AT&S increases revenue in a challenging market environment
EQS-News: AT&S Austria Technologie & Systemtechnik AG / Key word(s):
   Annual Results/Forecast
   AT&S increases revenue in a challenging market environment

   15.05.2025 / 07:04 CET/CEST
   The issuer is solely responsible for the content of this announcement.

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   AT&S increases revenue in a challenging market environment

    

     • Revenue 2024/25 increases to € 1,590 million
     • Sale of AT&S Korea leads to profit for the year of € 90 million
     • Cost optimization and efficiency program continued
     • Customer diversification successfully advanced
     • Quarterly rather than annual guidance due to current uncertainty about
       global development

    

   Leoben – AT&S increased revenue slightly in an overall difficult market
   environment. “The market situation in the past financial year confronted
   us with many challenges. Thanks to starting our transformation process
   early, we nevertheless managed to partially compensate for the pricing
   pressure and even increase revenue,” explains CFO Petra Preining. “As a
   result of the strategic decision to sell the plant in Korea and to focus
   on our core business, we can also report earnings per share of € 1.86,”
   Preining adds. The new CEO, Michael Mertin, further explains, “We plan to
   use the profit for the year to return to profitable growth and to deliver
   an increase in company value.”

    

   In comparison to the prior-year period, consolidated revenue rose slightly
   to € 1,590 million in the financial year 2024/25 (PY: € 1,550 million).
   AT&S recorded positive volume development during the reporting period,
   which compensated for the persistent high price pressure for both printed
   circuit boards and IC substrates.

    

   EBITDA rose by 97% from € 307 million to € 606 million. The improvement in
   earnings is predominantly attributable to the sale of the plant in Korea.
   Despite the positive development, AT&S is intensively continuing 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, as well as costs related to
   the cost optimization and efficiency program had a negative impact on
   earnings. Adjusted for these costs and the positive effect from the sale
   of the plant in Korea, EBITDA amounted to € 408 million (PY:
   € 384 million), which corresponds to an increase by 6%.

    

   The adjusted EBITDA margin was further increased and amounted to 25.7%
   (PY: 24.8%). The reported EBITDA margin (not adjusted for start-up and
   restructuring costs) amounted to 38.1% (PY: 19.8%).

    

   Depreciation and amortization increased by € 52 million to € 328 million
   (21% of revenue). EBIT rose from € 31 million to € 277 million. The EBIT
   margin amounted to 17.5% (PY: 2.0%). Finance costs – net declined from
   € -50 million in the previous year to € -83 million primarily due to
   higher interest expenses. Driven by the sale of the plant in Korea, profit
   for the year increased from € -37 million to € 90 million, leading to an
   increase in earnings per share by € 3.25 from € -1.39 to € 1.86.

    

   Cash flow from operating activities fell to € -75 million in the financial
   year 2024/25 (PY: € 653 million). The company’s international factoring
   program was reorganized and started in the first quarter of 2025/26.

    

    

    

    

    

   Key figures

   in € million              Q4 2024/25      Q4 Change      FY      FY Change
                                        2023/24    in% 2024/25 2023/24    in%
   Revenue                          393     345     14   1,590   1,550      3
   EBITDA                           374      40   >100     606     307     97
   EBITDA adjusted^1)                76      64     20     408     384      6
   EBITDA margin (in %)            96.2    11.5      -    38.1    19.8      -
   EBITDA margin adjusted          19.4    18.4      -    25.7    24.8      -
   (in %)^1)
   EBIT                             279     -32      -     277      31   >100
   EBIT adjusted^1)                 -15      -6   >100      97     113    -14
   EBIT margin (in %)              70.9    -9.3      -    17.5     2.0      -
   EBIT margin adjusted (in        -3.9    -1.7      -     6.1     7.3      -
   %)^1)
   Profit/loss for the year         185     -44      -      90     -37      -
   ROCE (in %)^1)                   n.a     n.a      -     7.0     0.6      -
   Net CAPEX                         87     157    -44     415     855    -52
   Cash flow from operating         -45     156      -     -75     653      -
   activities
   Earnings per share              4.65   -1.23      -    1.86   -1.39      -
   (in €)
   Number of employees^2)        12,963  13,829     -4  13,261  13,828     -6

   ^ 

   ^1) Adjusted for start-up and restructuring costs as well as effects from
   the sale of the plant in Korea

   ^2) Incl. leased personnel, average. As at March 31, 2025: 12,620

    

   Total assets declined by 1.1% to € 4,622 million in the financial year
   2024/25. The equity ratio improved by 2.6 percentage points to 23.3% due
   to the profit for the year as well as positive exchange rate effects in
   other comprehensive income (OCI).

