Siltronic narrows profit margin outlook, Q3 in line
Published by Global Banking and Finance Review
Posted on October 28, 2025
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Published by Global Banking and Finance Review
Posted on October 28, 2025
By Ozan Ergenay
(Reuters) -Siltronic on Tuesday narrowed its annual profit margin outlook alongside third-quarter results which were in line with market expectations despite a negative currency impact and deliveries shifting into the next quarter.
The German semiconductor materials supplier reported sales of 300.3 million euros ($350.2 million) for the period, down from 357.3 million euros a year earlier. That was broadly in line with analysts' average forecast of 300.7 million euros, according to a poll by LSEG.
The company now expects an earnings before interest, taxes, depreciation and amortization (EBITDA) margin of 22% to 24% for 2025. It previously forecast a range of 21% to 25%.
Shares in Siltronic, which have gained 28% since the start of the year including today's session, were up 1.3% in early trading, topping Germany's small-cap index.
"As expected, Q3 was impacted by significant delivery shifts into Q4 and negative FX effects, which temporarily weighed on sales and profitability," CEO Michael Heckmeier said in a statement.
Analysts at Jefferies said in a note that cost savings measures helping to offset some of the pressure on the bottom line from the volume shifts into the fourth-quarter.
"While no major recovery is yet in place, we anticipate volumes to start trending positively as the inventory drawdown continues," they said.
Siltronic and other materials and equipment suppliers such as Aixtron and Besi have been facing a slump in demand due to customers' slower than expected inventory reductions, even as AI chip demand only partially offset weakness in the sector for automotive, PC and memory chips.
Siltronic, whose customers include Infineon, Intel, Samsung and TSMC, confirmed its full-year guidance for sales and earnings before interest and taxation (EBIT).
($1 = 0.8575 euros)
(Reporting by Ozan Ergenay in Gdansk, editing by Matt Scuffham)