EQS-News: AT&S Austria Technologie & Systemtechnik AG / Key word(s):
Quarter Results/Quarterly / Interim Statement
AT&S shows upward trend in the first quarter
31.07.2025 / 06:59 CET/CEST
The issuer is solely responsible for the content of this announcement.
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AT&S shows upward trend in the first quarter
• Revenue increases to € 399 million in Q1 2025/26, up 14% on the
prior-year quarter
• EBITDA of € 71 million corresponds to a margin of 17.7%
• Revenue, earnings and equity strongly impacted by foreign exchange
development
• Half-year forecast: revenue € 820 million, EBITDA margin 20%
• Outlook for FY 2026/27 confirmed
Leoben – “Investments in artificial intelligence continue to drive the
market for IC substrates and printed circuit boards for servers and
high-performance computing,” says AT&S CEO Michael Mertin. “Our focus on
high-end IC substrates and the new plants in Kulim/Malaysia and
Leoben/Austria are decisive steps for AT&S on its path towards profitable
growth based on leading-edge technology, solid expertise and strong
partnerships with globally leading companies.”
In comparison to the prior-year quarter, consolidated revenue increased by
14% to € 399 million in the first quarter of 2025/26 (PY: € 349 million).
Adjusted for currency effects, consolidated revenue rose by 19%. Due to a
positive volume development, AT&S was able to successfully counter both
the ongoing price pressure and negative exchange rate effects during the
reporting period.
EBITDA improved by 9% from € 65 million to € 71 million ‒ adjusted for
currency effects, the increase amounted to 24%. The earnings improvement
is primarily due to higher volumes. Despite the positive development, AT&S
will continue to intensively pursue its comprehensive cost optimization
and efficiency program in order to counter effects such as price pressure
and inflation resulting from the currently difficult market environment.
In addition to price pressure, start-up costs in Kulim/Malaysia and
Leoben/Austria had a negative impact on earnings. The EBITDA margin
amounted to 17.7% and was thus slightly below the prior-year level of
18.5%.
Depreciation and amortization increased by € 14 million to € 87 million
(22% of revenue) due to additions to assets and technology upgrades. EBIT
fell from € -8 million to € -16 million. The EBIT margin amounted to
-4.1% (PY: -2.3%). Finance costs – net declined from € -20 million in the
previous year to € -44 million, primarily due to negative currency
effects. The net loss for the period decreased from € -34 million
to € -56 million, leading to a decline in earnings per share by
€ 0.56 from € -0.99 to € -1.55.
Cash flow from operating activities amounted to € 184 million, exceeding
the prior-year figure by € 170 million. This was primarily driven by
resuming the international factoring program, which was reorganized, and
an improvement in trade and other payables.
KEY FIGURES
in € million (unless indicated otherwise)
Q1 2025/26 Q1 2024/25 Change in %
Revenue 398.9 349.4 14.2%
EBITDA 70.6 64.6 9.4%
EBITDA adjusted^1) 78.5 96.5 (18.7%)
EBITDA margin (in %) 17.7% 18.5% –
EBITDA margin adjusted (in %)^1) 19.7% 27.6% –
EBIT (16.3) (8.1) (>100%)
EBIT adjusted^1) (6.2) 26.4 (>100%)
EBIT margin (in %) (4.1%) (2.3%) –
EBIT margin adjusted (in %)^1) (1.5%) 7.6% –
Profit/loss for the period (55.9) (34.0) (64.4%)
ROCE (in %)^1) (2.0%) (2.4%) –
Net CAPEX -53.6 -92.7 (42.1%)
Cash flow from operating 184.0 13.8 >100%
activities
Earnings per share (in €) (1.55) (0.99) (56.6%)
Number of employees^2) 12,800 13,573 (5.7%)
^1 Adjusted for extraordinary effects
^2 Incl. leased personnel, average. As at June 30, 2025: 13,133
Total assets declined by 3% to € 4,516 million in the first quarter of
2025/26 compared to the balance sheet date. The equity ratio decreased by
3.9 percentage points to 19.4% due to negative exchange rate effects in
other comprehensive income (OCI) and the loss for the period.
Cash and cash equivalents increased to € 772 million (March 31, 2025:
€ 485 million). In addition, AT&S has unused credit lines of € 152 million
to secure financing of the remaining investment program and short-term
repayments. The net debt/EBITDA ratio of the last twelve months declined
from 2.5 (at March 31, 2025) to 2.3.
Cost optimization and efficiency program
Cost reduction measures are further intensified in the financial year
2025/26. All investments are subject to thorough review. After reducing
the cost base by € 120 million in the previous year, it will now be
sustainably decreased by another € 130 million. The goal is to compensate
for the effects of the ongoing challenging market environment and for the
start-up costs of the additional production lines in Kulim.
