Aixtron Stock: Sharp Decline Following Disappointing Outlook

Aixtron shares tumbled approximately 4% to €13.85 on Thursday after the chip equipment manufacturer released its financial guidance for 2025. The company projects a significant revenue decline to between €530-600 million, down from €633 million in the previous year. Adding to investor disappointment, Aixtron announced a drastic dividend reduction from €0.40 to just €0.15 per share. The operational profit margin is expected to range between 18-22%, already factoring in costs for a voluntary staff reduction program in the mid-single-digit millions, which aims to improve margins by about one percentage point long-term. While fourth-quarter revenue of €226.9 million slightly exceeded expectations, net profit for the year fell by roughly 25% to €106 million.

Market Challenges Persist Despite Long-Term Potential

The Herzogenrath-based company is currently struggling with dampened demand attributed primarily to slowing momentum in electric mobility and challenging industrial markets. Customers are hesitating on major investments as electric vehicle growth isn't materializing as rapidly as anticipated, negatively impacting demand for silicon carbide chips used in fast-charging technology. Despite these headwinds, Aixtron continues investing in future capabilities, particularly through its new innovation center to strengthen research and development activities. Finance director Christian Danninger emphasized that 2025 will focus on improving profitability and rebuilding a strong cash position. Market experts maintain a positive outlook on long-term growth prospects, expecting SiC-related demand to recover as electric vehicles become more widespread, while the rapidly expanding business for gallium nitride chip production equipment gains importance in coming years.