X-FAB

Earnings Release • Apr 24, 2025

Regulated Information

X-FAB First Quarter 2025 Results

Intermediate declaration by the Board of Directors Tessenderlo-Ham, Belgium – April 24, 2025, 07.00 a.m. CEST

Highlights Q1 2025:

• › Revenue was USD 204.1 million, down 6% year-on-year (YoY) and up 8% quarter-on-quarter (QoQ)
• › Excluding the impact from revenue recognized over time (IFRS 15), revenue was USD 202.3 million, well within the guided range of USD 195-205 million
• › Bookings at USD 174.7 million reflecting a strong sequential increase of 26% QoQ
• › EBITDA at USD 49.1 million, down 4% YoY and up 23% QoQ
• › EBITDA margin of 24.0%; excluding IFRS 15 impact, EBITDA margin was 23.8%, compared to the guidance of 22-25%
• › EBIT was USD 21.1 million, down 22% YoY and up 100% QoQ

Outlook:

• › Q2 2025 revenue is expected to come in within a range of USD 200-210 million with an EBITDA margin in the range of 22.5-25.5%.
• › The guidance is based on an average exchange rate of 1,08 USD/Euro and does not take into account the impact of IFRS 15.
• › X-FAB reiterates its FY 2025 guidance with annual revenue expected in the range of USD 820-870 million and an EBITDA margin in the range of 24-27%.

in millions of USD	Q2 2023	Q3 2023	Q4 2023	Q1 2024	Q2 2024	Q3 2024	Q4 2024	Q1 2025	Q1 y-o-y growth
Automotive	131.1	135.3	151.8	135.6	142.4	146.0	128.6	135.4	0%
Industrial	51.3	53.7	54.3	52.6	34.4	31.5	36.1	39.3	-25%
Medical	16.2	17.0	16.4	14.5	13.2	12.1	16.5	13.8	-4%
Subtotal core	198.7	206.1	222.5	202.6	190.1	189.6	181.2	188.6	-7%
business	90.8%	92.2%	92.8%	92.6%	93.7%	92.9%	92.1%	93.2%
CCC1	20.0	17.2	17.2	16.0	12.6	14.2	15.1	13.6	-15%
Others	0.2	0.2	0.1	0.1	0.1	0.1	0.5	0.2
Revenue*	218.9	223.5	239.8	218.7	202.8	204.0	196.8	202.3	-7%
Impact from revenue recognized over time	8.3	10.4	-2.0	-2.6	2.3	2.4	-8.0	1.8
Total revenue	227.1	233.8	237.7	216.2	205.1	206.4	188.8	204.1	-6%

Revenue breakdown per quarter:

1Consumer, Communications & Computer

X-FAB Silicon Foundries SE | Press Release April 24, 2025

in millions of USD	Q2 2023	Q3 2023	Q4 2023	Q1 2024	Q2 2024	Q3 2024	Q4 2024	Q1 2025	Q1 y-o-y growth
CMOS	180.7	180.5	188.4	168.3	166.2	175.0	170.8	173.4	3%
Microsystems	20.8	24.4	27.9	24.1	25.1	21.6	20.2	22.9	-5%
Silicon carbide	17.3	18.6	23.5	26.3	11.6	7.4	5.8	6.0	-77%
Revenue*	218.9	223.5	239.8	218.7	202.8	204.0	196.8	202.3	-7%
Impact from revenue recognized over time	8.3	10.4	-2.0	-2.6	2.3	2.4	-8.0	1.8
Total revenue	227.1	233.8	237.7	216.2	205.1	206.4	188.8	204.1	-6%

Business development

In the first quarter of 2025, X-FAB recorded revenues of USD 204.1 million, down 6% year-on-year and up 8% quarter-on-quarter. Excluding the impact from revenue recognized over time in the amount of USD 1.8 million, quarterly revenue was USD 202.3 million, which is well within the guidance of USD 195-205 million.

First quarter revenue in X-FAB's core markets – automotive, industrial, and medical – was at USD 188.6 million*, down 7% year-on-year and up 4% quarter-on-quarter, representing a share of 93%* of total revenue.

The quarterly bookings totaled USD 174.7 million, reflecting a 36% decrease compared to the exceptionally strong corresponding quarter of the previous year, but a 26% increase quarter-on-quarter. This growth is primarily related to strong bookings in the automotive and industrial end market. In general, customers are still placing orders later than usual in reaction to the currently shortened lead times. The backlog for the first quarter amounted to USD 386.7 million, compared to USD 414.0 million at the end of the previous quarter.

