Siltronic AG

Q2 2025 sales were EUR 329 million, down 5% quarter over quarter. EBITDA was EUR 86 million versus EUR 78 million in Q1, and EBITDA margin improved to 26.3% from 22.6%. EBIT came in at EUR 24 million, up EUR 9 million versus Q1, and net income was EUR 15 million. CapEx was EUR 126 million in Q2, operating cash flow in H1 was EUR 80 million, cash and securities ended June at EUR 535 million, and net financial debt rose to EUR 903 million from EUR 734 million at year-end 2024. For 2025, Siltronic now expects sales to be in the mid-single-digit percentage range below 2024, Q3 sales below Q2, EBITDA margin of 21% to 25%, depreciation of EUR 340 million to EUR 400 million, and unchanged CapEx, EBIT, and net cash flow guidance.

Michael Heckmeier framed the quarter as solid execution in a difficult market, emphasizing that H1 targets were achieved despite subdued wafer demand. He said the biggest near-term headwind is FX, with the weaker U.S. dollar forcing a sales-guidance reset, while tariff uncertainty and elevated inventories continue to cloud visibility. Strategically, he highlighted the successful qualification of prime wafers in the new Singapore fab, the start of depreciation in August, and the completion of the small-diameter phaseout by the end of July.

Claudia Schmitt focused on the financial bridge behind the quarter: Q2 sales of EUR 329 million, EBITDA of EUR 86 million, EBIT of EUR 24 million, and net income of EUR 15 million. She said the EBITDA improvement reflected fixed-cost dilution, seasonal effects, a valuation adjustment on spare parts tied to the small-diameter phaseout, and higher capitalization of innovation projects. She also noted CapEx of EUR 126 million in Q2 and EUR 222 million in H1, cash and securities of EUR 535 million, net financial debt of EUR 903 million, syndicated loan drawdown of EUR 53 million, and undrawn revolver capacity of EUR 127 million. She added that H2 net cash flow should improve versus H1, helped by working capital and lower investing activity, while repayment of financial liabilities begins in Q4 2025.

Analysts pressed on the stability of Siltronic’s market share despite slower dynamics versus peers, the risk from Chinese competition, and why Q4 volumes should still materialize after repeated pushouts. Management said market share remains stable because gains at some customers offset weaker mix elsewhere, and it does not see accelerating China dynamics outside China or a near-term threat to premium leading-edge products. On Q4, management said the pushouts are based on a consolidated pattern of individual customer discussions and expressed reasonable confidence the volumes will land as planned. Questions on 2026 CapEx and leverage were answered with a cautious message: CapEx should come down versus the FabNext-driven 2025 level, but 2026 was not guided, and management said it expects to stay within financial covenants without giving details.