Intermediate declaration by the Board of Directors
Regulatory News:
X-FAB (BOURSE:XFAB):
Highlights Q4 2024:
- Revenue was USD 188.8 million, down 21% year-on-year (YoY) and down 9% quarter-on-quarter (QoQ)
- Excluding the impact from revenue recognized over time (IFRS 15), revenue was USD 196.8 million, within the guided range of USD 195-205 million
- EBITDA at USD 39.8 million, down 33% YoY and down 21% QoQ
- EBITDA margin of 21.1%; excluding IFRS 15 impact, EBITDA margin was 22.8%, compared to the guidance of 22-25%
- EBIT was USD 10.6 million, down 70% YoY and 58% QoQ
Highlights 2024:
- Revenue was USD 816.4 million, down 10% YoY; excluding IFRS 15 impact, revenue was USD 822.3 million within the guidance range
- Core business automotive, industrial, and medical was USD 763.4 million*, down 6% YoY and representing a share of 93%* of total revenues
- EBITDA at USD 188.9 million, down 23% YoY
- EBITDA margin of 23.1%, excluding the IFRS 15 impact in Q4 2024, EBITDA margin was 23.5%, within the guided range of 23.4-24%
- EBIT was USD 85.5 million, down 46% YoY
Outlook:
- Q1 2025 revenue is expected to come in within a range of USD 195-205 million with an EBITDA margin in the range of 22-25%.
- The guidance is based on an average exchange rate of 1.04 USD/Euro and does not take into account the impact of IFRS 15.
- FY 2025 revenue is expected to come in within a range of USD 820-870 million with an EBITDA margin in the range of 24-27%.
Revenue breakdown per quarter:
in millions of USD | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | Q4 y-o-y
|
Automotive | 120.9 | 131.1 | 135.3 | 151.8 | 135.6 | 142.4 | 146.0 | 128.6 | -15% |
Industrial | 46.9 | 51.3 | 53.7 | 54.3 | 52.6 | 34.4 | 31.5 | 36.1 | -34% |
Medical | 17.6 | 16.2 | 17.0 | 16.4 | 14.5 | 13.2 | 12.1 | 16.5 | 0% |
| Subtotal core business | 185.4 | 198.7 | 206.1 | 222.5 | 202.6 | 190.1 | 189.6 | 181.2 | -19% |
89.1% | 90.8% | 92.2% | 92.8% | 92.6% | 93.7% | 92.9% | 92.1% | ||
CCC1 | 22.5 | 20.0 | 17.2 | 17.2 | 16.0 | 12.6 | 14.2 | 15.1 | -12% |
Others | 0.2 | 0.2 | 0.2 | 0.1 | 0.1 | 0.1 | 0.1 | 0.5 | |
Revenue* | 208.1 | 218.9 | 223.5 | 239.8 | 218.7 | 202.8 | 204.0 | 196.8 | -18% |
Impact from revenue recognized over time | 0 | 8.3 | 10.4 | -2.0 | -2.6 | 2.3 | 2.4 | -8.0 | |
Total revenue | 208.1 | 227.1 | 233.8 | 237.7 | 216.2 | 205.1 | 206.4 | 188.8 | -21% |
1Consumer, Communications Computer | |||||||||
| |||||||||
in millions of USD | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | Q4 y-o-y
|
CMOS | 172.8 | 180.7 | 180.5 | 188.4 | 168.3 | 166.2 | 175.0 | 170.8 | -9% |
Microsystems | 22.2 | 20.8 | 24.4 | 27.9 | 24.1 | 25.1 | 21.6 | 20.2 | -28% |
Silicon carbide | 13.2 | 17.3 | 18.6 | 23.5 | 26.3 | 11.6 | 7.4 | 5.8 | -75% |
Revenue* | 208.1 | 218.9 | 223.5 | 239.8 | 218.7 | 202.8 | 204.0 | 196.8 | -18% |
Impact from revenue recognized over time | 0 | 8.3 | 10.4 | -2.0 | -2.6 | 2.3 | 2.4 | -8.0 | |
Total revenue | 208.1 | 227.1 | 233.8 | 237.7 | 216.2 | 205.1 | 206.4 | 188.8 | |
Business development
In the fourth quarter of 2024, X-FAB recorded revenues of USD 188.8 million, down 21% year-on-year and 9% quarter-on-quarter. Excluding the impact from revenue recognized over time in the amount of USD -8.0 million, quarterly revenue was USD 196.8 million, which is in line with the guidance of USD 195-205 million.
