Core Insights - Soitec has appointed Albin Jacquemont as the new Chief Financial Officer, effective immediately [2][4] - Jacquemont brings over 30 years of international financial leadership experience, having worked with various industrial and technology companies [3][6] - He will be responsible for all finance-related matters at the Group level, aiming to reinforce Soitec's financial and operational foundations [4][5] Company Overview - Soitec is a global leader in innovative semiconductor materials, generating sales of €0.9 billion in the fiscal year 2024-2025 [6] - The company serves three main strategic markets: Mobile Communications, Automotive and Industrial, and Edge and Cloud AI [6] - Soitec employs approximately 2,300 individuals from 50 different nationalities and has registered over 4,000 patents [6]

Core Insights - Soitec reported a high-single digit decline in full-year revenue for fiscal year 2025, closing at €891 million, down 9% from €978 million in fiscal year 2024, in line with revised guidance [3][21][22] - The company maintained a robust EBITDA margin of 33.5% and generated positive free cash flow of €26 million, despite the revenue decline [3][7][24] - Soitec is focusing on diversifying its product offerings beyond RF-SOI and Mobile Communications, with new products like POI and Photonics-SOI gaining traction [4][6] Financial Performance - Q4'25 revenue reached €327 million, stable at constant exchange rates compared to Q4'24, reflecting a 3% decline on a reported basis [7][8] - Full-year revenue for FY'25 was €891 million, down 9% both on a reported basis and at constant exchange rates [21][22] - The company recorded a current operating income of €136 million, down 35% from €208 million in FY'24, with a current EBIT margin of 15.2% [24][26] Product Segments - Mobile Communications revenue was €546 million in FY'25, down 11% year-on-year, primarily due to weaker RF-SOI volumes [21][22] - Automotive & Industrial revenue decreased by 21% to €129 million, driven by lower Power-SOI volumes amid ongoing automotive market challenges [21][22] - Edge & Cloud AI revenue increased by 6% to €216 million, supported by higher sales of Photonics-SOI wafers [23] Market Outlook - The company has suspended all previously issued guidance due to limited visibility and market uncertainties, opting to provide revenue guidance on a quarterly basis [5][35] - Q1'26 revenue is expected to decline by around 20% year-on-year, impacted by the phase-out of Imager-SOI [5][36] - Soitec anticipates its addressable market to grow from approximately 5 million wafers in 2024 to around 12 million by 2030, driven by technology megatrends such as 5G and AI [6][38] Cash Flow and Balance Sheet - Soitec generated a positive free cash flow of €26 million in FY'25, a significant improvement from a negative €43 million in FY'24 [29][30] - The company maintained a strong balance sheet with shareholders' equity of €1.6 billion as of March 31, 2025, up from €1.5 billion a year earlier [33][34] - Financial debt increased slightly to €782 million, with a net debt position of €94 million, reflecting a moderate level of leverage [34]

Company Overview - Soitec is a world leader in innovative semiconductor materials, with over 30 years of experience in developing cutting-edge products that deliver technological performance and energy efficiency [2] - The company generated sales of €1 billion in the fiscal year 2023-2024 [2] - Soitec serves three main strategic markets: Mobile Communications, Automotive and Industrial, and Edge and Cloud AI [2] - The company employs 2,300 individuals from 50 different nationalities across its sites in Europe, the United States, and Asia [2] - Soitec has registered over 4,000 patents, showcasing its commitment to innovation [2] Share Capital and Voting Rights - As of April 30, 2025, Soitec has a total of 35,727,041 ordinary shares with a par value of €2.00 each [3] - The total number of theoretical (gross) voting rights is 45,641,678, while the total number of exercisable (net) voting rights is 45,568,545 [1][3] - The gross voting rights include all shares with single or double voting rights, while net voting rights account for shares entitled to double voting rights and exclude shares without voting rights [3]

