X-FAB Second Quarter 2026 Results

About this update from X-fab Silicon Foundries Se

Regulatory News: X-FAB (BOURSE:XFAB): Highlights Q2 2026: Revenue was USD 199.8 million, down 7% year-on-year (YoY) and up 2% quarter-on-quarter (QoQ) Excluding the impact from revenue recognized over time (IFRS 15), revenue was USD 196.0 million, within the guided range of USD 190-200 million. Continued sequential growth in automotive bookings signals recovery Several data center design wins across diverse technologies EBITDA was USD 33.6 million, down 35% YoY and down 2% QoQ EBITDA margin was 16.8%; excluding IFRS 15 impact, EBITDA margin of 17.6%, within the guided 17-20% range EBIT was USD 2.1 million, down 90% YoY and down 7% QoQ Outlook: Q3 2026 revenue is expected to come in within the range of USD 195-205 million with an EBITDA margin in the range of 17-20%. The guidance is based on an average exchange rate of 1.14 USD/Euro and does not take into account the impact of IFRS 15. Revenue breakdown per quarter: in millions of USD Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q2 y-o-y growth Automotive 146.0 128.6 135.4 143.4 146.9 132.6 121.6 116.0 -19% Industrial 31.5 36.1 39.3 47.2 47.6 50.5 52.0 45.2 -4% Medical 12.1 16.5 13.8 15.1 21.2 21.2 19.2 21.0 39% Subtotal core business 189.6 181.2 188.6 205.7 215.7 204.3 192.9 182.1 -11% 92.9% 92.1% 93.2% 94.2% 94.2% 93.7% 93.6% 92.9%   CCC 1 14.2 15.1 13.6 12.2 13.3 13.6 12.7 13.5 11% Others 0.1 0.5 0.2 0.4 0.0 0.3 0.2 0.3   Revenue* 204.0 196.8 202.3 218.3 228.9 218.1 205.8 196.0 -10% Impact from revenue recognized over time 2.4 -8.0 1.8 -3.0 -0.3 4.2 -10.3 3.9   Total revenue 206.4 188.8 204.1 215.3 228.6 222.3 195.6 199.8 -7% 1 Consumer, Communications & Computer in millions of USD Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q2 y-o-y growth Smart CMOS & SOI 175.0 170.8 173.4 185.1 191.8 182.9 156.9 156.7 -15% Microsystems & Photonics 1 21.6 20.2 22.9 25.3 27.5 25.0 33.7 28.7 14% Wide-bandgap technologies 2 7.4 5.8 6.0 7.9 9.6 10.2 15.1 10.6 34% Revenue* 204.0 196.8 202.3 218.3 228.9 218.1 205.8 196.0 -10% Impact from revenue recognized over time 2.4 -8.0 1.8 -3.0 -0.3 4.2 -10.3 3.9   Total revenue 206.4 188.8 204.1 215.3 228.6 222.3 195.6 199.8 -7% 1 Photonics revenue included as from Q1 2026 2 SiC and GaN; GaN revenue included as from Q1 2026 Business development In the second quarter of 2026, X-FAB recorded revenue of USD 199.8 million, down 7% year-on-year and up 2% quarter-on-quarter. Excluding the impact from revenue recognized over time, quarterly revenue was USD 196.0 million, within the guided range of USD 190-200 million. Second quarter revenue in X-FAB’s core markets – automotive, industrial, and medical – amounted to USD 182.1 million*, down 11% year-on-year and down 6% quarter-on-quarter, accounting for a share of 93%* of total revenue. Second-quarter order intake reached USD 173.3 million, up 2% sequentially, continuing its gradual quarter-by-quarter increase and gaining momentum into the third quarter. Backlog at the end of the quarter was USD 291.8 million, down 5% from USD 308.4 million at the end of the previous quarter. In the second quarter, automotive revenue came in at USD 116.0 million*, down 19% year-on-year and down 5% quarter-on-quarter. Inventory adjustments weighed on demand in the first half of 2026, while structural growth drivers such as vehicle electrification, customization, and ADAS remained intact. X-FAB’s second-quarter automotive bookings improved sequentially, with the book-to-bill ratio reaching its highest level in two years. Combined with the rising number of design wins, this points toward an anticipated recovery in the automotive end market. Industrial revenue in the second quarter amounted to USD 45.2 million*, down 4% year-on-year and down 13% quarter-on-quarter, with the sequential decline primarily driven by temporary order volatility from a major silicon carbide customer, which is expected to recover in the third quarter. In the second quarter, medical revenue was USD 21.0 million*, up 39% year-on-year and 9% quarter-on-quarter, driven by strong growth in pacemaker and ultrasound applications. X-FAB’s technology portfolio addresses key data center infrastructure applications, including power management, protection devices, monitoring sensors, optical connectivity, cooling actuators, and timing ICs. In the second quarter, X-FAB saw a growing number of data center opportunities in smart CMOS and SOI technologies, complemented by three silicon carbide design wins. Across its business units – Smart CMOS & SOI, Microsystems & Photonics, and Wide Bandgap – X-FAB expects data center applications to become an increasingly important growth driver over the coming years with a long-term annual revenue potential