SkyWater (SKYT) investor relations material

ATS business model and growth drivers

• ATS enables customers to fund technology development, reducing upfront risk and supporting a high-margin, CapEx-light model.

• Customers co-invest in non-recurring engineering and equipment, sharing risk and ensuring commitment.

• ATS has become a key growth engine, with development programs transitioning into higher-margin wafer services.

• Customer-funded CapEx model has driven over $350M in outside investment, supporting capacity expansion and modernization.

• Advanced packaging and heterogeneous integration are core offerings, especially for quantum and complex chip solutions.

Key strategic developments

• Completed acquisition of Fab 25, adding over $300M in annual revenue and expanding U.S. 200mm foundry market share to 17%.

• Fab 25 acquisition expected to double revenue scale and adjusted EBITDA, with a multi-year supply agreement exceeding $1B.

• Strategic focus on U.S. semiconductor sovereignty, supply chain security, and next-generation technology platforms.

• Advanced packaging and quantum manufacturing platforms are ramping, targeting defense, AI, and medical markets.

• ThermaView platform gaining traction in the $9B thermal imaging market, especially with defense customers.

Financial performance and outlook

• Q2 2025 revenue was $59.1M, at the upper end of guidance, with ATS development revenue as the main driver.

• Non-GAAP gross margin for Q2 2025 was 19.5%, exceeding expectations; adjusted EBITDA was $2.3M.

• Q3 2025 guidance: total revenue $133M +/- $5M, with Fab 25 expected to contribute $75M-$80M.

• Annualized baseline outlook for 2026: revenue over $600M and adjusted EBITDA above $60M.

• Ongoing close management of operating expenses, with full-year non-GAAP OpEx expected to rise ~5% organically.