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Siltronic AG reported preliminary, unaudited 2025 results in line with guidance: sales of EUR 1,347 million, down 4.7% year over year (2024: EUR 1,412.8 million). Wafer area sold increased versus 2024, supported by stronger end-market momentum through the year and higher demand for 300 mm products. The sales decline reflected the phased closure of the SD line in Burghausen (≤150 mm polished and epi wafers), which accounted for more than one-third of the negative variance, as well as elevated 200 mm inventories, price effects outside LTAs, and US-dollar depreciation.
Preliminary EBITDA was EUR 317 million (2024: EUR 363.8 million), for an EBITDA margin of 23.5% (2024: 25.8%), within the 22–24% target range. Cost of sales rose on higher wafer volumes and increased depreciation (EUR 343 million vs. EUR 238.5 million), driven in part by the start of depreciation for major portions of the new Singapore fab from August 2025. EBIT was EUR -26 million (2024: EUR 125.2 million), with an EBIT margin of -2.0% (2024: 8.9%).
Capital expenditure, including intangibles, declined to a provisional EUR 369 million (2024: EUR 523.4 million), improving net cash flow to EUR -85 million (2024: EUR -297.0 million). Net financial debt stood at EUR 837 million at year-end (2024: EUR 733.5 million).
Preliminary Q4 sales were EUR 372 million, significantly above Q3 (EUR 300.3 million), reflecting delivery shifts from Q3 and early 2026 into Q4. Q4 EBITDA increased to EUR 86 million (Q3: EUR 65.8 million), with a 23.3% margin (Q3: 21.9%). Q4 EBIT was EUR -34 million (Q3: EUR -31.4 million). Capex was EUR 62 million (Q3: EUR 85.5 million). Preliminary Q4 net cash flow improved to EUR 102 million (Q3: EUR -30.6 million), supported by stronger operating cash flow, timing differences between capex accounting and payment in early 2026, and investment grants received in Q4.
Siltronic expects a continued challenging environment in 2026, marked by price pressure outside LTAs and adverse FX. While demand in 300 mm is growing, the 200 mm segment remains under pressure due to elevated inventories. Delivery shifts pulled into Q4 2025 will weigh on the first half of 2026, and the SD line closure will impact the full year for the first time. The company will publish its 2026 guidance after completing its assessment of these headwinds and remains focused on cost reduction, active cash management, and disciplined investment to support its positioning as a leading supplier of high-tech wafer solutions.
Original – Siltronic
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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
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cosine, a leading worldwide company in the development of space instrumentation, and Siltronic AG announced a unique collaboration. The target of this partnership is to supply critical technology for ESA’s (European Space Agency) next-generation observatory for high-energy astrophysics, the NewAthena (New Advanced Telescope for High ENergy Astrophysics) space telescope.
This collaboration involves high-quality 300 mm silicon wafers from Siltronic AG, which cosine engineers into state-of-the-art X-ray optics called “Silicon Pore Optics” (SPO). The SPO technology is a key element of NewAthena’s revolutionary mirror system and forms the key component of its X-ray optics.
Dr. Rüdiger Schmolke, Chief Technology Officer of Siltronic AG, comments: “We are very pleased to be able to make a significant contribution to the realization of NewAthena’s innovative X-ray optics with our technology.”
Max Collon, Managing Director of cosine innovations, explains: “The precision and purity of Siltronic’s wafers enable cosine to produce lightweight, high-resolution optics that meet the mission’s demanding performance requirements for space.”
The NewAthena will be the largest X-ray telescope ever built. It was developed under ESA’s Cosmic Vision program and is designed to explore the hot and energetic universe, from black holes to galaxy clusters. It will rely on cosine’s innovative SPO technology, which uses wafer materials of the highest uniformity and defect-free quality.