Full-year revenues came in at USD 816.4 million, down 10% year-on-year. Revenue recognized over time had a negative effect of USD -5.9 million on the full year. Excluding this impact, 2024 revenue totaled USD 822.3 million, which compares to a guidance of USD 822-832 million.
In the fourth quarter, revenues in X-FAB's core markets automotive, industrial, and medical came in at USD 181.2 million*, down 19% year-on-year, representing a share of 92%* of total revenue. In the full year of 2024, core market revenue was at USD 763.4 million*, which is a decline of 6% compared to the previous year and a share of 93%* of total revenue.
Bookings in the fourth quarter amounted to USD 138.8 million, down 38% year-on-year. In the full year, bookings came in at USD 875.7 million, a 1% decline over 2023. The backlog at the end of the quarter was USD 414.0 million, compared to USD 481.4 million at the end of the previous quarter.
In the fourth quarter, X-FAB recorded several positive trends, but these have not been material enough to compensate for the effects of ongoing destocking, in particular in the automotive market.
Automotive revenues in the fourth quarter amounted to USD 128.6 million*, down 15% year-on-year and 12% quarter-on-quarter. The decrease is due to inventory adjustments in the automotive supply chain following the build-up of high inventories in response to the chip shortage. On the other hand, a high level of prototyping activity and a number of new product launches in the fourth quarter, including an application for battery monitoring systems for electric vehicles, will contribute positively to X-FAB's automotive business going forward.
X-FAB's industrial business recorded quarterly revenue of USD 36.1 million*, down 34% year-on-year and up 15% compared to the previous quarter. Industrial CMOS revenue started to recover in the fourth quarter. Inventory adjustments in the industrial end market, which began as early as 2023, are slowly coming to an end. The industrial business also benefited from strong demand for X-FAB's end-of-life CMOS technologies, while silicon carbide (SiC) revenue, primarily sold to the industrial end market, reached its low point.
Fourth quarter revenue in the medical end market was at USD 16.5 million*, flat year-on-year and up 36% quarter-on-quarter, reaching its highest level in 2024. Medical bookings continue to be above average with strong growth coming from applications for personal medical devices, such as contactless temperature sensors, pacemakers, and hearing aids.
Fourth quarter sales by technology also reflect the impact from inventory adjustments. CMOS revenue in the fourth quarter amounted to USD 170.8 million*, down 9% year-on-year and 2% quarter-on-quarter. The decline is mainly driven by a drop in demand for 350nm CMOS technologies, whereas X-FAB's popular 180nm CMOS technologies continued to be fully utilized in the fourth quarter. X-FAB's CMOS revenue will also benefit from the strong uptick in orders following X-FAB's announcement of the termination of selected 150mm CMOS technologies by the end of 2026.
SiC revenue in the fourth quarter came in at USD 5.8 million*, down 75% year-on-year and down 22% quarter-on-quarter. SiC order intake, on the other hand, recorded a 72% increase over the previous quarter. X-FAB believes to have passed the bottom of the current down cycle in the second half of 2024 and expects a gradual recovery of its SiC business in 2025.
X-FAB's microsystems business, mainly delivering into the automotive and medical end market, recorded revenue of USD 20.2 million*, down 28% year-on-year and 7% quarter-on-quarter, whereas bookings almost doubled quarter-on-quarter.
Quarterly prototyping revenue totaled USD 23.6 million*, down 14% year-on-year and flat sequentially. Strong traction is coming from the SiC market in response to X-FAB's recently announced next-generation SiC process platform enabling substantial efficiency gains. There is also a high level of interest in X-FAB's advanced wafer-scale assembly technologies. These contribute to various medical and industrial applications and will be one of the growth drivers in the coming years.
In the full year of 2025, X-FAB expects to generate revenue in the range of USD 820-870 million. The guidance takes into account the uncertainty related to the current destocking cycle, which is at different stages depending on the end market. While the industrial and medical markets are already showing signs of recovery, inventory corrections in the automotive supply chain, to which X-FAB has the highest exposure, only started in the second half of last year and should continue well into 2025.
The structural growth drivers for X-FAB's sustainable business success remain valid. X-FAB's comprehensive set of technologies enables viable solutions for megatrends such as the "electrification of everything" to mitigate climate change and the digitization of medicine with the increasing use of semiconductor technology for advances in the prevention, diagnosis, treatment, and monitoring of diseases as the population ages. This drives long-term growth for the world-leading products enabled by X-FAB.
