• Revenue: EUR346 million in Q1 2025.
• Quarter-over-Quarter Sales Decline: 4% decrease.
• EBITDA Margin: 22.6% in Q1 2025, down from 25.8% in Q4 2024.
• EBITDA: EUR78 million in Q1 2025.
• Net Income: EUR4 million in Q1 2025.
• CapEx: EUR97 million in Q1 2025.
• Net Cash Flow: Negative EUR74 million in Q1 2025.
• Net Financial Debt: Increased to EUR819 million by the end of March 2025.
• Equity Ratio: 44% as of the end of March 2025.
• Tax Rate: 43% in Q1 2025.

• Warning! GuruFocus has detected 9 Warning Signs with SSLLF.

Release Date: April 30, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Siltronic AG (SSLLF) maintained a stable market share in Q1 2025, demonstrating resilience in the semiconductor industry.
• The company's sales guidance for 2025 remains unchanged despite uncertainties, indicating confidence in their market position.
• Siltronic AG (SSLLF) is strategically focusing on leading-edge and advanced memory applications, positioning itself well for future demand.
• The qualifications for the new fab in Singapore are progressing well, with plans for depreciation to start by the end of the year.
• The company benefits from long-term agreements (LTAs) that provide stability in pricing and customer relationships.

Negative Points

• Quarter-over-quarter sales declined by 4%, attributed to negative product mix and price effects.
• The EBITDA margin decreased to 22.6% in Q1 2025 from 25.8% in Q4 2024, impacted by negative FX valuation effects.
• Net cash flow was negative at EUR74 million, with CapEx spending exceeding depreciation.
• The company's tax rate remained elevated at 43%, influenced by lower profit before taxes and local taxation in Singapore.
• Siltronic AG (SSLLF) faces increased uncertainties due to US tariffs and corresponding countermeasures, affecting market growth projections.

Q & A Highlights

Q: Could you give us some color on the moving parts that you expect for your cash flows over the coming quarters? A: Claudia Schmitt, CFO, explained that while they don't disclose Q1 net cash flow development, there were cutoff date effects in Q1 regarding trade payables and receivables. These effects should not be projected for the full year.

Q: Are you maintaining your view on a strong second half revamp, and how often are you in discussions with customers about order timing? A: Michael Heckmeier, CEO, stated that there were more shifts from H1 to H2 this year compared to last year. They are in regular contact with customers, and while there is a risk of further postponements, FX remains a substantial risk.

Q: Can you provide an update on inventory dynamics in memory, logic, and power? A: Michael Heckmeier noted that inventory levels remain similar to the last quarter. Logic is close to normal levels, memory is decreasing slowly, and power remains high without trending backward.

Q: Can you quantify the pricing trends, especially in non-LTA portions of 300 millimeter wafers? A: Michael Heckmeier clarified that LTA pricing is stable, covering two-thirds of their business. Non-LTA pricing discussions are more pronounced in smaller diameters, confirming their strategic exit from that business by July.

Q: When do major LTAs expire, and what is your minimum CapEx level if conditions worsen? A: Michael Heckmeier confirmed no major LTAs expire this year, and they are concluding new ones. CapEx can be reduced if the market weakens, but this year's guidance is firm due to necessary investments in the new Singapore fab.

Q: Could you confirm the amount of loan volume left to draw and the size of your available RCF? A: Claudia Schmitt stated they will draw the last portion of the term loan in Q2, with the revolving credit facility available as a liquidity reserve. The specific amounts are not disclosed.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.