More information about NewAthena can be found on the ESA website: https://www.esa.int/Science_Exploration/Space_Science/NewAthena_factsheet
Original – Siltronic
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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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At its meeting on July 25, the Supervisory Board of Siltronic AG extended the Executive Board contract of CEO Dr. Michael Heckmeier, originally set to expire in May 2026, by another five years until May 5, 2031. Similarly, the contract of CFO Claudia Schmitt, previously due to end in June 2026, has been extended until June 30, 2031. With this decision, the Supervisory Board underscores its commitment to continuity and expresses strong confidence in the executive team, which has included Klaus Buchwald as COO since June 2024 alongside Dr. Heckmeier and Claudia Schmitt.
“Over the past two years, Michael Heckmeier and Claudia Schmitt have successfully advanced Siltronic AG and provided important impetus for its strategic direction,” said Dr. Tobias Ohler, Chairman of the Supervisory Board of Siltronic AG. “Since taking office in May 2023, Michael Heckmeier has guided the company through a challenging environment for the wafer industry, strengthened Siltronic’s position as a technology leader, and made the organization more efficient for the future. With her extensive financial expertise, Claudia Schmitt has shaped the financial management of the Group and has prudently steered Siltronic’s financial stability following several years of substantial growth investments. The Executive Board team is navigating the current economic challenges with foresight and has strengthened the company’s resilience through targeted cost and liquidity measures. I am very pleased to continue our trusted collaboration with this exceptionally well-coordinated team.”
Dr. Michael Heckmeier commented: “I am grateful to the Supervisory Board for the trust they have placed in me. Together with my Executive Board team and our highly motivated employees, we will continue to drive Siltronic AG’s successful development – with a clear focus on preparing for the next phase of growth.” Claudia Schmitt added: “I too am very much looking forward to contributing to Siltronic AG’s strong financial performance and value creation for another five years.”
Dr. Michael Heckmeier
Dr. Michael Heckmeier has served as CEO of Siltronic AG since May 2023. He studied mathematics and physics and earned a PhD in physics from the University of Konstanz. He began his career at Merck in 1998, holding various roles in the Liquid Crystals division, overseeing material development programs and the New Business department. In 2015, he took over the global Pigment & Cosmetics business unit and, from 2017, led the global Display Solutions business as Executive Vice President.
Claudia Schmitt
Claudia Schmitt has been CFO of Siltronic AG since June 2023. After completing a commercial apprenticeship, she earned a degree in business administration from Saarland University in Saarbrücken in 1998. She began her career in various controlling roles at Wacker Chemie AG before joining Siltronic AG in 2009, where she served as Corporate Vice President responsible for Controlling and Treasury.
Klaus Buchwald
Klaus Buchwald has been COO of Siltronic AG since June 2024. He holds degrees in mechanical engineering and industrial engineering. He spent over 21 years at Infineon, most recently as Senior Vice President Operations for the Green Industrial Power division and Executive Vice President Corporate Supply Chain. He also held leadership roles at Rohde & Schwarz and began his career at a renowned management consultancy.
Original – Siltronic
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Three leading players in semiconductor research and development – the Leibniz Institute for Crystal Growth (IKZ), the PVA TePla AG, and the Siltronic AG – are combining their expertise in a pioneering project to scale up aluminum nitride (AlN) crystal growth. The project focuses on the fabrication of 4-inch AlN substrates to enable advanced applications in high-power electronics and ultraviolet photonics.
Aluminum nitride (AlN) is an ultra-wide bandgap (UWBG) semiconductor material characterized by outstanding intrinsic properties, including high critical electric field strength, superior thermal conductivity, and optical transparency in the ultraviolet spectrum. These attributes make AlN a highly promising substrate and device material for next-generation power electronic components and UV disinfection technologies, enabling compact, energy-efficient, and thermally robust device architectures.
The project’s focus on scaling AlN crystal diameters from 2 to 4 inches addresses a fundamental requirement for transitioning this key material from research-scale to industrial manufacturing environments. The project is set to make a substantial contribution to advancing Europe’s sovereignty in the field of semiconductor materials research. AlN-based power electronics enable major efficiency gains in electromobility, renewable energy, and industrial systems. In UV photonics, new opportunities arise in areas such as disinfection (preventing pandemics and water treatment), production technology (material processing), agriculture (yield enhancement), as well as sensors and medical applications.
