Siltronic Q4 EBIT Down, EBITDA Rises; Cuts Dividend; Sees Flat FY25 Sales, Delays Mid-term Targets

(RTTNews) - Siltronic AG (SLTCY), a German maker of wafers for the semiconductor industry, announced Tuesday preliminary fourth-quarter results, reporting earnings before interest and tax or EBIT, a key earnings metric, of 27 million euros, lower than last year's 36.8 million euros.

EBIT Margin fell to 8 percent from 10.3 percent a year ago.

Preliminary EBITDA, however, grew to 93 million euros from prior year's 91.1 million euros, mainly due to the improved FX result. The preliminary EBITDA margin was 26 percent, up from 25.5 percent a year ago.

Sales increased to 361 million euros from last year's 356.6 million euros.

Looking ahead, for the financial year 2025, the company projects sales to be in the region of the previous year, as demand is expected to remain subdued and no sales growth in 2025. Preliminary sales were 1.41 billion euros in 2024.

According to current estimates, the first six months of 2025 will be the most affected, as customer volume shifts from long-term contracts will also partly occur from the first to the second half of 2025.

The EBITDA margin is expected to be in the range of 22 to 27 percent, compared to preliminary EBITDA margin of 26 percent in 2024.

Further, mid-term ambition has been delayed due to postponed demand recovery.

The company noted that the demand recovery assumed in the mid-term ambition did not materialize in 2024, and the current financial year also continues to be characterized by subdued growth prospects.

As a result, the mid-term ambition of generating sales of more than 2.2 billion euros and an EBITDA margin in the high 30's by 2028 will likely be realized after the year 2028.

Due to the continued demand recovery delay, the Executive Board proposes to the Annual General Meeting on May 12, 2025, a reduction of the dividend to 0.20 euro per share for the financial year 2024.

Michael Heckmeier, CEO of Siltronic, said, "For the year 2025, we anticipate that the growth in the end-markets, primarily driven by AI, will not yet be reflected in our wafer demand due to the persistently elevated inventory levels in the value chain. Therefore, we expect H1 2025 to be significantly weaker than H2 2024."

For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com.