bookings since February 28, 2025, is $21.8 million.
- Total cash, cash equivalents and restricted cash as of February 28, 2025 was $31.4 million, compared to $35.2 million as of November 29, 2024.
Fiscal First Nine Months Financial Results:
- Net revenue was $44.9 million, compared to $49.6 million in the first nine months of fiscal 2024.
- GAAP net loss was $(1.0) million, or $(0.03) per diluted share, compared to GAAP net income of $9.3 million, or $0.31 per diluted share, in the first nine months of fiscal 2024.
- Non-GAAP net income was $4.8 million, or $0.16 per diluted share, which excludes the impact of stock-based compensation, acquisition-related costs and adjustments, and charges related to accelerated benefits, compared to non-GAAP net income of $11.0 million, or $0.37 per diluted share, in the first nine months of fiscal 2024.
- Cash used in operating activities was $5.1 million for the first nine months of fiscal 2025.
Gayn Erickson, President and CEO of Aehr Test Systems, commented:
“We have been laser-focused on the initiatives we set out to expand our total addressable markets, diversify our customer base, and develop new products, capabilities, and capacity to grow our business moving forward. We are excited by the significant progress we’ve made this year in expanding into new key markets and unlocking new opportunities to attract customers and drive revenue growth, particularly in diversifying our markets and customers beyond our revenue concentration last fiscal year from silicon carbide (SiC) wafer level burn-in (WLBI).
SiC WLBI accounted for over 90% of our business in fiscal 2024, while this year it’s tracking to less than 40%, with artificial intelligence (AI) processors burn-in representing over 35% of our business in just the first year. For the third quarter, we had four customers representing over 10% of revenue, and three of these are new markets for Aehr: WLBI for AI processors, packaged part burn-in (PPBI) for qualification and ongoing process monitoring of AI processors, and WLBI of gallium nitride (GaN) semiconductors. If you look at bookings, yet another customer and market, hard disk drive components, accounted for over 15% of our bookings. We are very excited about our expansion into new customers and markets, while at the same time we believe we are well positioned to continue to grow our business in the silicon carbide WLBI market.
“During the quarter, we qualified, received orders for, and shipped the world’s first production WLBI systems specifically designed for AI processors. Our new high-power FOX-XPTM WLBI system can test up to nine 300mm AI processor wafers simultaneously. This new customer ordered multiple FOX-XP systems and sets of Aehr proprietary WaferPakTM full wafer Contactors for installation at their Outsourced Assembly and Test House (OSAT/Test House.) Aehr has worked with this OSAT/Test House for many years including working on WLBI of silicon photonics devices and optical sensors on our FOX systems and on PPBI of AI processors and ASICs on our Sonoma ultra-high-power test and burn-in systems. Aehr is the only company on the market that offers both a WLBI system as well as a PPBI system for both qualification test and production screening and burn-in of AI processors.
“Another new market for Aehr is adding production PPBI for AI processors in addition to AI processor qualification burn-in. We have shipped multiple Sonoma production burn-in systems this year to a world-leading hyperscaler for production PPBI of their AI application-specific processors and expect to complete installations of the initial order by the end of the current quarter. We’ve also successfully integrated this Sonoma system from the acquisition of InCal Technology last August into Aehr’s engineering and manufacturing operations, enabling us to scale output to two to three times the previous record shipment volume within just nine months.
“In addition to AI-related orders and installations for WLBI and PPBI this quarter, Aehr achieved several other key milestones:
- Expanded into production WLBI for GaN power semiconductors,
- Secured the high-volume production orders for a new WLBI application in hard disk drives,
- Completing the production qualification of our new high-power, multi-wafer system for production WLBI of silicon photonics devices used in co-packaged optics and optical I/O devices, and
- Made significant progress on proof-of-concept work with a leading flash memory supplier on a new WLBI system for high-volume production of next-generation flash memory devices.
“The SiC market continues to be a significant opportunity for Aehr, and we believe we are well positioned to continue to grow our business in this market. We have most recently seen some recovery in utilization rates and in our customers’ customers’ forecasts and orders. SiC, still driven significantly by electric vehicles (EVs), has deepened its penetration in the EV market thanks to lower prices and accessible supply. At the same time, it is gaining momentum in adjacent sectors such as power infrastructure, solar energy, and other industrial applications. According to market research firm Yole Group, despite a temporary slowdown in battery EV shipments, the SiC market remains on a strong long-term growth trajectory.
“In response to this growing demand, we have expanded our WLBI offering for SiC to support high-voltage testing across up to 18 wafers on a single system, doubling the capacity of our industry-leading nine wafer FOX-XP system. We have already received our first order for this 18-wafer high-voltage system as an upgrade to a customer’s current FOX-XP configuration. This enhancement further strengthens our technical and cost of test advantages for SiC, which is also highly applicable to the high-volume production of GaN devices, an important capability for customers working on both types of wide bandgap compound semiconductors.