of approximately USD 300 million. In the second quarter, smart CMOS & SOI revenue was USD 156.7 million*, down 15% year-on-year and stable sequentially. In addition to the anticipated automotive recovery and data center opportunities, market dynamics – including strong AI-related demand in combination with the reallocation of 8‑inch CMOS fabs in Asia to AI applications – are creating further opportunities for X-FAB, supported by available capacity. The completed Malaysia expansion gives customers long-term access to X-FAB’s advanced CMOS & SOI technologies and the capacity required to support business continuity. Microsystems & Photonics revenue in the second quarter amounted to USD 28.7 million*, up 14% year-on-year and down 15% quarter-on-quarter. The sequential decline reflects normal fluctuations in this highly customized business, while X-FAB’s Microsystems opportunities continue to shift toward scalable high-volume applications. Highlights in the second quarter included a new high-volume microfluidics application for blood analysis, new opportunities for X-FAB’s aluminum nitride (AlN) offering from industrial and medical customers as well as healthy demand for MEMS sensors. X-FAB also advanced in the development of photonics applications and saw strong traction for customer-specific opportunities across co-packaged optics, quantum computing, AR/VR, and data communications. Photonics volume production is expected to begin in 2028. In June 2026, X-FAB secured EUR 127.4 million in public funding under the EU Chips Act to expand its microsystems and photonics manufacturing at its Erfurt site in Germany (see press announcement here ). The new facility, which is scheduled to begin initial production by the end of 2028, is essential to meet existing customer demand in X-FAB's fastest-growing business. Second-quarter wide bandgap revenue was USD 10.6 million*, up 34% year-on-year and down 30% quarter-on-quarter. The sequential decline was mainly due to temporary order volatility from one customer, while underlying momentum remained positive, with SiC prototyping activities continuing to grow. Looking ahead, the transition toward 800V power distribution in data centers is expected to support demand for both SiC and GaN technologies, strengthening the long-term growth prospects of X-FAB’s wide bandgap business. Despite an increased opportunity pipeline, overall prototyping revenue was still soft at USD 17.7 million*, down 16% year-on-year and down 7% quarter-on-quarter. Prototyping and production revenue* per quarter and end market: in millions of USD Revenue Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Automotive Prototyping 5.1 5.5 2.8 3.3 2.7 Production 138.2 141.4 129.8 118.3 113.3 Industrial Prototyping 12.1 9.7 12.8 12.2 12.1 Production 35.2 37.9 37.7 39.8 33.1 Medical Prototyping 1.8 2.8 3.1 2.0 1.7 Production 13.2 18.4 18.1 17.2 19.3 CCC Prototyping 1.7 1.6 1.5 1.4 0.9 Production 10.5 11.6 12.0 11.3 12.6 Financial update In the second quarter, EBITDA was USD 33.6 million with an EBITDA margin of 16.8%. Excluding the impact of revenue recognized over time, the EBITDA margin would have reached 17.6%, within the guided range of 17‑20%. Second-quarter profitability mainly reflected the softness in the automotive end market, which limited capacity utilization. X-FAB’s cost-saving program is progressing as planned and is expected to support earnings improvement by year-end 2026. Income tax expenses include a non-cash impact of USD -11.0 million related to the derecognition of deferred tax assets at the Group’s Malaysian subsidiary. X-FAB’s business is naturally hedged and profitability unaffected by exchange rate fluctuations. At a constant USD/Euro exchange rate of 1.13 as experienced in the previous year’s quarter, the EBITDA margin would have been 0.1 percentage points higher. Capital expenditures in the second quarter amounted to USD 24.2 million, bringing first-half 2026 capex to USD 50.2 million. Cash and cash equivalents totaled USD 163.6 million at the end of the quarter, while net debt amounted to USD 312.3 million, up USD 20.9 million from the previous quarter. Management comments Damien Macq, CEO of X-FAB Group, said: “In the second quarter, we saw clear signs of the anticipated recovery. Stronger automotive bookings reinforce our view that the first half of 2026 marked the bottom, with X-FAB’s automotive business set for a gradual recovery in the second half. At the same time, data center opportunities are expanding, Microsystems continues to gain traction, and SiC prototyping activity is increasing. Our diversified technology portfolio and broad momentum across multiple end markets support our strategic focus on specialization and diversification, while our available capacity