Soitec cuts FY25 guidance

Published 05/02/2025, 19:32
© Reuters.

Investing.com -- Soitec (EPA:SOIT) (EPA:SOI) released its third-quarter fiscal year 2025 results today, which missed consensus estimates and led to a reduction in its full-year guidance.

The semiconductor materials manufacturer reported group revenue of €226 million, a significant drop from the expected €252 million and a 14% decrease compared to Jefferies’ estimate of €262 million.

The company’s Mobile Communications segment performed better than anticipated, with revenue of €154 million exceeding the consensus by 9%.

However, this was overshadowed by the underperformance in the Auto & Industrial and Edge & Cloud AI segments, which saw revenues fall 38% and 37% below consensus.

Soitec also revised its full-year 2025 guidance, predicting a high single-digit year-over-year (YoY) decrease in revenue at constant currency, contrasting with a consensus estimate of a 3.7% decline.

The company’s EBITDA margin projection was also lowered to a range of 32-34%, falling short of the anticipated 34.8% by analysts.

Looking ahead to fiscal year 2026, Soitec provided a cautious statement, citing a lack of visibility in its end markets and predicting limited growth. This contrasts with the previously more optimistic expectations for sales growth of 15% for FY26, as noted by Jefferies.

Their analysts commented on the situation, saying, "This muted outlook implies yet another cut to cons. sales growth in FY26 (+15%), and we expect may erode some of the investor optimism surrounding Soitec’s exposure to CPO."

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