AT & S Austria Technologie & Systemtechnik (ATS) Q1 2026 earnings summary

Executive summary

• Revenue and EBITDA increased year-over-year in Q1, with a stable EBITDA margin and a strong focus on cash flow and profitability, supported by cost-saving initiatives and positive market developments in PCBs and IC substrates.

• High-volume production started at new mass manufacturing sites in Kulim, Malaysia, and Leoben-Hinterberg III, Austria, ramping up for high-performance IC substrates, especially for AI applications.

• Cost-saving and efficiency programs delivered €45 million in Q1 and are targeting €130 million for FY25/26, on top of €120 million already realized.

• Artificial intelligence-related investments are key growth drivers, with stable and improving markets for both PCBs and IC substrates.

• Loss for the period widened to €56 million, mainly due to FX impacts and ramp-up costs.

Financial highlights

• Q1 revenue increased 14.2% year-over-year to €398.9 million, with EBITDA up 9.4% to €70.6 million and margin stable at 18%.

• Net loss for the period was €56 million, with EPS at €-1.55 versus €-0.99 prior year.

• Operating free cash flow improved to €130 million, supported by working capital improvements and a 40% reduction in net CapEx.

• Cash and cash equivalents increased to €924 million, with financing costs at 3.9%.

• Net debt/EBITDA ratio improved to 2.3x, and equity ratio declined to 19.4% due to FX effects.

Outlook and guidance

• H1 2025/26 revenue expected at approximately €820 million, with EBITDA margin around 20% and net CapEx at €110 million.

• Full-year guidance is pending due to market and FX volatility, especially regarding US tariffs.

• Midterm guidance for FY 2026/27: revenue €2.1–2.4 billion, EBITDA margin 24–28%.

• Equity ratio may temporarily fall below 20%.