Aixtron delivers robust Q1 in soft market
Aixtron SE generated revenues of €112.5 million in the first three months of the year (Q1/2024: €118.3 million), demonstrating a strong performance in a soft market environment and exceeding the upper end of the guidance range of €90.0 million to €110.0 million.
Particularly encouraging, according to the company, 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.
The current demand for equipment for efficient power electronics based on GaN and SiC is primarily driven by Asian customers. Order intake in the first three months of 2025 totalled €132.2 million, surpassing the previous year's level (Q1/2024: €120.3 million) and exceeding expectations. As of March 31, 2025, Equipment order backlog stood at €307.9 million, down from €355.0 million a year earlier but up from €289.3 million at the end of 2024.
In 2023 and 2024, Aixtron built a 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 €100 million, the project was completed in 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 Felix Grawert, CEO of Aixtron SE.
Gross profit and gross margin
Aixtron recorded a gross profit of €34.1 million first three months of 2025 (Q1/2024: €43.8 million) with a gross margin of 30 percent (Q1/2024: 37 percent). This includes one-off expenses of around €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 percent, 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 percent in the first quarter of 2025, totaling €30.8 million (Q1/2024:€33.8 million). Research and development expenses which account for the largest share, declined by -23 percent to €17.7 million in the first quarter of 2025 (Q1/2024: €22.9 million).
The operating result (EBIT) in the first three months of 2025 was €3.3 million, corresponding to an EBIT margin of 3 percent (Q1/2024: €9.9 million, 8 percent). 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 €5.1 million (Q1/2024: €10.8 million).
Strong improvement in free cash flow
Cash flow from operating activities in the first quarter of 2025 was €35.1 million, significantly higher than the previous year (Q1/2024: €-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 €29.8 million in the first three months of 2025 (Q1/2024: €-33.1 million). This corresponds to an improvement of €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 €93.3 million (December 31, 2024: €64.6 million). The slightly increasing high equity ratio of 87 percent as of March 31, 2025 underscores Aixtron's financial strength (December 31, 2024: 83 percent).
"The positive trend in our free cash flow is especially encouraging. As announced, we are gradually reducing working capital, driven by ongoing inventory optimisation. Additionally, we have completed the necessary investments in our new Innovation Center, allowing us to benefit from significantly lower capital expenditures," says 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 €530 million to €600 million, a gross margin of around 41 percent to 42 percent and an EBIT margin of around 18 percent to 22 percent for the 2025 fiscal year.
The guidance for the gross margin and EBIT margin includes one-off expenses of around €5 million related to the announced personnel reduction in the operations area. The measure will lead to annualised savings in the mid-single-digit million €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 €120 million to €140 million.
The Executive Board says it will closely monitor the impact of US tariff policies on the global economy and any resulting countermeasures.
