Skywater Technology, Inc. · NASDAQ:SKYT
Skywater Technology — Piper Sandler Growth Frontiers Conference 2025
41 slides from Skywater Technology's conference presentation, Sep 11, 2025
Slide 1: Q3 Investor Presentation
Q3 Investor Presentation Needham Virtual Semiconductor & SemiCap 1x1 Conference August 21, 2025 Jefferies Semiconductor, IT Hardware & Communications Technology Conference August 27, 2025 B. Riley Securities Annual Consumer & TMT Conference September 10, 2025 Piper Sandler Growth Frontiers Conferenc
Slide 2: SkyWater Technology Forward-Looking Statements
SkyWater Technology Forward-Looking Statements This presentation contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements that are based on the Company’s current expectations or forecasts of future events, rather than past
Slide 3: America's Foundry at a Glance
America’s Foundry at a Glance Leading U.S. Provider of 200mm Capacity SKYT >$350M Quality Traded on NASDAQ CapEx Funding since 2021 Co-Investment Certified (expected for 2020-2026) • IATF16949 (Auto) • AS9100 (Aero/Aviation) Front-end Wafer • ISO 9001 Processing • ISO 4001 • ISO 13485 (Medical) $342
Slide 4: Fab 25 Acquisition Transforms SkyWater's Profile
Fab 25 Acquisition Transforms SkyWater’s Profile Secure Manufacturing Center $300M+ Expands SAM High-Volume Manufacturing Advanced Packaging Incremental annual revenue for a new expected total of >$600M by >$3B* Center Center WS ATS Positions SkyWater as Balances +1000 Largest U.S Pure- Wafer Servic
Slide 5: SkyWater Opportunity
SkyWater Opportunity Transformative scale, domestic semiconductor tailwinds, and next-generation technologies fuel growth TRANSFORMATIVE LARGEST EXCLUSIVELY STRONG GROWTH & NEXT-WAVE CAPITAL-EFFICIENT SCALE & FINANCIAL U.S. PURE-PLAY CASH GENERATION PLATFORMS IN U.S. FOUNDRY GROWTH MODEL PROFILE BAS
Slide 6: Vision for U.S. Semiconductor Sovereignty
Vision for U.S. Semiconductor Sovereignty Increase capacity at Revive domestic Incorporate diverse Build resilient and both advanced and packaging and test manufacturing secure US-based foundational nodes capabilities for formats (200mm, semiconductor heterogeneous 300mm, panel-based) supply chains
Slide 7: A New Milestone in SkyWater's Leadership for U.S.–Based Semiconductors
A New Milestone in SkyWater’s Leadership 2025 Acquisition of for U.S.–Based Semiconductors IFX Fab 25 +$300M Revenue Addition of 65nm, 2024 Cu interconnect at $120M program scale, high-voltage funded by DOD for process 2021 300mm fan out SKYT begins packaging line 2021 trading on Expansion with NASD
Slide 8: Fab 25: Positioned to Address Critical Market Needs
Fab 25: Positioned to Address Critical Market Needs Technology Capabilities • This slide now needs to be swapped out with Ross' new version (Friday) Strategic Advantages Market Needs 88 ©2025 All Rights Reserved. Proprietary.
Slide 9: SkyWater Share Increases 4x for 200mm U.S. Foundry Capacity
SkyWater Share Increases 4x for 200mm U.S. Foundry Capacity for Foundational Nodes Foundational Nodes Capacity Pre-Transaction ≥ 65nm Other Global Capacity Post-Transaction 22% Foundries 23% Global Other Foundries TSMC 19% 20% Tower 17% Semiconductor TSMC 33% 15% Tower Semiconductor 29% SkyWater 4%
Slide 10: Enabling the Quantum Revolution
Enabling the Quantum Revolution SkyWater’s Advanced Manufacturing • U.S.-Based Quantum Innovation: Secure, domestic, quantum chip development and production. • Broad Architecture Support: Technology capabilities and support for a wide range of material and architectures. • Scalable Development & Pro
Slide 11: Advanced Packaging Business Beginning to Ramp
Advanced Packaging Business Beginning to Ramp • $120M in DOD program funding for 300mm wafer fan-out initiative Funding allocated to tool purchases, process development and integration Expected first ATS revenues in 2H-FY25 as tools are qualified Fan-Out Wafer- Hybrid Wafer Level Packaging Si In
Slide 12: Demonstrating Strong Demand for ThermaView Platform
Demonstrating Strong Demand for ThermaView Platform Capturing Growth in the $9B Thermal Imaging Market Opportunity projected by 2027* • ThermaView sales gaining momentum YTD in 2025, driven primarily by two leading U.S. defense prime customers • First category-specific brand highlights SkyWater’s le