Revenue Performance - Solaris Power Solutions generated revenue from an average of approximately 390 megawatts (MW) of generation capacity in Q1 2025, with a forecast to increase to approximately 1,700 MW by the first half of 2027 [127]. - Total revenues for Q1 2025 were $126.3 million, a significant increase of $58.4 million compared to $67.9 million in Q1 2024, driven by a $49.4 million contribution from Solaris Power Solutions [135]. - Solaris Logistics Solutions revenues increased by $9.1 million, or 13%, to $77.0 million in Q1 2025, primarily due to a $11.7 million increase in last mile and ancillary services [135]. Cost and Expenses - The cost of revenue for Solaris Logistics Solutions increased by $11.3 million, or 28%, to $51.2 million in Q1 2025, with a cost of revenue as a percentage of revenue rising to 67% [137][138]. - Interest expense increased by $4.4 million to $5.2 million in Q1 2025, primarily due to higher borrowings and effective interest rates [143]. - Net cash used in investing activities was $144.3 million for the three months ended March 31, 2025, a significant increase from $3.3 million during the same period in 2024, primarily due to $142.0 million paid for turbines and ancillary equipment [160]. - Net cash used in financing activities totaled $24.5 million for the three months ended March 31, 2025, compared to $15.9 million in the same period of 2024, reflecting various payments including dividends and share cancellations [161]. Capital Expenditures and Financing - The company expects total capital expenditures of approximately $490 million in 2025, with $295 million expected to be provided by the Stateline joint venture [129]. - The company issued $155.0 million in convertible senior notes with a 4.75% interest rate, with $100.0 million restricted for capital expenditures to support Solaris Power Solutions [121]. - The formation of the Stateline joint venture involved a contribution of non-cash assets and pre-funded expenses valued at approximately $86.4 million for a 50.1% equity interest [120]. - The company completed a public offering of $155.0 million aggregate principal amount of 4.75% Convertible Senior Notes due 2030, with $100.0 million restricted for capital expenditures in the Solaris Power Solutions segment [150]. - Interest payments for the Convertible Senior Notes are estimated to total approximately $7.4 million over the next 12 months, with the first installment due on November 1, 2025 [150]. - The net proceeds from the Convertible Senior Notes offering were approximately $148.3 million after deducting underwriting discounts and commissions [154]. Liquidity and Cash Flow - The company’s liquidity sources include cash flows from operations and availability under a revolving credit facility, enhanced by recent developments such as the Stateline joint venture and convertible notes issuance [145]. - As of March 31, 2025, the company had cash and cash equivalents totaling $16.7 million, with projected operating cash flows and borrowing capacity expected to meet operational needs for the next 12 months [153]. - The company’s liquidity position is supported by cash reserves, projected operating cash flows, and borrowing capacity, ensuring adequate liquidity for operational needs including debt service obligations and purchase commitments [153]. - Net cash provided by operating activities increased to $25.7 million for the three months ended March 31, 2025, up from $16.9 million in the same period of 2024, representing an increase of 52.2% [159]. Shareholder Actions - The company authorized a share repurchase program with a limit of $50.0 million, having repurchased 4,272,127 shares for $34.6 million as of March 31, 2025, leaving $15.4 million remaining under the program [155]. - The company has short-term purchase commitments due within 12 months totaling $153.0 million and long-term commitments of $774.5 million, with $324.1 million scheduled for fulfillment in 2025 [151]. Taxation - The effective combined United States federal and state income tax rates were 23.2% for Q1 2025, compared to 20.3% for Q1 2024, reflecting changes in operating gains [144].

