X-FAB Silicon Foundries (XFAB) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $205.1M (EUR 205M), down 9% year-on-year and 4% quarter-on-quarter, within guidance; core markets (automotive, industrial, medical) contributed $190.1M, a record 94% of total revenue.

• Automotive revenue grew 9% year-on-year to $142.4M, while industrial and medical segments declined 33% and 18%, respectively; microsystems revenue rose 21% year-on-year.

• EBITDA was $47.9M (23.3% margin), with net income at $19.8M; cash and cash equivalents at quarter-end were $290.1M.

• Strong bookings of $248.4M, up 12% year-on-year, with backlog at $517.3M at quarter-end.

• Capacity expansion continued in Malaysia and France for 200mm CMOS; SiC expansion in Texas slowed to match demand.

Financial highlights

• Q2 EBITDA margin was 23.3% (22.7% adjusted); gross margin was 21.9%, down from 29.8% year-on-year.

• Q2 capex was $121.9M (EUR 122M), with full-year capex expected at $550M.

• Net debt improved to $(19.2)M as of June 30, 2024.

• Net income for Q2 was $19.8M, down from $38.7M year-on-year.

Outlook and guidance

• Q3 2024 revenue expected between $205M and $215M, with EBITDA margin of 24%-27%.

• Full-year 2024 revenue guidance revised to $860-880M (from $900-970M), mainly due to delayed SiC recovery; full-year EBITDA margin guidance narrowed to 25%-28%.

• SiC revenue expected to recover in Q4 2024, with robust growth in 2025.