X-FAB

Earnings Release • Jul 31, 2025

Regulated Information

X-FAB Second Quarter 2025 Results

Intermediate declaration by the Board of Directors Tessenderlo-Ham, Belgium – July 31, 2025, 05.40 p.m. CEST

Highlights Q2 2025:

• › Revenue was USD 215.3 million, up 5% year-on-year (YoY) and up 5% quarter-on-quarter (QoQ)
• › Excluding the impact from revenue recognized over time (IFRS 15), revenue was USD 218.3 million, well above the guided range of USD 200-210 million
• › Bookings at USD 207.2 million reflecting again a strong sequential increase of 19% QoQ
• › EBITDA at USD 51.6 million, up 7% YoY and up 4% QoQ
• › EBITDA margin of 24.0%; excluding IFRS 15 impact, EBITDA margin was 24.3%, compared to the guidance of 22.5-25.5%
• › EBIT was USD 21.7 million, down 6% YoY and up 2% QoQ

Outlook:

• › Q3 2025 revenue is expected to come in within a range of USD 215-225 million with an EBITDA margin in the range of 22.5% and 25.5%.
• › The guidance is based on an average exchange rate of 1.17 USD/Euro and does not take into account the impact of IFRS 15.
• › X-FAB upgrades its FY 2025 guidance, projecting annual revenue in the range of USD 840-870 million, with an anticipated EBITDA margin between 24% and 27%.

in millions of USD	Q3 2023	Q4 2023	Q1 2024	Q2 2024	Q3 2024	Q4 2024	Q1 2025	Q2 2025	Q2 y-o-y growth
Automotive	135.3	151.8	135.6	142.4	146.0	128.6	135.4	143.4	1%
Industrial	53.7	54.3	52.6	34.4	31.5	36.1	39.3	47.2	37%
Medical	17.0	16.4	14.5	13.2	12.1	16.5	13.8	15.1	14%
Subtotal core	206.1	222.5	202.6	190.1	189.6	181.2	188.6	205.7	8%
business	92.2%	92.8%	92.6%	93.7%	92.9%	92.1%	93.2%	94.2%
CCC1	17.2	17.2	16.0	12.6	14.2	15.1	13.6	12.2	-4%
Others	0.2	0.1	0.1	0.1	0.1	0.5	0.2	0.4
Revenue*	223.5	239.8	218.7	202.8	204.0	196.8	202.3	218.3	8%
Impact from revenue recognized over time	10.4	-2.0	-2.6	2.3	2.4	-8.0	1.8	-3.0
Total revenue	233.8	237.7	216.2	205.1	206.4	188.8	204.1	215.3	5%

Revenue breakdown per quarter:

1Consumer, Communications & Computer

X-FAB Silicon Foundries SE | Press Release July 31, 2025

in millions of USD	Q3 2023	Q4 2023	Q1 2024	Q2 2024	Q3 2024	Q4 2024	Q1 2025	Q2 2025	Q2 y-o-y growth
CMOS	180.5	188.4	168.3	166.2	175.0	170.8	173.4	185.1	11%
Microsystems	24.4	27.9	24.1	25.1	21.6	20.2	22.9	25.3	1%
Silicon carbide	18.6	23.5	26.3	11.6	7.4	5.8	6.0	7.9	-31%
Revenue*	223.5	239.8	218.7	202.8	204.0	196.8	202.3	218.3	8%
Impact from revenue recognized over time	10.4	-2.0	-2.6	2.3	2.4	-8.0	1.8	-3.0
Total revenue	233.8	237.7	216.2	205.1	206.4	188.8	204.1	215.3	5%

Business development

In the second quarter of 2025, X-FAB recorded revenues of USD 215.3 million, up 5% year-on-year and up 5% quarter-on-quarter. Excluding the impact from revenue recognized over time in the amount of USD -3.0 million, quarterly revenue was USD 218.3 million, which is well above the guidance of USD 200- 210 million. Second quarter revenue in X-FAB's core markets – automotive, industrial, and medical – was at USD 205.7 million*, up 8% year-on-year and up 9% quarter-on-quarter, representing a share of 94%* of total revenue.

2025 is progressing more favorably than initially anticipated, and X-FAB upgrades its full-year revenue guidance to USD 840-870 million, up from the previous range of USD 820-870 million. Order intake has increased strongly for two consecutive quarters, with second-quarter bookings reaching USD 207.2 million, up 19% from the previous quarter.