Company Overview - Soitec is a world leader in innovative semiconductor materials, with over 30 years of experience in developing cutting-edge products that deliver technological performance and energy efficiency [2] - The company generated sales of €1 billion in the fiscal year 2023-2024 [2] - Soitec serves three main strategic markets: Mobile Communications, Automotive and Industrial, and Edge and Cloud AI [2] - The company employs 2,300 individuals from 50 different nationalities across its sites in Europe, the United States, and Asia [2] - Soitec has registered over 4,000 patents [2] Share Capital and Voting Rights - As of March 31, 2025, Soitec has a total of 35,726,462 ordinary shares with a par value of €2.00 each [3] - The total number of theoretical (gross) voting rights is 45,641,575, while the total number of exercisable (net) voting rights is 45,567,342 [1][3]

Company Overview - Soitec is a world leader in innovative semiconductor materials, with over 30 years of experience in developing cutting-edge products that deliver technological performance and energy efficiency [3] - The company generated sales of €1 billion in the fiscal year 2023-2024 [3] - Soitec serves three main strategic markets: Mobile Communications, Automotive and Industrial, and Edge and Cloud AI [3] - The company employs 2,300 individuals from 50 different nationalities across its sites in Europe, the United States, and Asia [3] - Soitec has registered over 4,000 patents, showcasing its commitment to innovation [3] Share Capital and Voting Rights - As of March 31, 2025, Soitec has a total of 35,726,462 ordinary shares with a par value of €2.00 each [5] - The total number of theoretical (gross) voting rights is 45,637,628, while the total number of exercisable (net) voting rights is 45,567,342 [1][5] - The calculation of voting rights includes shares with single or double voting rights and excludes shares without voting rights, such as treasury shares [5]

Acquisition Details - Solaris Energy Infrastructure, Inc. completed the acquisition of Mobile Energy Rental LLC for a total consideration of $136.7 million, which includes $60 million in cash and 16,464,778 units of Solaris LLC and an equal number of shares of Class B Common Stock[2] - Solaris incurred $162 million of additional debt to refinance existing debt and fund the cash due at closing of the transaction[3] - The acquisition method of accounting was used, with assets and liabilities recorded at their fair values as of the acquisition date[3] - The transaction is subject to closing adjustments that have not yet been finalized, indicating potential variability in the final accounting[8] Financial Projections - The pro forma combined total revenue for the year ended December 31, 2024, is projected to be $339.033 million, reflecting an increase from historical revenues[11] - The pro forma operating income is estimated at $43.655 million, with total operating costs and expenses amounting to $295.378 million[11] - Net income attributable to common shareholders is projected to be $6.246 million, with earnings per share of $0.22 on a diluted basis[11] - Total revenues for the pro forma year ended December 31, 2024 are projected to be $23,721 thousand, with lease income contributing $7,821 thousand and service revenue at $2,103 thousand[20] - Net income for the pro forma year ended December 31, 2024 is estimated at $12,930 thousand, reflecting a significant increase from historical figures[20] Revenue Breakdown - The transaction is expected to enhance Solaris's service and leasing revenue, with service revenue projected at $264.260 million and leasing revenue at $60.141 million[11] Pro Forma Adjustments - The pro forma adjustments are preliminary and may change as additional information becomes available, potentially impacting the financial statements materially[8] - Solaris management believes the pro forma financial statements reflect necessary adjustments to present the combined financial information fairly[6] - The pro forma adjustment to interest expense for the year ended December 31, 2024 is estimated to be a net reduction of $5,442 thousand, with a variable interest rate assumed at 10.8%[24] - The company anticipates an additional pro forma depreciation and amortization expense of $8,422 thousand related to the acquisition of identifiable property and equipment[26] - The effective combined U.S. federal and state income tax rate used for pro forma adjustments is 20.2%, leading to a provision for income taxes of $5.7 million[29] - The pro forma adjustment includes the elimination of historical non-leasing depreciation and amortization expenses, resulting in a new depreciation expense of $219 thousand[25] Equipment Depreciation - The company expects to depreciate equipment held for lease once it is delivered and ready for use within the next twelve months[28] Non-Controlling Interests - The transaction resulted in a net loss related to non-controlling interests of $1.5 million due to the issuance of 16.5 million Solaris LLC units[30] Earnings Per Share - Pro forma earnings per share for Class A common stock are projected at $0.22 (basic) and $0.21 (diluted) for the year ended December 31, 2024[32]

