EQS-News: AIXTRON delivers robust Q1 in soft market environment

AIXTRON delivers robust Q1 in soft market environment

Order Intake in Q1 above previous year / Revenues exceed upper end of guidance range / First wafer processed in new Innovation Center / Significant increase in free cash flow / Guidance for 2025 confirmed

Herzogenrath, Germany, April 30, 2025 – AIXTRON SE (FSE: AIXA, ISIN DE000A0WMPJ6)  generated revenues of EUR 112.5 million in the first three months of the year (Q1/2024: EUR 118.3 million), demonstrating a strong performance in a soft market environment and exceeding the upper end of the guidance range of  EUR 90.0 million to EUR 110.0 million. Particularly encouraging are the positive developments in the market for photonics applications and the increasing sales success of the G10-AsP system in this segment. Nokia, for example, has been acquired as a customer.

Order intake and order backlog

The current demand for equipment for efficient power electronics based on gallium nitride (GaN) and silicon carbide (SiC) is primarily driven by Asian customers. Order intake in the first three months of 2025 totaled EUR 132.2 million, surpassing the previous year's level (Q1/2024: EUR 120.3 million) and exceeding expectations. As of March 31, 2025, Equipment order backlog stood at EUR 307.9 million, down from EUR 355.0 million a year earlier but up from EUR 289.3 million at the end of 2024.

First 300mm wafer processed in the new Innovation Center

In 2023 and 2024, AIXTRON built the new Innovation Center to fully exploit the potential of 300mm GaN technology, expanding the existing cleanroom space by 1,000m² in Herzogenrath. With an investment of around EUR 100 million, the project was completed in record time - just 15 months from groundbreaking to commissioning the first 300mm deposition system. The next milestone was reached in the first quarter: the first 300mm GaN-wafer was successfully processed.

"We are pleased with the start of the new year. The higher order intake compared to the previous year confirms that our product range is very well positioned, even in a challenging market environment. Additionally, the swift ramp-up of our new Innovation Center showcases AIXTRON's execution capabilities. The ability to process our own 300mm GaN wafers in the Innovation Center enables us to better support our customers in the future transition to the next wafer size. This will position us optimally for the next growth phase," says Dr. Felix Grawert, CEO of AIXTRON SE.

Gross profit and gross margin

AIXTRON recorded a gross profit of EUR 34.1 million first three months of 2025 (Q1/2024: EUR 43.8 million) with a gross margin of 30% (Q1/2024: 37%). This includes one-off expenses of around EUR 5 million related to the announced personnel reduction in the operations area. Adjusted for this effect, the gross margin is slightly below the previous year at around 35%, mainly due to a less favorable product mix and selected product enhancements in connection with the ramp-up of the G10 series.

Operating expenses and result

Operating expenses decreased by 9% in the first quarter of 2025, totaling EUR 30.8 million (Q1/2024:EUR 33.8 million). Research and development expenses which account for the largest share, declined by -23% to EUR 17.7 million in the first quarter of 2025 (Q1/2024: EUR 22.9 million).

The operating result (EBIT) in the first three months of 2025 was EUR 3.3 million, corresponding to an EBIT margin of 3% (Q1/2024: EUR 9.9 million, 8%). The decline in EBIT compared to the previous year is mainly due to lower volume and expenses for the one-time effects described above. The profit for the period in the first three months of 2025 came in at EUR 5.1 million (Q1/2024: EUR 10.8 million).

Strong improvement in free cash flow

Cash flow from operating activities in the first quarter of 2025 was EUR 35.1 million, significantly higher than the previous year (Q1/2024: EUR -7.4 million), positively impacted by the further  inventory reductions. Free cash flow benefited from improved operating cash flow and significantly lower capital expenditures compared to the previous year and amounted to EUR 29.8 million in the first three months of 2025 (Q1/2024: EUR -33.1 million). This corresponds to an improvement of EUR 62.9 million compared to the previous year.

As of March 31, 2025, AIXTRON reported cash and cash equivalents including other current financial assets of EUR 93.3 million (December 31, 2024: EUR 64.6 million). The slightly increasing high equity ratio of 87% as of March 31, 2025 underscores AIXTRON's financial strength (December 31, 2024: 83%).

"The positive trend in our free cash flow is especially encouraging. As announced, we are gradually reducing working capital, driven by ongoing inventory optimization. Additionally, we have completed the necessary investments in our new Innovation Center, allowing us to benefit from significantly lower capital expenditures," says Dr. Christian Danninger, CFO of AIXTRON SE.

