Elmos Semiconductor (ELG) Q3 2025 earnings summary

Executive summary

• Q3 2025 sales reached €140.8 million, down 10.1% year-over-year due to a SAP S/4HANA transition, but profitability and cash flow remained strong, with EBIT margin at 22.5% and adjusted free cash flow at €32.5 million.

• Operational and strategic initiatives advanced, including cost optimization, SAP rollout, and expansion in China, with a focus on profitable growth and higher cash generation.

• ESG performance improved, achieving Prime status from ISS with a C+ rating.

• Order intake showed positive momentum, with inventory normalization and expectations for a strong Q4.

• Global megatrends in electrification, ADAS, and digitalization continue to drive demand for automotive semiconductors.

Financial highlights

• Q3 2025 revenue was €140.8 million, with gross margin at 43.6% and EBIT at €31.7 million (22.5% margin); adjusted free cash flow was €32.5 million (23.1% of sales).

• Q3 2025 sales and margins declined year-over-year, but sequential EBIT margin improved from Q2.

• Net income for Q3 2025 was €23.6 million, with EPS of €1.37.

• Q3 2025 CapEx was €5.9 million (4.2% of sales); 9M 2025 CapEx at €24 million (5.8% of sales).

• Net cash position at end of Q3 2025 was €15.5 million, with working capital at €255.5 million.

Outlook and guidance

• FY 2025 sales expected at €580 million ± €20 million, with EBIT margin in the lower half of 23% ±3pp, CapEx in the lower half of 7% ±2pp, and adjusted free cash flow guidance raised to 10% ±2pp of sales.

• Guidance reflects low market visibility, ongoing trade and tariff risks, and potential FX impacts.

• Order intake remains strong, with inventory reductions by customers ending and robust Q4 expected.