Aixtron posts robust results in a tough market
Aixtron has announced financial results for the 2025 fiscal year. Following the high investment phase in 2023/24 (including the Innovation Center), the company says that 2025 marked a year of adjustment with a slowdown especially in the field of LEDs including microLEDs, which was only partially compensated by the uptick in optoelectronics.
With revenues of €556.6m (down -12 percent YoY), Aixtron concludes the fiscal year 2025 at the upper end of the adjusted revenue guidance (€530.0m to €565.0m).
The operating result (EBIT) reached €100.3m, down -24 percent YoY due to lower volume and negative foreign exchange-effects. At 18 percent, the EBIT margin comes out in the middle of the forecasted range of 17 percent to 19 percent. Despite significant headwinds in the power electronics segment and from foreign exchange-effects, both revenue and the EBIT margin also fell within the originally forecasted ranges.
In 2025, Aixtron recorded a significant recovery in the optoelectronics segment, driven by surging demand for laser and photonics solutions for AI applications and high-speed data transmission. The G10-AsP platform has established itself as the leading solution for these applications, receiving repeat orders from multiple blue-chip customers in all regions of the world.
While demand for SiC and GaN systems remained subdued in Western markets, momentum in Asia, and in China in particular, served as a stabilising factor. Aixtron secured significant large-volume orders for the G10-SiC system in China in H1/2025 and celebrated a major success with the delivery of its 100th G10-SiC system less than three years after its market launch.
“In 2025 Aixtron has performed well in a challenging market environment. We efficiently adjusted our capacity and significantly increased our free cash flow by over €250m. Our long-term growth drivers – AI infrastructure, renewable energy, and electromobility – remain fully intact," said Felix Grawert, CEO of Aixtron SE.
" In 2026, optical data communication for AI applications and GaN power will be the main source of revenue. We expect that AI data centers can become the largest single application for GaN power semiconductors in the near future. GaN and SiC are emerging as new materials for power semiconductors in AI data centre power supplies due to their significant energy-saving potential. Numerous customers have announced specific projects in this new application space,” he added.
Aixtron recorded an order intake of €544.3m in 2025 (2024: €596.4m), thereof €169.6m in Q4/2025 which was 37 percent up from the third quarter (€124.0m) and 8 percent up versus the prior-year quarter (€157.0m). Aixtron concluded the year 2025 with an equipment order backlog of €257.8m, down -11 percent compared to the previous year (2024: €289.3m).
Revenue for fiscal year 2025 decreased -12 percent year-over-year to €556.6m (2024: €633.2m). Revenue was primarily driven by systems for power electronics applications based on SiC and GaN, accounting for 57 percent of total equipment revenue (2024: 55 percent). Additional revenues were recognised in the Optoelectronics (23 percent) and LED including Micro LEDs (15 percent) segments.
Aixtron generated revenue of €187.1m in the fourth quarter of 2025, a -18 percent decrease compared to the prior-year record quarter (Q4/2024: €226.7m), but approximately 65 percent above the revenue in the first quarter of the fiscal year (Q1/2025: €112.5m). This underscores the agility of Aixtron’s supply chain and manufacturing operation.
Gross profit decreased -15 percent year-over-year to €222.4m (2024: €262.5m). This development was driven by several factors: overall lower volume, selected product enhancements in connection with the G10-series ramp-up and one-off expenses in the mid-single-digitm euro range related to the workforce reduction conducted in the first quarter of 2025.
In Q4/2025, gross profit reached €86.1m, which was down 16 percent from the prior-year quarter (Q4/2024: €102.5m) due to lower volume.
The gross margin for the full year 2025 declined slightly by one percentage point year-over-year to 40 percent (2024: 41 percent) driven by the above mentioned factors. The gross margin improved slightly to 46 percent in the fourth quarter compared to 45 percent in the prior-year period.
R&D expenses declined in 2025 due to a reduction in external contract work and lower costs for consumables. At €81.1m, they were significantly below the high level of the prior-year period (2024: €91.4m).
Operating expenses decreased in fiscal year 2025 to €122.1m, down from €131.2m in 2024, primarily due to the reduction in R&D expenses.
The weaker gross profit and negative foreign exchange-effects led to a -24 percent decrease in operating profit (EBIT) to €100.3m in fiscal year 2025 (2024: €131.2m). This translates into an EBIT margin of 18 percent, relative to 21 percent in the previous year.
In the strong fourth quarter, Aixtron achieved an EBIT of €58.0m (EBIT margin of 31 percent), matching the very strong margin from the prior-year quarter, although the absolute result was lower (Q4/2024: €71.0m).
Net result for the year amounted to €85.3m, representing a 20 percent decrease year-over-year (2024: €106.2m). This was due to the decrease in the operating result. Correspondingly, earnings per share stood at €0.76, down from €0.94 reported in 2024.
Operating cash flow in 2025 increased by over €180m YoY to €208.4m (2024: €26.2m). This primarily came from the operating income, a reduction in inventory by €85.5m, and lower receivables at the end of fiscal year 2025. Free cash flow increased by over €250m to €181.9m (2024: €-72.4m), primarily driven by the significant improvement in operating cash flow and a sharp decline in capital expenditures.
Cash and cash equivalents, including financial assets, totaled €224.6m as of December 31, 2025 (previous year: €64.6m). The high equity ratio of 88 percent as of December 31, 2025 (compared to 83 percent as of December 31, 2024) underscores Aixtron's financial strength.
Guidance for 2026
For fiscal year 2026 Aixtron expects the softness in overall customer demand to continue, yet with different dynamics in each subsegment. Strongest growth is expected in optoelectronics, while GaN power electronics should see moderate growth. In contrast, demand for SiC power electronics is expected to be weak due to substantial market overcapacity. The market environment for the LED including Micro LED segment is anticipated to remain stable.
Based on this market expectation, the current group structure and the budgeted exchange rate of 1.20 USD/EUR, the Executive Board expects revenues of around €520m in a range of plus/minus €30m, a gross margin of around 41 percent to 42 percent, and an EBIT margin of around 16 percent to 19 percent for fiscal year 2026. The effects of the aforementioned personnel reduction are included in this forecast.
The Executive Board expects revenues of around €65m in a range of plus/minus €10m for the first quarter of 2026. This comparably low Q1 figure is in line with expectations and the seasonal pattern of the business.
“Our focus on efficiency measures and liquidity generation paid off fully in fiscal year 2025, as impressively demonstrated by our free cash flow of approximately €182m. We will maintain this focus in 2026 to ensure Aixtron is optimally positioned for profitable growth,” says Christian Danninger, CFO of Aixtron SE.
