This article first appeared on GuruFocus .
-
Fourth Quarter Revenue:EUR222 million, up 18% year-on-year, down 3% quarter-on-quarter.
-
Full Year Revenue:EUR870 million, up 7% year-on-year.
-
Core Business Revenue:EUR204 million in Q4, EUR814 million for the full year, representing 94% of total revenue.
-
Order Intake:EUR164 million in Q4.
-
Backlog:EUR318 million at the end of Q4, down from EUR347 million.
-
Automotive Revenue:EUR133 million in Q4, up 3% year-on-year, down 10% quarter-on-quarter.
-
Industrial Revenue:EUR50 million in Q4, up 40% year-on-year, up 6% quarter-on-quarter.
-
Medical Revenue:EUR21 million in Q4, up 28% year-on-year, flat sequentially; EUR71 million for the full year, up 26% year-on-year.
-
Microsystem Revenue:Exceeded USD100 million for the first time in 2025, up 11% compared to 2024.
-
Silicon Carbide Revenue:USD33.8 million for the full year, down 34% year-on-year.
-
Capital Expenditure:USD25.2 million in Q4, USD204.1 million for the full year.
-
EBITDA:USD42.3 million in Q4 with a margin of 19%.
-
Cash and Cash Equivalents:USD194.3 million at the end of Q4.
-
Net Debt:Decreased by USD4.4.5 million quarter-on-quarter.
-
Q1 2026 Revenue Guidance:USD190 million to USD200 million with an EBITDA margin of 18% to 21%.
Release Date: February 05, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
-
X-FAB Silicon Foundries SE ( XFABF ) recorded a full-year revenue of EUR870 million, marking a 7% increase year-on-year and meeting the guided range.
-
The company's industrial market revenue grew significantly, with a 40% year-on-year increase in the fourth quarter, driven by recovery in the industrial market and prototyping revenue for photonics.
-
X-FAB's medical business achieved a record revenue of EUR71 million in 2025, a 26% increase over the previous year, driven by strong demand for DNA sequencing and ultrasound applications.
-
The silicon carbide business demonstrated robust growth in the fourth quarter, with a 77% year-on-year increase, driven by demand from data centers, electric vehicles, and renewable energy applications.
-
X-FAB completed a major three-year, $1 billion capacity expansion program, enhancing its production capabilities and positioning it for future growth opportunities.
Negative Points
-
The fourth quarter revenue saw a 3% decline quarter-on-quarter, with automotive revenues particularly affected by inventory corrections and the end of major long-term agreements.
-
Order intake in the fourth quarter was understated by EUR30 million to EUR40 million due to shorter cycle times and higher wafer yields, leading to reduced order quantities.
-
The EBITDA margin for the fourth quarter was below the guided range, impacted by a one-off item totaling $9.3 million related to renegotiations and inventory revaluation.
-
The silicon carbide revenue for the full year decreased by 34% compared to 2024, despite a strong fourth quarter, due to an exceptionally strong first quarter in the previous year.
-
X-FAB faces limited short-term visibility due to continued inventory adjustments by automotive customers and persistent geopolitical uncertainties, impacting its ability to provide full-year guidance for 2026.
Q & A Highlights
Q: Could you provide a better understanding of the trends by end market, particularly regarding industrial, medical, and automotive sectors? Also, how do you plan to mitigate risks related to your largest customer's business in China, given the pressure to use local foundries? A: Damien Macq, COO: We see uncertainty in the automotive sector but strong performance in industrial and medical markets. We differentiate our business through technological capabilities like high voltage and automotive qualifications, which continue to attract Chinese customers. We do not currently see the absence of a 300-millimeter footprint as a disadvantage.
Q: What actions are being taken to increase sales given the available platforms and technologies at X-FAB? A: Rudi De Winter, CEO: We are reorganizing into three business units to move closer to customers and enhance co-design capabilities. Business development is a critical focus, and we are seeing improvements in design wins, particularly in CMOS technology. We are also capitalizing on opportunities in photonics, which contributed 7% of our total energy in 2025.
Q: With current liabilities at EUR700 million and current assets at EUR648 million, is there a risk of financial stress? A: Alba Morganti, CFO: We have credit lines available, including a EUR200 million revolving credit facility. We are renegotiating to extend this facility by one year. Our major CapEx expansion is complete, allowing us to reduce net debt and manage liabilities effectively.
Q: What is the outlook for X-FAB's financial performance and growth strategy moving forward? A: Rudi De Winter, CEO: We are observing positive developments across our business, with strong interest in microsystem capabilities and recovery in the silicon carbide sector. We are well-positioned for robust growth, supported by strong business fundamentals and strategic alignment with global mega trends.
Q: How does X-FAB plan to handle the limited short-term visibility and macroeconomic challenges? A: Damien Macq, COO: We are implementing cost efficiency measures, including headcount reductions and operational cost reductions, to address short-term challenges. We remain agile to respond to customer demands and market opportunities, focusing on specialization, market diversification, and disciplined execution.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