enables us to provide customers with long-term business continuity. I am convinced that X-FAB is firmly positioned for sustainable business success.” X-FAB Quarterly Conference Call X-FAB’s second quarter results will be discussed in a live conference call/audiocast on Thursday, July 30, 2026, at 6.30 p.m. The conference call will be in English. Please register here . Financial calendar September 1, 2026 Publication of Half-Year Report 2026 October 29, 2026 Publication of Q3 2026 results About X-FAB X-FAB is a global foundry group providing a comprehensive set of specialty technologies and design IP to enable its customers to develop world-leading semiconductor products that are manufactured at X-FAB's six wafer fabs located in Malaysia, Germany, France, and the United States. With its expertise in analog/mixed-signal technologies, microsystems, photonics, silicon carbide (SiC), and gallium nitride (GaN), X-FAB is the development and manufacturing partner for its customers, primarily serving the automotive, industrial and medical end markets. X-FAB has approximately 4,000 employees and has been listed on Euronext Paris since April 2017 (XFAB). For more information, please visit www.xfab.com . Forward-looking information This press release may include forward-looking statements. Forward-looking statements are statements regarding or based upon our management’s current intentions, beliefs or expectations relating to, among other things, X‑FAB’s future results of operations, financial condition, liquidity, prospects, growth, strategies, or developments in the industry in which we operate. By their nature, forward-looking statements are subject to risks, uncertainties and assumptions that could cause actual results or future events to differ materially from those expressed or implied thereby. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. Forward-looking statements contained in this press release regarding trends or current activities should not be taken as a report that such trends or activities will continue in the future. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless legally required. You should not place undue reliance on any such forward-looking statements, which speak only as of the date of this press release. The information contained in this press release is subject to change without notice. No re-report or warranty, express or implied, is made as to the fairness, accuracy, reasonableness, or completeness of the information contained herein and no reliance should be placed on it. Condensed consolidated statement of profit and loss in thousands of USD Quarter ended 30 Jun 2026 unaudited Quarter ended 30 Jun 2025 unaudited Quarter ended 31 Mar 2026 unaudited Half-year ended 30 Jun 2026 unaudited Half-year ended 30 Jun 2025 unaudited Revenue* 195,979 218,275 205,823 401,801 420,607 Impact from revenue recognized over time 3,852 -2,992 -10,270 -6,419 -1,211 Total revenue 199,830 215,283 195,552 395,383 419,396 Revenues in USD in % 56 56 55 56 57 Revenues in EUR in % 44 44 45 44 43 Cost of sales -169,348 -165,350 -164,848 -334,196 -324,826 Gross profit 30,483 49,933 30,704 61,186 94,570 Gross profit margin in % 15.3 23.2 15.7 15.5 22.5             Research and development expenses -14,472 -13,458 -15,528 -30,000 -24,450 Selling expenses -2,508 -2,407 -2,725 -5,233 -4,655 General and administrative expenses -12,997 -13,393 -13,321 -26,319 -24,791 Rental income and expenses from investment properties 846 785 789 1,635 1,561 Other income and other expenses 744 232 2,337 3,081 570 Operating profit 2,096 21,693 2,255 4,351 42,805 Finance income 5,813 19,612 9,520 15,333 26,106 Finance costs -10,293 -36,994 -8,222 -18,515 -50,679 Financial result -4,480 -17,382 1,298 -3,182 -24,573             Profit before tax -2,384 4,311 3,553 1,169 18,232 Income tax -12,445 -4,702 -2,629 -15,073 -6,422 Profit for the period -14,829 -392 924 -13,905 11,810             Operating profit (EBIT) 2,096 21,693 2,255 4,351 42,805 Depreciation 31,524 29,896 31,927 63,452 57,845 EBITDA 33,620 51,589 34,182 67,803 100,650 EBITDA margin in % 16.8 24.0 17.5 17.1 24.0             Earnings per share -0.11 0.00 0.01 -0.11 0.09 Weighted average number of shares 130,631,921 130,631,921 130,631,921 130,631,921 130,631,921             EUR/USD average exchange rate 1.16281 1.13337 1.17066 1.16654 1.09279   Amounts in the financial tables provided in this press release are rounded to the nearest thousand except when otherwise indicated, rounding differences may occur. *excluding impact from revenue recognized over time in accordance with IFRS 15 Condensed consolidated statement of financial position in thousands of USD Quarter ended 30 Jun 2026 unaudited Quarter ended 30 Jun 2025 unaudited Year ended 31 Dec 2025 audited