Slide 13: Strong Position Developing New Platforms for Strategic DOD Programs
Strong Position Developing New Platforms for Strategic DOD Programs Thermal Imaging High Reliability CMOS Trusted/Secure Technology CATEGORY DRIVERS CATEGORY DRIVERS CATEGORY DRIVERS • Expanded use cases for infrared • Nuclear refresh • Assured domestic supply cameras • Commercialization of space •
Slide 14: Long View for 200mm Foundry Services in the U.S. is Strong
Long View for 200mm Foundry Services in the U.S. is Strong • Strong demand in industrial, We believe F25 in Austin is the most automotive, and defense capable 200mm fab in the western • Edge AI & IoT growth driving analog, hemisphere, perfectly suited to meet power, and RF needs long-term foundry de
Slide 15: TaaS Business Model and Market Drivers
TaaS Business Model and Market Drivers
Slide 16: We streamline the concept to production journey
We streamline the concept to production journey. TECHNOLOGY AS A SERVICE (TaaS) ADVANCED TECHNOLOGY WAFER SERVICES SERVICES Enable co-creation of differentiated Supply customers with ICs and solutions which are the unique microdevices for commercial or expression of the combined mission ready produc
Slide 17: TaaS: Concept to Production Services
TaaS: Concept to Production Services Advanced Technology CONCEPT & FEASIBILITY Services (ATS) TECHNOLOGY DEMONSTRATION Wafer Services PROCESS DEVELOPMENT Technology DEVICE DESIGN as a Service: Efficient R&D Accelerated DEVICE QUALIFICATION Time-to-Market Volume Manufacturing VOLUME MANUFACTURI
Slide 18: Life of a SkyWater Wafer
Life of a SkyWater Wafer Cycles of learning through Advanced Technology Services (ATS) development enable customers to demonstrate and scale new ideas ATS CoL 3a Value is created through Cycles of Learning Learning and IP (CoL); end state product CoL 1 CoL 2 CoL 3b Prototype Generation, Process Wafe
Slide 19: Macro Trends Driving SkyWater's Business
Macro Trends Driving SkyWater’s Business AEROSPACE & DEFENSE MARKET COMMERCIAL MARKETS • Rising semiconductor content • More than Moore innovation • Onshore supply • Next-gen Biomed, Advanced Compute, Industrial 19
Slide 20: Targeting High-Potential Commercial Markets
Targeting High-Potential Commercial Markets NEXT-GENERATION MEDICAL ADVANCED COMPUTE INDUSTRIAL CATEGORY DRIVERS CATEGORY DRIVERS CATEGORY DRIVERS • Increasing societal healthcare • Accelerating AI adoption • Sensorization of everything expenditure rates • Rise of chiplet technology • Edge computing
Slide 21: Chip Technologies
Chip Technologies Mixed-Signal CMOS Rad-Hard MEMS Superconducting Photonics CONNECTED DEVICES, SENSORS ADVANCED COMPUTING & SENSOR INTEGRATION & ARTIFICIAL INTELLIGENCE Flexible Solutions Leading Strategic Microfluidics Foundry service Capabilities for for Commercial Rad-Hard Solutions Microbolomete
Slide 22: Meeting Demand for Innovation and Trusted Supply
Meeting Demand for Innovation and Trusted Supply ENABLING DEVELOPMENT OF AN CUSTOMIZING EXISTING TECHNOLOGY PROVIDING TRUSTED SUPPLY ENTIRELY CUSTOM TECHNOLOGY END MARKET: END MARKET: END MARKET: AI-enabled sensors Quantum Computing Secure A&D WHY SkyWater WINS: WHY SkyWater WINS: WHY SkyWater WINS:
Slide 23: Significant Growth Opportunities
Significant Growth Opportunities Expand Capacity and Pursue M&A Create Opportunities Co-Develop Unique IP Next-Generation Expand Markets: Technologies Advanced Grow Advanced Packaging Technology & Other High Services Growth Diversify Customer Base 23
Slide 24: Financials
FINANCIALS
Slide 25: Revenue Trend
Revenue Trend Expect QoQ ATS Growth to Resume in Q4; Wafer Services Gaining Momentum; Tools Revenue Q4-Weighted in 2025 in USD $ millions * Q2 2023 ATS development revenue excludes impact of modified customer contracts 25
Slide 26: Revenue Summary
Revenue Summary $'s in USD millions Q2 2025 Q1 2025 Q/Q* Q2 2024 Y/Y * ATS development revenue $52.6 $52.5 —% $61.7 (15)% Wafer Services revenue $5.4 $7.5 (28)% $5.8 (6)% Combined ATS development and Wafer Services revenue * $58.0 $60.1 (3)% $67.4 (14)% Tools revenue $1.1 $1.2 (15)% $25.9 (96)% Tota
Slide 27: Gross Margin Summary
