Soitec: Revenue Down by 34%, Cash Flow Rebounds to +63M€
Soitec exhibits a stark contrast: its revenue contracted by 34% in FY2026 to 592M EUR (-30% at constant scope and exchange rates), hindered by a deep inventory correction among its RF-SOI clients and the persistent weakness of the automotive market. However, the company has demonstrated its ability to convert this contraction into cash generation, with free cash flow returning to +63M EUR after a deficit of 23M EUR in 2025. This cash flow recovery, despite an EBITDA margin reduced to 25.4%, is primarily supported by effective working capital management and reduced investments, while operating profitability has significantly deteriorated.
Photonics-SOI Surpasses $100M USD, Main Driver in a Fragmented Portfolio
The consolidated revenue of 592M EUR reflects a contrasting dynamic across markets. Mobile Communications (309M EUR, -41% in constant currency) remains hammered by the RF-SOI inventory correction, with a 52% year-over-year decline in the fourth quarter. Edge and Cloud AI (214M EUR, +8% in constant currency, +19% excluding Imager-SOI) emerges as the sole growth sector, boosted by Photonics-SOI which crossed the symbolic threshold of 100M USD in FY26, ahead of initial forecasts. Automotive and Industrial (69M EUR, -44%) suffer from excess client inventories and the cyclical weakness of the sector.
EBITDA Margin and Profitability Under Pressure, but Cash Flow Freed by Working Capital
The gross margin eroded to 16.3% (96M EUR) from 32.1% a year earlier, due to lower volumes, an unfavorable product mix, and voluntary production cuts to align inventory levels. The EBITDA margin, although compressed to 25.4% (151M EUR vs 298M EUR, 33.5%), was supported by strict cost control measures: net R&D expenses contracted by 47% to 45M EUR, and general expenses by 10% to 59M EUR. The current operating result swung to a deficit of 8M EUR, from +136M EUR in FY25, while non-recurring operational charges of 123M EUR, mainly 105M EUR in non-recurring impairments including SmartSiC and the Pasir Ris extension, weighed on the operating result, which came out at -131 million euros. Operating cash flow remained stable at 202M EUR. The return to positive free cash flow is mainly explained by an improvement in working capital: stock contribution improved by 71M EUR year-on-year, customer receivables by 175M EUR, while the contribution from supplier debts deteriorated by 116M EUR.
Capex Expected Around 100M EUR in FY27, Net Debt Reduced, Moderate Q1 Outlook
Management anticipates Q1'27 revenue to grow by approximately 15% year-over-year (at constant exchange and scope), while aiming to reduce seasonality. Capital investments are expected around 100M EUR in FY27 (versus 135M EUR in FY26), following a selective approach focused on Photonics-SOI and POI. Laurent Rémont, appointed CEO on April 1, 2026, emphasizes that the group intends to build on these solid foundations by continuing disciplined execution. Gross cash is set at 562M EUR, net debt at 56M EUR (net debt / EBITDA ratio of 0.4x), providing financial flexibility and allowing the group to maintain a balanced maturity structure (average maturity of 3.7 years). FY27 profitability is expected to remain penalized by low fab loading, exchange rate effects (95% hedged at 1.19 EUR/USD), and reduced financing.
