Belgium's X-FAB Q2 revenue misses estimates, hurt by automotive weakness
Belgium's X-FAB Q2 revenue misses estimates, hurt by automotive weakness
Overview
Belgium-based specialty foundry's Q2 revenue fell 7% yr/yr, missing analyst expectations
Q2 EBITDA dropped 35% yr/yr as margin fell to 16.8%
Company sees sequential growth in automotive bookings, expects gradual recovery
Outlook
X-FAB expects Q3 2026 revenue between $195 mln and $205 mln
Company sees Q3 2026 EBITDA margin between 17% and 20%
Company anticipates gradual recovery in automotive and industrial demand in H2 2026
Result Drivers
AUTOMOTIVE WEAKNESS - Automotive revenue fell 19% yr/yr due to inventory adjustments, though bookings improved sequentially, per company
INDUSTRIAL VOLATILITY - Industrial revenue declined 4% yr/yr, mainly due to temporary order volatility from a major silicon carbide customer, which is expected to recover in Q3, per company
MEDICAL GROWTH - Medical revenue rose 39% yr/yr, driven by strong demand in pacemaker and ultrasound applications, per company
Company press release: ID:nBwbMn0WBa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Miss | $199.80 mln | $204 mln (3 Analysts) |
Q2 EBIT |
| $2.10 mln |
|
Q2 EBITDA |
| $33.60 mln |
|
Q2 EBITDA Margin |
| 16.80% |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the semiconductors peer group is "buy."
Wall Street's median 12-month price target for X-Fab Silicon Foundries Europese Vennootschap is €6.00, about 5.2% below its July 29 closing price of €6.33
The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 20 three months ago
Reuters Recommended Reads
July 29 - Taiwan's UMC Q2 revenue rises on strong end-market demand
July 30 - Germany's Siltronic marginally misses Q2 revenue estimates on weak dollar, production line closure
July 28 - Netherlands' NXP Q2 revenue beats, driven by software-defined vehicles, physical AI
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)