In the first quarter, X-FAB recorded automotive revenue of USD 135.4 million*, flat year-on-year and up 5% sequentially. Main drivers for X-FAB's automotive business in the first quarter were EV-related applications. Industrial revenue in the first quarter came in at USD 39.3 million*, down 25% year-on-year and up 9% quarter-on-quarter. The industrial business in particular is benefiting from increased demand following the last-time-buy announcement for some of X-FAB's 150mm CMOS technologies. Revenue in the medical end market amounted to USD 13.8 million*, down 4% year-on-year, while the quarter-on-quarter decline of 16% is attributable to high shipments of a medical application in the prior quarter.

X-FAB recorded a sequential revenue increase across all technologies. CMOS revenue went up 2%* quarteron-quarter, silicon carbide 5%* and X-FAB's microsystems business 14%*. X-FAB's silicon carbide revenue in the first quarter came in at USD 6.0 million*. SiC order intake increased 17% sequentially and for the second consecutive quarter, signaling the market's gradual recovery. The main growth driver was data center applications.

Quarterly prototyping revenue was USD 16.1 million*, down 31% year-on-year and 32% quarter-on-quarter. As the transition of major customer-specific projects to volume production was successfully completed in 2024, the associated safe launch and start-up costs as part of prototyping revenue disappeared, which had an effect on the prototyping revenue in the first quarter. In general, X FAB's prototyping revenue tends to be more variable as the number of customer-specific projects increases. In these projects, development and prototyping services are billed in tranches based on milestones achieved rather than on a linear basis.

in millions of USD	Revenue	Q1 2024	Q2 2024	Q3 2024	Q4 2024	Q1 2025
Automotive	Prototyping	6.7	7.6	9.3	8.9	4.7
	Production	128.9	134.8	136.7	119.7	130.8
Industrial	Prototyping	10.7	8.9	8.2	9.6	8.8
	Production	41.9	25.5	23.3	26.5	30.5
Medical	Prototyping	2.7	2.0	3.0	2.3	1.5
	Production	11.8	11.2	9.1	14.2	12.3
	Prototyping	3.1	2.5	3.0	2.6	1.1
CCC	Production	12.9	10.2	11.3	12.6	12.5

Prototyping and production revenue* per quarter and end market:

The megatrends "electrification of everything" and "sensing everywhere" will drive sustainable demand for the comprehensive set of specialty technologies that X-FAB offers, enabling viable solutions that contribute to the mitigation of climate change and more efficient digital healthcare in aging societies. With the phaseout of inventory corrections and the expected gradual recovery of demand in the course of 2025, X-FAB reiterates its full-year guidance with a revenue range of USD 820-870 million and an EBITDA margin in the range of 24-27%.

Geopolitical tensions and related customs regulations do not currently impact X-FAB's business directly, as X-FAB sells its goods ex-works. The indirect effects of these tensions can be either positive or negative and cannot be estimated. This guidance accounts for all identified effects as of the date of this press release.

Operations update

X-FAB progressed well in expanding its 180nm CMOS capacity, which is crucial for supporting its future CMOS and microsystems business. During the first quarter, all outstanding tools for the newly constructed clean room in Malaysia were delivered, installed, and are now being qualified.

This marks the approaching completion of X-FAB's major capacity expansion program. The associated capital expenditures are anticipated to be finalized within the first half of 2025. In the first quarter, capital expenditures totaled USD 101.7 million, representing a decrease of 23% compared to the previous quarter.

Financial update

First quarter EBITDA was USD 49.1 million with an EBITDA margin of 24.0%. Excluding the impact from revenues recognized over time, the EBITDA margin for the first quarter would have been 23.8%, within the guided range of 22-25%.

For the net financial result in the first quarter X-FAB recorded a loss of USD 7.2 million, which includes unrealized foreign exchange effects totaling USD -3.4 million.

Profitability remains unaffected by exchange rate fluctuations as X-FAB's business is naturally hedged. At a constant USD/Euro exchange rate of 1.09 as experienced in the previous year's quarter, the EBITDA margin would have been 0.1 percentage points higher.

Cash and cash equivalents at the end of the first quarter amounted to USD 157.2 million, down 27% against the previous quarter in accordance with the planned allocation of funds to capital expenditures.

Management comments

Rudi De Winter, CEO of X-FAB Group, said: "I am pleased to present the quarterly results reflecting X-FAB's resilient business with an 8% sequential increase in revenue and a robust EBITDA margin of 24%. Although geopolitical tensions pose challenges for the semiconductor industry, they also offer new opportunities for X-FAB due to our global presence across all major continents. I am confident in our capacity to navigate these challenges, as our specialty technologies address societal megatrends and will continue to be in demand."

