Siltronic Projects Challenging 2026 with Sales Decline and Margin Pressure

Siltronic AG has released its guidance for the 2026 financial year, projecting group sales to be in the mid-single-digit percent range below the previous year's preliminary figure of EUR 1,347 million, based on an assumed exchange rate of EUR/USD 1.18. The company anticipates a challenging market environment characterized by negative exchange rate effects, ongoing price pressure outside existing long-term agreements, declining 200mm wafer business due to customer inventory reductions in the power segment, and the full-year impact of closing its SD production line for wafers up to 150mm in diameter. On a comparable basis excluding exchange rate effects and the SD line closure, sales are expected to be roughly in line with the previous year.

The Executive Board expects the EBITDA margin to range between 20 to 24 percent, compared to 23.5 percent in 2025, while depreciation will increase significantly to EUR 490-520 million due to investments in the 300mm business, resulting in operating profit (EBIT) falling substantially below the previous year's preliminary figure of EUR -26 million. Capital expenditure is projected to be substantially reduced to EUR 180-220 million from EUR 369 million in 2025, though net cash flow is expected to remain similar to the previous year's EUR -85 million as payments for capital expenditure will exceed this level.

CEO Dr. Michael Heckmeier noted that while AI-driven end markets are supporting 300mm wafer volume, positive developments in the memory segment have not fully reached the wafer industry, with customer capacity constraints slowing growth in smartphone and PC markets. The company's full audited Annual Report 2025 will be published on March 12, 2026, available through their corporate website at https://www.siltronic.com. This guidance matters because it reflects broader semiconductor industry challenges, including exchange rate volatility, segment-specific demand shifts, and the transition from older to newer wafer technologies, impacting a key supplier to global electronics manufacturers.

Siltronic's projections highlight the complex dynamics affecting wafer manufacturers, where growth in advanced 300mm applications contrasts with declines in legacy 200mm products, compounded by external factors like currency fluctuations. The reduced capital expenditure indicates a strategic adjustment to market conditions, while maintained cash flow levels suggest careful financial management. These developments are significant for investors and industry observers tracking the semiconductor supply chain's evolution amid technological transitions and economic uncertainties.