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

   View original content: [2]EQS News

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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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   2223136  04.11.2025 CET/CEST

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