AIXTRON Delivers Strong Order Intake in Q2

AIXTRON SE generated revenues of EUR 250.1 million in the first half of the year, matching the previous year’s level and thus performing strongly against the weaker overall market dynamics. The G10 product family, consisting of G10-SiC, G10-GaN and G10-AsP, was the main driver in both the past quarter and the first half of the year. The company recorded an order intake of EUR 175.7 million in the second quarter 2024, matching the record level of the same quarter of the previous year (Q2/2023: EUR 177.8 million).

The strong order intake in the second quarter of 2024 is in particular due to the high demand from the power electronics sector. Silicon carbide (SiC)-based systems accounted for 57 % of incoming equipment orders, while gallium nitride (GaN)-based systems made up 29 %. While important new SiC customers drove business in the first quarter – including one of the top five suppliers of SiC components and customers from China and Japan – in the past quarter AIXTRON also secured major follow-up orders from existing SiC customers, among others.

"We maintained our strong position in the first half of the year, and this despite the overall trend. The strong demand for our technology continues across all addressed end markets, particularly in the SiC segment. We have not only succeeded in acquiring new customers, including one of the top five suppliers of SiC components. We were also able to secure major follow-up orders from important existing customers. Here, Nexperia is a good example in the field of power electronics, where we were able to impress with both, our SiC and GaN systems. This momentum is reflected in our Q2 order intake," said Dr. Felix Grawert, CEO and President of AIXTRON SE.

New Production Site in Italy

In June, AIXTRON announced the purchase of a new site near Turin, Italy. With an investment in the low double-digit million euro range in an existing building, the company is creating the opportunity to quickly expand its production capacities – and potentially double its volume in the future. The company is thus addressing the expected increase in demand from major customers and will be able to cover future order peaks at all times.

Construction of the New Innovation Center is Progressing Well

AIXTRON is investing around EUR 100 million in a new 1,000 m² cleanroom complex at its Herzogenrath site, where the technology leader will work with customers on next generation systems in the future. Construction of the new AIXTRON Innovation Center is progressing well. The first systems are scheduled to be installed during the second half of the year.

High Order Intake and Order Backlog

AIXTRON recorded a high order intake of EUR 296.0 million for the first half of 2024 (H1/2023: EUR 317.7 million). A large proportion of the equipment orders booked in the second quarter 2024 will be delivered in the next fiscal year. The system order backlog as of June 30, 2024 increased significantly to EUR 400.6 million (March 31, 2024: EUR 355.0 million; June 30, 2023: EUR 412.5 million).

Revenues in the Upper Half of the Guidance Range

Revenues in the first half of 2024 amounted to EUR 250.1 million matching the previous year's level (H1/2023: EUR 250.7 million). In the second quarter 2024, revenues reached EUR 131.8 million (Q2/2023: EUR 173.5 million), which was in the upper half of the guided range of EUR 120.0 million to EUR 140.0 million.

Gross Profit and Gross Margin

AIXTRON achieved a gross profit of EUR 92.9 million in the first half of 2024 (H1/2023: EUR 104.6 million), with a gross margin of 37 %. The change compared to the same period of the previous year (H1/2023: 42 %) is mainly due to a shift in the product mix, which included a high proportion of lower-margin LED systems in the first half of the year. Gross profit in Q2/2024 amounted to EUR 49.1 million, with a gross margin of 37 % (Q1/2024: EUR 43.8 million, 37 %; Q2/2023: EUR 73.5 million, 42 %).

Investments in Research and Development remain high

Operating expenses in the first six months of the current year amounted to EUR 70.1 million (H1/2023: EUR 56.5 million), primarily due to increased R&D expenses, which totaled EUR 47.5 million in the first half of 2024 (H1/2023: EUR 39.0 million). In the second quarter 2024, operating expenses amounted to EUR 36.3 million (Q2/2023: EUR 28.9 million), of which R&D expenses accounted for EUR 24.6 million (Q2/2023: EUR 19.8 million).

The operating result (EBIT) in the first half of 2024 was EUR 22.8 million, corresponding to an EBIT margin of 9 % (H1/2023: EUR 48.1 million, 19 %). In Q2/2024, AIXTRON achieved an operating result (EBIT) of EUR 12.9 million and an EBIT margin of 10 % (Q2/2023: EUR 44.6 million; 26 %). The profit for the period in the first six months of 2024 reached EUR 22.0 million (H1/2023: EUR 43.9 million; Q2/2024: EUR 11.2 million; Q2/2023: EUR 40.4 million).

Financial Position

At EUR 20.2 million, the cash flow from operating activities in Q2/2024 was significantly higher than in the same quarter of the previous year (Q2/2023: EUR -76.3 million; H1/2024: EUR 12.8 million; H1/2023: EUR -70.5 million). In the second quarter 2024, the free cash flow amounted to EUR -23.4 million (Q2/2023: EUR -82.0 million; H1/2024: EUR -56.5 million; H1/2023: EUR -80.1 million). This is mainly due to investments in the Innovation Center and the expansion of production capacities in Italy.

After payment of the dividend of EUR 45.0 million, AIXTRON reported cash and cash equivalents including other current financial assets of EUR 79.4 million as of June 30, 2024 (December 31, 2023: EUR 181.7 million). The equity ratio at June 30, 2024 was 75 % and underscores AIXTRON's financial strength (December 31, 2023: 75 %).

Full Year Guidance Adjusted

To reflect the current business environment in power electronics, the Executive Board adjusted the guidance for the fiscal year 2024 on July 4, 2024. Based on the development of the order intake, the Executive Board now expects to generate revenues in the in the range of EUR 620.0 million to EUR 660.0 million (previously: EUR 630.0 million to EUR 720.0 million), a gross margin of around 43 % to 45 % (unchanged) and an EBIT margin of around 22 % to 25 % (previously: 24 % to 26 %) for the 2024 fiscal year. For the third quarter of 2024, the Executive Board expects revenues in the range of EUR 150.0 million to EUR 180.0 million.

"We are investing in the future. The additional site in Italy serves to strategically secure our growth plans. And our new innovation center will further strengthen our research and development activities. This will enable us to offer technologies that not only meet the current high demands of the semiconductor industry but also anticipate and serve future trends," said Dr. Christian Danninger, CFO of AIXTRON SE.

* not meaningful due to too high period fluctuations

Financial Information

The presentation on the results for the first half and the second quarter 2024 is available at: www.aixtron.com/en/investors/publications/ir-presentations.

The complete financial tables of the Group (income statement, other comprehensive income, balance sheet, cash flow statement and statement of changes in equity) related to this press release are available as part of the Half-Year Group Financial Report 2024 at: www.aixtron.com/en/investors/publications.

Investor Conference Call

In conjunction with the release of the H1/2024 results, AIXTRON will host a conference call (in English) for analysts and investors on Thursday, July 25, 2024 at 15:00 p.m. CEST (06:00 a.m. PDT, 09:00 a.m. EDT).

Please register for the event online at https://webcast.meetyoo.de/reg/0QNW2NcsHRa9. You will then receive an email with your personal access details.

An audio recording or transcript can be found after the conference at: www.aixtron.com/en/investors/events/conference-calls.