AT & S Austria Technologie & Systemtechnik (ATS) Q1 2025 earnings summary

Executive summary

• Q1 2024/25 revenue was €349.4 million, down 3.4% year-over-year due to price pressure, with both Electronics Solutions and Microelectronics impacted, but up 1.4% sequentially.

• Adjusted EBITDA rose 4.4% year-over-year to €96.5 million, with an adjusted margin of 27.6%; reported EBITDA was €65 million, down 13.8%.

• Net loss for the period was €-34 million, mainly due to start-up, restructuring, and higher finance costs.

• Efficiency and cost optimization programs are progressing, with workforce reduction and OPEX/CAPEX savings.

• Market environment remains challenging with high price pressure, but improvement is expected in H2 2024/25.

Financial highlights

• EBITDA was €64.6–65 million, heavily impacted by €32 million in one-time start-up and restructuring costs.

• Adjusted EBITDA margin reached 27.6% (up from 25.5% year-over-year); reported EBITDA margin was 18.5%.

• Operating cash flow dropped to €14 million from €229 million year-over-year, mainly due to inventory build-up.

• Net CAPEX was €92.7–93 million, down 66% year-over-year.

• Net working capital ratio to revenue remains in single digits (9.3%).

Outlook and guidance

• FY 2024/25 revenue guidance: €1.7–1.8 billion; adjusted EBITDA margin: 25–27%, excluding up to €88 million in one-off costs.

• Midterm (2026/27) revenue guidance: €3.1 billion, EBITDA margin: 27–32%.

• ROCE expected above 12% and leverage below 3x post-ramp.

• CapEx for FY 2024/25 guided at €500 million, with lower levels expected in subsequent years.

• Demand recovery anticipated in H2 2024/25, but price pressure to persist; efficiency programs and workforce reduction of up to 1,000 employees underway.