Soitec (SOI) H2 2025 earnings summary

Executive summary

• FY2025 revenue declined 9% year-over-year to €891 million, impacted by inventory corrections and automotive weakness, but EBITDA margin remained robust at 33.5% and free cash flow turned positive at €26 million.

• Diversification accelerated, with Power-SOI, FD-SOI, and POI each reaching or exceeding $100 million in annual revenue, and Photonics expected to join soon.

• The company continued to invest in R&D, sustainability, and talent, achieving its carbon emission reduction target two years ahead of plan.

• Leadership changes included new appointments in commercial and financial roles to support the next growth phase.

• Balance sheet remains robust, with net debt at €94 million and equity at €1.6 billion as of March 2025.

Financial highlights

• Revenue for FY2025 was €891 million, down 9% year-over-year, in line with revised guidance.

• EBITDA margin was 33.5% (down 0.5 pts year-over-year); gross margin at 32.1% (down 1.9–2 pts); operating income €136 million (15.2% of revenue); net profit margin 10.3%.

• Free cash flow was €26 million, up from -€43 million in FY24; operating cash flow €202 million (+22% y/y).

• CapEx totaled €230 million, mainly for industrial expansion and innovation.

• Working capital at 55% of revenue, reflecting higher inventories and receivables.

Outlook and guidance

• All previous multi-year guidance withdrawn due to ongoing volatility and reduced visibility; moving to quarterly revenue guidance.

• Q1 FY2026 revenue expected to decline ~20% year-over-year, reflecting Imager-SOI phase-out and continued inventory corrections.

• FY2026 CapEx to decrease to around €150 million, with focus on cost control and R&D investment.

• Medium-term ambition for $2 billion revenue and ~40% EBITDA margin remains, but no timeline is provided.

• Long-term, the addressable market is projected to grow at 15% CAGR, with potential to double revenue by 2030.