Prototyping and production revenue* per quarter and end market:
in millions
| Revenue | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 |
Automotive | Prototyping | 10.0 | 6.7 | 7.6 | 9.3 | 8.9 |
Production | 141.8 | 128.9 | 134.8 | 136.7 | 119.7 | |
Industrial | Prototyping | 10.5 | 10.7 | 8.9 | 8.2 | 9.6 |
Production | 43.8 | 41.9 | 25.5 | 23.3 | 26.5 | |
Medical | Prototyping | 3.3 | 2.7 | 2.0 | 3.0 | 2.3 |
Production | 13.1 | 11.8 | 11.2 | 9.1 | 14.2 | |
CCC | Prototyping | 3.5 | 3.1 | 2.5 | 3.0 | 2.6 |
Production | 13.7 | 12.9 | 10.2 | 11.3 | 12.6 |
Operations update
In the fourth quarter, X-FAB's capacity expansion program continued as planned, primarily focused on the expansion of the 180nm CMOS technologies. In 2024, this business has been constrained by available capacity. The additional capacity being installed at the sites in Malaysia and France is critical to support X-FAB's CMOS and microsystems customers.
During the fourth quarter, the majority of the tools for the newly built clean room in Malaysia were delivered and are currently being installed and qualified. All of the equipment related to the capacity expansion at X-FAB France has been delivered in 2024, completing this part of the investment program.
In the fourth quarter, capital expenditures came in at USD 132.9 million. Capital expenditures for the full year were at USD 509.6 million, well below the previously announced USD 550 million.
With the completion of the expansion program in the first half of 2025, X-FAB will significantly reduce its capital expenditures, and despite the postponement of equipment deliveries from 2024 to the current year, X-FAB reiterates that total spending in 2025 will not exceed USD 250 million.
Financial update
Fourth quarter EBITDA was USD 39.8 million with an EBITDA margin of 21.1%. Excluding the impact from revenues recognized over time, the EBITDA margin for the fourth quarter would have been 22.8%. In the full year of 2024, X-FAB recorded an EBITDA of USD 188.9 million with an EBITDA margin of 23.1%. Excluding the IFRS 15 impact on fourth quarter revenue in the amount of USD -8.0 million, the full-year EBITDA margin would have been 23.5%.
Profitability is not affected by exchange rate fluctuations as X-FAB's business is naturally hedged. At a constant USD/Euro exchange rate of 1.08 as experienced in the previous year's quarter, the EBITDA margin would have been 0.1 percentage points lower.
In the fourth quarter, X-FAB reported a net loss of USD -7.3 million, primarily attributable to a non-cash deferred tax asset adjustment in the amount of USD -16.5 million.
Cash and cash equivalents at the end of the third quarter amounted to USD 215.8 million, down 32% against the previous quarter.
Following the completion of X-FAB's capacity expansion projects, capital expenditures will decrease significantly to a normalized capex ratio of 10-15% of revenue from the second half of 2025 onwards. X-FAB will then revert to positive free cash flow generation and aims to achieve a sustainable balance between debt reduction, capital return and further growth.
Management comments
Rudi De Winter, CEO of X-FAB Group, said: "Despite the current market challenges, I am very pleased with the high level of interest in our specialty technologies. Our recently announced next-generation silicon carbide platform is gaining strong market traction, and X-FAB's microsystems and systems integration expertise is also generating a lot of customer interest. While 2025 will be a transition year due to continued destocking, it will also mark the completion of our capacity expansion, allowing us to better support the increased production demand for our 180nm technologies."
X-FAB Quarterly Conference Call
X-FAB's fourth quarter results will be discussed in a live conference call/audiocast on Thursday, February 6, 2025, at 6.30 p.m. CET. The conference call will be in English.
Please register here for the audiocast (listen only).
Please register here for the conference call (listen and ask questions).
The first quarter 2025 results will be communicated on April 24, 2025.
