Half Year 2025 Soitec SA Earnings Call Transcript
Key Points
- Soitec SA (SLOIF) reported a strong operating cash flow of EUR129 million, supporting a positive free cash flow of EUR35 million in H1 '25.
- The company maintained a robust EBITDA margin of 33%, demonstrating resilience despite a 15% year-on-year revenue decline.
- Significant rebound in the mobile communications division, with Q2 '25 revenue up 164% over Q1 '25, indicating recovery from inventory absorption issues.
- Continued investment in R&D and capacity expansion, with a focus on new product development and agile capacity deployment.
- Edge and Cloud AI division grew by 57%, driven by strong demand for low-power computing devices and edge AI applications.
- Revenue for H1 '25 was down 15% year-on-year, primarily due to RF-SOI under-shipment amid inventory absorption in the smartphone value chain.
- Automotive and industrial revenue declined by 20% year-on-year, impacted by market weakness and inventory adjustments.
- Gross margin decreased by 6 points year-on-year to 30%, affected by higher depreciation expenses and underutilization of SOI fabs.
- Net income was EUR14 million, representing only 4% of revenue, reflecting lower fab loading and revenue levels.
- The company faces a two-year delay in SmartSiC qualifications, impacting the timeline for volume production and market penetration.
Hello, and welcome to the Soitec H1 '25 results analyst call. My name is Saskia, and I will be your coordinator for today's event. Please note, this call is being recorded. (Operator Instructions)
I will now hand you over to Pierre Barnabe, CEO, to begin today's conference. Please go ahead.
Hello, everyone, and welcome to Soitec H1 '25 results conference. I'm Pierre Barnabe, Soitec's CEO, and I'm very pleased to be with you today, along with Lea Alzingre, our CFO; and Steve Babureck, our EVP, Strategy. Then let's look at the disclaimer, you know by heart. Then we have a lot to cover today. I will share the main highlights and drivers behind our H1 '25 performance, and Lea will address the financials.
Let's start with the highlights of our first semester. Our H1 '25 financial performance was in line with our expectations. Revenue reached EUR401 million, down 15% year-on-year, as we had announced at the beginning of the fiscal year. This essentially reflects significant RF-SOI under
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