ASSETS       Non-current assets       Property, plant, and equipment 1,201,564 1,224,295 1,220,272 Investment properties 3,667 7,159 7,007 Intangible assets 11,307 6,268 9,522 Other non-current assets 17 33 25 Deferred tax assets 50,942 64,380 61,855 Total non-current assets 1,267,497 1,302,135 1,298,681         Current assets       Inventories 252,969 288,207 264,659 Contract assets 14,335 16,880 20,753 Trade and other receivables 100,727 111,612 88,990 Other assets 64,421 73,472 79,588 Cash and cash equivalents 163,576 157,678 194,314 Total current assets 596,028 647,849 648,304         TOTAL ASSETS 1,863,525 1,949,984 1,946,985         EQUITY AND LIABILITIES       Equity       Share capital 432,745 432,745 432,745 Share premium 348,709 348,709 348,709 Retained earnings 258,449 253,776 272,069 Cumulative translation adjustment 660 656 552 Treasury shares -770 -770 -770 Total equity 1,039,793 1,035,116 1,053,305         Non-current liabilities       Non-current loans and borrowings 220,385 418,230 187,895 Other non-current liabilities and provisions 3,093 2,725 3,577 Total non-current liabilities 223,479 420,955 191,472         Current liabilities       Trade payables 36,050 41,780 54,805 Current loans and borrowings 255,494 54,041 292,512 Other current liabilities and provisions 308,708 398,092 354,891 Total current liabilities 600,253 493,913 702,208         TOTAL EQUITY AND LIABILITIES 1,863,525 1,949,984 1,946,985 Condensed consolidated statement of cash flows in thousands of USD Quarter ended 30 Jun 2026 unaudited Quarter ended 30 Jun 2025 unaudited Quarter ended 31 Mar 2026 unaudited Half-year ended 30 Jun 2026 unaudited Half-year ended 30 Jun 2025 unaudited Income before taxes -2,384 4,311 3,553 1,169 18,232             Reconciliation of income before taxes to cash flow arising from operating activities: 36,051 52,164 26,761 62,812 83,112 Depreciation and amortization, before effect of grants and subsidies 31,524 29,896 31,927 63,452 57,845 Amortization of investment grants and subsidies -1,243 -1,229 -1,390 -2,633 -2,461 Interest income and expenses (net) 3,775 4,316 4,874 8,649 8,071 Loss/(gain) on the sale of plant, property, and equipment (net) -318 -55 -2,012 -2,330 -108 Loss/(gain) on the change in fair value of derivatives and financial assets (net) 719 -4,160 -794 -75 -4,160 Other non-cash transactions (net) 1,593 23,396 -5,843 -4,250 23,925             Changes in working capital: -33,534 -25,537 -9,501 -43,035 -32,320 Decrease/(increase) of trade receivables -7,585 -16,471 -3,796 -11,381 -15,175 Decrease/(increase) of other receivables and other assets -3,437 -6,646 11,589 8,152 -85 Decrease/(increase) of inventories 8,363 -6,896 3,328 11,690 -6,442 Decrease/(increase) of contract assets -3,852 2,992 10,270 6,419 1,211 (Decrease)/increase of trade payables -9,806 -1,047 -2,046 -11,852 -5,198 (Decrease)/increase of other liabilities -17,217 2,532 -28,846 -46,064 -6,631             Income taxes (paid)/received -1,097 -337 -3,961 -5,057 -1,232             Net cash from operating activities -964 30,602 16,852 15,888 67,792             Cash flow from investing activities:           Payments for property, plant, equipment and intangible assets -24,212 -53,726 -26,035 -50,247 -155,456 Receipt of government grants and subsidies 9,397 0 0 9,397 0 Proceeds from sale of property, plant, and equipment 320 65 5,708 6,029 118 Interest received 1,058 1,022 859 1,917 2,186             Net cash used in investing activities -13,436 -52,639 -19,469 -32,905 -153,152 Condensed consolidated statement of cash flows – con’t in thousands of USD Quarter ended 30 Jun 2026 unaudited Quarter ended 30 Jun 2025 unaudited Quarter ended 31 Mar 2026 unaudited Half-year ended 30 Jun 2026 unaudited Half-year ended 30 Jun 2025 unaudited Cash flow from (used in) financing activities:           Proceeds from loans and borrowings 45,364 21,668 15,918 61,282 50,571 Repayment of loans and borrowings -19,985 -17,469 -51,329 -71,314 -38,551 Receipts of sale and leaseback arrangements 22,846 26,925 0 22,846 30,020 Payments of lease installments -7,720 -9,131 -4,162 -11,882 -13,277 Interest paid -4,834 -4,851 -5,732 -10,566 -9,668             Cash flow from (used in) financing activities 35,673 17,142 -45,306 -9,633 19,095             Effect of changes in foreign currency exchange rates on cash balances -2,391 5,334 -1,697 -4,088 8,106 Increase/(decrease) of cash and cash equivalents 21,273 -4,895 -47,923 -26,650 -66,265 Cash and cash equivalents at the beginning of the period 144,694 157,240 194,314 194,314 215,837 Cash and cash equivalents at the end of the period 163,576 157,678 144,694 163,576 157,678 *excluding impact from revenue recognized over time according to IFRS 15 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