As X-FAB's business is no longer constrained by capacity and factory cycle times have shortened, customers place orders later than usual and more frequently at short notice, resulting in a reduced visibility.

The backlog for the second quarter amounted to USD 412.9 million, compared to USD 386.7 million at the end of the previous quarter.

In the second quarter, automotive revenue totaled USD 143.4 million*, up 1% year-on-year and up 6% sequentially, mainly driven by EV-related applications. Industrial revenue came in at USD 47.2 million*, recording a strong growth of 37% year-on-year and 20% quarter-on-quarter. The highly fragmented industrial end-market is picking up again. X-FAB's industrial business also benefited from increased demand following the last-time-buy announcement for some of X-FAB's 150mm CMOS technologies, as well as from revenue generated by prototyping new customer projects. X-FAB's medical business recorded a quarterly revenue of USD 15.1 million*, up 14% year-on-year and up 9% quarter-on-quarter. Growth in the second quarter was mainly driven by medical-grade contactless temperature sensors.

In the second quarter, X-FAB reported a sequential increase in revenue across all technologies for the second consecutive quarter. The year-on-year revenue growth in the second quarter was primarily related to an 11%* rise in CMOS revenue. Microsystems revenue increased by 1%* compared to the previous year, while silicon carbide (SiC) revenue decreased by 31%* year-on-year.

The gradual recovery of X-FAB's SiC business is not fully reflected in the evolution of the top line. Sequentially, SiC revenue rose by 32%*, while the number of SiC wafers produced grew by more than 60% quarter-on-quarter. This is due to the greater proportion of SiC raw wafers being supplied to X-FAB by its customers, which results in lower total billing since there is less pass-through for substrates sourced directly by X-FAB. During the first half of 2025, X-FAB started production of more SiC wafers in its factory in Texas than it did throughout all of 2024, primarily due to demand from data center applications.

Quarterly prototyping revenue was USD 21.0 million*, down 1% year-on-year and up 30% quarter-onquarter. The achievement of key milestones in customer-specific microsystems projects has significantly contributed to the strong increase compared to the previous quarter.

in millions of USD	Revenue	Q2 2024	Q3 2024	Q4 2024	Q1 2025	Q2 2025
Automotive	Prototyping	7.6	9.3	8.9	4.7	5.1
	Production	134.8	136.7	119.7	130.8	138.2
Industrial	Prototyping	8.9	8.2	9.6	8.8	12.1
	Production	25.5	23.3	26.5	30.5	35.2
Medical	Prototyping	2.0	3.0	2.3	1.5	1.8
	Production	11.2	9.1	14.2	12.3	13.2
CCC	Prototyping	2.5	3.0	2.6	1.1	1.7
	Production	10.2	11.3	12.6	12.5	10.5

Prototyping and production revenue* per quarter and end market:

Operations update

The end of the second quarter marks the completion of X-FAB's three-year program to expand manufacturing capacities across the Group. Main focus in the first half of the year was on equipping the new clean room in Kuching, Malaysia. All equipment has been delivered and is at different stages of installation and qualification. A number of tools and machines have successfully completed qualification, allowing for a phased ramp-up of X-FAB's 180nm CMOS production from the third quarter onward. The expansion provides sufficient capacity to serve current and future customer demand for this popular technology, which is key to supporting X-FAB's CMOS and microsystems business going forward.

Capital expenditures in the second quarter amounted to USD 53.7 million, reflecting a 47% decline from the previous quarter. For the first half of 2025, capital expenditures totaled USD 155.5 million, coming in slightly lower than expected due to the deferral of some expenditures to the second half of the year. The full-year capital expenditure projection remains unchanged at USD 250 million.

Financial update

Second quarter EBITDA was USD 51.6 million with an EBITDA margin of 24.0%. Excluding the impact from revenues recognized over time, the EBITDA margin for the second quarter would have been 24.3%, within the guided range of 22.5-25.5%.

Profitability remains unaffected by exchange rate fluctuations as X-FAB's business is naturally hedged. At a constant USD/Euro exchange rate of 1.08 as experienced in the previous year's quarter, the EBITDA margin would have been at the same level.

For the financial result in the second quarter X-FAB recorded a loss of USD 17.4 million, which includes an unrealized foreign exchange effect totaling USD -17.2 million (non-cash), primarily related to the reevaluation of Euro-denominated debt.

Cash and cash equivalents at the end of the second quarter amounted to USD 157.7 million, nearly unchanged from the previous quarter.

