AT & S Austria Technologie & Systemtechnik (ATS) Q2 2025 earnings summary

Executive summary

• Revenue for H1 2024/25 declined 1.7% year-over-year to €799.9 million, with EBITDA down 27% to €157 million and a net loss of €63 million; Q2 revenue was €451 million, up 29% sequentially.

• Management board transitioned to shared CEO responsibility after the chairman stepped down; cost optimization and efficiency programs, including workforce reduction, are underway.

• Factory expansions in Kulim (Malaysia) and Leoben (Austria) are progressing, with high-volume production delayed to early 2025 and revenue contribution expected later.

• Sale agreement for AT&S Korea (Ansan) signed for €405 million, with closing expected by March 2025 and proceeds to reduce leverage.

• Market environment remains weak with significant price pressure, leading to a revised FY 2024/25 outlook, though mid-term guidance is maintained.

Financial highlights

• Half-year revenue was €800 million, down 2% year-over-year; EBITDA margin at 19.6% (adjusted: 27.9%), with EBITDA at €157 million and net loss of €63 million.

• EBIT dropped 91.6% to €6.8 million; earnings per share at €-1.84.

• Net CAPEX halved to €254 million; operating free cash flow negative at €-345 million.

• Cash and unused credit lines at €900 million as of September 30, 2024, excluding a new €250 million IFC loan.

• Net debt increased by 19% to €1.67 billion, with leverage at 6.7x.

Outlook and guidance

• FY 2024/25 revenue guidance revised to €1.5–1.6 billion, with adjusted EBITDA margin expected at 24–26%.

• Net CapEx guidance remains at up to €500 million.

• Mid-term (FY 2026/27) guidance confirmed: revenue ~€3.0 billion, EBITDA margin 27–32%, ROCE >12%.

• Ramp-up for high-volume manufacturing in Kulim and Leoben delayed by 1–2 quarters, with revenue recognition starting in Q1 but high-volume visible later.

• Efficiency programs and up to 1,000 job cuts planned to address ongoing price pressure.