Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Aixtron SE (AIXXF, Financial) achieved revenue growth of 1% in 2024, reaching €633 million, despite a challenging market environment.
- The company delivered an outstanding Q4 2024 performance, surpassing last year's extraordinary Q4 results.
- Aixtron SE (AIXXF) made significant technical progress with its G10Z system, achieving industry-leading layer thickness and uniformity values.
- The company has started work on 300 millimeter wafer technology, shipping first units to customers and building a dedicated clean room for this technology.
- Aixtron SE (AIXXF) maintained a strong market position in silicon carbide, with recent technical advancements leading to new customer wins, including significant volume from China.
Negative Points
- Gross margin decreased by 3 percentage points to 41% in 2024, primarily due to a less favorable product mix and cost inefficiencies.
- Net profit was down 27% year over year, impacted by higher tax expenses and reduced earnings expectations for 2025.
- The company's total cash balance decreased significantly to €65 million at the end of 2024, compared to €182 million the previous year.
- Aixtron SE (AIXXF) expects a continued weaker market environment in 2025, with projected revenues between €530 and €600 million.
- The company initiated a voluntary leave program in the operations area, resulting in a reduction of about 50 headcounts and associated severance costs.
Q & A Highlights
Q: Could you clarify the expected growth for the optoelectronics segment in 2025, as there seems to be some inconsistency between the PowerPoint and the annual report?
A: The optoelectronics segment is expected to see strong growth in 2025, driven by demand in telecom and data communications, particularly due to AI-driven refreshment waves. However, the LED segment, which saw strong performance in 2024, is expected to weaken in 2025. - CEO Dr. Felix Garba
Q: Are you expecting a recovery from Western silicon carbide players in 2025, or is the growth primarily driven by China?
A: The 2025 guidance does not factor in a recovery from Western silicon carbide players. The growth is primarily driven by demand from China and non-China customers serving the Chinese market. We expect a recovery from Western players in 2026. - CEO Dr. Felix Garba
Q: Can you provide more details on the expected timeline for the adoption of 300mm gallium nitride technology?
A: Customer feedback on the 300mm tools has been positive, but high-volume production is expected to start in 2027 or 2028. The decision between 200mm and 300mm tools is largely driven by customers' existing CapEx investments. - CEO Dr. Felix Garba
Q: How do you plan to manage working capital, particularly with regards to inventory and down payments?
A: We aim to reduce inventory levels to 60-70% of the order backlog. Down payments are influenced by geography and industry segment, making it difficult to set a specific target. We are focused on improving working capital efficiency. - CFO Dr. Christian Danninger
Q: Why is Aixtron focusing on building up its cash position in 2025?
A: We anticipate potential growth waves in the coming years and want to be well-positioned to meet demand. A strong cash position is crucial for maintaining flexibility and supporting future growth opportunities. - CEO Dr. Felix Garba
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
