Siltronic (WAF) Q1 2026 earnings summary

Executive summary

• Q1 2026 sales were EUR 307 million, down 17.5% from Q4 2025, reflecting lower wafer area sold, delivery shifts, and negative product mix effects.

• EBITDA margin declined to 21.2% from 23.3% in Q4 2025, with EBITDA at EUR 65 million.

• Net income was EUR -67 million, impacted by lower sales and prior tax asset write-downs.

• Growth in AI-driven end markets continued, but memory chip sector capacity constraints and high inventory levels for 200mm products weighed on performance.

Financial highlights

• Sales dropped to EUR 307 million in Q1 2026, a 17.5% decrease quarter-over-quarter and 11% year-over-year.

• Gross margin turned negative at -8.5%, compared to -0.1% in Q4 2025.

• EBIT declined to EUR -52 million; net income was EUR -67 million.

• CapEx reached EUR 48 million; net cash flow was negative at EUR -89 million.

• Net financial debt increased to EUR 936 million from EUR 837 million at year-end 2025.

Outlook and guidance

• 2026 sales expected to be mid-single-digit percentage below prior year, mainly due to FX and SD line closure.

• EBITDA margin guided between 20% and 24%; depreciation to rise to EUR 490–520 million.

• CapEx for 2026 guided at EUR 180–220 million; net cash flow expected to be similar to previous year.

• Server segment growth forecast raised to 44% year-over-year, driven by AI and data center demand.

• Smartphone and PC outlook weakened due to memory chip supply prioritization for servers.