EQS-News: AT&S continues upward trend and exceeds forecast

EQS-News: AT&S Austria Technologie & Systemtechnik AG / Key word(s): Half
Year Results/Forecast
AT&S continues upward trend and exceeds forecast

04.11.2025 / 07:00 CET/CEST
The issuer is solely responsible for the content of this announcement.

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AT&S continues upward trend and exceeds forecast

 

• Revenue increases to € 846 million in H1 2025/26, up 6% on the
prior-year period
• EBITDA of € 175 million corresponds to a margin of 20.6%
• Revenue, earnings and equity strongly impacted by foreign exchange
development
• Forecast for financial year 2025/26: revenue € 1.7 billion, EBITDA
margin 23%
• Outlook for FY 2026/27 confirmed

 

Leoben – “Despite massive foreign exchange headwinds and a challenging
market environment, we were able to increase revenue and EBITDA and
exceeded the half-year forecast,” says AT&S CEO Michael Mertin. “We have
successfully diversified our customer base and are now in close contact
with further key players of the global AI chip industry. With the ramp of
our new plants in Kulim, Malaysia, and Leoben, Austria, we plan to
increase revenue to € 1.7 billion – although we sold our plant in Ansan,
Korea, and exchange rate effects are likely to slow us down also in the
second half of the year.”

 

In comparison to the prior-year period, consolidated revenue increased by
6% to € 846 million in the first half of 2025/26 (PY: € 800 million).
Adjusted for currency effects, consolidated revenue rose by 11%. 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 11% from € 157 million to € 175 million ‒ adjusted for
currency effects, the increase amounted to 18%. 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 persisting 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 20.6%, exceeding the prior-year level of 19.6%.

 

Depreciation and amortization increased by € 24 million to € 175 million
(21% of revenue) due to additions to assets and technology upgrades. EBIT
fell from € 7 million to € 0 million; without foreign exchange effects,
EBIT would already have been positive for the first half-year. The EBIT
margin amounted to 0% (PY: 0.9%). Finance costs – net amounted to
€ -67 million after € -50 million in the previous year, mainly as a result
of negative currency effects. The net loss for the period remained
constant at € -63 million, leading to a minor decline in earnings per
share by € 0.02 € from € -1.84 to € -1.86.

 

Cash flow from operating activities amounted to € 209 million, exceeding
the prior year figure by € 300 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 millions (unless otherwise stated)
Q2 Q2 Change H1 H1 Change
    2025/26   2024/25   in %   2025/26   2024/25   in %
Revenue   447.4   450.5   (0.7%)   846.3   799.9   5.8%
EBITDA   104.1   92.6   12.4%   174.7   157.2   11.2%
EBITDA margin   23.3%   20.6%   –   20.6%   19.6%   –
(in %)
EBIT   16.3   15.0   9.2%   0.0   6.8   (99.4%)
EBIT margin (in   3.7%   3.3%   –   –   0.9%   –
%)
Profit for the   (7.6)   (28.7)   73.5%   (63.5)   (62.7)   (1.3%)
period
ROCE in %)   n.a.   n.a.   –   0.3%   (1.0%)   –
Net CAPEX   (30.7)   (161.6)   81.0%   (84.3)   (254.2)   66.8%
Cash flow from
operating   25.5   (104.4)   >100%   209.4   (90.6)   >100%
activities
Earnings per
shares
outstanding end   (0.31)   (0.85)   63.5%   (1.86)   (1.84)   (1.1%)
of reporting
period (in €)
Employees   12,953   13,407   (3.4%)   12,876   13,490   (4.6%)
(Number)^1
^1 Incl. contract staff, average. As of September 30, 2025: 13,051

 

Total assets declined by 1% to € 4,562 million in the first half of
2025/26. The equity ratio decreased by 4.0 percentage points to 19.2% due
to negative exchange rate effects in other comprehensive income (OCI) and
the loss for the period.

 

Cash and cash equivalents increased to € 793 million (March 31, 2025:
€ 485 million). Unused credit lines totaled € 18 million. The net
debt/EBITDA ratio of the last twelve months declined from 2.5 (as of
March 31, 2025) to 2.2.

 

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 at least another € 150 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.

 

Expected market environment

Despite several announcements of tariffs, which have been an important
issue since the beginning of the year, their impact on the market has been
minor so far. The uncertain situation has caused some companies to reduce
inventory levels or place orders early. Overall, these effects had no
impact on the general market situation, which improved compared with the
previous quarter.

 

The data center and server segment continues to be the driver: Here,
demand continues to be stable. 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 continue
to benefit.

 

Despite continuing geopolitical tensions, demand developed positively in
most other markets. Notebooks show a positive picture, which is in part
attributable to the progress made in artificial intelligence and renewal
cycles, but also to a shift in seasonality for fear of potential tariffs.
Likewise, the smartphone market is strong.

 

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

AT&S expects to generate annual revenue of approximately € 1.7 billion in
the financial year 2025/26 (2024/25: € 1,590 million), which – adjusted
for currency effects and the sold plant in Ansan – corresponds to
operational growth of approximately 20% compared to the previous year. The
expected EBITDA margin of approximately 23% will still reflect the
start-up costs of the additional lines in Kulim (2024/25 incl. proceeds
from the sale of the plant in Ansan, Korea: 38.1%; adjusted for the
proceeds: 17.7%). The management plans CAPEX of roughly € 250 million
(2024/25: € 415 million). The majority of these investments will be used
for expanding the IC substrate production at the new plant in Kulim. AT&S
expects EBIT and free cash flow from operating activities to be positive.

 

Outlook 2026/27

AT&S anticipates continuing strong and growing demand for products with
high added value, especially for generative artificial intelligence. But
the established markets such as servers for companies, PCs & notebooks
have also recovered. Moreover, AT&S has decided to increasingly serve the
defense sector. Against this positive market backdrop, 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%.

 

AT&S generates more than three quarters of its revenue with US companies,
and the majority of its revenues in US dollars. Production costs are
largely incurred in Asian currencies, while the reporting currency is the
euro. Since the publication of the forecast for 2026/27 in December 2024,
the US dollar has fallen against the euro, from 1.07 US dollars per euro
to approx. 1.17 US dollars per euro, which corresponds to a decline by
roughly 10%. As a result, the management’s revenue expectations shifted
from the upper to the lower end of the expected revenue range. Further
changes in exchange rates – positive or negative – would have an impact on
the revenue forecast.

 

In addition to these general market dynamics, raw material shortages could
pose a challenge. Fiberglass mats – in particular E-glass and the
technically more sophisticated T-glass – are essential components in the
structure of PCBs and IC substrates. T-glass is indispensable for
large-format and complex IC substrates. Last year, there were already
indications of potential supply chain bottlenecks in the market, in
particular due to the dependence on one central supplier. AT&S responded
early and qualified additional suppliers together with its customers in
order to increase supply security. Some of these new partners are in the
process of building their production capacities and are currently not yet
able to supply the full quantities required. Therefore, there is a certain
risk that AT&S, as well as competitors, may not be able to fully meet all
customer requirements in the second half of the financial year 2026/27.
While such a shortage would limit the production volume, it could reduce
the price pressure on IC substrates at the same time.

 

The forecast does not include a potential escalation of the currently
smoldering trade dispute, a significant shortage of fiberglass mats or a
further devaluation of the US dollar. 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

 

 

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04.11.2025 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: ir@ats.net
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: 2223136

 
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