Elmos Semiconductor (ELG) Q4 2025 earnings summary

Executive summary

• Achieved record revenue of €582.6 million in 2025, marking the fifth consecutive year of growth, with Q4 sales at €169.3 million, up 20% sequentially and 16% year-over-year, driven by strong demand and normalized order patterns.

• Transitioned to a fabless model after the wafer fab sale in late 2024, completed SAP S/4HANA transformation, and expanded R&D in China and Czech Republic.

• Major growth was driven by China, while other regions showed muted development.

• Secured the second-highest level of new design wins in company history, indicating robust future growth.

• ESG performance recognized with ISS Prime status and CDP management level B rating.

Financial highlights

• Gross margin for 2025 was 42.3%, impacted by higher material costs, especially gold, but partially offset by cost optimization.

• EBIT reached €127.1 million (21.8% of sales), in line with guidance, despite special costs for SAP transfer and China expansion.

• Adjusted free cash flow totaled €66.3 million (11.4% of sales), up nearly €122 million year-over-year.

• CapEx was €33.6 million (5.8% of sales), at the lower end of guidance and down 24.2% from 2024.

• Net income after non-controlling interests was €101.1 million, nearly flat year-over-year.

Outlook and guidance

• For 2026, expects sales growth of 11% ±3 points, EBIT margin above previous year at 24% ±2 points, and adjusted free cash flow margin above 17% of sales.

• Capital expenditures to remain low at approximately 5% of sales.

• Anticipates higher profitability and continued positive cash development, with structural growth resuming after destocking headwinds.

• Mid-term targets for 2030: €1 billion sales, ~25% EBIT margin, ~17% free cash flow margin, and 6% CAPEX ratio.

• Guidance is subject to economic, geopolitical, and market-specific risks.