AT & S Austria Technologie & Systemtechnik (ATS) Q2 2025 earnings summary

Executive summary

• Revenue for H1 2024/25 declined 1.7% year-over-year to €799.9 million, with EBITDA down 27% to €157 million and a net loss of €63 million; Q2 revenue was €451 million, up 29% sequentially.

• Management board transitioned to joint CEO responsibility among three board members after the chairman stepped down; cost optimization and efficiency programs, including workforce reduction, are underway.

• Installation and qualification of equipment at Kulim and Leoben factories progressing, with production ramp-up delayed to early 2025 due to market conditions.

• Sale agreement for AT&S Korea (Ansan site) signed for €405 million, expected to close by March 2025, with proceeds to reduce leverage.

• Market environment remains weak with significant price pressure and overcapacity, leading to a revised FY 2024/25 outlook, but mid-term guidance remains unchanged.

Financial highlights

• Half-year revenue was €799.9 million, down 1.7% year-over-year, with EBITDA at €157.2 million (down 27.4%) and net loss of €63 million.

• EBITDA margin at 19.6% (adjusted: 27.9%), EBIT margin at 0.9% (adjusted: 10.0%), and earnings per share at €-1.84.

• Net CAPEX halved to €254.2 million; operating free cash flow negative at €-344.8 million.

• Strong sequential growth in Q2 over Q1, driven by seasonality in Electronics Solutions and Microelectronics.

• Net debt increased by 19% to €1.67 billion, with leverage at 6.7x.

Outlook and guidance

• FY 2024/25 revenue guidance revised to €1.5–1.6 billion, with adjusted EBITDA margin of 24–26%.

• Net CAPEX guidance capped at €500 million.

• Adjustments increased from €88 million to €110 million, reflecting a 1–2 quarter delay in high-volume manufacturing.

• FY 2026/27 mid-term guidance confirmed: revenue ~€3.0 billion, EBITDA margin 27–32%, ROCE >12%.

• High-volume production at new plants in Malaysia and Austria delayed, with no revenue contribution expected this year.