Siltronic narrows profit margin outlook, Q3 in line

Core Insights - Siltronic has narrowed its annual profit margin outlook while reporting third-quarter results that met market expectations despite negative currency impacts and delivery shifts to the next quarter [1][2]. Financial Performance - The company reported sales of 300.3 million euros ($350.2 million) for the third quarter, a decrease from 357.3 million euros a year earlier, aligning closely with analysts' average forecast of 300.7 million euros [2]. - Siltronic now expects an EBITDA margin of 22% to 24% for 2025, revised from a previous forecast of 21% to 25% [2]. Market Reaction - Shares of Siltronic have increased by 28% since the beginning of the year, with a 1.3% rise in early trading, outperforming Germany's small-cap index [3]. Operational Challenges - The third quarter was affected by significant delivery shifts into the fourth quarter and negative foreign exchange effects, which impacted sales and profitability, as stated by CEO Michael Heckmeier [3]. - Analysts at Jefferies noted that cost-saving measures are helping to mitigate some pressure on the bottom line due to volume shifts into the fourth quarter [4]. Industry Context - Siltronic and other suppliers like Aixtron and Besi are experiencing a slump in demand due to slower-than-expected inventory reductions by customers, despite some offset from AI chip demand [5]. - The company confirmed its full-year guidance for sales and EBIT, indicating stability amid the current challenges [5].