Aixtron Q32024 $AIXA (-3,15%)

Financial performance

• Order intakeOrder intake amounted to € 439.5 million in the first nine months of 2024, a slight increase compared to € 436.2 million in the same period of 2023. In the third quarter of 2024, incoming orders increased significantly by 21% year-on-year to € 143.5 million.
• TurnoverSales for the first nine months of 2024 amounted to € 406.4 million, a decrease of 2% compared to € 415.7 million in 2023. In the third quarter of 2024, turnover amounted to € 156.3 million, 5% lower than in the third quarter of 2023.

Balance sheet overview

• Total assetsAs at September 30, 2024, total assets amounted to € 1,002.2 million, down slightly compared to € 1,029.9 million at the end of 2023.
• EquityEquity increased to € 789.9 million compared to € 777.6 million at the end of 2023, maintaining a solid equity ratio of 79%.

Details of the income statement

• Gross profitGross profit for the first nine months of 2024 amounted to € 160.0 million, a decrease of 12% compared to € 180.8 million in 2023. The gross margin fell by 4 percentage points to 39%.
• EBITEBIT for the first nine months of 2024 amounted to € 60.3 million, a decrease of 35% compared to € 93.4 million in 2023. The EBIT margin fell by 7 percentage points to 15%.

Cash flow overview

• Operating cash flowImproved significantly to € 28.2 million in the first nine months of 2024 compared to € -65.6 million in the same period of 2023.
• Free cash flow: Despite the improvement in operating cash flow, free cash flow remains negative at € -58.0 million due to high capital expenditure

Key figures and profitability ratios

• Gross marginGross margin was 39% in the first nine months of 2024 compared to 43% in 2023.
• EBIT marginThe EBIT margin amounted to 15% in the first nine months of 2024, compared to 22% in 2023.

Segment information

• Sales by regionAsia contributed € 250.3 million, Europe € 113.6 million and the Americas € 42.6 million to total sales in the first nine months of 2024.
• Equipment vs. after-sales: The sale of equipment accounted for 80% of revenue, while after-sales services contributed 20%.

Competitive position

AIXTRON continues to lead in SiC and GaN technologies and has made significant progress in 300 mm GaN platforms. This positions the company as a leader in terms of performance and cost per wafer.

Forecasts and comments from management

• Forecast for the 2024 financial yearSales are expected to be between € 620 million and € 660 million, with a gross margin of 43% to 45% and an EBIT margin of 22% to 25%.
• Outlook for 2025: Sales could be at the level of 2024 or slightly lower, as demand in the end markets is expected to be weaker

Risks and opportunities

There were no significant changes in risks and opportunities compared to the 2023 Annual Report. The company continues to focus on sustainability and ESG initiatives.

Summary of the results

AIXTRON's financial performance in the first nine months of 2024 shows a decline in revenues and profitability compared to the previous year, mainly due to a lower gross and EBIT margin. Nevertheless, the Company has made significant progress in operating cash flow, indicating improved operational efficiency. The strategic focus on SiC and GaN technologies positions AIXTRON well for future growth, although market demand remains uncertain. The strong equity base and continued investment in innovation provide a robust foundation to meet future challenges.

Positive aspects

• Strong equity positionAIXTRON's equity increased to € 789.9 million as of September 30, 2024, compared to € 777.6 million at the end of 2023, with a solid equity ratio of 79%. This demonstrates a strong financial foundation and stability.
• Improved operating cash flowOperating cash flow improved significantly to € 28.2 million in the first nine months of 2024, compared to € -65.6 million in the same period of 2023. This improvement reflects increased operational efficiency and better cash flow management.
• Leadership position in SiC and GaN technologiesAIXTRON remains a leader in SiC and GaN technologies and has made progress in 300mm GaN platforms. This positions the company as a leader in performance and cost per wafer.
• Sales growth in AsiaSales in Asia increased significantly to € 250.3 million in the first nine months of 2024, compared to € 181.3 million in the same period of 2023, demonstrating high demand and a strong market presence in the region.
• Strategic investmentsThe company is making strategic investments in its innovation center and expanding production capacity in Italy, which should promote future growth and innovation.

Negative aspects

• Decline in sales and profitability: Sales in the first nine months of 2024 decreased by 2% to € 406.4 million and the EBIT margin fell by 7 percentage points to 15%, indicating a decline in profitability.
• Decreased gross marginGross margin decreased to 39% compared to 2023 (from 43% in the previous year), mainly due to a change in the product mix.
• Negative free cash flowDespite the improvements in operating cash flow, free cash flow remained negative at € -58.0 million due to high capital expenditure, which could put pressure on liquidity.
• Decline in sales in Europe and America: Sales in Europe and the Americas declined significantly, with a drop of 18% in Europe and 55% in the Americas, indicating challenges in these markets.
• Increased R&D costsResearch and development expenses increased by 15% to € 68.7 million in the first nine months of 2024. While this is an indication of investment in future growth, it has also contributed to the decline in net profitability.