AIXTRON SE Q3 2024 Earnings Report

AIXTRON SE (AIXG), a leading provider of deposition equipment to the semiconductor industry, reported its Q3 2024 earnings with solid orders and revenue figures, despite a slight miss on guidance due to a project delay. CEO Dr. Felix Grawert shared the company's performance, including an improved gross margin and a robust order backlog.

Summary of Financial Performance

• AIXTRON reported Q3 orders of €144 million and revenues of €156 million.
• Gross margin improved to 43%, with a €384 million order backlog.
• Fiscal 2024 guidance confirmed; however, visibility for 2025 remains low, with flat or slightly lower expected revenues.
• Significant advancements in SiC and GaN technologies, with strong positions in the 300-millimeter GaN market.
• Anticipated significant market share growth in the SiC sector, particularly for the G10 SiC tool.
• Operating cash flow improved to €28 million after nine months, with further inventory reductions and improved cash flow expected in Q4.

Company Outlook

• Revenues for fiscal 2024 expected between €620 million and €660 million.
• Gross margin forecasted at 43-45%, with an EBIT margin of 22-25%.
• Q4 revenue forecast between €215 million and €255 million.
• For 2025, revenues could potentially decline by 5-10%, depending on market dynamics.

Market Dynamics

• A customer project delay impacted Q3 revenue, falling slightly below guidance.
• Emerging LED market remains unpredictable, yet recent orders indicate expansion.
• Strong position in the 300-millimeter GaN market with advancements in SiC technology.

Strategic Highlights

• G10 SiC tool recognized as the most productive, offering the lowest cost per wafer.
• Hyperion, the new 300-millimeter GaN tool, sets for volume production in 2026-2027.

Guidance and Future Expectations

• Full-year guidance details to be provided in February 2025, with no expected increase in operating expenses.
• Confidence in operational strategy and financial outlook for the coming years despite market uncertainties.

Conclusion

AIXTRON SE's Q3 earnings call revealed a company navigating market uncertainties while capitalizing on technological advancements in SiC and GaN. The company is positioning itself strategically for future growth, especially in the EV and power electronics markets, maintaining its competitive edge despite challenges in the broader market.

AIXTRON (AIXG) Q3 2024 Full Transcript available on the company website.