    

   Cash and cash equivalents decreased to € 485 million (March 31, 2024:
   € 676 million). In addition, AT&S has unused credit lines of € 256 million
   to secure the financing of the future investment program and short-term
   repayments. The net debt/EBITDA ratio decreased from 6.1 (as of December
   31, 2024) to 2.5.

    

   Sale AT&S Korea

   AT&S successfully completed the sale of the plant in Ansan, Korea, to the
   Italian company SO.MA.CI.S. as of January 31, 2025, thus further
   sharpening the Group’s strategic profile. The purchase price (equity
   value) amounted to € 405 million and approximately € 17 million in
   interest income (equity ticker). The transaction is offset by a disposal
   of carrying amount of € 43 million (as of January 31, 2025) and resulted
   in cash inflows before tax of € 353 million (after tax: € 317 million).
   EBITDA increased by roughly € 325 million as a result of the sale. The
   gain from the sale will not be included in the adjusted EBITDA margin.

    

    

    

   Cost optimization and efficiency program

   Cost saving efforts were again stepped up significantly in the financial
   year 2024/25 and all investments underwent thorough review. Compared to
   the previous year, the cost base was sustainably reduced by € 120 million.
   In order to compensate for effects from the ongoing challenging market
   environment as well as the start-up costs from the additional production
   lines in Kulim, the measures implemented so far will be continued in the
   financial year 2025/26. The target for the current financial year is to
   sustainably save an additional € 130 million.

    

   Dividend

   In order to strengthen the balance sheet position, the Management Board
   will propose to the Annual General Meeting on July 3, 2025, subject to the
   approval of the Supervisory Board, not to distribute a dividend for the
   financial year 2024/25 (PY: 0.00 € per share).

    

   Expected market environment

   Although there have been signs of easing in recent days, the smoldering
   trade conflict between the USA and the rest of the world – in particular
   China – remains the main uncertainty factor for the expected market
   environment. The development of the different market segments currently
   shows significant discrepancies. While volume in the areas of mobile
   devices, computers and communication infrastructure proves to be stable
   and has shown seasonal growth, the automotive segment is stagnating, and
   the industrial segment continues to be weak. AT&S expects this weakness,
   which primarily affects Europe, to continue into the next financial year.
   Although overall PCB prices declined to a lesser degree than in the
   previous year, price pressure is persisting to a large extent. In the area
   of substrates, pressure on prices remains unchanged.

    

   In the printed circuit board segment, it is above all mobile devices, the
   armament industry and data centers that show positive forecasts and drove
   the PCB market in the last quarter. In addition to increased investments
   in servers, the related communication infrastructure is being further
   expanded. At the same time, lower demand for e-mobility and a general
   economic weakness continue to burden demand for automotive and industrial
   printed circuit boards. Automotive and industrial inventory levels are
   also still high and are currently being reduced.

    

   In the area of IC substrates, the market benefited from the recovery of
   client computing demand and special AI chips, whereas the classic server
   segment continues to be subdued. An upturn is largely dependent on a
   general economic recovery and is therefore not expected this year.

    

   Outlook 2025/26

   It is expected that, in the coming months, the US government will provide
   a clear picture of how it 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 Management Board therefore decided to
   wait until the effects of potential decisions have been coordinated with
   key customers before publishing an annual guidance for 2025/26.

    

   Rather than an annual guidance, the company is announcing its expectations
   for the first quarter of 2025/26. The management is planning investments
   of roughly € 65 million (Q1 2024/25: € 93 million). In the other quarters
   of the financial year, the company expects the investment volume to be
   higher. The majority of these investments will be used for the expansion
   of IC substrate production at the new plant in Kulim.

    

   In the first quarter of the financial year 2025/26, the management has
   been observing that the volatile order behavior of a key customer is
   continuing and the weakness of the European automotive and industrial
   markets is persisting. 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 € 400 million in the first
   quarter (Q1 2024/25: 349 million); the expected EBITDA margin, at around
   16%, will reflect the above-mentioned start-up costs of additional
   production lines (Q1 2024/25: 18.5%).

    

   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
   neither includes a potential escalation of the currently smoldering trade
   dispute nor 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 industrializes leading-edge technologies for
   its core business segments Mobile Devices & Substrates, Automotive &
   Aerospace, Industrial and Medical and high-performance computing for VR
   and AI applications. AT&S has a global presence with production sites in
   Austria (Leoben, Fehring) as well as plants in India (Nanjangud) and China
   (Shanghai, Chongqing). A new high-end production site for IC substrates
   has been established in Malaysia (Kulim). In Leoben, a European competence
   center including series production for IC substrate technologies has been
   built, which will be officially opened in June 2025. Both sites started
   production in the financial year 2024/25. The company currently employs
   13,000 people. For further information please visit (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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   15.05.2025 CET/CEST This Corporate News was distributed by EQS Group.
   www.eqs.com

   ══════════════════════════════════════════════════════════════════════════

   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: 2137956


    
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