X-FAB Silicon Foundries (XFAB) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue ranged from $196.0M to $199.8M, down 7–10% year-over-year but up 2% sequentially, with bookings and backlog showing signs of recovery and core markets (automotive, industrial, medical) making up 93% of revenue.

• Automotive bookings improved sequentially, while medical revenue grew 39% year-over-year and 9% quarter-over-quarter; industrial and automotive segments declined.

• EBITDA was $33.6M (16.8% margin), down 35% year-over-year; EBIT was $2.1M, down 90% year-over-year; net loss was $14.8M, impacted by a non-cash tax asset derecognition in Malaysia.

• Strategic focus on AI-driven data center infrastructure, photonics, and wide bandgap technologies is accelerating, with several new design wins.

• Internal reorganization introduced three business units to enhance alignment with customer needs and strategic focus.

Financial highlights

• Gross profit for Q2 was $30.5M (15.3% margin), EBITDA $33.6M (16.8% margin), EBIT $2.1M (1.0% margin); net loss of $14.8M included a $11.0M non-cash tax asset derecognition.

• Cash and cash equivalents at quarter-end were $163.6M; net debt increased to $312.3M, up $20.9M sequentially.

• CapEx for Q2 was $24.2M; H1 2026 CapEx totaled $50.2M.

• Prototyping revenue was $17.7M, down 16% year-over-year and 7% quarter-over-quarter.

• Net cash from operating activities was $30.6M in Q2; net cash used in investing was $13.4M.

Outlook and guidance

• Q3 2026 revenue expected between $195M–$205M, with EBITDA margin guidance of 17–20%.

• Management anticipates a stronger second half versus first half, with recovery expected to continue into Q4, though no formal Q4 guidance provided.

• Cost-saving program initiated, with results expected by end of 2026.

• Long-term revenue potential for data center applications estimated at $300M annually.