“Looking ahead, with our $45 million in revenue and $22 million backlog to date this fiscal year, our customer forecasts, and our success in adding new markets and customers, we feel very good about our business. We do not believe that the impact of the tariff announcements made by the U.S. administration last week will significantly affect Aehr directly. However, considering the secondary effects on our current and potential new customers, along with the uncertainty this quarter regarding possible pauses or delays in customer orders, shipments, or supply chain delivery delays, we are temporarily withdrawing our guidance for our current fiscal 2025 year ending May 30th and will reassess our guidance policy as clarity develops.
“We are encouraged by the increasing number of engagements with both current and potential customers, as well as the long-term growth potential across our diverse target markets. Our strategic expansion into high-growth sectors, including AI processors, GaN power semiconductors, data storage devices, silicon photonics integrated circuits, and flash memory, opens up new opportunities to attract customers and drive revenue growth.”
Original – Aehr Test Systems
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CVD Equipment Corporation announced its financial results for the fourth quarter and fiscal year ended December 31, 2024.
Manny Lakios, President and CEO of CVD Equipment Corporation, commented, “CVD’s fourth quarter 2024 revenue was $7.4 million, representing an 80.3% increase from the prior year quarter. Our backlog at December 31, 2024 was $19.4 million, meaningfully higher than our 2023 year-end backlog of $18.4 million.“
“During 2024 we continue to see an ongoing recovery of our aerospace and defense market. As previously announced, in early November we received a $3.5 million follow on order for our CVI 3500™ system from an existing aerospace customer.”
“The silicon carbide market has remained challenging due to overcapacity and the global decline in wafer prices,” continued Mr. Lakios. “The customer for our first PVT200™ system, which shipped in the second half of 2024, is continuing to evaluate the performance of our system for possible additional orders. We continue to support our installed base of PVT150™ systems and pursue additional PVT150™ and PVT200™ orders.”
Mr. Lakios added, “While the fourth quarter represents the second consecutive quarter of positive net income, we expect our order and revenue levels to continue to fluctuate given the nature of the emerging growth markets we serve. In addition, the current geopolitical environment, including the possible imposition of tariffs that may affect our supply chain and costs of components and materials, presents us with new challenges in fiscal 2025 and beyond. We are staying the course on our strategic efforts to build critical customer relationships, while carefully managing our expenses in order to achieve our goal of long-term profitability and positive cash flow, while simultaneously focusing on growth and return on investment.”
Fourth Quarter 2024 Financial Performance
- Revenue of $7.4 million, up $4.1 million or 80.3% year over year due to higher system revenue by our CVD Equipment segment and an increase in gas delivery system revenue by our SDC segment.
- During the quarter, we recognized an additional $0.3 million non-cash charge to reduce our PVT150™ inventory to net realizable value based on changes in the market for equipment for 150 mm SiC wafers.
- Our gross profit margin percentage improved due to changes in contract mix but was offset by the inventory charge. The prior year quarter was impacted by significant cost overruns on one contract.
- Operating income of $35,000 as compared to an operating loss of $2.5 million in the prior year fourth quarter.
- Net income of $132,000 or $0.02 basic and diluted share, compared to a net loss of $2.3 million or $0.33 per basic and diluted share during the prior year fourth quarter.
- Cash and cash equivalents of $12.6 million as of December 31, 2024, as compared to $14.0 million as of December 31, 2023.
Full Year 2024 Financial Performance
- Revenue of $26.9 million, up $2.8 million or 11.5% year over year primarily due to increases in revenues from aerospace contracts in progress and our SDC segment. Revenue for 2024 includes $0.8 million of final sales by our MesoScribe segment which closed its operations in 2024 as previously disclosed.
- Our gross profit margin percentage was 23.6% in 2024 as compared to 21.0% in the prior year due to higher revenues as well as improved margins on CVD contracts in process.
- During the fiscal year, we recognized a $1.3 million non-cash charge to reduce our PVT150™ inventory to net realizable value.
- Our gross profit margin percentage improved due to changes in contract mix but was offset by the inventory charge.
- The Company recognized total gains on the sales of equipment of $0.7 million, principally by our MesoScribe subsidiary.
- Operating loss of $2.4 million.
- Net loss of $1.9 million or $0.28 basic and diluted share, compared to a net loss of $4.2 million or $0.62 per basic and diluted share in the prior year.
Fourth Quarter 2024 Operational Performance
- Orders for the fourth quarter were $7.1 million driven by continued demand from the aerospace sector in our CVD Equipment segment and for gas delivery equipment in our SDC segment.
