AT & S Austria Technologie & Systemtechnik (ATS) Q2 2025 earnings summary

Executive summary

• Revenue for H1 2024/25 declined 2% year-over-year to €800 million, with a net loss of €63 million and EBITDA down 27% to €157 million.

• CEO duties assumed by the management board after the chairman stepped down; cost optimization and restructuring, including workforce reduction, are underway.

• Expansion projects in Kulim (Malaysia) and Hinterberg/Leoben (Austria) are progressing, with production expected to start in early 2025, though ramp-up is delayed.

• Sale of AT&S Korea for €405 million agreed, with closing expected by March 2025 and proceeds to reduce leverage.

• Cost-saving initiatives are on track, targeting over €250 million in sustainable savings by next year.

Financial highlights

• H1 2024/25 revenue was €800 million, EBITDA margin at 19.6% (adjusted: 27.9%), and net loss of €63 million.

• Net debt increased 19% to €1.67 billion, with leverage at 6.7x due to high CapEx and delayed ramp-up.

• Cash and equivalents plus unused credit lines at €900 million as of September 30, 2024.

• Operating free cash flow was negative at €-345 million, impacted by lower EBITDA and reduced factoring.

• Net CAPEX halved year-over-year to €254 million, mainly for Malaysia and Austria projects.

Outlook and guidance

• FY 2024/25 revenue guidance revised to €1.5–1.6 billion, with adjusted EBITDA margin of 24–26%.

• Net CapEx guidance remains at up to €500 million.

• Midterm (FY 2026/27) guidance confirmed: revenue ~€3.0 billion, EBITDA margin 27–32%, ROCE >12%.

• High-volume production at new plants delayed, with no revenue contribution expected this year.

• Guidance reflects high volatility and low visibility in end markets.