Management comments

Rudi De Winter, CEO of X-FAB Group, said: "We are presenting a solid set of results for the second quarter and expect this positive trend to continue in the second half of the year. I am particularly pleased about the above-average order intake for our microsystems business. It stands for highly complex applications that help to save lives – in the medical sector or by improving road safety. With the completion of our capacity expansion program, we are ideally positioned to grow profitably together with our customers. Sufficient capacity is now available for our most popular technologies, suited to address the megatrends of our time, such as the electrification of everything. This will generate high demand in the long term despite a currently reduced visibility."

Procedures of the independent auditor

The statutory auditor, KPMG Bedrijfsrevisoren – Réviseurs d'Entreprises BV/SRL, represented by Herwig Carmans, has confirmed that the review procedures, which have been substantially completed, have not revealed any material misstatement in the accounting information included in this press release as of and for the six months ended June 30, 2025.

X-FAB Silicon Foundries SE | Press Release July 31, 2025

X-FAB Quarterly Conference Call

X-FAB's second quarter results will be discussed in a live conference call/audiocast on Thursday, July 31, 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).

Financial calendar

September 2, 2025	Publication of Half-Year Report 2025
September 9, 2025	X-FAB Investor Day 2025
October 30, 2025	Publication of Q3 2025 results

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 30 Jun 2025 unaudited	Quarter ended 30 Jun 2024 unaudited	Quarter ended 31 Mar 2025 unaudited	Half-year ended 30 Jun 2025 unaudited	Half-year ended 30 Jun 2024 unaudited
Revenue*	218,275	202,847	202,332	420,607	421,559
Impact from revenue recognized over time	-2,992	2,255	1,781	-1,211	-305
Total revenue	215,283	205,102	204,113	419,396	421,254
Revenues in USD in %	56	58	58	57	60
Revenues in EUR in %	44	42	42	43	40
Cost of sales	-165,350	-160,236	-159,476	-324,826	-326,022
Gross profit	49,933	44,866	44,636	94,570	95,232
Gross profit margin in %	23.2	21.9	21.9	22.5	22.6
Research and development expenses	-13,458	-11,387	-10,992	-24,450	-22,494
Selling expenses	-2,407	-2,142	-2,248	-4,655	-4,679
General and administrative expenses	-13,393	-11,660	-11,397	-24,791	-24,471
Rental income and expenses from investment properties	785	394	776	1,561	1,828
Other income and other expenses	232	2,755	337	569	4,603
Operating profit	21,693	22,825	21,112	42,805	50,019
Finance income	19,612	6,775	6,494	26,106	12,552
Finance costs	-36,994	-7,419	-13,684	-50,679	-15,072
Financial result	-17,382	-644	-7,190	-24,573	-2,519
Profit before tax	4,311	22,181	13,922	18,232	47,499
Income tax	-4,702	-2,359	-1,720	-6,422	-4,619
Profit for the period	-392	19,822	12,202	11,811	42,881
Operating profit (EBIT)	21,693	22,825	21,112	42,805	50,019
Depreciation	29,896	25,028	27,949	57,845	48,792
EBITDA	51,589	47,853	49,061	100,650	98,811
EBITDA margin in %	24.0	23.3	24.0	24.0	23.5
Earnings per share	0.00	0.15	0.09	0.09	0.33
Weighted average number of shares	130,631,921	130,631,921	130,631,921	130,631,921	130,631,921
EUR/USD average exchange rate	1.13337	1.07667	1.05149	1.09279	1.08145
EUR/USD exchange rate on reporting date	1.17040	1.07050	1.07970	1.17040	1.07050

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 30 Jun 2025	Quarter ended 30 Jun 2024	Year ended 31 Dec 2024
	unaudited	unaudited	audited
ASSETS
Non-current assets
Property, plant, and equipment	1,224,295	879,363	1,144,620
Investment properties	7,159	7,608	7,412
Intangible assets	6,268	5,986	6,319
Other non-current assets	33	50	42
Deferred tax assets	64,380	83,173	66,725
Total non-current assets	1,302,136	976,180	1,225,118
Current assets
Inventories	288,207	277,587	281,765
Contract assets	16,880	23,706	18,092
Trade and other receivables	111,612	108,980	96,648
Other assets	73,470	46,918	69,253
Cash and cash equivalents	157,678	290,054	215,837
Total current assets	647,848	747,245	681,595
TOTAL ASSETS	1,949,984	1,723,425	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	253,776	223,604	241,648
Cumulative translation adjustment	656	-636	462
Treasury shares	-770	-770	-770
Total equity	1,035,116	1,003,653	1,022,794
Non-current liabilities
Non-current loans and borrowings	418,230	244,604	369,616
Other non-current liabilities and provisions	2,725	4,652	4,257
Total non-current liabilities	420,955	249,256	373,873
Current liabilities
Trade payables	41,780	55,103	67,658
Current loans and borrowings	54,041	26,272	44,517
Other current liabilities and provisions	398,093	389,140	397,872
Total current liabilities	493,914	470,516	510,046
TOTAL EQUITY AND LIABILITIES	1,949,984	1,723,425	1,906,713

