SÜSS MicroTec (SMHN) Q3 2025 TU earnings summary

Preliminary Q3 2025 Results and Financial Performance

• Q3 order intake declined to €70.0 million, down 16.7% year-over-year, reflecting muted demand momentum.

• Q3 sales were €118.0 million, up 15.1% year-over-year but lower than Q1 and Q2.

• Gross profit margin for Q3 was 33.1%, a 5.9 percentage point year-over-year drop and below consensus.

• EBIT margin for Q3 was 10.5%, underperforming consensus and down 6.4 percentage points year-over-year.

• For the first nine months, order intake was €236.8 million, sales €384.4 million, gross profit margin 35.9%, and EBIT margin 14.1%.

Margin Pressure and Contributing Factors

• Margin pressure was driven by double rent and relocation costs in Taiwan, lower fixed cost coverage, and an unfavorable product/customer mix.

• Expenses from establishing a new production site in Zhubei, Taiwan, contributed to higher costs.

• Lower business volume and unforeseen expenses further impacted margins.

• Push-outs of high-margin projects and pull-ins of lower-margin ones affected profitability.

• No direct competition from ASML’s new advanced packaging tool; different application focus.

Updated Guidance and Management Actions

• Full-year 2025 sales guidance remains at €470–510 million.

• Gross profit margin guidance for 2025 is lowered to 35–37%, and EBIT margin to 11–13%.

• No major margin recovery is expected in Q4; similar product mix and lower sales volume anticipated.

• Management is implementing strict cost management and considering structural cost base reductions.

• Q4 order intake is expected to improve, potentially exceeding €100 million.