X-FAB Silicon Foundries (XFAB) Q3 2024 earnings summary

Executive summary

• Q3 revenue reached $206.4 million, down 12% year-on-year but up 1% sequentially, within guidance.

• Core markets (automotive, industrial, medical) contributed $189.6 million, flat sequentially, down 8% year-on-year.

• Bookings totaled $217.1 million with a book-to-bill ratio of 1.05; backlog at $481.4 million, including $114 million in long-term orders pending scheduling.

• Automotive business grew 8% year-on-year, driven by 55% growth in China, while EU and US bookings weakened.

• Industrial and medical segments declined 41% and 29% year-on-year, respectively, but order intake improved in Q3.

Financial highlights

• Gross margin for Q3 was 24.8%, down from 29.8% a year ago; EBITDA was $50.3 million (24.4% margin), up 5% quarter-on-quarter.

• EBIT stood at $25.0 million, down 43% year-on-year and up 9% sequentially.

• Net income for Q3 was $25.95 million, EPS $0.20.

• Cash and cash equivalents at quarter-end were $316 million.

• Q3 prototyping revenues were $23.6 million, down 14% year-on-year, up 12% sequentially.

Outlook and guidance

• Q4 revenue expected between $195 million-$205 million; EBITDA margin guidance at 22%-25%.

• Full-year 2024 revenue guidance revised down to $822 million-$832 million; EBITDA margin to 23.4%-24%.

• CapEx for 2024 projected at $550 million; significant drop in CapEx expected after Q1 2025.

• SiC revenue target for 2026 ($300-$350 million) no longer achievable due to capacity and product mix changes.