Gross Margin Summary $'s in USD millions Q2 2025 Q1 2025 Q/Q * Q2 2024 Y/Y * GAAP gross profit $10.9 $14.3 (24)% $17.1 (36)% GAAP gross margin * 18.5% 23.3% (480) bps 18.3% 20 bps Adjustments: Equity-based compensation $(0.6) $(0.6) 10% $(0.5) 24% Non-GAAP gross profit * $11.5 $14.8 (22)% $17.6 (35)
Slide 28: Adjusted EBITDA Summary
Adjusted EBITDA Summary $'s in USD millions Q2 2025 Q1 2025 Q/Q * Q2 2024 Y/Y * Net Income (Loss) $(10.0) $(7.3) (36)% $(1.9) (426)% Net income (loss) as a percentage of total revenue * (16.9)% (12.0)% (490) bps (2.0)% (1,490) bps Interest expense $1.6 $1.8 (10)% $2.5 (34)% Income tax (benefit) expe
Slide 29: Adjusted EBITDA and Non-GAAP Net Income (Loss)
Adjusted EBITDA and Non-GAAP Net Income (Loss) Continued Positive Adjusted EBITDA 29
Slide 30: Fab 25 Acquisition: Preliminary Balance Sheet Adjustments
Fab 25 Acquisition: Preliminary Balance Sheet Adjustments ($ in M) Selected Balance Sheet Preliminary Transaction Selected Balance Sheet Metrics at June 29, 2025 Adjustments Metrics at June 30, 2025 Cash and cash equivalents $49.4 $7.0 $56.4 Property and equipment, net (1) $161.6 $364.0 $525.6 Total
Slide 31: Expected Fab 25 Contribution to Financial Results
Expected Fab 25 Contribution to Financial Results Fab 25: Expected Fab 25: Annualized Contribution to Q3 2025 Expected Contribution to Financial Results Financial Results Wafer Services revenue (TX) $75M – $80M $300M – $320M Currently forecasting similar range for both Gross profit $3.5M – $4.5M $14
Slide 32: Q3 2025 Guidance Ranges
Q3 2025 Guidance Ranges Preliminary Q4 Run-Rate and Annualized Baseline for Expected Results Illustrative Combined Q3 2025 Preliminary Baseline for Annualized Guidance Ranges Q4 2025 Outlook P&L Results ATS development revenue $ 50M +/- $2M + $5M from Q3 Wafer Services revenue $ 83M +/- $3M + $1-$2M
Slide 33: Benefits of Customer-Funded CapEx Model
Benefits of Customer-Funded CapEx Model Tool funding incorporated in contract awards through 2024 $76M Tools revenue recognized 2020-2025E ~$150M Additional customer-funded CapEx through year-end 2026 >$90M Expected total funding from 2020 to 2026 * ~$320M 33
Slide 34: Q2 Earnings: GAAP to Non-GAAP Reconciliation
Q2 Earnings GAAP to Non-GAAP Reconciliation Q2 2025 EARNINGS CALL
Slide 35: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation We provide non-GAAP financial information that our management regularly evaluates to provide additional insight to investors and to supplement our results reported using U.S. generally accepted accounting principles (GAAP). We provide non-GAAP cost of revenue, non-GAA
Slide 36: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Q2 Q3 Q4 2023 Q1 Q2 Q3 Q4 2024 Q1 Q2 GAAP revenue $ 66,094 $ 69,811 $ 71,624 $ 79,154 $286,682 $ 79,636 $ 93,329 $ 93,817 $ 75,487 $342,269 $ 61,296 $ 59,063 Minnesota GAAP cost of revenue $ 49,626 $ 53,144 $ 57,477 $ 67,143 $227,390 $ 66,656 $ 76,215 $ 73,582 $ 56
Slide 37: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Q2 Q3 Q4 2023 Q1 Q2 Q3 Q4 2024 Q1 Q2 GAAP selling, general, and administrative expense $ 14,895 $ 17,820 $ 16,105 $ 15,092 $ 63,911 $ 11,169 $ 12,332 $ 12,095 $ 12,430 $ 48,026 $ 15,030 $ 14,009 Equity-based compensation expense (1,178) (1,459) (1,197) (1,008) (4,8
Slide 38: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Q2 Q3 Q4 2023 Q1 Q2 Q3 Q4 2024 Q1 Q2 Equity-based compensation expense allocation in the consolidated statements of operations: Cost of revenue $ 513 $ 291 $ 438 $ 313 $ 1,555 $ 455 $ 504 $ 565 $ 589 $ 2,113 $ 567 $ 626 Research and development expense 162 217 218
Slide 39: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Q2 Q3 Q4 2023 Q1 Q2 Q3 Q4 2024 Q1 Q2 Net income (loss) to shareholders $ (4,273) $ (8,590) $ (7,568) $ (10,325) $ (30,756) $ (5,729) $ (1,897) $ 1,512 $ (679) $ (6,793) $ (7,345) $ (9,978) Interest expense 2,471 2,950 2,507 2,898 10,826 2,390 2,482 1,988 1,978 8,83
Slide 40: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Q2 Q3 Q4 2023 Q1 Q2 Q3 Q4 2024 Q1 Q2 GAAP EPS Numerator: Net income (loss) attributable to SkyWater Technology, Inc. $ (4,273) $ (8,590) $ (7,568) $ (10,325) $ (30,756) $ (5,729) $ (1,897) $ 1,512 $ (679) $ (6,793) $ (7,345) $ (9,978) Denominator: Weighted-average
Slide 41: Q2 Earnings
SKY Woter Q2 Earnings eR eeom emis legs, | ON
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