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/MEMS and silicon carbide (SiC), X-FAB is the development and manufacturing partner for its customers, primarily serving the automotive, industrial and medical end markets. X-FAB has approximately 4,500 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 | Quarter | Quarter | Year | Year |
ended | ended | ended | ended | ended | |
31 Dec 2024 | 31 Dec 2023 | 30 Sep 2024 | 31 Dec 2024 | 31 Dec 2023 | |
unaudited | unaudited | unaudited | unaudited | audited | |
Revenue* | 196,761 | 239,750 | 203,982 | 822,301 | 890,181 |
Impact from revenue recognized over time | -7,998 | -2,017 | 2,384 | -5,919 | 16,605 |
Total revenue | 188,762 | 237,733 | 206,366 | 816,383 | 906,786 |
Revenues in USD in | 61 | 57 | 56 | 59 | 56 |
Revenues in EUR in | 39 | 43 | 44 | 41 | 44 |
Cost of sales | -152,250 | -174,183 | -155,162 | -633,434 | -648,734 |
Gross profit | 36,513 | 63,551 | 51,204 | 182,949 | 258,052 |
Gross profit margin in % | 19.3 | 26.7 | 24.8 | 22.4 | 28.5 |
Research and development expenses | -14,205 | -12,581 | -13,087 | -49,785 | -47,191 |
Selling expenses | -2,213 | -2,157 | -2,177 | -9,070 | -8,463 |
General and administrative expenses | -11,511 | -13,113 | -11,369 | -47,351 | -47,157 |
Rental income and expenses from investment properties | 409 | -532 | 534 | 2,770 | 2,906 |
Other income and other expenses | 1,575 | 392 | -147 | 6,030 | -472 |
Operating profit | 10,567 | 35,559 | 24,957 | 85,542 | 157,674 |
Finance income | 11,262 | 10,451 | 12,191 | 36,006 | 34,658 |
Finance costs | -12,243 | -10,172 | -10,945 | -38,260 | -37,149 |
Net financial result | -981 | 280 | 1,246 | -2,254 | -2,490 |
Profit before tax | 9,585 | 35,839 | 26,204 | 83,288 | 155,184 |
Income tax | -16,891 | 2,964 | -254 | -21,763 | 6,711 |
Profit for the period | -7,306 | 38,803 | 25,950 | 61,525 | 161,895 |
Operating profit (EBIT) | 10,567 | 35,559 | 24,957 | 85,542 | 157,674 |
Depreciation | 29,248 | 24,048 | 25,345 | 103,386 | 87,939 |
EBITDA | 39,815 | 59,607 | 50,302 | 188,928 | 245,614 |
EBITDA margin in % | 21.1 | 25.1 | 24.4 | 23.1 | 27.1 |
Earnings per share | -0.06 | 0.30 | 0.20 | 0.47 | 1.24 |
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 | 1.06821 | 1.07570 | 1.09825 | 1.08232 | 1.08138 |
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 | Year ended | Year ended |
31 Dec 2024 | 31 Dec 2023 | |
unaudited | audited | |
ASSETS | ||
Non-current assets | ||
Property, plant, and equipment | 1,135,345 | 734,488 |
Investment properties | 7,412 | 7,171 |
Intangible assets | 6,319 | 5,627 |
Other non-current assets | 42 | 58 |
Deferred tax assets | 66,725 | 83,772 |
Total non-current assets | 1,215,843 | 831,116 |
Current assets | ||
Inventories | 281,765 | 269,227 |
Contract assets | 18,092 | 24,010 |
Trade and other receivables | 89,385 | 123,101 |
Other assets | 78,528 | 50,659 |
Cash and cash equivalents | 215,837 | 405,701 |
Total current assets | 683,607 | 872,698 |
TOTAL ASSETS | 1,899,450 | 1,703,814 |
EQUITY AND LIABILITIES | ||
Equity | ||
Share capital | 432,745 | 432,745 |
Share premium | 348,709 | 348,709 |
Retained earnings | 241,648 | 180,159 |
Cumulative translation adjustment | 462 | -301 |
Treasury shares | -770 | -770 |
Total equity | 1,022,794 | 960,542 |
Non-current liabilities | ||
Non-current loans and borrowings | 369,616 | 235,318 |
Other non-current liabilities and provisions | 4,257 | 4,024 |
Total non-current liabilities | 373,873 | 239,342 |
Current liabilities | ||
Trade payables | 67,658 | 90,681 |
Current loans and borrowings | 44,517 | 25,659 |
Other current liabilities and provisions | 390,608 | 387,590 |
Total current liabilities | 502,783 | 503,930 |
TOTAL EQUITY AND LIABILITIES | 1,899,450 | 1,703,814 |
Condensed consolidated statement of cash flows
in thousands of USD | Quarter | Quarter | Quarter | Year | Year |
ended | ended | ended | ended | ended | |
