Company Announcements

Intermediate declaration by the Board of Directors

TESSENDERLO-HAM, Belgium--(BUSINESS WIRE)--Oct. 30, 2025-- Regulatory News:

X-FAB (BOURSE:XFAB):

Highlights Q3 2025:

• Revenue was USD 228.6 million, up 11% year-on-year (YoY) and up 6% quarter-on-quarter (QoQ)
• Excluding the impact from revenue recognized over time (IFRS 15), revenue was USD 228.9 million, well above the guided range of USD 215-225 million
• EBITDA at USD 53.9 million, up 7% YoY and up 4% QoQ
• EBITDA margin of 23.6%; excluding IFRS 15 impact, EBITDA margin was 24.2%, compared to the guidance of 22.5-25.5%
• EBIT was USD 23.8 million, down 5% YoY and up 10% QoQ

Outlook:

• Q4 2025 revenue is expected to come in within the range of USD 215-225 million with an EBITDA margin in the range of 22.5% and 25.5%. This corresponds to a full-year revenue in the range of USD 863-873 million in 2025.
• The guidance is based on an average exchange rate of 1.17 USD/Euro and does not take into account the impact of IFRS 15.

Revenue breakdown per quarter:

Business development

In the third quarter of 2025, X-FAB recorded revenues of USD 228.6 million, up 11% year-on-year and up 6% quarter-on-quarter. Excluding the impact from revenue recognized over time, quarterly revenue was USD 228.9 million, which is well above the guidance of USD 215-225 million. Third quarter revenue in X-FAB’s core markets – automotive, industrial, and medical – was at USD 215.7 million*, up 14% year-on-year and up 5% quarter-on-quarter, representing a share of 94%* of total revenue.

Order intake for the third quarter amounted to USD 163.0 million, down 25% year-on-year and down 21% compared to the previous quarter. This is primarily due to continued inventory corrections by automotive customers as well as broader macroeconomic uncertainties resulting from geopolitical tensions and trade disputes. These factors have led to more cautious ordering patterns, while customers also take advantage of shorter cycle times placing orders later than usual and with reduced lead time. As a result, visibility is still restricted.

The backlog for the third quarter came in at USD 346.9 million, compared to USD 412.9 million at the end of the preceding quarter.

In the third quarter, X-FAB generated automotive revenue of USD 146.9 million*, up 1% year-on-year and up 2% quarter-on-quarter. Third quarter industrial revenue was USD 47.6 million*, up 51% year-on-year and 1% sequentially, reflecting the overall recovery of the industrial end market. The gradual recovery of X-FAB’s silicon carbide (SiC) business contributed to this positive evolution. Medical revenue in the third quarter hit a record USD 21.2 million*, up 74% year-on-year and 40% quarter-on-quarter, highlighting the steady growth of X-FAB’s medical business. Third quarter growth was mainly driven by contactless temperature sensors, DNA sequencing, and echography applications.

In the third quarter, CMOS revenue recorded a growth of 10%* year-on-year and 4%* quarter-on-quarter; microsystems revenue was up 27%* year-on-year and 9%* sequentially. X-FAB’s SiC business continued to recover, and revenue grew strongly by 30%* year-on-year and 21%* quarter-on-quarter. The number of SiC wafers produced in the third quarter more than doubled year-on-year. SiC revenue growth is partially diluted by the much higher share of SiC raw wafers being supplied by customers today as compared to a year ago. This results in lower total billing due to less pass-through of substrate costs. The positive trend in the evolution of X-FAB’s SiC business is underpinned by increasing bookings attributable to sustained demand from data center, electric vehicle, and renewable energy applications.

Quarterly prototyping revenue was USD 19.7 million*, down 16% year-on-year and 6% quarter-on-quarter.

Prototyping and production revenue* per quarter and end market:

Operations update

In September, X-FAB announced the inauguration of its new cleanroom in Malaysia, which will increase the site’s manufacturing capacity from 30,000 to 40,000 wafer starts per month. Production at the new facility is being scaled up progressively, with the full increase in capacity anticipated by the fourth quarter of 2026. The expansion will effectively double the capacity for X-FAB’s popular 180nm BCD-on-SOI technology, which is particularly suited for applications such as smart motor drivers, smart LED drivers, and battery management systems.

The recovery of X-FAB’s silicon carbide business is supported by the existing SiC capacity at its Texas facility. The current installed capacity, combined with additional capacity scheduled to become operational by the end of 2026, will enable X-FAB to more than double its present production run rate without necessitating significant further investment.

Capital expenditures for the third quarter amounted to USD 23.5 million, bringing total capex as of September 30 to USD 178.9 million. The full-year capital expenditure projection remains unchanged at USD 250 million.

Financial update

Third quarter EBITDA was USD 53.9 million with an EBITDA margin of 23.6%. Excluding the impact from revenues recognized over time, the EBITDA margin would have been 24.2%, within the guided range of 22.5-25.5%.

Profitability remains unaffected by exchange rate fluctuations as X-FAB’s business is naturally hedged. At a constant USD/Euro exchange rate of 1.10 as experienced in the previous year’s quarter, the EBITDA margin would have been unchanged at 23.6%.

In the third quarter, X-FAB reported a financial result of USD -5.6 million, primarily comprising an interest result of USD -4.3 million. Unrealized foreign exchange losses arising from the revaluation of Euro-denominated debt amounted to USD 0.8 million (non-cash).

Cash and cash equivalents at the end of the third quarter amounted to USD 174.2 million, up 16.5 million compared to the previous quarter, while net debt decreased by USD 21.1 million quarter-on-quarter.

Management comments

Rudi De Winter, CEO of X-FAB Group, commented: “X-FAB continued to grow in the third quarter, posting a solid increase in revenue for the third consecutive period amid a challenging macroeconomic environment. There is significant interest in our specialty technologies. Our silicon carbide business has made measurable progress, with growing design activity on our latest SiC technology platform. Additionally, our Microsystems division continues to advance with collaborative co-creation projects enhancing our growth pipeline. While visibility continues to be limited, I am confident in X-FAB’s positioning that supports sustained long-term business success.”

X-FAB Quarterly Conference Call

X-FAB’s third quarter results will be discussed in a live conference call/audiocast on Thursday, October 30, 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).

Financial calendar

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 4,300 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

Condensed consolidated statement of financial position

Condensed consolidated statement of cash flows

Condensed consolidated statement of cash flows – con’t

*excluding impact from revenue recognized over time according to IFRS 15

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X-FAB Press Contact
Uta Steinbrecher
Investor Relations
X-FAB Silicon Foundries
+49-361-427-6489
uta.steinbrecher@xfab.com

Source: X-FAB Silicon Foundries