Siltronic (WAF) Q4 2025 earnings summary

Executive summary

• 2025 results were robust and aligned with guidance despite FX headwinds, price pressure outside LTAs, and the closure of the SD business, though sales declined 4.7% year-over-year to EUR 1,346.7 million.

• EBITDA margin decreased to 23.5% from 25.8% in FY 2024, with EBITDA at EUR 316.9 million, and net income turned negative at EUR -77.9 million.

• EBIT margin dropped to -2% from 8.9% in 2024, with full-year EBIT at EUR -26.4 million, mainly due to higher depreciation and lower EBITDA.

• Demand for 300-mm wafers rebounded, driven by AI-related memory growth, though DRAM chip revenue remains decoupled from wafer demand.

• No dividend will be distributed for 2025 due to the negative business result.

Financial highlights

• Sales for 2025 were EUR 1,346.7 million, down from EUR 1,412.8 million in 2024.

• EBITDA was EUR 316.9 million, down 13% year-over-year; EBIT margin dropped to -2.0% from 8.9%.

• CapEx was EUR 369 million, significantly reduced from the prior year.

• Net financial debt increased to EUR 837 million from EUR 734 million.

• Net cash flow improved to EUR -85 million from EUR -297 million in 2024.

Outlook and guidance

• 2026 wafer area consumption expected to rise ~6% year-over-year, led by server demand and AI investment.

• Sales in 2026 are guided to be at prior year level excluding SD and FX, but reported sales expected to decline mid-single-digit percentage due to these effects.

• EBITDA margin guidance for 2026 is 20%-24%; EBIT expected to be significantly below previous year due to higher depreciation.

• CapEx for 2026 expected between EUR 180 million and EUR 220 million.

• Net cash flow expected to remain roughly in line with 2025.