AIXTRON well on track in a challenging market environment

AIXTRON well on track in a challenging market environment
 

Slight revenue growth of 1% yoy / Record revenues in Q4 2024 / New G10 system generation continues to gain market share / Innovation Center for 300 mm wafer systems opened / Cautious outlook for 2025 

 

Herzogenrath, Germany, February 27, 2025 – AIXTRON SE (FSE: AIXA, ISIN DE000A0WMPJ6) delivered strong results in a challenging market environment for the fiscal year 2024. The company met both its updated and original revenue guidance, achieving revenues of EUR 633.2 million, a +1% increase yoy. Since 2020, AIXTRON's revenue has grown at a compounded average rate of around 24% per year. At EUR 131.2 million, the operating result was down -16% on the previous year due to negative product mix effects, cost under-absorption in operations and higher operating expenses. Nevertheless, the leading provider of deposition equipment to the semiconductor industry, maintained and further expanded its technological leadership and competitive position in all relevant end markets.

 

The G10 system family for gallium nitride (G10-GaN), silicon carbide (G10-SiC) and optoelectronic components (G10-AsP), introduced in 2022 and 2023, has played a major role in strengthening AIXTRONs market position. In 2024, the G10 series already accounted for around 50% of equipment revenue. This is due to the higher performance and increased productivity of the systems, which prompted many customers to quickly switch to this generation. In the past fiscal year, the G10-SiC in particular enabled the company to win new customers and further expand its market share. AIXTRON is also excellently positioned for the next technology leap: in 2024, the Hyperion, the pilot system for 300 mm GaN wafers, was successfully placed with several leading customers.

"AIXTRON has performed very well in a difficult market environment. We were able to slightly increase our revenues and further strengthened our market positions. The potential of SiC- and GaN-based efficient power electronics remains vast, driven by AI and other energy-intensive applications. With our new Innovation Center and our first 300 mm GaN prototype system, we are ideally positioned to support our customers in their future transition to the next wafer size. We will leverage the current phase of market consolidation to prepare optimally for the next growth phase of the semiconductor cycle," says Dr Felix Grawert, CEO  of AIXTRON SE.

 

Stable revenues in a difficult market environment

In fiscal year 2024, revenues grew by 1% to EUR 633.2 million and were thus maintained at a stable, high level compared to the previous year (2023: EUR 629.9 million). Revenues were largely driven by systems for applications in power electronics based on SiC and GaN, which accounted for 55% of system sales revenues (2023: 74%). Further revenues were recorded in the areas of LEDs including Micro LEDs (28%) and optoelectronics (12%).

 

Record deliveries in the fourth quarter

In terms of shipments,  AIXTRON achieved a record in the fourth quarter 2024: In Q4/2024, revenues reached EUR 226.9 million – an increase of 6% compared to the already strong prior-year quarter (Q4/2023: EUR 214.2 million). This is almost double the revenue of the first quarter of the fiscal year (Q1/2024: EUR 118.3 million), which underlines the flexibility of AIXTRON's supply chain and operating model.

 

Order intake reflects weakening market demand

In the fiscal year 2024, AIXTRON was unable to repeat the strong order intake of the previous year and recorded a decline of -7%. This resulted in orders worth EUR 596.4 million (2023: EUR 640.7 million). In particular, the weakening demand in the power electronics market led to customers reducing their capital expenditure budgets and postponing projects.

With EUR 157.0 million, incoming orders in the fourth quarter of 2024 were 9% higher than in the third quarter.  Compared to the fourth quarter of the previous year (EUR 204.5 million) order intake was down by -23%. This is also reflected in the equipment order backlog at the end of the 2024 financial year, which fell to EUR 289.3 million (2023: EUR 353.7 million).

 

Gross profit and gross margin below previous year

Mainly due to negative product mix effects and cost under-absorption in operations, gross profit fell by -6% year on year to EUR 262.5 million (2023:  EUR 279.0 million).

In the final quarter, gross profit was at EUR 102.5 million, up 4% versus the same quarter last year (Q4/2023: EUR 98.2 million).

Gross margin for the full year 2024 decreased by three percentage points reaching 41% (2023: 44%). In the fourth quarter of 2024, gross margin was at 45% compared to 46% in the same period of the previous year.

 

Investing into revenues of the future

In 2023 and 2024, AIXTRON built the new Innovation Center at its headquarters in Herzogenrath to fully unlock the potential of 300 mm GaN technology. This will expand the existing cleanroom space by 1,000 m² (class ISO 6). The construction project, with an investment volume of around EUR 100 million, was completed in record time – just 13 months from the groundbreaking ceremony to the start-up of the first installed 300 mm deposition system. The innovation center offers space and infrastructure for the development of the next product generations, new technologies and for collaboration with customers and partners.