The partners are leveraging their respective core competencies to jointly develop a market-ready technology for the industrial production of aluminum nitride crystals.
The Leibniz Institute for Crystal Growth (IKZ) brings its long-standing expertise in growing AlN crystals to the project and has a proven 2-inch AlN crystal growth platform. Thanks to its leading position in producing high-quality AlN wafers, the institute is widely acknowledged as a European reference in this field of technology.
Siltronic AG, one of the world’s leading producers of silicon wafers (using both Czochralski and Float Zone methods), contributes its extensive experience in in the research and development of substrates for power electronics and in precision metrology – both of which are crucial for the industrial application of AlN wafers.
PVA TePla AG is an internationally leading provider of high-tech solutions in the fields of material and metrology technology with decades of experience in manufacturing crystal growing systems. With its expertise in the Physical Vapor Transport (PVT) method, particularly based on comprehensive experience from the SiC market, PVA TePla provides the technological equipment foundation for a reliable and reproducible growth process for bulk AlN crystals with industry-relevant diameters. This forms a central prerequisite for scaling and industrializing AlN technology.
Through their collaboration, IKZ, PVA TePla, and Siltronic are firmly demonstrating their commitment to Europe’s technological sovereignty and the sustainable development of a semiconductor materials value chain. “The expansion from 2-inch to 4-inch is a crucial milestone in making AlN accessible for mass production”, the project partners explain. “Thanks to the synergies among the partners, we can overcome the technological barriers.”
Original – Siltronic
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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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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
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Siltronic AG has achieved its annual guidance for 2024 at the upper end of expectations based on preliminary, unaudited figures. The company reported preliminary sales of EUR 1,413 million, a decline of about 7 percent compared to the previous year (2023: EUR 1,514 million). The target for the reporting year was a high single-digit percentage decrease in sales.
The main reason for the year-over-year decline was weaker demand from the semiconductor industry due to continued high inventory levels, particularly at chip manufacturers. Despite the ongoing demand weakness for the second consecutive financial year, Siltronic recorded only a slight decrease in sales prices. As a result, a preliminary EBITDA of EUR 364 million (2023: EUR 434 million) and thus a continued solid EBITDA margin of 26 percent (2023: 29 percent) was achieved. This margin was also at the upper end of the guided range of 24 to 26 percent.
“Despite a challenging market environment, we achieved our guidance and demonstrated our resilience with an EBITDA margin of 26 percent, thanks to targeted cost reduction measures. For the year 2025, we anticipate that the growth in the end-markets, primarily driven by AI, will not yet be reflected in our wafer demand due to the persistently elevated inventory levels in the value chain. Therefore, we expect H1 2025 to be significantly weaker than H2 2024,” commented Dr. Michael Heckmeier, CEO of Siltronic AG.
Compared to the previous year, cost of sales decreased at an underproportional level to sales due to lower fixed cost dilution and higher depreciation. As expected, earnings before interest and taxes (EBIT) were significantly lower year-over-year at EUR 125 million (2023: EUR 231 million). The preliminary EBIT margin was 9 percent compared to 15 percent in 2023.
Net cash flow improved due to lower capex
In the year under review, capex including intangible assets was significantly reduced to EUR 523 million (2023: EUR 1,316 million). The majority of investments continued to relate to the new 300 mm wafer fab in Singapore, which was commissioned at the beginning of 2024 and will now be ramped over several years.
Due to the ongoing demand weakness and the still elevated project-related investments, the preliminary net cash flow for 2024 remained negative at EUR -297 million, but improved significantly compared to the previous year (2023: EUR -664 million). As a result, net financial debt increased to EUR 733 million as of December 31, 2024 (2023: EUR 356 million). This includes the dividend payment of EUR 36 million for 2023.
