Soitec's Third Quarter Revenue Insights for FY'25 Announced
Soitec Reports Third Quarter Revenue for FY’25
Soitec has reported consolidated revenue of €226 million for the third quarter of fiscal year 2025. The revenue figures show a near stability when compared to the second quarter, with only a 10% decline at constant exchange rates compared to the previous year. The first nine months of FY'25 also reflected a decrease, totaling €564 million.
Key Financial Highlights
In Q3 FY’25, Soitec achieved stable revenue, experiencing a slight 6% decrease compared to the same quarter last year. This decline represents a 10% drop at constant exchange rates, yet with a positive currency impact of 5%. Soitec has revised its FY'25 guidance to anticipate a high single-digit decrease in revenue year-on-year at constant exchange rates, alongside an EBITDA margin expectations between 32% and 34% for the year.
Revenue Breakdown by Segment
The mobile communications division has shown remarkable resilience, reaching €154 million in sales—a significant increase of 11% at constant exchange rates compared to last year. The growth in RF-SOI wafer sales can be attributed to a healthier smartphone market dynamics. SOI-based solutions remain paramount for embedded wireless technologies.
Challenges in the Automotive Sector
On the other hand, the Automotive & Industrial segment posted revenues of €25 million, down 47% from the previous year, reflecting ongoing struggles in the automotive market. Sales of essential Power-SOI wafers faced a downturn, yet demand in automotive FD-SOI technology is showing incremental growth as more applications in microcontrollers and connectivity emerge.
Market Outlook and Adjustments
The management has taken a cautious stance regarding fiscal year 2026 growth, citing limited visibility in end markets. This uncertainty has prompted adjustments to the revenue expectations, primarily due to requests from customers in the automotive and consumer sectors to hold back on deliveries. The strategic focus on innovative product development aims to position Soitec favorably as market conditions improve.
Innovations and Collaborations
Soitec is actively advancing its technological leadership through partnerships, including its collaboration with GlobalFoundries for the production of 300mm RF-SOI substrates. This is set to bolster the availability of advanced semiconductor solutions essential for evolving connectivity needs in 5G and mobile communications.
Conclusion and Future Prospects
With a solid foundation in innovative semiconductor materials, Soitec remains committed to enhancing its production capabilities, despite the current challenging market landscape. The continued adoption of photonics and other innovative solutions will play a critical role in recovering growth trajectories moving forward, and the upcoming quarters will be pivotal in evaluating recovery in the semiconductor domain.
Frequently Asked Questions
What was Soitec's reported revenue for Q3 FY’25?
Soitec reported a consolidated revenue of €226 million for the third quarter of fiscal year 2025.
How does the Q3 FY’25 revenue compare to Q3 FY’24?
The revenue represented a 10% decline at constant exchange rates compared to Q3 FY’24.
What revisions were made to the FY’25 guidance?
Soitec has revised its FY’25 guidance to expect a high single-digit decrease in revenue year-on-year at constant exchange rates.
Which segment experienced the most growth?
The Mobile Communications division reported robust growth, with sales increasing by 11% at constant exchange rates compared to the previous year.
What is the outlook for FY’26?
Soitec expects quite limited growth for fiscal year 2026 due to uncertainties in end markets.
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