Latest news with #MichaelHeckmeier
Yahoo
30-07-2025
- Business
- Yahoo
Siltronic AG (SSLLF) Q2 2025 Earnings Call Highlights: Resilient Performance Amid Market Challenges
Sales: EUR329 million in Q2, a 5% decline compared to Q1. EBITDA: EUR86 million in Q2, up from EUR78 million in Q1. EBITDA Margin: Increased to 26.3% in Q2 from 22.6% in Q1. CapEx: EUR126 million in Q2, primarily for the new fab in Singapore. Net Cash Flow: Negative EUR83 million in Q2. Net Income: EUR15 million in Q2. Total Assets: EUR4.9 billion at the end of June. Equity Ratio: Stable at 43%. Net Financial Debt: Increased to EUR903 million by the end of June. Full Year Sales Guidance: Expected to be in the mid-single-digit percentage range below 2024 levels. Depreciation Outlook: Expected to range between EUR340 million to EUR400 million. Warning! GuruFocus has detected 10 Warning Signs with SSLLF. Release Date: July 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Siltronic AG (SSLLF) achieved its targets for the first half of 2025, delivering solid results despite subdued demand. The company successfully completed important prime wafer qualifications for its new fab, paving the way for depreciation to begin in August. EBITDA improved in Q2 2025, reaching EUR86 million, up from EUR78 million in Q1, with the EBITDA margin increasing to 26.3%. Siltronic AG (SSLLF) maintained stable market share among major competitors, demonstrating resilience in a challenging environment. The company is on track to complete the phase-out of its small diameters business by the end of July 2025, marking a successful transition process. Negative Points Sales declined by 5% quarter-on-quarter, primarily due to FX effects and price differences. The weakening US dollar against the euro posed a significant headwind, leading to a revised full-year sales guidance. Net cash flow remained negative at EUR83 million, with CapEx exceeding depreciation. Elevated inventory levels across key segments continue to weigh on wafer demand, impacting short-term demand recovery. The company anticipates full-year 2025 sales to be in the mid-single-digit range below 2024 levels due to FX developments. Q & A Highlights Q: Can you quantify the decrease in cost of sales from the write-down of spare parts? A: This was a mid-single-digit amount in Q2, which impacted our EBITDA positively. It's a one-time effect. - Claudia Schmitt, CFO Q: How is your market share stable despite slower dynamics compared to peers, and do you see pressure from China's acceleration in 300-millimeter wafers? A: Market share is stable due to gains at other customers despite negative mix effects. We don't see significant acceleration in China dynamics, especially in higher specs where there's a technical gap. - Michael Heckmeier, CEO Q: With inventories still high, how should we think about CapEx in 2026? A: CapEx will come down, but there is a hangover from our fab in Singapore that will trail into '26. We will specify this more concretely closer to the '26 guidance timeframe. - Michael Heckmeier, CEO Q: Are there any major long-term agreements expiring soon, and could current market conditions affect future negotiations? A: No major LTAs are expiring this year or in 2026. We have robust LTAs with long durations, and current market conditions are not conducive to concluding major new LTAs. - Michael Heckmeier, CEO Q: Why are inventories taking so long to come down, and could Asian manufacturers' higher LTA portions affect this? A: The inventory situation is industry-wide, affecting all wafer manufacturers similarly. The decoupling of volume and value growth at certain customers contributes to the prolonged inventory issue. - Michael Heckmeier, CEO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Fast Company
29-07-2025
- Business
- Fast Company
Siltronic lowers annual revenue guidance as semiconductor business weakens
German semiconductor materials supplier Siltronic on Tuesday lowered its full-year sales guidance and warned on sales in the next quarter, amidst continued weakness in its semiconductor business and high customer inventories. The group now expects sales to be in the mid-single-digit percentage range below the previous year, having previously guided towards sales being in the same region as the previous year. Shares in Siltronic, which have fallen 11.3% since the start of the year including today's session, were down 7% as at 1014 GMT. In 2024, the company, which makes silicon wafers used in semiconductor chips, achieved revenue of 1.41 billion euros ($1.63 billion), which was 7% below the previous year. Siltronic, whose customers include Infineon, Intel, Samsung, and TSMC, also said it expects third-quarter sales to be below the previous quarter's level, due to shifts in delivery volumes in 2025, most of which have been postponed to the fourth-quarter. Its second-quarter revenue amounted to 329.1 million euros, down from 351.3 million euros a year earlier. That was ahead of analysts' average forecast of 322 million euros, according to a poll by LSEG. On a conference call with analysts, CEO Michael Heckmeier said that high customer inventories were an issue across the entire industry. Semiconductor materials suppliers have suffered from slower than expected customer inventories reductions. 'We are stable, there's no indication that we are doing significantly better or worse than our peers,' he said. U.S. President Donald Trump's sweeping tariffs and uncertainty over his trade policies have sent global markets into a tailspin and significantly dampened investors' economic optimism. Analysts at Jefferies said in a note that the U.S. and European Union agreement still poses some questions on the potential impact on wafers. Last week, ASML, the world's biggest supplier of computer chip-making equipment, also warned that it may not achieve revenue growth in 2026 as chipmakers building factories in the U.S. await clarity on the potential impact of tariffs. ($1 = 0.8631 euros) —Ozan Ergenay, Reuters