Business performance in Q4 2024
Preliminary Q4 2024 sales of EUR 361 million were slightly higher than Q3 (EUR 357 million), supported by a stronger US dollar. Preliminary EBITDA for Q4 2024 of EUR 93 million exceeded the previous quarter’s level (Q3 2024: EUR 89 million), mainly due to the improved FX result. The preliminary EBITDA margin was 26 percent (Q3 2024: 25 percent). With a planned slight increase in depreciation, the preliminary EBIT in Q4 2024 amounted to EUR 27 million (Q3 2024: EUR 29 million). Preliminary net cash flow for Q4 improved significantly to EUR 21 million (Q3 2024: EUR -65 million). This improvement is mainly due to better operating cash flow and timing differences between payment dates and the accounting of capex. Preliminary capex for Q4 amounted to EUR 116 million (Q3 2024: EUR 94 million).
Guidance for the financial year 2025
Despite the forecast for continued end market growth in the current financial year, inventory levels at chip manufacturers and their customers are only slowly decreasing. This continues to delay the expected wafer demand recovery. The Executive Board therefore expects demand to remain subdued and no sales growth in 2025. Assuming unchanged exchange rates, sales are expected to be in the region of the previous year. According to current estimates, the first six months of 2025 will be the most affected, as customer volume shifts from long-term contracts will also partly occur from the first to the second half of 2025.
The sales guidance takes into account the announced closure of wafer production for diameters up to 150 mm in Burghausen, which is now scheduled for July 31, 2025. This will have a slightly negative impact on sales and a negligible impact on earnings compared to the previous year.
The EBITDA margin is expected to be in the range of 22 to 27 percent. The cost of ramping the new fab will be partially offset by savings in energy and other areas.
At this point, Siltronic’s visibility remains very limited. A more detailed guidance is expected to be provided with the publication of the Annual Report on March 6, 2025.
Mid-term ambition delayed due to postponed demand recovery
The demand recovery assumed in the mid-term ambition (published at the Capital Markets Day in 2023) did not materialize in 2024, and the current financial year also continues to be characterized by subdued growth prospects. As a result, the mid-term ambition of generating sales of more than EUR 2.2 billion and an EBITDA margin in the high 30’s by 2028 will likely not be realized until a later point in time.
Despite these developments, Siltronic is convinced of its medium-term growth potential. Key drivers of this growth are megatrends such as Artificial Intelligence, Digitalization, and Electromobility which will lead to a strong increase in demand for semiconductors and thus also for wafers.
Dividend proposal of EUR 0.20 per share
Due to the continued demand recovery delay, the Executive Board proposes to the Annual General Meeting on May 12, 2025, a reduction of the dividend to EUR 0.20 per share for the financial year 2024. Based on the preliminary figures, this corresponds to a payout ratio of approximately 10 percent of the consolidated net income attributable to Siltronic shareholders.
“The freed-up funds will flow into our future investments to increase the long-term value of Siltronic. Despite the ongoing demand weakness, it is important to us that our shareholders continue to participate in the company’s success,” said Claudia Schmitt, CFO of Siltronic AG.
Original – Siltronic
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As expected, the business performance of Siltronic AG in Q3 2024 was characterized by subdued demand from the semiconductor industry.
“In a persistently challenging market environment, we have delivered solid quarterly results. Consequently, we can confirm our guidance for the full year 2024. However, it remains uncertain when chip manufacturers’ inventories will return to normal levels,” commented Dr. Michael Heckmeier, CEO of Siltronic AG on the developments.
Siltronic generated sales of EUR 357.3 million in Q3 2024, an increase of 1.7 percent compared to the previous quarter (Q2 2024: EUR 351.3 million). This is due to an increase in wafer area sold, which was partially offset by opposing product mix effects. After nine months, the company reported sales of EUR 1,052.2 million, a decrease of 9.1 percent year-on-year (Q1-Q3 2023: EUR 1,157.2 million). This was mainly due to the lower wafer area sold. In addition, product mix-, price- and FX effects also had a slightly negative impact.
