Financial Data and Key Metrics Changes - SkyWater reported record Q3 revenues of nearly $151 million, exceeding expectations by more than $9 million [5][24] - The gross margin for Q3 was reported at 24.6%, with significant revenue upside flowing directly to gross profit [25] - Adjusted EBITDA for Q3 was $25.8 million, well above the expected range of $10-$12 million [26] Business Line Data and Key Metrics Changes - The ATS business saw a revenue pull-in of approximately $4 million from Q4 due to program execution timing, with expected Q4 ATS revenues around $50 million [8][22] - Texas wafer services revenue reached nearly $87 million, exceeding expectations by $9 million, primarily due to higher work-in-process wafers post-acquisition [15][24] - Quantum computing-related revenue is expected to exceed 30% growth in fiscal 2025, with four new customer engagements signed since Q2 [6][12] Market Data and Key Metrics Changes - The quantum computing market is experiencing significant investment, with several players announcing large funding rounds, validating the commercial potential of the sector [9][10] - The advanced packaging market is projected to reach nearly $80 billion by 2030, driven by demand in automotive, IoT, 5G, AI, and edge computing [17] Company Strategy and Development Direction - SkyWater aims to restore domestic semiconductor manufacturing capabilities and secure trusted production, positioning itself as a key player in the U.S. innovation infrastructure [18][19] - The acquisition of FAB25 has strengthened SkyWater's competitive position, expanding its scale and diversifying its customer and technology mix [16][15] - The company is focused on leveraging its technology-as-a-service model to support various quantum architectures and drive growth [12][55] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in exceeding initial revenue and EBITDA expectations for 2026, with a baseline expectation of at least $600 million in revenue and $60 million in adjusted EBITDA [23][40] - The ongoing government budget dynamics are expected to impact A&D-related ATS revenues, but overall growth in quantum and advanced packaging is anticipated [22][50] - Management highlighted the importance of U.S. leadership in quantum computing and the need for domestic manufacturing capabilities [20][21] Other Important Information - The company plans to hold its first Investor and Analyst Day on March 24 in New York City [4] - Total debt at the end of Q3 was $184 million, reflecting borrowings for the FAB25 acquisition and working capital [29] Q&A Session Summary Question: Can you elaborate on the gross margin expectations for Q4? - Management indicated that Q4 non-GAAP gross margin is expected to be 17%-20%, with a 200 basis point impact from tools revenue [34][37] Question: What are the dynamics behind the revised revenue guidance for next year? - Management noted that higher-than-expected WIP in the fab and strong performance in Q3 and Q4 contribute to confidence in the $600 million revenue target [40][41] Question: How does SkyWater view the current aerospace and defense environment? - Management stated that while funding dynamics remain uncertain, investments in facilities are geared towards the A&D community, positioning SkyWater well for future growth [50][51]

Q3 2025 Financial Performance - SkyWater achieved record Q3 2025 revenues of $150.7 million, exceeding the high end of the guidance range by over $9 million[6] - Legacy SkyWater's ATS (Advanced Technology Services) development revenue reached $54.2 million, a 3% increase compared to Q2 2025, but a 4% decrease year-over-year[57] - SkyWater Texas generated $86.6 million in wafer services revenue in Q3 2025, marking its first quarter contribution post-acquisition[57] - The company's GAAP gross margin was 24.0%, a 550 basis point increase from Q2 2025's 18.5%[60] - Adjusted EBITDA for Q3 2025 was $25.8 million, significantly higher than forecast, with an adjusted EBITDA margin of 17.1%[63] Business Highlights and Future Outlook - SkyWater anticipates strong growth in quantum computing customer revenues, expecting to exceed 30% in 2025[11, 14] - Advanced Packaging revenues are starting to ramp in Florida, with tool installations scheduled for completion in early 2026[11] - Q4 2025 revenue is projected to be in the range of $155 million to $165 million, including $17 million - $18 million in Tools revenue[54] - SkyWater Texas revenue for Q4 2025 is expected to be between $84 million and $88 million, reflecting continued higher levels of WIP (work-in-process) during the post-acquisition phase[54] - The company expects a stronger gross margin profile for Q4 2025 compared to the preliminary outlook provided in August[54]