31 Dec 2024 | 31 Dec 2023 | 30 Sep 2024 | 31 Dec 2024 | 31 Dec 2023 | |
unaudited | unaudited | unaudited | unaudited | audited | |
Income before taxes | 9,585 | 35,839 | 26,204 | 83,288 | 155,184 |
Reconciliation of income before taxes to cash flow arising from operating activities: | 31,455 | 16,227 | 21,988 | 106,147 | 88,948 |
Depreciation and amortization, before effect of grants and subsidies | 29,248 | 24,048 | 25,345 | 103,386 | 87,939 |
Amortization of investment grants and subsidies | -1,514 | -730 | -924 | -3,735 | -2,972 |
Interest income and expenses (net) | 2,564 | 607 | 2,308 | 5,525 | 2,600 |
Loss/(gain) on the sale of plant, property, and equipment (net) | 53 | -199 | -312 | -4,030 | -3,373 |
Loss/(gain) on the change in fair value of derivatives and financial assets (net) | 0 | 0 | 1,144 | 1,144 | 0 |
Other non-cash transactions (net) | 1,104 | -7,498 | -5,573 | 3,858 | 4,754 |
Changes in working capital: | -27,694 | 70,615 | 29,732 | 8,726 | 172,490 |
Decrease/(increase) of trade receivables | 1,915 | -496 | 17,693 | 38,071 | -39,774 |
Decrease/(increase) of other receivables and other assets | -23,779 | 5,371 | 1,361 | -3,588 | 4,855 |
Decrease/(increase) of inventories | 2,380 | -8,266 | -6,559 | -9,733 | -52,504 |
Decrease/(increase) of contract assets | 7,998 | 2,017 | -2,384 | 5,919 | -24,010 |
(Decrease)/increase of trade payables | 9,800 | 16,823 | -3,323 | -8,098 | 16,634 |
(Decrease)/increase of other liabilities | -26,009 | 55,166 | 22,944 | -13,845 | 267,289 |
Income taxes (paid)/received | -359 | -3,275 | 914 | -2,113 | -6,658 |
Net cash from operating activities | 12,987 | 119,405 | 78,838 | 196,048 | 409,964 |
Cash flow from investing activities: | |||||
Payments for property, plant, equipment and intangible assets | -132,903 | -100,432 | -149,775 | -509,551 | -337,789 |
Acquisition of subsidiary, net of cash acquired | 0 | 0 | 0 | -1,634 | 0 |
Payments for loan investments to related parties | 0 | -39 | 0 | 0 | -276 |
Proceeds from loan investments related parties | 0 | 47 | 0 | 0 | 252 |
Proceeds from sale of property, plant, and equipment | -99 | 235 | 312 | 4,024 | 3,733 |
Interest received | 1,972 | 3,748 | 2,644 | 11,032 | 10,457 |
Net cash used in investing activities | -131,030 | -96,442 | -146,820 | -496,129 | -323,623 |
Condensed consolidated statement of cash flows con't
in thousands of USD | Quarter | Quarter | Quarter | Year | Year |
ended | ended | ended | ended | ended | |
31 Dec 2024 | 31 Dec 2023 | 30 Sep 2024 | 31 Dec 2024 | 31 Dec 2023 | |
unaudited | unaudited | unaudited | unaudited | audited | |
Cash flow from (used in) financing activities: | |||||
Proceeds from loans and borrowings | 38,134 | 105,640 | 78,634 | 209,669 | 205,784 |
Repayment of loans and borrowings | -3,898 | -112,939 | -20,582 | -124,237 | -241,806 |
Receipts of sale and leaseback arrangements | 1,350 | 0 | 32,766 | 60,584 | 0 |
Payments of lease installments | -3,193 | -1,197 | -5,080 | -12,502 | -5,512 |
Interest paid | -3,749 | -7,170 | -4,834 | -17,214 | -11,630 |
Cash flow from (used in) financing activities | 28,644 | -15,666 | 80,903 | 116,299 | -53,164 |
Effect of changes in foreign currency exchange rates on cash balances | -10,681 | 7,129 | 12,941 | -6,082 | 3,099 |
Increase/(decrease) of cash and cash equivalents | -89,399 | 7,298 | 12,921 | -183,782 | 33,177 |
Cash and cash equivalents at the beginning of the period | 315,917 | 391,274 | 290,054 | 405,701 | 369,425 |
Cash and cash equivalents at the end of the period | 215,837 | 405,701 | 315,917 | 215,837 | 405,701 |
*excluding impact from revenue recognized over time according to IFRS 15
View source version on businesswire.com: https://www.businesswire.com/news/home/20250206433196/en/
Contacts:
X-FAB Press Contact
Uta Steinbrecher
Investor Relations
X-FAB Silicon Foundries
+49-361-427-6489
uta.steinbrecher@xfab.com