In 2024, the purchase of a production facility located near Turin, Italy, was also completed. This investment creates additional capacity to cover demand peaks that are expected in the medium term as end markets continue to improve.

The AIXTRON Innovation Center and the other investments in research and development (R&D) are essential elements in addressing customer needs and driving innovation. R&D spending was therefore further increased in 2024: at EUR 91.4 million, the high level of the previous year (2023: EUR 87.7 million) was exceeded again.

In the 2024 financial year, operating expenses increased slightly, from EUR 122.3 million in 2023 to EUR 131.2 million. This increase is due in particular to the higher expenses for research and development and, at the same time, lower gains from financial assets.

 

Operating result (EBIT) and net profit below previous year

The weaker gross profit and the higher operating expenses led to a decline of -16% in earnings before interest and taxes (EBIT) to EUR 131.2 million  in the financial year 2024 (2023: EUR 156.8 million). Accordingly, the EBIT margin was 21% after 25%  in the previous year.

In a strong fourth quarter, AIXTRON was able to increase its very good Q4/2023 result (EBIT of EUR 63.4 million, EBIT margin of 30%) to an EBIT of EUR 71.0 million (EBIT margin of 31%).

The group's net income for the year amounted to EUR 106.2 million, which corresponds to a decline of -27% compared to the previous year (2023: EUR 145.2 million). The increase in tax expense resulted mainly from the reduction in deferred tax assets on tax loss carryforwards, as these are expected to be utilized to a lesser extent in 2025 due to the reduced earnings expectations. Earnings per share were EUR 0.94, also lower than the EUR 1.29  in 2023.

 

Financial position

Operating cash flow improved by around EUR 70 million to EUR 26.2 million in the financial year 2024 (2023: EUR -47.3 million). Free cash flow in the financial year 2024 was EUR -72.4 million (2023: EUR -109.7 million), which is mainly due to high investments for the construction of the Innovation Center and the acquisition of the production site in Italy.

Cash and cash equivalents, including financial assets, amounted to EUR 64.6 million as of December 31, 2024 (previous year: EUR 181.7 million). The high equity ratio of 83% as of December 31, 2024 (compared to 75% as of December 31, 2023) underscores AIXTRON's financial strength.

 

Dividend of EUR 0.15 planned

AIXTRON plans to distribute a dividend again. At the Annual General Meeting on May 15, 2025, the Executive Board and Supervisory Board will propose a dividend of EUR 0.15 per eligible share (2023: EUR 0.40 per share). The proposal is lower than in the previous year because the expected liquidity inflow in 2025 is required to rebuild a strong cash position.

AIXTRON's top priority for the use of generated cash will remain on implementing its strategy: AIXTRON will apply its core competencies and capabilities to markets with high growth, differentiation and margin potential in order to sustainably increase the company's value.

 

Strengthening research & development

In fiscal year 2024, the number of employees in the Group grew by around 5% from 1,147 at the end of 2023 to 1,207 as of December 31, 2024. This increase in the number of employees took place primarily in the area of research and development and serves to further expand AIXTRON's technology and market leadership. As in previous years, the majority of employees are based in Europe.

 

Guidance 2025: softer market environment expected

For the 2025 financial year, AIXTRON expects a short-term weakness in the field of power electronics and a decline in demand in the field of LEDs. Positive momentum is expected from optoelectronics, where AI applications are leading to increasing data volumes and further expansion of optical data communication.

Based on this market expectation, the current group structure and the budget rate of 1.10 USD/EUR (2024: 1.15 USD/EUR), the Management Board expects the group in the 2025 financial year to generate revenues in the range between EUR 530 million and EUR 600 million, a gross margin of around 41% to 42% and an EBIT margin of around 18% to 22%. The outlook for the gross and EBIT margin includes expenses in the mid-single digit million euro range for a voluntary severance program in the operations area. This measure will lead to future savings in the mid-single digit million euro range per year, which corresponds to an improvement of gross margin and EBIT margin of around 1 percentage point.

For the first quarter of 2025, the Executive Board expects revenues in the range of EUR 90 million to EUR 110 million.

"The year 2024 has developed significantly different than originally expected. Nevertheless, we continue to invest consistently into our future. Our new Innovation Center will further strengthen our research and development activities. The focus of our activities in 2025 is now on strengthening profitability and rebuilding a strong cash position," says Dr. Christian Danninger, CFO of AIXTRON SE.