Core Insights - SkyWater Technology, Inc. is a significant player in the semiconductor industry, focusing on advanced electronic components, with quarterly earnings set to be released on November 5, 2025, estimating an EPS of -$0.17 and projected revenue of $135.5 million [1][6] - The electronics sector is experiencing growth driven by increased demand for generative AI, cloud services, and electric vehicles [1][2] Industry Overview - The third quarter of 2025 is critical for electronics stocks, including SkyWater Technology, as the industry benefits from AI infrastructure expansion and global data center buildouts, which are expected to increase demand for specialized semiconductors [2] - Companies like Qualcomm, ARM, and Alpha and Omega Semiconductor are expected to report gains due to growth in AI, data centers, and EV electronics [2] Company Financials - SkyWater Technology is anticipated to report a decline in earnings for the quarter ending September 2025, despite an increase in revenues, with a Zacks Consensus Estimate predicting a quarterly loss of $0.17 per share [3] - The company has a negative price-to-earnings (P/E) ratio of approximately -41.88, indicating current losses, and a price-to-sales ratio of about 2.39, suggesting investors are paying $2.39 for every dollar of sales [4][6] - The enterprise value to sales ratio is around 3.41, providing insight into the company's valuation relative to its revenue [4] Debt and Liquidity Concerns - The debt-to-equity ratio is significantly high at approximately 7.77, indicating a high level of debt compared to equity [5][6] - The current ratio is around 0.41, suggesting potential liquidity concerns as it indicates the company's ability to cover short-term liabilities with short-term assets [5]

Core Insights - The electronics stocks market is expected to show growth driven by the expansion of artificial intelligence infrastructure and data center buildouts globally, with demand for specialized semiconductors and advanced electronic components increasing due to the deployment of generative AI applications and cloud computing services [1][9] Industry Overview - High-bandwidth memory (HBM) shipments are projected to grow significantly due to extraordinary demand from AI training workloads, positively impacting industry performance in Q3 2025 [2] - The automotive electronics market is experiencing steady growth, driven by increased use of electronic components in electric vehicles and advanced driver assistance systems, alongside rising consumer demand for connected and safety-centric vehicles [3] - The proliferation of Internet of Things (IoT) devices, smart home systems, and connected industrial equipment is expected to support demand for sensors and connectivity solutions [3] Challenges - Companies face mixed demand patterns across end markets, with traditional automotive and industrial segments showing slower recovery and margin pressures due to weaknesses in certain customer categories [4] - The memory market is experiencing complexities, with oversupply concerns in traditional DRAM and NAND segments potentially offsetting strengths in AI-specific memory products [4] - Geopolitical uncertainties and evolving trade policies are anticipated to remain concerns, influencing near-term performance across the electronics sector [4] Company Performance - Lam Research (LRCX) and FormFactor (FORM) have reported results that surpassed expectations, indicating positive trends in the electronics sector [5] - Alpha and Omega Semiconductor (AOSL) is expected to report revenues of $183.05 million for Q1 fiscal 2026, reflecting a 0.64% year-over-year increase, although earnings are projected to decline by 52.38% [10][11] - Arm Holdings anticipates revenues of $1.07 billion for Q2 fiscal 2026, indicating a 26.2% year-over-year increase, with earnings expected to rise by 10% [13] - Qualcomm (QCOM) is projected to report revenues of $10.77 billion for Q4 fiscal 2025, reflecting a 5.16% year-over-year increase, with earnings expected to increase by 6.69% [15] - SkyWater Technology (SKYT) expects revenues of $135.5 million for Q3, indicating a 44.43% year-over-year increase, although a loss of 17 cents per share is anticipated [18] - MKS Inc. (MKSI) is projected to report revenues of $962.01 million for Q3, reflecting a 7.37% year-over-year increase, with earnings expected to rise by 4.65% [20]

SkyWater Technology, Inc. (SKYT) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended September 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be releas ...

Company Performance - SkyWater Technology, Inc. (SKYT) closed at $17.27, with a gain of +1.59% from the previous trading session, outperforming the S&P 500's gain of 0.79% [1] - Over the past month, shares of SkyWater Technology increased by 10.39%, significantly surpassing the Computer and Technology sector's gain of 1.2% and the S&P 500's gain of 1.27% [1] Upcoming Earnings - The company's earnings report is scheduled for November 5, 2025, with an expected EPS of -$0.17, reflecting a 312.5% decrease from the same quarter last year [2] - Revenue is forecasted at $135.5 million, indicating a 44.43% increase compared to the same quarter last year [2] Full Year Estimates - For the full year, analysts expect an EPS of -$0.45 and revenue of $417.35 million, representing changes of -850% and +21.94% respectively from the previous year [3] Analyst Estimates - Recent changes to analyst estimates for SkyWater Technology should be monitored, as upward revisions indicate positive sentiment regarding the company's business operations [4] - The Zacks Rank system, which evaluates these estimate changes, currently ranks SkyWater Technology at 3 (Hold) [6] Industry Context - SkyWater Technology operates within the Electronics - Semiconductors industry, which is part of the Computer and Technology sector [7] - The industry holds a Zacks Industry Rank of 66, placing it in the top 27% of over 250 industries, suggesting strong performance potential [7]

