X-FAB Silicon Foundries (XFAB) investor relations material

Executive summary

• Q2 2026 revenue ranged from $196.0M to $199.8M, down 7–10% year-over-year but up 2% sequentially, with bookings and backlog showing signs of recovery.

• Core markets (automotive, industrial, medical) made up 93% of revenue; automotive saw inventory normalization and bookings improvement, while medical grew 39% year-over-year.

• EBITDA was $33.6M, down 35% year-over-year, with margin at 16.8%; EBIT was $2.1M, down 90% year-over-year.

• Strategic focus on AI-driven data center infrastructure, photonics, and wide bandgap technologies is accelerating, with several new design wins.

Financial highlights

• Gross profit for Q2 was $30.5M (15.3% margin); EBITDA margin was 16.8% (17.6% excluding IFRS 15 impact).

• Net loss for Q2 was $14.8M, impacted by a non-cash tax asset derecognition of $11.0M in Malaysia.

• Cash and cash equivalents stood at $163.6M; net debt increased to $312.3M, up $20.9M sequentially.

• CapEx for Q2 was $24.2M; first half 2026 CapEx totaled $50.2M.

Outlook and guidance

• Q3 2026 revenue expected between $195M and $205M, with EBITDA margin guidance of 17–20%.

• Management anticipates a stronger second half versus first half, with recovery expected to continue into Q4, though no formal Q4 guidance provided.

• Cost-saving program initiated, with results expected by end of 2026.

• Long-term revenue potential for data center applications estimated at $300M annually.