Aixtron Q2: optoelectronics driving demand
Revenues at upper end of guidance range with strong pull from AI data centre applications
Aixtron SE has reported revenues of €137.4m for Q2 and €249.9m for the first half of the year (H1/2024: €250.1m). This places the company well at the upper end of its Q2 guidance range of €120m to €140m, reflecting a strong performance in a generally soft market environment.
Demand in the optoelectronics segment continues to gain momentum, according to the company, fuelled by increasing requirements for datacom lasers particularly for AI data centres. The G10 MOCVD tools series remains a key driver of success: The G10-AsP has been firmly established as the new tool of record in the laser market, and a major SiC volume order from China was won and successfully fulfilled by shipping the G10-SiC. The GaN and SiC power segments remain soft, with demand mostly driven by Asian customers.
Aixtron confirms the guidance for the full year 2025 (revenues between €530m and €600m, gross margin of around 41 percent to 42 percent, EBIT margin of around 18 percent to 22 percent).
"Our strategy of targeting diverse, uncorrelated end markets continues to prove its value. While the SiC and GaN power electronics markets have not reached the turning point, we are seeing continued momentum in the datacom laser market. Our G10-AsP tool has firmly established itself as the tool of record, with volume orders coming from many of the leading laser manufacturers. Although a broader market recovery has yet to take shape, our strong execution keeps us firmly on track," said Felix Grawert, CEO of Aixtron.
SiC tool demand particularly benefited from the transition from 150 mm to 200 mm wafers, as well as from the need for higher-productivity tools in response to increasing cost sensitivity of customers. One large volume order for G10-SiC from China was received and completed in H1/2025.
Order intake in the first six months of 2025 amounted to €250.7m, in-line with expectations (H1/2024: €296.0m). In the second quarter 2025 order intake came in at €118.5m (Q2/2024: €175.7m). As of June 30, 2025, equipment order backlog stood at €284.6m (June 30, 2024: €400.6m), virtually unchanged from the €289.3m at the end of 2024.
Gross profit and gross margin
Aixtron recorded a gross profit of €89.9m in the first six months of 2025 (H1/2024: €92.9m), with a gross margin of 36 percent (H1/2024: 37 percent). This includes one-off expenses in the mid-single-digit-million-euro range related to the implemented personnel reduction in the operations area. Adjusted for this effect, the gross margin slightly exceeds the previous year's level at around 38 percent, mainly due to an improved product mix.
Operating expenses decreased by 11 percent in the second quarter 2025, totalling €32.2m (Q2/2024: €36.3m). Research and development expenses, which account for the largest share, were reduced by 24 percent to €36.0m in the first six months of 2025 (H1/2024: €47.5m) due to reduced external contract work and consumables costs. Strong exchange rate changes led to expenses from exchange rate valuation €4.6m in the first six months of 2025 (H1/2024: expense of €1.9m).
The operating result (EBIT) in the first six months of 2025 was €26.9m, corresponding to an EBIT margin of 11 percent, which was above the previous year (H1/2024: €22.8m; 9 percent). This includes the one-time expenses mentioned above. Adjusted for this effect, the EBIT margin was significantly higher than the previous year at around 13 percent, mainly due to the improved product mix and lower R&D expenses. The profit for the period in the first six months of 2025 came in at €24.3m (H1/2024: €22.0m).
Strong improvement in free cash flow
Cash flow from operating activities in the second quarter 2025 was €50.0m, significantly above the previous year's level (Q2/2024: €20.2m), driven primarily by continued inventory reductions. Year-over-year, inventories have been reduced by €120m (June 30, 2025: €327.9m; June 30, 2024: €447.9m). Free cash flow benefited from improved operating cash flow and significantly lower capital expenditures compared to the previous year, amounting to €71.1m in the first six months of 2025 (H1/2024: €-56.5m). This corresponds to an improvement of €127.6m year-over-year.
As of June 30, 2025, following the dividend payment of €16.9m, Aixtron reported cash and cash equivalents, including other current financial assets, of €114.8m (December 31, 2024: €64.6m). The equity ratio increased to 87 percent, underscoring Aixtron's strong financial position (December 31, 2024: 83 percent).
"The continuation of the positive trend in our free cash flow underlines that we are progressing as planned. We are further reducing working capital, driven by ongoing inventory optimisation. Rebuilding our strong cash position remains a key priority to ensure full strategic flexibility," said Christian Danninger, CFO of Aixtron.
2025 full year guidance confirmed
Based on the current market development, the current tariffs situation and the budget rate of 1.10 $/€, the executive board confirms the guidance for the fiscal year 2025 published on February 27, 2025. The board expects revenues in a range of €530m to €600m, a gross margin of 41 percent to 42 percent and an EBIT margin of 18 percent to 22 percent for the 2025 fiscal year.
An average $/€ exchange rate of 1.20 in the second half of fiscal year 2025 could reduce the full-year gross- and EBIT margin by around 1 percentage point.
The board says it will continue to monitor the impact of US tariff policies on the global economy and any resulting countermeasures, in order to continuously assess the potential effects on its supply chain and production, as well as on customer demand and thus on Aixtron's business development, and to take corrective actions if necessary.
For the third quarter of 2025, the board expects revenues in the range of €110m to €140m.
