Soitec (SOI) H1 2025 earnings summary

Executive summary

• H1 2025 revenue was €338 million, down 15% year-on-year, mainly due to lower Mobile Communications and Automotive & Industrial sales, partially offset by strong 57% growth in Edge & Cloud AI.

• EBITDA margin remained strong at 33.4%, nearly flat year-on-year, reflecting cost control and positive contributions from new products.

• Net profit dropped to €14 million (4% of revenue), down 83% year-on-year, impacted by lower activity and higher depreciation.

• Free cash flow improved to €35 million, a €120 million increase year-on-year, supporting ongoing R&D and capacity investments.

• Product portfolio diversification and strong Edge & Cloud AI segment performance offset declines in Mobile and Automotive.

Financial highlights

• H1 2025 revenue: €338 million at constant FX, down 15% year-on-year.

• EBITDA margin: 33.4%, up 0.4 points year-on-year.

• Gross margin: 30%, down from 36% year-on-year due to higher depreciation and lower revenue.

• Net profit: €14 million, about 4% of revenue, down from €80 million year-on-year.

• Free cash flow: €35 million, a €120 million improvement from last year.

Outlook and guidance

• FY 2025 guidance confirmed: stable revenue and EBITDA margin around 35%.

• H2 expected to see a strong rebound, especially in Mobile Communications as RF-SOI inventories normalize.

• Automotive & Industrial to remain weak, offset by strong Edge/Cloud AI momentum.

• FY 2025 CapEx guidance reduced to €230 million from €250 million, reflecting moderate demand rebound.

• Four product families are expected to exceed $100 million in annual revenue by year-end.