Belgium's X-Fab Q3 revenue misses expectations

Overview

• Belgium-based specialty foundry's Q3 revenue fell 15% yr/yr, missing analyst expectations

• Q3 EBITDA dropped 30% yr/yr to $37.5 mln

• Company bookings rose 38% yr/yr to highest level in two years

Outlook

• X-Fab expects Q4 2026 revenue between $205 mln and $215 mln

• Company sees Q4 2026 EBITDA margin in the range of 19-22%

• Guidance assumes average USD/EUR exchange rate of 1.14 and excludes IFRS 15 impact

Result Drivers

• SILICON CARBIDE DEMAND - Co said industrial segment growth was mainly driven by increased silicon carbide revenue

• WIDE BANDGAP GROWTH - Co said wide bandgap revenue, mainly from SiC, reached a record high and customer traction continued to grow

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the semiconductors peer group is "buy"

• Wall Street's median 12-month price target for X-Fab Silicon Foundries Europese Vennootschap is €6.00, about 10% above its October 28 closing price of €5.46

• The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 36 three months ago

Reuters Recommended Reads

• Oct 27 - Hong Kong's ASMPT Q3 revenue rises 49% on AI demand

• Oct 28 - Taiwan's UMC Q3 revenue rises on wafer shipments growth

• Oct 29 - STMicro lifts data centre revenue forecast after Q3 profit beat

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)