Soitec (SOI) H1 2026 earnings summary

Executive summary

• H1 2026 revenue was €231 million, down 29% year-over-year, mainly due to inventory corrections and weak Mobile Communications and Automotive & Industrial markets.

• EBITDA margin improved to 34.1% despite lower revenue, reflecting strict cost control and temporary inventory increases.

• Net loss was €67 million, mainly due to a €41 million SmartSiC™ impairment and significant FX losses.

• CEO Pierre Barnabé announced intention to step down by March 2026; succession process initiated.

• Strategic focus on diversification, disciplined capital allocation, and a new client- and product-centric organization to drive future growth.

Financial highlights

• Revenue for H1 2026 was €231 million, down 29% organically year-on-year; gross margin declined 490 bps to 25.1%.

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

• Net result was -€67 million, mainly due to non-recurring items: €41 million SmartSiC™ impairment and FX losses.

• Free cash flow was -€31 million, impacted by lower revenue, higher inventories, and capital expenditure.

• Cash position at period end was €808 million, with net debt at €145 million and net debt-to-EBITDA at 0.5x.

Outlook and guidance

• Q3 2026 organic revenue expected to grow mid- to high single digits sequentially, driven by Edge & Cloud AI.

• FY26 CAPEX guidance reduced to around €140 million, with focus on positive free cash flow by year-end.

• H2 gross margin to reflect lower fab loading, with headwinds from mix, FX, and lower volumes.

• Market conditions remain challenging in Mobile Communications and Automotive & Industrial, while Edge & Cloud AI is expected to maintain solid momentum.