News: Suppliers
31 July 2025
Aixtron’s revenue grows 22% in Q2, driven by AI data-center communications
For second-quarter 2025, deposition equipment maker Aixtron SE in Herzogenrath, near Aachen, Germany has reported revenue of €137.4m, up 4.2% on €131.8m a year ago and 22% on €112.5m in Q1.2025. This is near the upper end of the guidance range of €120–140m, reflecting a strong performance in a generally soft market environment.
Demand in the optoelectronics segment continues to gain momentum, fueled by increasing requirements for datacom lasers, particularly for AI data centers. The G10 product series remains a key driver: The G10-AsP metal-organic chemical vapor deposition (MOCVD) system has been firmly established as the new tool of record in the laser market, and a major SiC volume order from China was won and fulfilled by shipping the G10-SiC CVD system. The gallium nitride (GaN) and silicon carbide (SiC) power segments remain soft, with demand mostly driven by Asian customers.
Product mix boosts gross margin, but counteracted by expense for staff cut
Gross margin has fallen slightly from 37% in first-half 2024 to 36% in first-half 2025. However, this includes one-off expenses in the mid-single-digit Euro range related to the implemented personnel reduction in the operations area. Adjusted for this, gross margin rose to 38%, due mainly to an improved product mix.
R&D expense reduction boosts profits
Operating expenses have been cut from €36.3m in Q2/2024 to €32.2m in Q2/2025. R&D expenses were reduced by 24% from €47.5m in first-half 2024 to €36m in first-half 2025 due to reduced external contract work and consumables costs. Strong exchange rate changes led to expenses from exchange rate valuation rising from €1.9m in first-half 2024 to €4.6m in first-half 2025.
The operating result (EBIT) has risen from €22.8m (EBIT margin of 9%) to €26.9m (EBIT margin of 11%) in first-half 2025. However, adjusted for the one-off expenses from personnel reduction, EBIT margin was about 13%, due mainly to the improved product mix and lower R&D expenses. Net profit has risen from €22m in first-half 2024 to €24.3m in first-half 2025.
Strong improvement in free cash flow
Cash flow from operating activities grew significantly from €20.2m in Q2/2024 to €50m in Q2/2025, driven primarily by continued reduction in inventories, by €120m from €447.9m to €327.9m. Due to the improved operating cash flow and significantly lower capital expenditure, free cash flow hence improved by €127.6m from –€56.5m in first-half 2024 to €71.1m in first-half 2025.
“Continuation of the positive trend in our free cash flow underlines that we are progressing as planned,” says chief financial officer Dr Christian Danninger. “We are further reducing working capital, driven by ongoing inventory optimization. Rebuilding our strong cash position remains a key priority to ensure full strategic flexibility.”
At the end of June, following a dividend payment of €16.9m, cash and cash equivalents (including other current financial assets) were €114.8m, up from €64.6m at the end of June. The equity ratio rose from 83% to 87%, underscoring Aixtron’s strong financial position.
Order intake and order backlog
Q2/2025 order intake was €118.5m, down 10.4% on €132.2m in Q1 and 32.6% on €175.7m a year ago. However, SiC tool demand particularly benefited from the transition from 150mm to 200mm wafers, as well as from the need for higher-productivity tools in response to the increasing cost sensitivity of customers. One large volume order for G10-SiC from China was received and completed in first-half 2025. Order intake in first-half 2025 was €250.7m, down 15% on first-half 2024’s €296m but in line with expectations.
At the end of June, equipment order backlog was €284.6m, down from €400.6m a year previously but almost unchanged from €289.3m at the end of 2024.
“Our strategy of targeting diverse, uncorrelated end markets continues to prove its value,” believes CEO Dr Felix Grawert. “While the SiC and GaN power electronics markets have not reached the turning point, we are seeing continued momentum in the datacom laser market. Our G10-AsP tool has firmly established itself as the tool of record, with volume orders coming from many of the leading laser manufacturers,” he adds. “Although a broader market recovery has yet to take shape, our strong execution keeps us firmly on track.”
Full year guidance confirmed
For third-quarter 2025, Aixtron expects revenues of €110–140m.
Based on the current market development, the current tariffs situation and the budget rate of 1.10 US$/EUR, Aixtron has confirmed its 27 February guidance for full-year 2025 of revenue of €530–600m, gross margin of 41–42%, and EBIT margin of 18–22%.
These figures include one-off expenses in a mid-single-digit Euro range related to the implemented personnel reduction in the operations area. This is expected to result in annualized savings in the mid-single-digit Euro range, corresponding to an improvement in gross margin and EBIT margin of about 1 percentage point.
Aixtron notes that an average US$/Euro exchange rate of 1.20 in second-half 2025 could reduce the full-year gross margin and EBIT margin by about 1 percentage point.
Aixtron’s executive board says that it will continue to monitor the impact of US tariff policies on the global economy and any resulting countermeasures, in order to continuously assess the potential effects on its supply chain and production, as well as on customer demand and thus on Aixtron’s business development, and to take corrective actions if necessary.
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