AIXTRON (AIXA) Q4 2024 earnings summary

Executive summary

• Achieved 1% revenue growth in 2024 to EUR 633 million, outperforming a weak market and meeting the lower end of guidance; CAGR since 2020 is 24%.

• Q4 2024 delivered record revenues of EUR 227 million, up 6% year-over-year, with EBIT up 12% to EUR 71 million.

• Net profit declined 27% year-over-year to EUR 106 million, with EBIT at EUR 131 million and EBIT margin at 21%.

• Market leadership in silicon carbide and gallium nitride technologies reinforced by technical advances and customer wins, especially in China.

• Dividend proposal of EUR 0.15 per share for 2024, down from EUR 0.40 in 2023, to rebuild cash position.

Financial highlights

• Gross margin declined by 3 percentage points to 41% due to unfavorable product mix and operational inefficiencies.

• EBIT margin for FY 2024 was 21% (down 4pp year-over-year); Q4 2024 EBIT margin was 31% (up 1pp year-over-year).

• Free cash flow for FY 2024 was negative EUR 72.4 million, impacted by high capex for the new Innovation Center.

• Cash balance at year-end 2024 was EUR 64.6 million, down from EUR 181.7 million in 2023.

• After-sales revenue grew 13% to EUR 111 million, now 17% of total revenue.

Outlook and guidance

• 2025 revenue expected between EUR 530-600 million, about 10% below 2024 at midpoint.

• Gross margin guidance at 41%-42%, EBIT margin at 18%-22%, including mid-single-digit EURm expense for headcount reduction.

• Q1 2025 revenues expected between EUR 90-110 million, reflecting seasonal softness.

• Weak market environment expected to persist in 2025, with low visibility for the full year.

• Severance payments for a voluntary leave program to impact Q1 2025, with permanent annual savings expected from Q2 onward.