Soitec plunges on withdrawn forecast and CFO departure

Soitec SA

28/05/2025 08:38

** French semiconductor materials supplier Soitec SOIT.PA drops by 26% after the company withdrew its forecast for the new fiscal year and medium term

** Share on track for its worst day since February 6, when it closed 29.7% lower

** The company attributes this move to the slump in automotive and industrial chip demand, expecting a 20% fall in Q1'26 revenue

** J.P. Morgan highlights that Soitec's revenue is driven by smartphones as the market shows no significant momentum

** The broker adds that with 1Q26 sales guidance so significantly below current consensus expectations and with the company also withdrawing its medium-term ambition to reach a revenue target of $2bn with a 40% EBITDA margin means that estimates for FY26 will reduce significantly

** "if one were to use the average QoQ seasonality the company has seen in the last three years to calculate FY26 revenue, it would indicate FY revenue estimates would need to decline ~38% and FY EBITDA by at least a similar amount if the company were to curtail expenses and maintain gross margins."- JPM

** Soitec also announced the immediate departure of Chief Financial Officer Lea Alzingre, with Albin Jacquemont, former finance chief of divisions of French groups Carrefour CARR.PA, Suez and Darty FNAC.PA, stepping in

** Up to the previous session's close, shares were down 34.8%​ YTD

 (Reporting by Leo Marchandon)

 ((Leo.marchandon@thomsonreuters.com))