- One of the orders received in the fourth quarter was for a $3.5 million system order in the aerospace sector that will be delivered over the next 12 months.
Full Year 2024 Operational Performance
- Booking of new orders from customers was $28.1 million for the fiscal year, representing an increase of approximately 8.9% compared to 2023 bookings of $25.8 million. The increase in bookings of $2.3 million was related to an increase in aerospace and industrial orders.
- Backlog as of December 31, 2024, of $19.4 million, an increase from $1.0 million from the prior year end.
- Continued investments in both research and development and sales and marketing, focused on our three key strategic markets – aerospace & defense, microelectronics / power electronics and EV battery materials / energy storage.
Original – CVD Equipment
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Magnachip Semiconductor Corporation announced financial results for the fourth quarter and full-year 2024.
Q4 Results Summary
- Consolidated revenue of $63 million was above the mid-point of our guidance range of $59.0 to $64.0 million.
- Standard Product business revenue was down 5.1% sequentially due primarily to seasonality.
- Consolidated gross profit margin of 25.2% was above the high-end our guidance range of 21.5% to 23.5%.
- Standard Product business gross profit margin was 26.6%, up 2.2 percentage points sequentially.
- Repurchased approximately 0.7 million shares for aggregate purchase price of $2.9 million during the quarter and ended Q4 with cash of $138.6 million.
2024 Highlights
- Excluding Transitional Foundry Services, Standard Products business revenue increased 13% year-over-year, with MSS up 22.5% and PAS up 10.2%. Both of these business line growth rates were in line with original guidance for double-digit growth provided at the beginning of 2024.
- PAS revenue growth was strongest in Communication, Computing and Consumer in calendar 2024. Automotive and Industrial declined only slightly, relatively outperforming the broader markets.
- Power IC revenue increased more than 50% year-over-year.
YJ Kim, Magnachip’s CEO, said, “Our Q4 revenue of $63 million was up 24% year-over-year, and gross profit margin of 25.2% was up 2.5 percentage points as compared to a year ago. For the year, Standard Products business revenue increased 13% year-over-year, in line with our guidance for double-digit growth that we provided at the beginning of 2024.”
YJ Kim added, “Our revenue and gross margin results represented a step in the right direction, but our utmost short-term goal is a return to profitability. To achieve this goal, Magnachip announced today its transition to become a pure-play Power company, and we also announced that we are exploring all strategic options for the Display business, which will be classified as discontinued operations when the Company reports Q1 results in May.”
YJ Kim commented, “By focusing on the Power business, Magnachip currently expects to achieve a quarterly Adjusted EBITDA breakeven by the end of Q4 2025 from continuing operations, followed by positive adjusted operating income in 2026, and positive adjusted free cash flow in 2027. Each of these targets will act as milestones towards achieving a goal in 3 years to reach a $300 million annual revenue run-rate with a 30% gross profit margin target. We call this our 3-3-3 strategy.”
Original – Magnachip Semiconductor
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According to the preliminary figures for the 2024 financial year available, the Management Board of centrotherm international AG, Blaubeuren, expects that the earnings forecast of a positive consolidated EBITDA (earnings before interest, taxes, depreciation and amortization) for 2024 in the low double-digit million euro range has been exceeded and that consolidated EBITDA is expected to be around EUR 39 million.
The higher than expected number of customer acceptances by the end of 2024, which led to a corresponding revenue increase, as well as an improvement in the centrotherm Group’s operating margin, contributed significantly to this positive earnings development.
In terms of further guidance for the 2024 financial year, total Group operating performance of around EUR 290 million will reach the upper end of the EUR 200 million to EUR 300 million range. Incoming orders are expected to be over EUR 164 million and are thus in line with the adjusted forecast of EUR 150 million to EUR 180 million issued at the beginning of November 2024.
The consolidated financial statements for the 2024 financial year have not yet been prepared by the Management Board or audited by the auditor. The publication of the annual report is scheduled for April 30, 2025.
Original – centrotherm international
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Despite challenging conditions, Siltronic AG demonstrated resilience in the 2024 financial year. Accordingly, the company achieved sales of EUR 1,412.8 million (2023: EUR 1,513.8 million) and an EBITDA of EUR 363.8 million (2023: EUR 433.9 million), confirming the figures published at the beginning of February. In an environment of continued weak demand, a solid EBITDA margin of 25.8 percent (2023: 28.7 percent) was achieved.
“Siltronic closed the 2024 financial year at the upper end of expectations and acted consistently in a difficult market environment,” says Dr. Michael Heckmeier, CEO of Siltronic AG. “Despite growing end markets, particularly through Artificial Intelligence, 2025 will also be characterized by the reduction of still elevated inventory levels at chip manufacturers and their customers. At the same time, we are continuously working on our costs to strengthen our competitiveness. With our new capacities and innovative strength, we are perfectly positioned for the upcoming recovery.”
