Siltronic (WAF) Q3 2025 earnings summary

Executive summary

• Q3 2025 was the weakest quarter, impacted by expected volume shifts into Q4 and adverse FX effects, with demand remaining soft in a challenging market environment.

• Active cost and cash management measures were implemented, including strict CapEx discipline and a comprehensive cost program, to maintain resilience and align production with demand.

• Market share remained stable year-to-date, reflecting resilience despite headwinds.

• Positive long-term growth signals from AI and memory markets, though short-term effects are limited by inventory normalization.

Financial highlights

• Q3 2025 sales were EUR 300 million, down 8.7% sequentially, mainly due to lower wafer area sold and FX headwinds.

• EBITDA was EUR 65.7 million (margin 21.9%), down from EUR 86.4 million (26.3%) in Q2, impacted by lower sales and ramp-up costs for the new Singapore fab.

• EBIT fell to EUR -31 million, and net income was EUR -44 million, reflecting higher depreciation from the new fab.

• CapEx totaled EUR 90 million in Q3, with year-to-date CapEx at EUR 339.1 million.

• Gross margin turned negative at -1.2% in Q3, compared to 18.3% in Q2.

Outlook and guidance

• Full-year 2025 guidance confirmed, with sales expected mid-single digits below 2024 levels due to FX headwinds.

• EBITDA margin guidance narrowed to 22%-24% (from 21%-25%), with significant decline expected due to new fab depreciation.

• Depreciation forecast refined to EUR 340-360 million; CapEx expected at EUR 360-380 million.

• Cash flow projected to improve versus last year but remain negative due to high investment activity.