Soitec (SOI) H2 2026 earnings summary

Executive summary

• Fiscal year 2026 saw revenue decline by 30–34% to EUR 592 million, mainly due to inventory corrections and weak end markets, especially in RF-SOI and automotive.

• Positive free cash flow of EUR 63 million was restored through disciplined working capital and Capex management, despite lower volumes and margins.

• Strategic focus is on leveraging AI-driven growth, optimizing the portfolio, and maintaining disciplined capital allocation.

• Cost reduction initiatives, including headcount reduction, are ongoing to structurally lower the fixed cost base.

• The company is positioned for expansion, emphasizing execution, technology investments, and ecosystem partnerships.

Financial highlights

• FY26 revenue: EUR 592 million, down 30–34% year-over-year; Q4'26 revenue grew 25% sequentially, driven by Photonics-SOI.

• Gross margin: 16.3% (down from 32.1% in FY25); EBITDA margin: 25.4% (down from 33.5%).

• Net loss was EUR 220 million, impacted by non-recurring items and impairments.

• Free cash flow: EUR 63 million (vs. EUR -23 million prior year); Capex reduced to EUR 135 million.

• Net debt: EUR 56 million; leverage ratio: 0.4x EBITDA; cash and cash equivalents: EUR 562 million.

Outlook and guidance

• Q1 2027 revenue expected to rise about 15% year-over-year at constant exchange rates and scope.

• FY27 will be a transition year, with margin recovery tied to fab utilization and scaling of high-growth platforms.

• Capex for FY27 targeted at around EUR 100 million, with focus on asset fungibility and high-growth segments.

• Margin headwinds expected due to suboptimal loading, FX, and lower funding; improvement less pronounced than prior years.

• Edge & Cloud AI momentum to continue; Mobile Communications inventory correction to persist; Automotive & Industrial to remain soft.