Condensed consolidated statement of cash flows

in thousands of USD	Quarter ended	Quarter ended	Quarter ended	Half-year ended	Half-year ended
	30 Jun 2025 unaudited	30 Jun 2024 unaudited	31 Mar 2025 unaudited	30 Jun 2025 unaudited	30 Jun 2024 unaudited
Income before taxes	4,311	22,181	13,922	18,233	47,499
Reconciliation of income before taxes to cash flow arising from operating activities:	52,164	28,972	30,949	83,113	52,704
Depreciation and amortization, before effect of grants and subsidies	29,896	25,028	27,949	57,845	48,792
Amortization of investment grants and subsidies	-1,229	-624	-1,231	-2,461	-1,296
Interest income and expenses (net)	8,475	959	3,756	12,231	653
Loss/(gain) on the sale of plant, property, and equipment (net)	-55	-2,020	-53	-108	-3,771
Loss/(gain) on the change in fair value of derivatives and financial assets (net)	-4,160	0	0	-4,160	0
Other non-cash transactions (net)	19,237	5,629	528	19,765	8,327
Changes in working capital:	-25,537	7,487	-6,783	-32,320	6,688
Decrease/(increase) of trade receivables	-16,471	10,211	1,296	-15,175	18,463
Decrease/(increase) of other receivables and other assets	-6,646	12,244	6,562	-85	18,831
Decrease/(increase) of inventories	-6,896	-604	454	-6,442	-5,554
Decrease/(increase) of contract assets	2,992	-2,255	-1,781	1,211	305
(Decrease)/increase of trade payables	-1,047	-14,369	-4,151	-5,198	-14,575
(Decrease)/increase of other liabilities	2,532	2,260	-9,163	-6,631	-10,780
Income taxes (paid)/received	-337	-1,227	-896	-1,232	-2,668
Net cash from operating activities	30,602	57,413	37,192	67,794	104,224
Cash flow from investing activities:
Payments for property, plant, equipment and intangible assets	-53,726	-121,893	-101,731	-155,456	-226,873
Acquisition of subsidiary, net of cash acquired	0	-24,863	0	0	-1,634
Proceeds from sale of property, plant, and equipment	65	2,020	53	118	3,811
Interest received	1,022	2,984	1,164	2,186	6,417
Net cash used in investing activities	-52,639	-141,752	-100,514	-153,153	-218,279

Condensed consolidated statement of cash flows – con't

in thousands of USD	Quarter ended 30 Jun 2025 unaudited	Quarter ended 30 Jun 2024 unaudited	Quarter ended 31 Mar 2025 unaudited	Half-year ended 30 Jun 2025 unaudited	Half-year ended 30 Jun 2024 unaudited
Cash flow from (used in) financing activities:
Proceeds from loans and borrowings	21,668	42,601	28,902	50,571	92,901
Repayment of loans and borrowings	-17,469	-5,644	-21,081	-38,551	-99,757
Receipts of sale and leaseback arrangements	26,925	-5,147	3,095	30,020	26,469
Payments of lease installments	-9,131	-3,061	-4,146	-13,277	-4,230
Interest paid	-4,851	-4,574	-4,817	-9,668	-8,632
Cash flow from (used in) financing activities	17,142	24,175	1,953	19,095	6,751
Effect of changes in foreign currency exchange rates on cash balances	5,334	-1,250	2,771	8,105	-8,343
Increase/(decrease) of cash and cash equivalents	-4,895	-60,164	-61,368	-66,263	-107,304
Cash and cash equivalents at the beginning of the period	157,240	351,468	215,837	215,837	405,701
Cash and cash equivalents at the end of the period	157,678	290,054	157,240	157,678	290,054