SÜSS MicroTec (SMHN) Q3 2025 earnings summary

Executive summary

• Nine-month sales reached €384.4 million, up 30.2% year-over-year, with both main business segments contributing to growth despite margin pressure and lower order intake.

• Q3 sales were €118 million, but order intake was low at €70 million; a rebound above €100 million is expected in Q4, driven by AI-related demand and activity in Korea and Taiwan.

• Profitability was pressured by start-up costs in Taiwan, unfavorable product/customer mix, and increased ramp-up support costs.

• Net income dropped to €36.4 million from €93.8 million year-over-year, mainly due to the absence of a prior year’s one-time gain from the MicroOptics business sale.

• Margin pressure led to revised guidance for Gross Profit and EBIT Margins, but long-term ambitions remain unchanged.

Financial highlights

• Q3 2025 sales reached €118.0 million, up 15.1% year-over-year, but order intake was €70.0 million, down 16.7% year-over-year.

• Gross profit margin for the nine months was 35.9% (down from 39.6%), and Q3 margin dropped to 33.1% due to unfavorable mix and underutilization.

• EBIT margin for the nine months was 14.1% (down from 16.1%), with Q3 at 10.5%.

• Free cash flow was negative at €-31.5 million for the nine months, with a target to turn positive by year-end 2025.

• CapEx for nine months totaled €70.8 million, mainly for the new Taiwan fab; expected to normalize below €20 million in 2026.

Outlook and guidance

• Full-year 2025 sales guidance confirmed at €470–510 million, with Q4 sales needed between €85 million and €125 million.

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

• Management targets OpEx run rate below €30 million per quarter from Q2 2026, as double-rent costs in Taiwan phase out.

• Several new product launches planned for next year, including next-generation scanners and wafer cleaning tools.

• Margin pressure expected to persist in Q4 due to project mix and lower fixed cost coverage.