Core Insights - Soitec has demonstrated its commitment to innovation by rising in the 2024 INPI patent ranking, confirming its role in developing disruptive technologies [1][2][4] - The company filed 76 patents in France in 2024, an increase from 62 in the previous year, showcasing the strength of its innovation strategy [3][7] - Soitec dedicates 14% of its revenue to R&D, focusing on innovative materials for mobile communications, artificial intelligence, and power electronics [4][6] Innovation and Patent Strategy - Soitec's patents originate from all its global innovation sites, reflecting a collaborative approach that combines technological excellence with local roots [2][3] - The company has a robust patent portfolio with approximately 400 patents filed worldwide each year, securing its innovations and ensuring market differentiation [3][4] - Soitec has registered over 4,000 patents, reinforcing its position as a technology leader [8] Product Development and Market Position - The company is at the forefront of Photonics-SOI technology, facilitating the transition from electrical to optical interconnects, crucial for data centers and telecommunications [5] - Soitec's SmartSiC™ silicon carbide wafers enhance performance and sustainability in power electronics, vital for electric mobility and the energy sector [5] - The POI (Piezoelectric On Insulator) substrate, developed using SmartCut™ technology, is suitable for advanced applications in optoelectronics and telecommunications [5] Financial Performance and Growth - Soitec generated sales of 1 billion Euros in the fiscal year 2023-2024, indicating strong financial performance [6] - The company ranks 1st among the most innovative mid-sized companies for the second consecutive year and has risen to 22nd place nationally, up three places [7]

Core Insights - The article highlights the acceleration of co-packaged optics (CPO) solutions for data centers, driven by the increasing data demands of AI and high-performance computing [2][4][8] - Soitec is positioned as a leader in silicon-on-insulator (Photonics-SOI) technology, which is essential for the development of CPO components [5][8] - Recent industry initiatives, including NVIDIA's launch of CPO products, indicate a growing momentum for the commercialization of CPO solutions [3][5] Industry Developments - The demand for silicon photonics-based CPO architectures is rising due to the need for higher bandwidth and energy efficiency in data centers [2][4] - CPO adoption can lead to energy savings of approximately 30% compared to traditional optical transceiver solutions [4][8] - The formation of alliances, such as Soitec's membership in the SEMI Silicon Photonics Industry Alliance, aims to enhance innovation and collaboration in the silicon photonics sector [5][8] Company Positioning - Soitec generated sales of 1 billion Euros in the fiscal year 2023-2024, indicating strong market performance [6] - The company has over 30 years of experience in semiconductor materials and holds more than 4,000 patents, showcasing its innovation capabilities [6] - Soitec's CEO emphasized the strategic importance of CPO-based architectures as a significant opportunity for the company's advanced semiconductor materials [5]