Cost of sales increased by 2.6 percent in Q3 2024 compared to the previous quarter, mainly due to higher wafer area sold and a moderate increase in depreciation. For the first nine months of 2024, cost of sales decreased by 2.5 percent compared to the same period in 2023. The disproportionate decline compared to sales is primarily due to a reduced dilution of fixed costs and higher depreciation.
As a result, the gross profit fell by EUR 1.4 million compared to the previous quarter and from January to September 2024 by EUR 83.1 million compared to the previous year. The gross margin fell from 25.3 percent to 20.0 percent year-on-year.
EBITDA in Q3 was EUR 89.4 million and thus on the level of the previous quarter (Q2 2024: EUR 90.6 million). The EBITDA margin remained at a solid level of 25.0 percent (Q2 2024: 25.8 percent). After nine months, Siltronic reported an EBITDA of EUR 270.7 million (Q1-Q3 2023: EUR 342.8 million) and an EBITDA margin of 25.7 percent (Q1-Q3 2023: 29.6 percent).
Due to the lower EBITDA and higher depreciation, EBIT amounted to EUR 28.9 million in Q3 (Q2 2024: EUR 33.0 million) and to EUR 97.8 million after the first nine months (Q1-Q3 2023: EUR 194.5 million). Net profit for the quarter was EUR 18.8 million (Q2 2024: EUR 22.4 million) and earnings per share were EUR 0.60 (Q2 2024: EUR 0.73). Net income for the period from January to September was EUR 68.8 million (Q1-Q3 2023: EUR 169.0 million) and earnings per share of EUR 2.19 after EUR 5.13 in the same period of the previous year.
With an equity ratio of 47.1 percent as of September 30, 2024 (December 31, 2023: 46.6 percent), Siltronic continues to maintain a good balance sheet quality. Loan liabilities increased mainly due to the partial draw of a loan. Additionally a promissory note loan was successfully placed in September and paid out in early October. At roughly EUR 370 million, the original issue volume was significantly exceeded.
“We are pleased with the high level of interest in this transaction. The strong demand is a demonstration of the promissory note loan investors’ trust in the company,” adds Claudia Schmitt, CFO of Siltronic AG.
Cash flow from operating activities for the period January to September 2024 decreased by EUR 83.3 million compared to the previous year. This was mainly due to the lower EBITDA and the change in prepayments. In the same period of the previous year, there was a significant net inflow, while in the first nine months of the financial year there was a net outflow of prepayments.
Despite a noticable reduction in capex during the year, cash outflows for capex remained at a high level of EUR 565.1 million, mainly due to the construction of the new 300 mm fab in Singapore. Accordingly, net cash flow, which excludes cash inflows and outflows from prepayments, was negative as expected at EUR -317.7 million (Q1-Q3 2023: EUR -631.3 million).
As a result, cash and cash equivalents and financial investments decreased by EUR 168.4 million to EUR 290.7 million in the first nine months of 2024. Siltronic thus reported net financial debt of EUR 739.1 million at the end of September 2024.
As already communicated in the half-year report 2024, Siltronic AG’s Executive Board expects sales to be in the high single-digit percentage range below the previous year. This is primarily due to the lower wafer area sold, as well as each slightly negative FX rate (EUR/USD 1.10), price- and product mix effects.
The customer qualifications that are decisive for the start of depreciation of the new fab in Singapore have been delayed from the fourth quarter of 2024 into next year. As a result, depreciation of the new fab and other ramp costs that impact earnings will occur over the course of 2025. Accordingly, the full-year EBITDA margin guidance is adjusted to 24 to 26 percent. Depreciation and amortization for 2024 will therefore be lower and is expected to be between EUR 230 million and EUR 250 million. Capex including intangible assets remains unchanged and will be in the range of EUR 500 million to EUR 530 million.
Despite the challenging market environment, the company anticipates a significant growth potential in the medium and long term. Key drivers of this growth are megatrends such as Artificial Intelligence, Digitization, and Electromobility. With its investments in expanding production capacity and improving the product mix, Siltronic is well-positioned to profitably support this growth.
Original – Siltronic
