Soitec (SOI) investor relations material

Executive summary

• Fiscal year 2026 saw revenue decline by 30–34% year-over-year to €592 million, mainly due to inventory corrections in RF-SOI and weak demand in mobile and automotive segments.

• Positive free cash flow of €63 million was restored through disciplined working capital and Capex management, despite lower volumes and margins.

• The company is executing a multi-phase roadmap focused on restoring cash generation, returning to growth, and achieving higher profitability.

• Strategic focus includes leveraging AI-driven growth, optimizing the portfolio, and maintaining disciplined cost and capital allocation.

• The company is positioned for expansion, emphasizing execution, financial discipline, and ecosystem partnerships.

Financial highlights

• FY26 revenue was €592 million, down 30–34% year-over-year; EBITDA margin was 25.4%, down from 33.5% in FY25.

• Gross margin dropped to 16.3% from 32.1% last year, mainly due to lower fab utilization and unfavorable mix.

• Net loss was €220 million, heavily impacted by non-recurring items; adjusted net loss was €14 million.

• Free cash flow turned positive at €63 million, a significant improvement from the previous year’s €23 million outflow.

• Net debt improved to €56 million, with a leverage ratio of 0.4x EBITDA.

Outlook and guidance

• Q1 2027 revenue is expected to rise about 15% year-over-year at constant exchange rates, with less pronounced seasonality.

• Margin headwinds will persist but are expected to ease as fab loading normalizes; FY27 profitability will be impacted by low fab loading, FX, and lower funding.

• FY27 Capex is targeted at around €100 million, with continued focus on asset fungibility and targeted investments in Photonics-SOI and POI.

• Edge & Cloud AI is projected to continue robust growth, while mobile and automotive demand remains muted.

• Focus remains on product portfolio expansion, cost structure adaptation, and strict working capital and Capex control.