Elmos Semiconductor (ELG) Q2 2025 earnings summary

Executive summary

• Q2 2025 sales reached €145.7M, up 14.8% sequentially and 2.6% year-over-year, driven by strong demand in China and easing inventory adjustments, despite ongoing geopolitical and market challenges.

• EBIT for Q2 was €30.1M (20.6% margin), down from €35.9M in Q2 2024, impacted by SAP S/4HANA transformation costs, higher material costs, and negative FX effects.

• Net income after non-controlling interests rose 13.6% year-over-year to €27.6M in Q2 2025, with EPS up to €1.61.

• The company is expanding its local presence in China to adapt to fierce competition and innovation cycles in the automotive and new energy vehicle markets.

• Successful migration to SAP S/4HANA was completed, impacting Q2 results and cash flow due to system transition and working capital effects.

Financial highlights

• Q2 2025 sales were €145.7M (+2.6% YoY, +14.8% QoQ), with gross margin at 41.2% (down from 45.2% YoY) and EBIT at €30.1M (20.6% margin, down from 25.3% YoY).

• Q2 2025 net income was €27.6M (18.9% margin), and EPS was €1.61, both up year-over-year.

• Q2 2025 adjusted free cash flow was €0.5M, impacted by SAP transition; H1 2025 free cash flow was €22M (8.1% of sales).

• Q2 2025 CapEx was €4.6M (3.2% of sales), significantly lower year-over-year; H1 2025 CapEx was €18.1M (6.6% of sales).

• Net debt at end of Q2 2025 was €18.4M, up due to dividend payment; cash and cash equivalents at €84.4M.

Outlook and guidance

• FY 2025 sales guidance is €580M ± €30M, with EBIT margin at 23% ± 3pp, likely at the lower half due to one-time effects.

• CapEx and adjusted free cash flow for 2025 are both guided at 7% ± 2pp of sales, significantly above 2024.

• Guidance reflects ongoing market uncertainty, low visibility, and does not include potential impacts from new tariffs, trade conflicts, or a global recession.

• Guidance updated for FX rate to 1.15 EUR/USD, reflecting a negative FX impact of ~€25M.