Siltronic (WAF) Q2 2025 earnings summary

Executive summary

• H1 2025 targets were achieved and Q2 results were solid despite FX, tariff, and pricing headwinds; wafer demand remained subdued.

• Prime wafer qualifications at the new Singapore fab were completed, with depreciation to begin in August 2025.

• The phase-out of the small diameters business will be completed by end of July 2025.

• Ongoing cost and cash initiatives and strategic milestones, including customer qualifications and cost-saving measures, are progressing well.

• Sales for H1 2025 declined 2.9% year-over-year to EUR 674.8 million, mainly due to negative price and product mix effects, despite higher wafer area sold.

Financial highlights

• Q2 2025 sales were EUR 329 million, a 5% decline quarter-over-quarter, mainly due to FX and price effects.

• EBITDA margin improved to 26.3% in Q2 from 22.6% in Q1, with EBITDA at EUR 86 million in Q2.

• Net income for Q2 was EUR 15 million; H1 2025 net income was EUR 18.8 million, down from EUR 50.1 million in H1 2024.

• CapEx in Q2 was EUR 126 million, mainly for the Singapore fab; H1 2025 CapEx totaled EUR 222 million.

• Net financial debt increased to EUR 903 million by end of June 2025.

Outlook and guidance

• Full-year 2025 sales are now expected to be mid single-digit % below 2024, revised due to a weaker US dollar (EUR/USD 1.15 for H2 2025).

• EBITDA margin guidance for 2025 remains at 21%-25%; EBIT expected to decline significantly.

• CapEx guidance for 2025 is EUR 350-400 million, with lower investment activity in H2.

• Depreciation for 2025 expected between EUR 340 million and EUR 400 million.

• Net cash flow expected to improve significantly in H2 2025 but remain negative.