Soitec (SOI) Q1 2027 TU earnings summary

Executive summary

• Q1 FY2027 revenue reached €113 million, up 23% year-over-year at constant currency and scope, surpassing guidance of 15%.

• Growth was driven by accelerating AI-related activities, with Photonic SOI sales doubling year-over-year, especially for high-speed optical transceivers in AI data centers.

• The Singapore 300mm SOI fab was qualified for high-volume Photonic SOI manufacturing with first customers, enhancing capacity to meet demand.

• Multi-year capacity reservation agreements and customer deposits are strengthening medium-term visibility for Photonic SOI.

• The company is positioned on a cash generation path, with revenue growth paving the way for improved profitability.

Financial highlights

• Q1 revenue: €113 million, +23% year-over-year at constant currency and scope.

• Edge & Cloud AI revenue: €65 million, up 47% year-over-year; Photonic SOI revenues doubled and contributed more than half of this segment.

• Mobile Communications revenue: €39 million, down 10% year-over-year, impacted by inventory correction.

• Automotive & Industrial revenue: €10 million, up 108% year-over-year, albeit from a low base.

• Q1 average fab loading was 48%, down from 74% a year ago, with a ramp-up expected for the rest of the year.

Outlook and guidance

• Q2 FY2027 revenue expected to be up more than 30% year-over-year, driven by Photonic SOI acceleration.

• FY2027 Photonic SOI revenue expected to more than double FY2026 levels (FY2026 slightly above $100 million), assuming no major AI market disruption.

• CapEx for FY2027 expected around €100 million, focused on scaling Photonic SOI production.

• Profitability recovery expected to be tangible in 2027 and fully materialize in 2028.

• Contrasting end-market dynamics expected: Edge & Cloud AI momentum, Mobile Communications challenged, Automotive stable.