Aixtron's Revenue Outlook for 2025: A Cautious Approach in a Challenging Market Environment

In the face of a challenging market environment, aixtron se, a leading provider of deposition equipment to the semiconductor industry, has revised its revenue expectations for 2025. The company, which delivered strong results in a difficult market environment for the fiscal year 2024, now anticipates that its revenues for 2025 will be below the level achieved in the previous year. This cautious outlook is driven by several market conditions and industry trends that have impacted the company's performance.



One of the key factors contributing to AIXTRON's revised revenue expectations is the weakening demand in the power electronics market. Customers have been reducing their capital expenditure budgets and postponing projects, leading to a decline of -7% in the company's order intake for the fiscal year 2024 compared to the previous year. This trend is expected to continue into 2025, as customers remain cautious about their spending due to the uncertain market conditions.

Additionally, AIXTRON has experienced a decrease in its equipment order backlog, which fell to EUR 289.3 million at the end of the 2024 financial year from EUR 353.7 million in 2023. This decrease reflects the lower order intake and the company's efforts to manage its inventory and production more efficiently. While AIXTRON is taking steps to address these challenges, the current market conditions make it difficult to predict with certainty how the company's revenue will perform in 2025.

Despite these challenges, AIXTRON remains optimistic about its long-term prospects. The company's strategic focus on power electronics and GaN-based technologies positions it well to navigate the current market environment and capitalize on the growing demand for efficient power electronics driven by AI and other energy-intensive applications. AIXTRON's G10 system family, introduced in 2022 and 2023, has played a major role in strengthening the company's market position, with the G10 series already accounting for around 50% of equipment revenue in 2024. The G10-SiC, in particular, enabled the company to win new customers and further expand its market share in the past fiscal year.

Furthermore, AIXTRON is excellently positioned for the next technology leap with the Hyperion, the pilot system for 300 mm GaN wafers, which was successfully placed with several leading customers in 2024. The company's new Innovation Center for 300 mm wafer systems, opened in 2024, further supports its strategic focus on power electronics and GaN-based technologies. By leveraging its technological leadership and investing in research and development, AIXTRON is well-equipped to support its customers in their future transition to the next wafer size and prepare optimally for the next growth phase of the semiconductor cycle.

In conclusion, AIXTRON's revised revenue expectations for 2025 reflect the challenging market environment and the company's efforts to manage its inventory and production more efficiently. While the company faces headwinds in the short term, its strategic focus on power electronics and GaN-based technologies, as well as its investment in research and development, position it well for long-term growth and success. As the market environment evolves, AIXTRON will continue to monitor and adapt its strategies to capitalize on new opportunities and maintain its competitive edge in the semiconductor deposition equipment market.