Soitec Reports Fourth Quarter Revenue and Full-Year Results of Fiscal Year 2025

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]