X-FAB Silicon Foundries SE | Press Release April 24, 2025

X-FAB Quarterly Conference Call

X-FAB's first quarter results will be discussed in a live conference call/audiocast on Thursday, April 24, 2025, at 6.30 p.m. CEST. The conference call will be in English.

Please register here for the audiocast (listen only). Please register here for the conference call (listen and ask questions).

The second quarter 2025 results will be communicated on July 31, 2025.

About X-FAB

X-FAB is a global foundry group providing a comprehensive set of specialty technologies and design IP to enable its customers to develop world-leading semiconductor products that are manufactured at X-FAB's six wafer fabs located in Malaysia, Germany, France, and the United States. With its expertise in analog/mixedsignal technologies, microsystems/MEMS and silicon carbide (SiC), X-FAB is the development and manufacturing partner for its customers, primarily serving the automotive, industrial and medical end markets. X-FAB has approximately 4,500 employees and has been listed on Euronext Paris since April 2017 (XFAB). For more information, please visit www.xfab.com.

X-FAB Press Contact

Uta Steinbrecher Investor Relations X-FAB Silicon Foundries +49-361-427-6489 uta.steinbrecher@xfab.com

Forward-looking information

This press release may include forward-looking statements. Forward-looking statements are statements regarding or based upon our management's current intentions, beliefs or expectations relating to, among other things, X-FAB's future results of operations, financial condition, liquidity, prospects, growth, strategies, or developments in the industry in which we operate. By their nature, forward-looking statements are subject to risks, uncertainties and assumptions that could cause actual results or future events to differ materially from those expressed or implied thereby. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein.

Forward-looking statements contained in this press release regarding trends or current activities should not be taken as a report that such trends or activities will continue in the future. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless legally required. You should not place undue reliance on any such forward-looking statements, which speak only as of the date of this press release.

The information contained in this press release is subject to change without notice. No re-report or warranty, express or implied, is made as to the fairness, accuracy, reasonableness, or completeness of the information contained herein and no reliance should be placed on it.

Condensed consolidated statement of profit and loss

in thousands of USD	Quarter ended 31 Mar 2025 unaudited	Quarter ended 31 Mar 2024 unaudited	Quarter ended 31 Dec 2024 unaudited	Year ended 31 Dec 2024 audited
Revenue*	202,332	218,712	196,761	822,301
Impact from revenue recognized over time	1,781	-2,559	-7,998	-5,919
Total revenue	204,113	216,152	188,762	816,383
Revenues in USD in %	58	62	61	59
Revenues in EUR in %	42	38	39	41
Cost of sales	-159,476	-165,786	-152,250	-633,434
Gross profit	44,636	50,367	36,513	182,949
Gross profit margin in %	21.9	23.3	19.3	22.4
Research and development expenses	-10,992	-11,106	-14,205	-49,785
Selling expenses	-2,248	-2,537	-2,213	-9,070
General and administrative expenses	-11,397	-12,811	-11,511	-47,351
Rental income and expenses from investment properties	776	1,434	409	2,770
Other income and other expenses	337	1,847	1,575	6,030
Operating profit	21,112	27,193	10,567	85,543
Finance income	6,494	5,778	11,262	36,006
Finance costs	-13,684	-7,653	-12,243	-38,260
Net financial result	-7,190	-1,875	-981	-2,254
Profit before tax	13,922	25,318	9,585	83,289
Income tax	-1,720	-2,260	-16,891	-21,763
Profit for the period	12,202	23,059	-7,306	61,526
Operating profit (EBIT)	21,112	27,193	10,567	85,542
Depreciation	27,949	23,765	29,248	103,386
EBITDA	49,061	50,958	39,815	188,928
EBITDA margin in %	24.0	23.6	21.1	23.1
Earnings per share	0.09	0.18	-0.06	0.47
Weighted average number of shares	130,631,921	130,631,921	130,631,921	130,631,921
EUR/USD average exchange rate	1.05149	1.08605	1.06821	1.08232

Amounts in the financial tables provided in this press release are rounded to the nearest thousand except when otherwise indicated, rounding differences may occur.

