Soitec (SOI) H2 2025 earnings summary

Executive summary

• FY25 revenue declined 9% year-over-year to €891M, with EBITDA margin resilient at 33.5% and positive free cash flow of €26M, despite inventory corrections and weak automotive demand.

• Diversification accelerated, with POI reaching $100M in annual revenue and Photonics-SOI and FD-SOI adoption growing; customer and geographic base broadened.

• Sustainability targets were achieved ahead of schedule, with significant reductions in carbon emissions and water usage.

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

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

Financial highlights

• Revenue: €891M, down 9% year-over-year, in line with revised guidance; EBITDA margin: 33.5%; gross margin: 32.1%.

• Net income: €92M (10.3% of revenue); basic EPS: €2.57; free cash flow: €26M, supported by reduced CapEx and improved working capital.

• Net debt: €94M, up €55M, mainly from new lease liabilities; gross cash: €688M; equity: €1.6B.

• CapEx: €230M in FY25, focused on fab expansion and innovation; FY26 CapEx expected to decrease to ~€150M.

• Working capital at €488M, up €95M, mainly due to higher inventories and receivables; working capital/revenue: 55%.

Outlook and guidance

• All previous guidance withdrawn due to ongoing uncertainty and high volatility; only quarterly revenue guidance will be provided.

• Q1 FY26 revenue expected down ~20% year-over-year, reflecting Imager-SOI phase-out and continued inventory corrections.

• FY26 CapEx to decrease to ~€150M from €230M in FY25, prioritizing flexibility and asset utilization.

• Profitability model aims to preserve margin resilience through cost control and disciplined R&D investment.

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