X-FAB Silicon Foundries (XFAB) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue ranged from $188.8 million to $197 million, down up to 21% year-over-year, with core end markets (automotive, industrial, medical) comprising up to 93% of revenue.

• Q4 EBITDA was $39.8 million (21.1% margin, 22.8% excluding IFRS 15), and EBIT was $10.6 million (6% margin); net loss was $7.3 million due to a $16.5 million non-cash deferred tax asset adjustment.

• FY 2024 revenue was $816.4 million, down 10% year-over-year, with a 46% CAGR in gross profit since 2019.

• 180 nm CMOS technology drove growth, while automotive supply chain destocking impacted 350 nm CMOS; China automotive business grew 20% year-over-year.

• Silicon carbide (SiC) bookings improved in Q4, with expectations for further recovery in 2025.

Financial highlights

• Q4 gross profit was $36.5 million (19.3% margin), down 43% year-over-year; full-year gross margin was 22.4%.

• Q4 EBITDA margin was 21.1% (22.8% excluding IFRS 15); full-year EBITDA margin was 23.1% (23.5% excluding IFRS 15).

• Q4 net loss was $7.3 million; cash and cash equivalents at year-end were $215.8 million, down from $405.7 million a year earlier.

• Q4 CapEx was $133 million; full-year CapEx totaled $510 million, below the $550 million plan.

• Net debt at year-end was $198.3 million, compared to net cash of $144.7 million at end of 2023.

Outlook and guidance

• Q1 2025 revenue expected between $195 million and $205 million, with EBITDA margin of 22%-25%.

• Full-year 2025 revenue guidance is $820 million-$870 million, with EBITDA margin of 24%-27%.

• CapEx for 2025 capped at $250 million, with a return to normalized CapEx ratio (10%-15% of revenue) in H2 2025.

• Positive cash flow and free cash flow generation expected in H2 2025 as major expansion projects conclude.

• Single-digit revenue growth planned for 2025, with acceleration expected in 2026 as inventory corrections subside.