Company Performance - SkyWater Technology, Inc. (SKYT) closed at $15.37, reflecting a -7.35% change from the previous day's closing price, underperforming the S&P 500's daily gain of 0.53% [1] - Over the past month, shares of SkyWater Technology have appreciated by 22.8%, significantly outperforming the Computer and Technology sector's gain of 2.01% and the S&P 500's gain of 0.71% [1] Upcoming Financial Results - SkyWater Technology is set to announce its earnings on November 5, 2025, with an expected EPS of -$0.17, indicating a 312.50% decline compared to the same quarter last year [2] - The consensus estimate for revenue is projected at $135.5 million, reflecting a 44.43% increase from the equivalent quarter last year [2] Annual Forecast - For the entire year, the Zacks Consensus Estimates forecast an EPS of -$0.44 and revenue of $417.8 million, representing changes of -833.33% and +22.07% respectively compared to the previous year [3] - Recent changes to analyst estimates for SkyWater Technology suggest a positive outlook, as these revisions often indicate shifting dynamics in short-term business patterns [3] Zacks Rank and Industry Position - The Zacks Rank system, which evaluates estimate changes, currently ranks SkyWater Technology at 3 (Hold), with the Zacks Consensus EPS estimate remaining stagnant over the past month [5] - The Electronics - Semiconductors industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 83, placing it in the top 34% of over 250 industries [6]

Core Viewpoint - SkyWater Technology will report its fiscal third quarter 2025 financial results on November 5, 2025, after market close, followed by a management webcast to discuss the results [1] Financial Reporting - The earnings report will be for the fiscal third quarter of 2025 [1] - The webcast is scheduled for November 5, 2025, at 3:30 p.m. CST (4:30 p.m. EST) [1]

Company Overview - Skywater Technologies is an advanced semiconductor development and manufacturing company, providing packaging services for technologies like integrated circuits and wafers used in semiconductor manufacturing [3][4] - The company has a market capitalization of less than $1 billion and is headquartered in Minnesota, with manufacturing facilities in Minnesota, Florida, and Texas [2][5] Stock Performance - Skywater's shares have risen 45% year-to-date and over 130% in the last 52 weeks, reaching their highest level in almost four years [1] - The stock has effectively doubled since the first week of September, indicating strong market interest and performance [2] Business Catalysts - The company supplies to the U.S. Department of Defense, which is a significant catalyst for its growth, particularly in the context of U.S. semiconductor manufacturing [3][7] - Skywater was spun off from Cypress Semiconductor in 2016 and has been gaining traction in the semiconductor space, competing with larger players like ON Semiconductor and GlobalFoundries [6] Financial Outlook - Skywater Technologies reaffirmed its guidance for 2026, expecting to generate $600 million in sales, which would represent a doubling of sales compared to the last four quarters where it generated approximately $290 million [8][13] - Despite the positive sales outlook, the company is currently not profitable on either an adjusted or GAAP basis [7][14] Industry Context - The semiconductor industry is experiencing a global chip rally, driven by positive developments in technology and partnerships with the U.S. government [9][12] - Companies aligned with U.S. government policies, particularly in defense and technology manufacturing, are gaining favor among investors [11][12]

Company Performance - SkyWater Technology, Inc. (SKYT) closed at $18.66, reflecting a +2.41% change from the previous day's closing price, outperforming the S&P 500's gain of 0.41% [1] - The stock has increased by 51.96% over the last month, significantly surpassing the Computer and Technology sector's gain of 7.63% and the S&P 500's gain of 3.15% [1] Earnings Projections - The upcoming EPS for SkyWater Technology is projected at -$0.17, indicating a 312.50% decline compared to the same quarter last year [2] - Revenue is expected to reach $135.5 million, representing a 44.43% increase from the year-ago quarter [2] Fiscal Year Estimates - For the entire fiscal year, earnings are estimated at -$0.44 per share, reflecting a change of -833.33% from the previous year, while revenue is projected at $417.8 million, indicating a +22.07% change [3] - Recent analyst estimate revisions suggest confidence in the company's near-term business performance and profit potential [3] Zacks Rank and Industry Performance - SkyWater Technology currently holds a Zacks Rank of 4 (Sell), with the Zacks Consensus EPS estimate remaining steady over the past month [5] - The Electronics - Semiconductors industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 174, placing it in the bottom 30% of all industries [6]