 

Key financials at a glance

Key Financials						+/-						+/-
in EUR million		FY/2024		FY/2023		%		Q4/2024		Q4/2023		%
Order intake		596.4		640.7		-7		157.0		204.5		-23
Order backlog (Equipment only)		289.3		353.7		-18		289.3		353.7		-18
Revenue		633.2		629.9		1		226.9		214.2		6
Gross profit		262.5		279.0		-6		102.5		98.2		4
%		41%		44%		(3)pp		45%		46%		(1)pp
EBIT		131.2		156.8		-16		71.0		63.4		12
%		21%		25%		(4)pp		31%		30%		1pp
Net result		106.2		145.2		-27		53.4		61.7		-13
%		17%		23%		(6)pp		24%		29%		(5)pp
Earnings per share (EUR)		0.94		1.29		-27		0.47		0.55		-15
Cash flow from operating activities		26.2		-47.3		n.a		-2.0		18.4		n.a.
Free cash flow		-72.4		-109.7		n.a		-14.4		-27.4		n.a.

 

 

Financial information

The presentation of the full-year 2024 results is available at:

www.aixtron.com/en/investors/publications/ir-presentations

The complete financial tables of the Group (income statement, other comprehensive income, balance sheet, cash flow statement and statement of changes in equity) relating to this press release and the integrated Sustainability Report are available as part of the Annual Report 2024 at:

www.aixtron.com/en/investors/publications

 

Investor conference call

In conjunction with the release of the full-year 2024 results, AIXTRON will host a conference call (in English) for analysts and investors on Thursday, February 27, 2025, at 3:00 p.m. CET (06:00 a.m. PST, 09:00 a.m. EST). To participate in the conference call, please register online at

Analyst Conference Call - FY/2024. You will then receive an email with your personal access details.

 

An audio recording can be found after the conference at:

www.aixtron.com/en/investors/events/conference-calls

 

Contact

Media & Investors:

Christian Ludwig

VP Investor Relations & Corporate Communications

fon +49 (2407) 9030-444

e-mail c.ludwig@aixtron.com

 

About AIXTRON

AIXTRON SE is a leading provider of deposition equipment to the semiconductor industry. The Company was founded in 1983 and is headquartered in Herzogenrath (near Aachen), Germany, with subsidiaries and sales offices in Asia, United States and in Europe. AIXTRON´s technology solutions are used by a diverse range of customers worldwide to build advanced components for electronic and optoelectronic applications based on compound semiconductor materials. Such components are used in a broad range of innovative applications, technologies, and industries. These include Laser and LED applications, display technologies, data transmission, SiC and GaN power management and conversion, communication, signaling and lighting as well as a range of other leading-edge applications.

 

Our registered trademarks: AIXACT®, AIX-Multi-Ject®, AIXTRON®, Close Coupled Showerhead®, EXP®, EPISON®, Gas Foil Rotation®, Multi-Ject®, OVPD®, Planetary Reactor®, PVPD®, STExS®, TriJet®.

For further information on AIXTRON (FSE: AIXA, ISIN DE000A0WMPJ6) please visit our website at: www.aixtron.com

Forward-Looking Statements

This document may contain forward-looking statements regarding the business, results of operations, financial condition and earnings outlook of AIXTRON. These statements may be identified by words such as “may”, “will”, “expect”, “anticipate”, “contemplate”, “intend”, “plan”, “believe”, “continue” and “estimate” and variations of such words or similar expressions. These forward-looking statements are based on our current assessments, expectations and assumptions, of which many are beyond control of AIXTRON, and are subject to risks and uncertainties. You should not place undue reliance on these forward-looking statements. Should these risks or uncertainties materialize or should underlying expectations not occur or assumptions prove incorrect, actual results, performance or achievements of AIXTRON may materially vary from those described explicitly or implicitly in the relevant forward-looking statement. This could result from a variety of factors, such as actual customer orders received by AIXTRON, the level of demand for deposition technology in the market, the timing of final acceptance of products by customers, the condition of financial markets and access to financing for AIXTRON, general conditions in the market for deposition plants and macroeconomic conditions, cancellations, rescheduling or delays in product shipments, production capacity constraints, extended sales and qualification cycles, difficulties in the production process, the general development in the semi-conductor industry, increased competition, fluctuations in exchange rates, availability of public funding, fluctuations and/or changes in interest rates, delays in developing and marketing new products, a deterioration of the general economic situation and any other factors discussed in any reports or other announcements , in particular in the chapter Risks in the Annual Report, filed by AIXTRON. Any forward-looking statements contained in this document are based on current expectations and projections of the executive board based on information available the date hereof. AIXTRON undertakes no obligation to revise or update any forward-looking statements as a result of new information, future events or otherwise, unless expressly required to do so by law. 

 

This document is an English language translation of a document in German language. In case of discrepancies, the German language document shall prevail and shall be the valid version.