AIXTRON (AIXA) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue reached €137.4m, up 4% year-over-year and at the upper end of guidance, with H1 2025 revenue flat at €249.9m; EBIT for H1 2025 was €27m, up 18% year-over-year, and EBIT margin was 11% (13% adjusted for one-off personnel reduction costs).

• Free cash flow improved to €71.1m in H1 2025, driven by inventory reductions and lower capex; cash balance as of June 30, 2025, was €115m, up from year-end 2024, despite a €17m dividend payment.

• G10 product series, especially G10-ASP and G10-SiC, drove success, with major SiC volume order from China fulfilled in H1 2025; optoelectronics and laser markets showed strong momentum.

• Structural growth drivers remain intact, but short-term demand visibility is low, with western power electronics demand weak and partially offset by Asian/Chinese markets.

• Full-year 2025 guidance is confirmed, expecting revenue of €530–600m, gross margin 41–42%, and EBIT margin 18–22%.

Financial highlights

• Q2 2025 gross margin was 41% (up 4pp year-over-year); H1 2025 gross margin was 36% (down 1pp year-over-year), with adjusted gross margin at 38%.

• Q2 2025 EBIT margin reached 17% (up 7pp year-over-year); H1 2025 EBIT margin was 11% (up 2pp year-over-year), adjusted EBIT margin at 13%.

• H1 2025 net profit was €24.3m, up 10% year-over-year; earnings per share increased to €0.22.

• Inventory reduced by €120m year-over-year to €327.9m; trade receivables at €130m, down from €193m at end of 2024.

• No bank borrowings as of June 30, 2025; €200m unused credit facility; equity ratio improved to 87%.

Outlook and guidance

• FY 2025 revenue guidance remains €530m–€600m; Q3 2025 expected at €110m–€140m.

• FY 2025 gross margin expected at 41–42%, EBIT margin at 18–22%, including mid-single-digit EURm expense for headcount reduction.

• One-off personnel reduction expenses will yield annualized savings, improving margins by ~1pp.

• A USD/EUR rate of 1.20 in H2 2025 could reduce full-year margins by ~1pp.

• Structural growth drivers are intact, but short-term demand visibility remains low.