Soitec (SOI) H1 2026 earnings summary

Executive summary

• H1 2026 revenue was €231 million, down 29% year-over-year, reflecting challenging market conditions, customer destocking, and a focus on inventory reduction and financial discipline.

• EBITDA margin improved to 34.1% despite lower gross profit, with net loss of €67 million mainly due to a €41 million SmartSiC™ impairment and other non-recurring items.

• Free cash flow was negative €31 million, impacted by lower revenue, seasonality, and inventory buildup.

• Strategic focus on diversification, disciplined capital allocation, and agile capacity management, with selective investments in Edge & Cloud AI and new organizational initiatives.

Financial highlights

• Revenue: €231 million, down 29% year-over-year at constant FX and scope.

• EBITDA: €79 million (34.1% margin), down from €113 million (33.4%) in H1'25.

• Gross margin: 25.1%, down 490bps year-over-year due to lower fab loading and unfavorable mix.

• Net result: -€67 million, mainly due to SmartSiC™ impairment and FX losses.

• Net debt at €145 million, leverage ratio at 0.5x; cash position at €808 million as of September 30, 2025.

Outlook and guidance

• Q3 2026 organic revenue expected to grow mid- to high single digits sequentially, driven by Edge & Cloud AI, while Mobile and Automotive remain weak.

• FY26 CAPEX guidance reduced to ~€140 million, down from previous guidance and prior year.

• H2 gross margin to face headwinds from lower fab loading, mix/price, FX, and lower volumes.

• Focus remains on achieving positive free cash flow for the full year.