X-FAB Silicon Foundries (XFAB) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $206.4 million, down 12% year-over-year but up 1% sequentially, within guidance.

• Automotive segment grew 8% year-over-year, driven by strong growth in China, while industrial and medical segments declined 41% and 29% respectively.

• Bookings totaled $217.1 million, up 4% year-over-year, with a book-to-bill ratio of 1.05 and backlog at $481.4 million.

• Operational incident in Malaysia caused a three-day slowdown, shifting $15–20 million revenue from Q4 to Q1 2025.

• EBIT for Q3 was $25.0 million (12.1% margin), and EBITDA was $50.3 million (24.4% margin).

Financial highlights

• Gross profit for Q3 was $51.2 million, gross margin 24.8%, down from 29.8% a year ago but up 14% sequentially.

• Net income for Q3 was $25.95 million, EPS $0.20, down from $0.32 in Q3 2023.

• CapEx in Q3 was $149.8 million, mainly for Malaysia/Sarawak expansion; full-year CapEx guidance at $550 million.

• Cash and cash equivalents at quarter-end were $315.9 million.

• Net debt stood at $51.3 million as of September 30, 2024.

Outlook and guidance

• Q4 2024 revenue expected between $195–205 million; EBITDA margin guidance at 22–25%.

• Full-year 2024 revenue guidance revised to $822–832 million (from $860–880 million); EBITDA margin guidance now 23.4–24.0%.

• CapEx for 2024 projected at $550 million; significant drop in CapEx expected after Q1 2025.

• SiC revenue target for 2026 ($300–350 million) no longer achievable due to capacity and product mix changes.