Investing.com -- Siltronic, a German semiconductor materials supplier, reduced its annual core profit margin forecast on Wednesday due to anticipated negative price effects beyond long-term agreements.
However, the company reaffirmed its full-year sales guidance, stating that the impact of U.S. tariffs can’t be estimated at this time.
Siltronic, whose client base includes Infineon (OTC:IFNNY), Intel (NASDAQ:INTC), Samsung (KS:005930), and TSMC, now predicts a margin of 21% to 25% on earnings before interest, taxes, depreciation, and amortization (EBITDA). The company had previously projected a range of 22%-27%.
The company’s quarterly EBITDA was 78.3 million euros ($89.07 million), a decrease of 12.5% from 90.8 million euros a year earlier. This figure fell short of the 85.8 million euros that analysts had anticipated, according to LSEG data.
Despite the changes, Siltronic’s sales guidance for the full year 2025 remains unchanged. The company stated that it’s currently impossible to predict the effects of American tariff policies, their countermeasures, and the influence on expected end-market growth and foreign exchange rates for the rest of the year.
CEO Michael Heckmeier expressed that there’s limited visibility on when customer inventories will recover, and demand for wafers will increase. The uncertainties are intensified by the tightening of American tariff policies and their countermeasures.
Heckmeier also noted that the effects on end-markets and foreign exchange rates are unpredictable at this point. However, Siltronic does not expect any significant direct impact from tariff policies at the moment.
The company did mention that 2025 will continue to see high inventory levels at customers and related volume tariffs.
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