Reuters
29-07-2025
- Business
- Reuters
Siltronic posts Q2 revenue above expectations, cuts guidance
July 29 (Reuters) - German semiconductor materials supplier Siltronic ( opens new tab on Tuesday posted better-than-expected quarterly sales, but cut its annual sales guidance amid continued weakness in its semiconductor business and high customer inventories. The company posted second-quarter revenue of 329.1 million euros ($379.9 million), down from 351.3 million euros a year earlier. That was ahead of analysts' average forecast of 322 million euros according to a poll by LSEG. However, the group lowered its annual revenue expectations. It now expects sales to be in the mid-single-digit percentage range below the previous year, having previously guided towards sales being in the same region as the previous year. Shares in Siltronic, which have fallen 4% since the start of the year including today's session, were down 0.7% in early trading. In 2024, the company, which makes silicon wafers used in semiconductor chips, achieved revenue of 1.41 billion euros ($1.63 billion), which was 7% below the previous year. "The visible growth in end markets has so far not led to a normalization of inventory levels at chip manufacturers. As a result, there is still no noticeable recovery in demand at Siltronic," CEO Michael Heckmeier said in a statement. U.S. President Donald Trump's sweeping tariffs and uncertainty over his trade policies have sent global markets into a tailspin and significantly dampened investors' economic optimism. Analysts at Jefferies said in a note that the U.S. and European Union agreement still poses some questions on the potential impact on wafers. Siltronic confirmed its earnings before interest, taxes, depreciation and amortization margin target of between 21% and 25% for the year. ($1 = 0.8631 euros)
CNA
29-07-2025
- Business
- CNA
Siltronic posts Q2 revenue above expectations, cuts guidance
German semiconductor materials supplier Siltronic on Tuesday posted better-than-expected quarterly sales, but cut its annual sales guidance amid continued weakness in its semiconductor business and high customer inventories. The company posted second-quarter revenue of 329.1 million euros ($379.9 million), down from 351.3 million euros a year earlier. That was ahead of analysts' average forecast of 322 million euros according to a poll by LSEG. However, the group lowered its annual revenue expectations. It now expects sales to be in the mid-single-digit percentage range below the previous year, having previously guided towards sales being in the same region as the previous year. Shares in Siltronic, which have fallen 4 per cent since the start of the year including today's session, were down 0.7 per cent in early trading. In 2024, the company, which makes silicon wafers used in semiconductor chips, achieved revenue of 1.41 billion euros ($1.63 billion), which was 7 per cent below the previous year. "The visible growth in end markets has so far not led to a normalization of inventory levels at chip manufacturers. As a result, there is still no noticeable recovery in demand at Siltronic," CEO Michael Heckmeier said in a statement. U.S. President Donald Trump's sweeping tariffs and uncertainty over his trade policies have sent global markets into a tailspin and significantly dampened investors' economic optimism. Analysts at Jefferies said in a note that the U.S. and European Union agreement still poses some questions on the potential impact on wafers. Siltronic confirmed its earnings before interest, taxes, depreciation and amortization margin target of between 21 per cent and 25 per cent for the year. ($1 = 0.8631 euros)
CNA
29-07-2025
- Business
- CNA
Siltronic lowers full-year guidance
German semiconductor materials supplier Siltronic on Tuesday cut its annual sales guidance, amid continued weakness in its semiconductor business and high customer inventories. The group said it now expects sales to be in the mid-single-digit percentage range below the previous year, having previously guided towards sales being in the same region as the previous year. In 2024, the company achieved revenue of 1.41 billion euros ($1.63 billion), which was 7 per cent below the previous year. "The visible growth in end markets has so far not led to a normalization of inventory levels at chip manufacturers. As a result, there is still no noticeable recovery in demand at Siltronic," CEO Michael Heckmeier said in a statement. Siltronic confirmed its earnings before interest, taxes, depreciation and amortization margin target of between 21 per cent and 25 per cent for the year. ($1 = 0.8631 euros)
