Soitec (SOI) Q1 2025 TU earnings summary

Executive summary

• Q1 2025 revenue was €121 million, down 23–24% year-over-year, in line with expectations and guidance.

• The quarter marked the bottom after a strong Q4 2024, with a rebound expected in the second half of the fiscal year.

• Mobile Communications and Automotive & Industrial segments declined, while Edge and Cloud AI (formerly Smart Devices) grew strongly.

• Inventory absorption in RF-SOI continued to weigh on Mobile Communications, but recovery is expected in H2 FY'25.

• FY'25 outlook confirmed: stable revenue year-on-year and EBITDA margin around 35%.

Financial highlights

• Q1 2025 revenue: €121 million, down 23% reported and 24% at constant exchange rates vs. Q1 2024.

• Mobile Communications revenue: €48 million, down 46% year-over-year due to RF-SOI inventory corrections.

• Automotive & Industrial revenue: €26 million, down 31% year-over-year, impacted by a slower automotive market.

• Edge and Cloud AI revenue: €46 million, up 47% year-over-year, driven by strong Imager-SOI and Photonics-SOI sales.

• No scope effect in Q1 2025 or Q1 2024; currency impact was slightly positive at 1%.

Outlook and guidance

• Fiscal year 2025 revenue expected to be stable at constant exchange rates versus fiscal year 2024.

• H1 2025 revenue expected to be down ~15% year-over-year, with a strong recovery in H2.

• EBITDA margin for fiscal year 2025 expected to reach around 35%.

• Automotive & Industrial segment expected to be flattish for the full year.