This article first appeared on GuruFocus .
Release Date: July 30, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Demand recovery is gaining traction, particularly in the 300-millimeter business, driving a 5% sequential sales increase to EUR322 million in Q2 2026.
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EBITDA improved to EUR69 million with a margin of 21.6%, up from 21.2% in Q1, supported by higher wafer shipments and improved fixed cost absorption.
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Successful capital increase raised EUR273 million, strengthening financial flexibility and liquidity to EUR650 million, with strong investor demand.
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Re-entry into the German MDAX reflects increased investor confidence and improved share price performance.
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Expectation of a clear volume improvement in the second half of 2026, with 200-millimeter demand recovery and potential upside from memory safety stock rebuilding.
Negative Points
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Pricing remains a challenge, with 300-millimeter spot prices still below reinvestment levels and 200-millimeter prices declining in H1 2026.
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200-millimeter market conditions remain sluggish in H1, with negative product mix and elevated customer inventories weighing on performance.
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Negative FX impact expected in 2026, with the euro strengthening against the US dollar compared to 2025.
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EBIT remained broadly stable at a loss of EUR52 million, as higher depreciation offset EBITDA gains.
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Net cash flow remained negative at EUR27 million due to ongoing investment outflows, and net loss improved only slightly to EUR63 million.
Q & A Highlights
Here are the key highlights from the Siltronic AG ( SSLLF ) Q2 2026 earnings call, presented as summarized Q&A pairs.
Q: With the capital increase completed, could this signal a need to increase CapEx faster than planned due to a faster-than-anticipated demand recovery in '27 and '28? A: Michael Hegmeier, CEO: The capital increase was purely an opportunistic move to strengthen our balance sheet and increase financial flexibility. We do not plan to allocate those funds specifically to future CapEx or deleveraging. The decision to invest further, particularly in the brownfield expansion of our Singapore fab, is an independent question that hinges on seeing a meaningful recovery in wafer pricing to reinvestment levels.
Q: You mentioned that LTA prices need to cross the reinvestment level. Does this mean prices need to be higher than the previous cycle peak in 2021-22, considering cost inflation? A: Michael Hegmeier, CEO: It depends on the specific details of each LTA, including specifications, volumes, and the product mix. While there have been cost increases and inflation since the last cycle, we also have scale effects in manufacturing now. The core principle remains: we need to see prices come up significantly above current levels before we can commit to new LTAs and reinvestment.
Q: Can you provide an update on the ramp of the FedNEXT fab in Singapore? When could we see the next round of brownfield investment there? A: Michael Hegmeier, CEO: The ramp is progressing very smoothly, including the new 200mm EPI capabilities. We are fully back on track following market demand. However, for the next phase of brownfield expansion, we will be selective. We need to see a clear and meaningful recovery in 300mm pricing to justify the additional investment. We are having conversations with customers, but we will wait for prices to rise before fully committing to the next capacity increase.
Q: Are you seeing customers request volumes below their LTA commitments, and how are 300mm volumes trending? A: Michael Hegmeier, CEO: No, we are not seeing that. In fact, demand is moving in the right direction. We have new and existing customers approaching us for additional 300mm volumes. This demand recovery is a key driver of our improved Q2 sales and our slightly raised full-year guidance. However, we are being very careful and selective about which volumes we commit to at current price levels.
Q: What is your view on the supply-demand balance for wafers over the next few years? Is a shortage possible? A: Michael Hegmeier, CEO: Currently, there is still a bit more supply than demand, but this could change in the coming quarters. The true indicator will be pricing. We need to see prices increase to make the wafer industry viable and justify further capacity investments. If prices don't recover, companies like ours will be hesitant to invest, which could eventually lead to a shortage. The chip industry has enjoyed strong growth, and it's time for the wafer industry to rebalance.
Q: You mentioned the negative product mix in 200mm. Is the Float Zone power business, which is typically high-margin, seeing low demand due to high customer inventories? A: Michael Hegmeier, CEO: Yes, that is correct. While we have a strong position in Float Zone and highly doped materials, the current demand is more focused on products like MOSFETs and IGBTs, which creates an unfavorable product mix for us. Furthermore, inventories at some of our customers for these higher-margin products are still elevated, which is delaying a more meaningful recovery in that segment.
Q: What has changed in the 200mm market to drive the recovery you are now seeing? Is it sustainable? A: Michael Hegmeier, CEO: The recovery is being driven by power chip manufacturers who are increasingly benefiting from data center power supply and management. This demand is now trickling down to the wafer level. We see this as a sustainable trend, not a one-quarter effect. We are restuffing our lines and have even been approached by customers for new 200mm LTAs, which signals a changing and more positive environment for the 200mm market.
Q: With the FedNEXT fab still ramping, how much room is left for brownfield expansion, and what are the lead times for new equipment? A: Michael Hegmeier, CEO: There is still significant room for brownfield expansion within the existing FedNEXT cleanroom. Equipment is still flowing in, and capacity is growing. For any future brownfield investment, lead times for ordering and installing new equipment would be 18 to 24 months. We are in close contact with our suppliers to be ready, but we have not triggered any major future CapEx as we are waiting for pricing to improve.
Q: Can you clarify the status of the FedNEXT EBITDA margin? Will it reach group level by the end of the year? A: Claudia Schmidt, CFO: Yes, my statement was that by the end of 2026, the EBITDA margin of the FedNEXT fab will approach the group margin level. This means the dilution effect from the ramp-up costs will fade out as volumes increase and fixed cost absorption improves.
Q: Do you have visibility into Q4 volumes, and how did demand trend in July compared to earlier months? A: Michael Hegmeier, CEO: A significant part of Q3 is already negotiated and in production. For Q4, the picture is more mixed, with some volumes fixed and others still flexible. We are working hard to secure the best commercial terms for the remaining available volumes. Regarding July, I would be reluctant to comment on a single month, as our business can have significant monthly fluctuations. However, I can confirm that we are operating in a very decent and strong demand environment overall.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
