German chip systems manufacturer Aixtron anticipates a decrease in annual revenue compared to the previous year due to a challenging market environment. After a 16% decline in operating profit, the company cautioned on Thursday, leading to a 4% drop in its shares.
For the year 2025, Aixtron estimates full-year revenue to range between 530 million euros and 600 million euros, down from the previous year's 633.2 million euros. The company reported a 7% decrease in annual order intake to 596.4 million euros in 2024.
The chip industry faces pressure as increased demand for artificial intelligence fails to compensate for weak demands in automotive, PC, and memory chips. Concerns have been raised globally due to U.S. President Donald Trump's 25% tariff threat on cars, semiconductors, and pharmaceuticals, potentially disrupting the global supply chain.
"Consensus expectations for 2025 have remained inflated, but investors were already anticipating a significant sales decline," noted Stifel analyst Juergen Wagner. Aixtron's shares, down over 5.1% since the beginning of the year, dropped 4.5% in early Frankfurt trade.
Aixtron forecasts first-quarter revenue between 90 million and 110 million euros, a decrease from 118.3 million euros in the same period last year. Full-year EBIT decreased to 131.2 million euros from 156.8 million euros the previous year. The proposed dividend for 2024 is 0.15 euros per share, down from 0.40 euros for 2023.
(Note: $1 equals 0.9556 euros)