This article first appeared on GuruFocus .
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Revenue:Increased from EUR1.1 billion to EUR1.3 billion year-to-date, a growth of approximately 10%.
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Quarterly Revenue:EUR468 million in Q3, reflecting an 18% increase quarter-over-quarter.
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EBIT:EUR35 million, supported by product mix improvements and favorable pricing.
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Operating Free Cash Flow:Positive at EUR223 million, aided by the restart of the factoring program.
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Cash and Cash Equivalents:EUR886 million, with EUR843 million in cash and EUR43 million in unused credit lines.
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Net Debt:Reduced from EUR1.4 billion to EUR1.3 billion.
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Net Debt/EBITDA Ratio:2.
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Cost Saving Program:Achieved EUR130 million, with expectations to reach EUR160 million by year-end.
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Guidance for '25-'26:Revenue of EUR1.7 billion, margin of 23%, and reduced net CapEx from EUR250 million to EUR200 million.
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Guidance for '26-'27:Revenue between EUR2.1 billion and EUR2.4 billion.
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Release Date: February 03, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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AT&S Austria Technologie & Systemtechnik AG ( WBO:ATS ) reported a revenue increase from EUR1.1 billion to EUR1.3 billion, marking a 10% year-to-date growth.
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The company achieved a positive operating free cash flow of EUR223 million, demonstrating strong cash discipline.
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The PCB market grew by 15% year-over-year, driven by increased demand in high-end computing, networking, and advanced packaging applications.
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AT&S Austria Technologie & Systemtechnik AG confirmed its full-year guidance and the guidance for '26-'27, indicating confidence in future performance.
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The company achieved its cost-saving target of EUR130 million in the third quarter and expects to exceed this target by year-end.
Negative Points
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Currency fluctuations, particularly the weak US dollar, created notable FX headwinds, partially offsetting top-line and operational improvements.
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The company faces challenges from glass substrate shortages, which could impact its ability to meet demand.
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Despite a strong Q3, the full-year sales outlook remains conservative, implying a potential sequential step down in Q4.
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The introduction of new technologies like CoWoP presents technical challenges and uncertainties about future market adoption.
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AT&S Austria Technologie & Systemtechnik AG's equity ratio decreased to 20.8% due to FX headwinds, mainly from the US dollar.
Q & A Highlights
Q: Despite a strong Q3 report, why hasn't the full-year sales outlook been adjusted? A: Silvo Leitner, Director of Corporate Finance, explained that the guidance of EUR1.7 billion is conservative. They are confident in achieving this target and expect it to be EUR1.7 billion plus.
Q: With recent positive pricing developments in ABF substrates, could the high end of the FY27 guide be within reach? A: Silvo Leitner noted that despite positive pricing, FX headwinds and glass shortages are significant challenges. Therefore, they are sticking to the lower end of the guidance.
Q: What are the capacity utilization and expansion plans to meet future guidance? A: Philipp Gebhardt, Director of Investor Relations, mentioned that additional capacity will come from Kulim, which is in the middle of ramping up. This will contribute significantly to reaching the EUR2.1 billion to EUR2.4 billion guidance.
Q: How does the company view the potential impact of CoWoP technology on its business? A: Peter Griehsnig, CTO, acknowledged that CoWoP could be a challenge but noted that its widespread adoption would require significant time and investment. The company is monitoring developments closely and preparing accordingly.
Q: Is AT&S ready to manufacture EMIB-T packages in Kulim? A: Peter Griehsnig stated that Kulim currently does not have EMIB-T capabilities, and additional investment would be required to support this technology.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
