Aixtron (ETR:AIXA) reported full-year 2025 revenue of EUR 557 million, down 12% year over year, as management said the company performed “well in a soft market environment” and delivered at the upper end of the adjusted revenue guidance issued in October 2025. CEO Dr. Felix Grawert and CFO Dr. Christian Danninger highlighted a strong fourth quarter, improved cash generation, and a 2026 outlook that reflects continued weakness in silicon carbide demand offset by accelerating momentum in optoelectronics tied to AI data center build-outs.
2025 results: weaker revenue, strong Q4 margins
For 2025, the company posted gross profit of EUR 222 million (down 15%) and EBIT of EUR 100 million (down 24%). Gross margin declined by one percentage point to 40%, which management attributed primarily to lower utilization in operations, G10 ramp-up adjustment expenses, and a one-off restructuring cost.
Order intake in Q4 was EUR 170 million, up 8% year over year, while full-year orders totaled EUR 544 million, slightly lower than the prior year. Backlog ended 2025 at EUR 258 million, down 11% year over year, which management linked to softer demand conditions.
Business mix and after-sales contribution
Danninger said Aixtron’s approach of serving “various uncorrelated end markets” helped in 2025, with optoelectronics growth partly offsetting weaker LED/micro LED and gallium nitride (GaN) power demand. The company’s 2025 equipment revenue mix was described as:
- 57% from GaN and silicon carbide (SiC) power
- 23% from optoelectronics
- 15% from LED
- 5% from R&D tools
After-sales revenue increased 1% to EUR 112 million, lifting the after-sales share to 20% of total revenue from 17% a year earlier.
Cash flow rebound, inventory reduction, and dividend proposal
Management highlighted cash generation as a key 2025 achievement. Operating cash flow rose by more than EUR 180 million to EUR 208 million, while free cash flow improved by more than EUR 250 million to EUR 182 million, compared with negative EUR 72 million in 2024. Year-end cash (including other financial assets) climbed to EUR 225 million, up from EUR 65 million the prior year.
Danninger attributed the improvement primarily to a reduction in inventories and receivables. Inventory fell by about EUR 85 million to EUR 284 million at year-end 2025, following supply chain adjustments after the company “front-loaded” in 2024 in expectation of stronger growth. Receivables also declined, generating about EUR 60 million in cash, while payables remained stable. Down payments received from customers were EUR 44 million at year-end, and represented about 17% of backlog.
Despite lower earnings, Aixtron plans to propose a stable dividend of EUR 0.15 per share. Danninger noted the company does not follow a fixed dividend policy, but adjusts payouts based on business performance and capital allocation priorities.
Market trends: SiC digestion vs. AI-driven opto acceleration
Grawert described silicon carbide as the company’s weakest segment heading into 2026, citing overcapacity and slower electric vehicle momentum in Western markets, with digestion expected to persist through 2026. China remained a “strong pillar” in the first half of 2025, but demand softened in the second half, and the company expects digestion to continue there as well.
Even with near-term weakness, Grawert reiterated a favorable medium-term view for SiC beyond 2026, pointing to lower substrate prices improving competitiveness versus silicon IGBTs, a transition from 6-inch to 8-inch wafers expected around 2027-2028, and the emergence of super junction SiC MOSFETs that require multiple thin epitaxial layers. He said Aixtron’s batch-based G10-SiC platform shipped its 100th system in 2025. For 2026, the company expects SiC to contribute up to 10% of group revenue.
By contrast, the company expects optoelectronics to be the strongest segment in 2026. Grawert said demand for indium phosphide-based lasers used in optical interconnects is being driven by AI data center build-outs, bandwidth transitions to 800G and 1.6T, and increased laser content inside data center architectures. He said Aixtron’s G10-AsP has become a “tool of record” for new photonic devices, and the company is serving “all of the top 10 suppliers” in the market. Management expects the optoelectronics business to more than double year over year from 2025 to 2026, primarily due to higher tool volumes rather than pricing.
2026 guidance and early-year cadence
For 2026, Aixtron guided to revenue of EUR 520 million, with a range of ±EUR 30 million. The company expects gross margin of 41%-42% and EBIT margin of 16%-19%. Grawert said the effects of a personnel reduction initiated at the start of 2026 are included in the forecast. For Q1 2026, revenue is expected at EUR 65 million ±EUR 10 million, reflecting seasonal patterns and a back-end-loaded year.
During Q&A, management said lead times have normalized to roughly 6 to 10 months, and executives expressed confidence in order coverage needed to meet the full-year outlook. They also discussed ongoing work on 300mm GaN tools and said they have multiple orders from a limited number of commercially relevant customers, while noting broader 300mm activities in areas like micro LED remain longer-dated. The company also said an EUR 11 million order cancellation in Q4 related to “two process modules” for an Asia-based GaN customer.
About Aixtron (ETR:AIXA)
AIXTRON SE, together with its subsidiaries, provides deposition equipment to the semiconductor industry in Asia, Europe, and the Americas. It develops, produces, and installs equipment for the deposition of semiconductor materials; and offers deposition processes, consulting, training, customer support, and other related services, as well as peripheral devices and services for the operation of its systems. The company's product portfolio includes MOCVD, CVD and PECVD, and OVPD and PVPD systems.