Financial Performance - Total revenue for the year ended December 31, 2024, was $313.1 million, an increase from $292.9 million in 2023, representing a growth of 6.4%[325]. - Service revenue decreased to $263.2 million in 2024 from $269.5 million in 2023, a decline of 2.4%[325]. - Net income attributable to Solaris Energy Infrastructure, Inc. was $15.8 million for 2024, down from $24.3 million in 2023, a decrease of 35.5%[325]. - Operating income for 2024 was $52.8 million, an increase from $49.9 million in 2023, reflecting a growth of 3.8%[325]. - Earnings per share of Class A common stock decreased to $0.51 in 2024 from $0.78 in 2023, a decline of 34.6%[325]. - Net income for the year ended December 31, 2024, was $28,918,000, a decrease of 25.4% from $38,775,000 in 2023[329]. - Operating cash flow for 2024 was $59,367,000, down from $88,261,000 in 2023[329]. - Adjusted EBITDA for 2024 was $124.4 million, up from $115.1 million in 2023, indicating a year-over-year increase of 8.9%[418]. Acquisition and Growth - The acquisition of Mobile Energy Rentals LLC was completed for a total purchase consideration of $323.1 million, which included $65.9 million allocated to intangible assets related to customer relationships[305]. - The acquisition of Mobile Energy Rentals, LLC (MER) on September 11, 2024, constituted 48% of total assets and 12% of total revenues for the year ended December 31, 2024[316]. - The acquisition of MER is expected to enhance the company's capabilities in providing mobile, configurable equipment solutions and logistics services across various industries[399]. - The fair value of identifiable net assets acquired from MER was $232.1 million, with goodwill recognized at $91.0 million[409]. - The company recognized $4.4 million in acquisition-related costs for the year ended December 31, 2024, primarily consisting of legal and consulting fees[411]. Financial Obligations and Risks - The company incurred a senior secured term loan of $325 million to fund the MER Acquisition, along with a new revolving credit facility of up to $75 million[138]. - The financing agreements impose significant financial covenants, including restrictions on incurring additional debt and maintaining certain leverage and fixed charge coverage ratios[139]. - Solaris Inc. expects substantial payment obligations under the Tax Receivable Agreement, with estimated termination payments of approximately $115.6 million if terminated immediately after the filing of the Annual Report[180]. - The liability under the Tax Receivable Agreement (TRA) was $77.3 million, representing 85% of anticipated net cash savings from tax benefits[308]. - Changes in tax laws or regulations could adversely affect Solaris Inc.'s operating results and cash flows, increasing future tax liabilities[155]. Market and Operational Risks - The company faces potential limitations on utilizing its NOLs due to ownership changes, which could adversely affect future income and cash flows[137]. - Regulatory initiatives related to hydraulic fracturing may increase operational costs and limit future exploration and production activities, adversely impacting the company's business[141]. - Increased attention to climate change and ESG matters may lead to reduced demand for hydrocarbon products and increased compliance costs[145][146]. - The company may face increased scrutiny and litigation risks related to its ESG commitments and practices, particularly concerning allegations of greenwashing[151]. - Solaris Inc. is subject to stringent environmental and occupational health and safety laws, which may expose it to significant costs and liabilities[143]. Stockholder and Governance Matters - Significant stockholders, including Yorktown and legacy equity holders of MER, collectively hold approximately 41% of the voting power, which could influence management decisions and deter hostile takeovers[163]. - The exclusive forum provision in the amended and restated certificate of incorporation may limit stockholders' ability to bring claims in favorable judicial forums, potentially discouraging lawsuits[172]. - Certain directors and officers may have conflicts of interest due to their responsibilities with competing entities, potentially affecting business opportunities for Solaris Inc.[166]. - The amended and restated certificate of incorporation allows for the issuance of preferred stock, which could adversely impact the value of Class A common stock[167]. Cash and Assets Management - The company's cash and cash equivalents increased significantly to $114.3 million in 2024 from $5.8 million in 2023[323]. - Total assets rose to $1.1 billion as of December 31, 2024, compared to $468.3 million in 2023, marking a growth of 139.0%[323]. - Cash and cash equivalents at the end of 2024 were $159,867,000, significantly up from $5,833,000 at the end of 2023[330]. - Total segment assets increased to $907.0 million in 2024 from $401.1 million in 2023, a growth of 126.5%[424]. Revenue Recognition and Customer Relations - The majority of service revenue is derived from mobile proppant and fluid management systems, with revenue recognized based on the transfer of control to the customer[372][373]. - Revenue from Systems is primarily recognized over time, with customers billed a fixed daily rate based on service days utilized[376]. - Last mile logistics services revenue is recognized over time based on the output method as proppant is transported, charging a fixed rate per ton[380]. - Major customer A contributed $54.6 million, or 17.4% of total consolidated revenue in 2024, compared to $35.1 million, or 12.0% in 2023[430].