“We assume that we will continue to operate in a price-sensitive market;
therefore, we will consistently pursue our previously successful
efficiency programs. We will counter the challenges of the geopolitical
situation and the new dynamic markets with continuous risk and opportunity
assessments, and a fast and agile portfolio of measures,” Mertin explains.
Expected market environment
Despite several announcements of tariffs, which have been an important
issue over the past months, their impact on the market has so far remained
unclear. The uncertain situation has caused some companies to reduce
inventory levels or place orders early. However, these are isolated
effects and only have a minor influence on the general market situation.
The only exception is the data center and server segment: Here, demand is
still stable, as this segment would not be affected by tariffs. Demand is
particularly strong for high-end products developed for artificial
intelligence. There is an ongoing trend towards high-end IC substrates in
this area, from which AT&S will benefit.
In most other markets, growth is slowed down by geopolitical tensions.
Potential tariffs could lead to higher prices in the USA, especially for
smartphones, notebooks and other electronic devices, which would reduce
demand in North America. At the same time, however, there are also
positive developments: the progress made in artificial intelligence is
likely to stimulate demand, thus offsetting part of the economic
difficulties.
In the industrial and automotive segments, only moderate growth is
expected for 2025, one of the reasons being inventories that have not been
fully reduced yet. The situation is particularly challenging in the area
of e-mobility: here, the currently low demand is weakening the market
environment. Moreover, tariffs as well as political and legal obstacles in
the USA and the EU are causing additional burdens.
Outlook 2025/26
There is still no clear picture of how the US government intends to deal
with tariffs on goods imported into the USA in the future. While AT&S does
not expect such a decision to result in an immediate substantial impact on
its own products, it may have a significant influence on its customers’
end products – and consequently on the demand for AT&S products. The
impact on exchange rates, in particular the weakness of the US dollar, is
also still volatile. The Management Board has therefore decided to wait
before issuing an annual forecast for 2025/26.
Rather than an annual guidance, the company is publishing its expectations
for the first half of 2025/26. In the second quarter of the financial year
2025/26, the management has been observing that the volatile order
behavior of a key customer is continuing. High-volume production at the
new plant in Kulim has started, but start-up costs for further production
lines will continue to burden the earnings/revenue ratio in the coming
months.
The company expects to generate revenue of approximately € 820 million in
the first half of the year (H1 2024/25: € 800 million); the expected
EBITDA margin, at around 20%, will reflect the above-mentioned start-up
costs of the additional lines (H1 2024/25: 19.6%). The management plans
CAPEX of roughly € 110 million (H1 2024/25: € 254 million). In the second
half of the financial year, the company expects investments to exceed this
figure. The majority of these investments will be used for expanding the
IC substrate production at the new plant in Kulim.
Outlook 2026/27
The production capacity expansion in Kulim and the expansion of the site
in Leoben are still developing positively despite the currently
challenging global economic situation. AT&S currently assumes that revenue
of approximately € 2.1 to € 2.4 billion will be generated in the financial
year 2026/27 and expects an EBITDA margin of 24 to 28%. This forecast does
not include a potential escalation of the currently smoldering trade
dispute, a further devaluation of the US dollar, or potential revenue from
the second plant built by AT&S in Kulim. The management monitors the
currently tense geopolitical situation very carefully in order to be able
to respond to developments at any time and to make strategic adaptations.
AT&S Austria Technologie & Systemtechnik Aktiengesellschaft – Advanced
Technologies & Solutions
AT&S is a leading global manufacturer of high-end IC substrates and
printed circuit boards. AT&S develops and produces leading-edge
interconnect technologies for key digital industries: mobile devices,
automotive & aerospace, industrial, medical and high-performance computing
for AI applications. With production sites in Austria (Leoben, Fehring),
China (Shanghai, Chongqing), Malaysia (Kulim), India (Nanjangud) and a
European competence center for R&D and IC substrate production in Leoben,
AT&S is actively shaping the digital transformation – through
forward-looking investments in research and development and the
responsible use of resources. The company currently employs around 13,000
people. Further information can also be found at [1] www.ats.net
Media download:
In the AT&S media portal [2] https://ats.canto.de/v/press you will find
constantly updated picture material on AT&S.
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31.07.2025 CET/CEST This Corporate News was distributed by EQS Group.
www.eqs.com
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Language: English
Company: AT&S Austria Technologie & Systemtechnik AG
Fabriksgasse 13
8700 Leoben
Austria
Phone: +43 (1) 3842200-0
E-mail: [email protected]
Internet: www.ats.net
ISIN: AT0000969985, AT0000A09S02
WKN: 922230
Indices: ATX
Listed: Regulated Unofficial Market in Berlin, Dusseldorf, Frankfurt,
Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange;
Vienna Stock Exchange (Official Market)
EQS News ID: 2177336
End of News EQS News Service
2177336 31.07.2025 CET/CEST
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