*excluding impact from revenue recognized over time in accordance with IFRS 15

Condensed consolidated statement of financial position

in thousands of USD	Quarter ended 31 Mar 2025	Quarter ended 31 Mar 2024	Year ended 31 Dec 2024
	unaudited	unaudited	audited
ASSETS
Non-current assets
Property, plant, and equipment	1,196,149	800,843	1,144,620
Investment properties	7,339	7,108	7,412
Intangible assets	6,059	5,985	6,319
Other non-current assets	38	54	42
Deferred tax assets	66,855	83,692	66,725
Total non-current assets	1,276,440	897,682	1,225,118
Current assets
Inventories	281,311	276,983	281,765
Contract assets	19,873	21,451	18,092
Trade and other receivables	95,310	119,271	96,648
Other assets	62,696	48,786	69,253
Cash and cash equivalents	157,240	351,468	215,837
Total current assets	616,430	817,959	681,595
TOTAL ASSETS	1,892,870	1,715,640	1,906,713
EQUITY AND LIABILITIES
Equity
Share capital	432,745	432,745	432,745
Share premium	348,709	348,709	348,709
Retained earnings	253,858	203,218	241,648
Cumulative translation adjustment	369	-1,052	462
Treasury shares	-770	-770	-770
Total equity	1,034,911	982,850	1,022,794
Non-current liabilities
Non-current loans and borrowings	375,835	58,778	369,616
Other non-current liabilities and provisions	3,905	4,696	4,257
Total non-current liabilities	379,740	63,474	373,873
Current liabilities
Trade payables Current loans and borrowings	41,068 50,492	102,660 185,400	67,658 44,517
Other current liabilities and provisions	386,660	381,258	397,872
Total current liabilities	478,219	669,317	510,046
TOTAL EQUITY AND LIABILITIES	1,892,870	1,715,640	1,906,713

Condensed consolidated statement of cash flows

in thousands of USD	Quarter ended	Quarter ended	Quarter ended	Year ended
	31 Mar 2025 unaudited	31 Mar 2024 unaudited	31 Dec 2024 unaudited	31 Dec 2024 audited
Income before taxes	13,922	25,318	9,585	83,289
Reconciliation of income before taxes to cash flow arising from operating activities:	30,949	23,732	31,455	106,148
Depreciation and amortization, before effect of grants and subsidies	27,949	23,765	29,248	103,386
Amortization of investment grants and subsidies	-1,231	-673	-1,514	-3,735
Interest income and expenses (net)	3,756	-306	2,564	5,525
Loss/(gain) on the sale of plant, property, and equipment (net)	-53	-1,751	53	-4,030
Loss/(gain) on the change in fair value of derivatives and financial assets (net)	0	0	0	1,144
Other non-cash transactions (net)	529	2,698	1,104	3,858
Changes in working capital:	-6,783	-799	-27,694	8,726
Decrease/(increase) of trade receivables	1,296	8,252	-5,347	30,808
Decrease/(increase) of other receivables and other assets	6,562	6,587	-14,504	5,687
Decrease/(increase) of inventories	454	-4,951	2,380	-9,733
Decrease/(increase) of contract assets	-1,781	2,559	7,998	5,919
(Decrease)/increase of trade payables	-4,151	-206	525	-17,373
(Decrease)/increase of other liabilities	-9,163	-13,040	-18,746	-6,582
Income taxes (paid)/received	-896	-1,441	-359	-2,113
Net cash from operating activities	37,192	46,810	12,987	196,050
Cash flow from investing activities:
Payments for property, plant, equipment and intangible assets	-101,731	-104,980	-132,903	-509,551
Acquisition of subsidiary, net of cash acquired	0	23,229	0	-1,633
Proceeds from sale of property, plant, and equipment	53	1,791	-99	4,024
Interest received	1,164	3,433	1,972	11,032
Net cash used in investing activities	-100,514	-76,527	-131,030	-496,128

Condensed consolidated statement of cash flows – con't

in thousands of USD	Quarter ended 31 Mar 2025 unaudited	Quarter ended 31 Mar 2024 unaudited	Quarter ended 31 Dec 2024 unaudited	Year ended 31 Dec 2024 audited
Cash flow from (used in) financing activities:
Proceeds from loans and borrowings	28,902	50,300	38,134	209,669
Repayment of loans and borrowings	-21,081	-94,113	-3,898	-124,237
Receipts of sale and leaseback arrangements	3,095	31,616	1,350	60,584
Payments of lease installments	-4,146	-1,169	-3,193	-12,502
Interest paid	-4,817	-4,058	-3,749	-17,214
Cash flow from (used in) financing activities	1,953	-17,423	28,644	116,300
Effect of changes in foreign currency exchange rates on cash balances	2,771	-7,093	-10,681	-6,086
Increase/(decrease) of cash and cash equivalents	-61,368	-47,140	-89,399	-183,778
Cash and cash equivalents at the beginning of the period	215,837	405,701	315,917	405,701
Cash and cash equivalents at the end of the period	157,240	351,468	215,837	215,837