Elmos Semiconductor (ELG) Q1 2026 earnings summary

Executive summary

• Q1 2026 sales rose to €152.5 million, up 20.2% year-over-year, reflecting strong demand and a robust start to the year after inventory adjustments in the automotive semiconductor market.

• EBIT margin improved to 23.8%, with EBIT reaching €36.2 million, and adjusted free cash flow at €40.7 million or 26.7% of sales, both significantly above prior-year levels.

• Management raised full-year 2026 guidance due to strong Q1 performance, robust demand, and operational execution.

• Share price up 90% year-to-date, market cap near EUR 3.3 billion, with potential MDAX inclusion.

• Company maintains global #1 or #2 positions in key automotive IC segments and continues strategic expansion in China.

Financial highlights

• Gross profit increased 28.4% year-over-year to €70.7 million, with gross margin at 46.4%.

• EBIT rose 41.3% to €36.2 million, with an EBIT margin of 23.8%.

• Adjusted free cash flow was €40.7 million (26.7% of sales), driven by low CapEx and reduced working capital.

• Net cash position at the end of Q1 2026 was €48.9 million.

• CapEx was €2.7 million (1.8% of sales) in Q1 2026, down from €13.5 million (10.6% of sales) in Q1 2025.

Outlook and guidance

• Full-year 2026 sales growth guidance raised to 12% ±2 percentage points, with EBIT margin guidance of 23–26% and adjusted free cash flow margin at 19% ±2 percentage points.

• CapEx expected to remain around 5% of sales for the year.

• Guidance based on operational performance, excluding treasury share-related accounting effects, and assumes an exchange rate of 1.15 EUR/USD.

• 2030 targets: ~€1 billion sales, ~25% EBIT margin, ~17% adjusted free cash flow margin.

• Guidance reflects strong Q1, high demand, and ongoing market volatility and capacity constraints.