SUSS MicroTec Sees 31.8% Sales Growth Amid Mixed Margins

SUSS MicroTec SE reports significant sales growth of 31.8%, driven by both business segments, sparking investor interest. However, mixed margin results present a nuanced outlook for short-term stock performance.

Date: 08-05-2025

AI Rating: 7

Sales Growth and Revenue Drivers: SUSS MicroTec SE has reported an impressive 31.8% increase in sales, reaching EUR 123.2 million compared to EUR 93.5 million year-over-year. This jump in revenue can be attributed to strong performance in both the Advanced Backend Solutions and Photomask Solutions segments. The Advanced Backend Solutions segment, in particular, saw a remarkable 47.0% growth.

Margin Trends: While revenue growth is a positive indicator, the mixed trends in profit margins should be a point of concern for investors. The gross profit margin saw a slight decrease to 37.9% from 39.1%, mainly due to a shift in product and customer mix and preparations for increased production capacity. This could indicate potential challenges in maintaining profitability amid rising costs or changes in demand.

The company did experience an improvement in EBIT margin, which rose to 16.6% from 15.9%. This was driven by a favorable increase in gross profit paired with lower proportional rises in selling, general, and administrative expenses, as well as research and development expenditures. An improved EBIT margin is generally a positive signal for future profitability.

Guidance and Future Outlook: Looking ahead, SUSS MicroTec has affirmed its guidance for 2025, expecting sales to range between EUR 470 million and EUR 510 million, with anticipated gross profit margins between 39% and 41%, and EBIT margins of 15% to 17%. This guidance reflects confidence in their business strategy despite facing increased trade and tariff risks, which is critical for investors gauging the stability and growth potential of the company amidst global economic uncertainties.

Stocks: SMHN.F