Group sales decreased by 6.7 percent in the financial year 2024 – the guidance was in the high single-digit percentage range – to EUR 1,412.8 million. This was due to slightly negative price and product mix effects and a lower wafer area sold. The price decline was most pronounced for older product types with diameters up to 200 mm.
Cost of sales decreased by EUR 4.2 million year-over-year to EUR 1,137.4 million. This decrease was mainly due to the lower wafer area sold. Cost of sales decreased at a lower percentage than sales, primarily due to higher depreciation related to capital expenditures and lower fixed cost dilution. On the other hand, the cost for raw materials and supplies slightly decreased in line with the relative volume decline compared to the previous year. Overall, the gross margin decreased from 24.6 percent to 19.5 percent.
In order to mitigate risks from FX developments, Siltronic implemented currency hedging measures, which resulted in a net expense from exchange rate effects of EUR 0.3 million in 2024, compared to a gain of EUR 16.5 million in 2023.
In the reporting year, Siltronic achieved an EBITDA of EUR 363.8 million (2023: EUR 433.9 million). The EBITDA margin of 25.8 percent (2023: 28.7 percent) remained resilient despite the prolonged weak demand – the guidance was between 24 and 26 percent. The main reasons for the year-over-year decline in EBITDA margin are the lower sales level and a deteriorated result from FX effects. With the increase in depreciation due to the continued high capex activity by EUR 36.0 million, the operating result (EBIT) fell significantly to EUR 125.2 million, compared to EUR 231.3 million in the previous year.
The financial result decreased significantly to EUR -24.9 million (2023: EUR -0.5 million). This is partly due to a lower net result from financial investments, and partly due to loans to support the financing of capex, which led to a noticeable increase in interest expenses on loans.
In the past financial year, income taxes amounted to EUR 33.1 million (2023: EUR 29.5 million). The Group’s tax rate for the reporting year was 33 percent (2023: 13 percent). The higher tax rate is due to deferred tax effects. This resulted in a net profit of EUR 67.2 million (2023: EUR 201.3 million), of which EUR 63.0 million (2023: EUR 184.4 million) was attributable to the shareholders of Siltronic AG. Earnings per share reached EUR 2.10 compared to EUR 6.15 in the previous year.
In the past financial year, payments for capex including intangible assets significantly decreased to EUR 667.5 million, compared to EUR 1,112.1 million in the previous year. As expected, both the free cash flow (2024: EUR -323.0 million) and the net cash flow (2024: EUR -297.0 million) improved considerably year-over-year. However, the still elevated capex level once again resulted in both remaining clearly negative.
As of December 31, 2024, total assets, with significantly increased property, plant and equipment, reached EUR 5,084.4 million (previous year: EUR 4,504.9 million). The equity ratio remained at a healthy level of 43.6 percent (2023: 46.6 percent). The high capex at the end of 2023, some of which was not due for payment until 2024 led to payments for capex (EUR 667.5 million) significantly exceeding the balance sheet additions for the reporting year (EUR 523.4 million). The majority of balance sheet additions was allocated to the construction of the new 300 mm fab in Singapore. As a result, net financial debt increased by EUR 377.8 million to EUR 733.5 million (December 31, 2023: EUR 355.7 million).
For 2025, the Executive Board expects the end markets to grow again. After an increase of six percent in the previous year, a seven percent growth is forecast for 2025, with Artificial Intelligence applications being a key driver. However, this is mostly not expected to lead to an improvement in Siltronic’s sales performance due to the slowly decreasing inventory levels at chip manufacturers and their customers. Accordingly, the Executive Board expects sales to be in the same region as last year, assuming unchanged FX rates (EUR/USD: 1.08). H1 2025 is currently expected to be below H2 2024 by a high single-digit percentage range. The recent development of the Euro against the US dollar may help to mitigate this effect. The sales guidance takes into account the discontinuation of production of polished and epitaxial wafers up to 150 mm diameter in Burghausen as of July 31, 2025.
The EBITDA margin is expected to be in the range of 22 to 27 percent. The ramp costs for the new fab will be partially offset by savings in energy and other areas.
Depreciation and amortization will increase to EUR 380 to 440 million in 2025 due to the high capex in recent years. This increase is mainly due to the planned start of depreciation of major parts of the new Singapore fab in mid-2025.
Mainly due to the higher depreciation, the Executive Board expects EBIT in 2025 to be significantly lower than in the previous year.
As previously announced, capex will be further reduced and is expected to be in the range of EUR 350 to 400 million. As a result, the company expects a noticeable improvement in net cash flow, which will, however, remain significantly negative.
Original – Siltronic