2025 full year guidance confirmed

The risks associated with US tariffs policy are currently considered insignificant, as semiconductor equipment is currently not subject to US tariffs. Therefore, based on the current market development, the Executive Board confirms the guidance for the fiscal year 2025 published on February 27, 2025. The Executive Board expects revenues in a range of EUR 530 million to EUR 600 million, a gross margin of around 41% to 42% and an EBIT margin of around 18% to 22% for the 2025 fiscal year.

The guidance for the gross margin and EBIT margin includes one-off expenses of around EUR 5 million related to the announced personnel reduction in the operations area. The measure will lead to annualized savings in the mid-single-digit million EUR range in future, corresponding to an improvement in the gross margin and EBIT margin of around 1pp.

For the second quarter of 2025, the Executive Board expects revenues in a range of around EUR 120 million to EUR 140 million.

The Executive Board will closely monitor the impact of US tariff policies on the global economy and any resulting countermeasures, in oder to continuously assess the potential effects on its supply chain and production, as well as on customer demand and thus on AIXTRON's business development, and to take corrective actions if necessary.

Key figures at a glance

* not meaningful

Financial information

The presentation on the results for the first three months of 2025 is available at: www.aixtron.com/en/investors/publications/ir-presentations.

The complete financial tables of the Group (income statement, other comprehensive income, balance sheet, cash flow statement and statement of changes in equity) related to this press release are available as part of the Group's Quarterly Statement Q1/2025 at:

www.aixtron.com/en/investors/publications.

Investor conference call

In conjunction with the release of the Q1/2025 results, AIXTRON will host a conference call (in English) for analysts and investors on Wednesday, April 30, 2024 at 15:00 p.m. CEST (06:00 a.m. PST, 09:00 a.m. EST).

Please register for the event online at "Analyst Conference Call – Q1/2025". You will then receive an email with your personal access details.

An audio recording or transcript can be found after the conference at:

www.aixtron.com/en/investors/events/conference-calls.

Contact

Media & Investors:

Christian Ludwig

Vice President Investor Relations

fon +49 (2407) 9030-444

e-mail c.ludwig@aixtron.com

About AIXTRON

AIXTRON SE is a leading provider of deposition equipment to the semiconductor industry. The Company was founded in 1983 and is headquartered in Herzogenrath (near Aachen), Germany, with subsidiaries and sales offices in Asia, United States and in Europe. AIXTRON´s technology solutions are used by a diverse range of customers worldwide to build advanced components for electronic and optoelectronic applications based on compound semiconductor materials. Such components are used in a broad range of innovative applications, technologies, and industries. These include Laser and LED applications, display technologies, data transmission, SiC and GaN power management and conversion, communication, signaling and lighting as well as a range of other leading-edge applications.

Our registered trademarks: AIXACT®, AIX-Multi-Ject®, AIXTRON®, Close Coupled Showerhead®, EXP®, EPISON®, Gas Foil Rotation®, Multi-Ject®, OVPD®, Planetary Reactor®, PVPD®, STExS®, TriJet®.

For further information on AIXTRON (FSE: AIXA, ISIN DE000A0WMPJ6) please visit our website at: www.aixtron.com

Forward-Looking Statements

This document may contain forward-looking statements regarding the business, results of operations, financial condition and earnings outlook of AIXTRON. These statements may be identified by words such as “may”, “will”, “expect”, “anticipate”, “contemplate”, “intend”, “plan”, “believe”, “continue” and “estimate” and variations of such words or similar expressions. These forward-looking statements are based on our current assessments, expectations and assumptions, of which many are beyond control of AIXTRON, and are subject to risks and uncertainties. You should not place undue reliance on these forward-looking statements. Should these risks or uncertainties materialize or should underlying expectations not occur or assumptions prove incorrect, actual results, performance or achievements of AIXTRON may materially vary from those described explicitly or implicitly in the relevant forward-looking statement. This could result from a variety of factors, such as actual customer orders received by AIXTRON, the level of demand for deposition technology in the market, the timing of final acceptance of products by customers, the condition of financial markets and access to financing for AIXTRON, general conditions in the market for deposition plants and macroeconomic conditions, cancellations, rescheduling or delays in product shipments, production capacity constraints, extended sales and qualification cycles, difficulties in the production process, the general development in the semi-conductor industry, increased competition, fluctuations in exchange rates, availability of public funding, fluctuations and/or changes in interest rates, delays in developing and marketing new products, a deterioration of the general economic situation and any other factors discussed in any reports or other announcements , in particular in the chapter Risks in the Annual Report, filed by AIXTRON. Any forward-looking statements contained in this document are based on current expectations and projections of the executive board based on information available the date hereof. AIXTRON undertakes no obligation to revise or update any forward-looking statements as a result of new information, future events or otherwise, unless expressly required to do so by law.

This document is an English language translation of a document in German language. In case of discrepancies, the German language document shall prevail and shall be the valid version.