Aixtron Reports Declining Net Income Despite Revenue Increases

Aixtron SE has reported a decline in net income despite a slight increase in revenues. Investors should evaluate the downward trends in profit margins and earnings per share alongside future revenue projections.

Date: 27-02-2025

AI Rating: 4

Aixtron SE (AIXA.DE) announced a decrease in net income for the fourth quarter, which is likely to concern investors. The net income fell by 27 percent to EUR 106.2 million, down from EUR 145.2 million the previous year. This raises questions about the company's profitability moving forward.

The earnings per share (EPS) also saw a decline, sliding to EUR 0.94 from EUR 1.29 in the same quarter last year. This indicates not only a reduction in profitability but may also impact investor sentiment negatively as EPS is a critical measure of a company's profitability on a per-share basis.

Despite the decline in net income and EPS, revenues experienced a slight increase, rising to EUR 633.2 million from EUR 629.9 million last year. This modest growth may not be sufficient to assure investors amid declining profit margins.

Moreover, EBITA declined by 16 percent to EUR 131.2 million, from EUR 156.8 million in the previous year, indicating reduced operational efficiency and profitability.

Additionally, the company plans to propose a lower dividend of EUR 0.15 compared to EUR 0.40 in the previous year, which could further discourage investors as it reflects a tighter liquidity situation and emphasizes the need to rebuild cash reserves.

Looking ahead, Aixtron anticipates revenues between EUR 90 million to EUR 110 million for the first quarter of 2025 and expects total revenue for 2025 to range from EUR 530 million to EUR 600 million, with a projected gross margin of 41% to 42%. These forecasts suggest a cautious outlook, which may temper investor enthusiasm.

Stocks: AIXA.DE