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Investing.com -- Soitec SA shares jumped over 14% to their highest since August 2023 on Thursday after the French semiconductor materials maker on Wednesday posted fiscal year 2026 free cash flow of €63 million, against a consensus estimate of €6 million, and full-year revenue of €592 million, above analyst consensus of €584.1 million, for the year ended March 31, 2026.
Bernstein described the results as "a solid print with a Photonics-SOI milestone and FCF beat as the key positives."
Fourth-quarter revenue of €202 million exceeded the Vara consensus of €193 million and the company’s own sequential growth guidance of around 20%, with quarterly growth of 25% at constant currency and scope versus Q3.
Bernstein cautioned that the quarterly beat included Automotive and Industrial revenue of €38 million against consensus of €25 million, which it said "is entirely a timing effect," reflecting delivery phasing under a long-term customer agreement, while Mobile Communications revenue of €100 million came in below the consensus of €105 million.
Free cash flow swung to a positive €63 million from negative €23 million in fiscal year 2025, with net cash generated by operating activities of €202 million, unchanged year-on-year, and capital expenditure of €135 million, down 41% from €230 million a year earlier.
Photonics-SOI revenue crossed $100 million in fiscal year 2026, which Soitec said was "earlier than initially anticipated."
The release also disclosed growing volumes shipped for co-packaged optics industry qualifications, which Bernstein described as "the first explicit CPO confirmation from management."
Morgan Stanley said Photonics-SOI "looks materially stronger than stated," adding that its back-calculation implied fiscal year 2026 growth of 60% to 70% to around $130 million.
Gross profit fell to €96 million, or 16.3% of revenue, from €286 million, or 32.1%, missing consensus of €119.2 million and a median gross margin estimate of 20.2%.
EBITDA declined to €151 million, or 25.4% of revenue, from €298 million, marginally below consensus of €153.7 million. Net R&D expenses fell to €45 million, or 7.6% of revenue, from €85 million in fiscal year 2025, and SG&A came in at €59 million, or 10% of revenue.
Net loss attributable to the group was €220 million, against a profit of €92 million a year earlier and a consensus estimate of negative €72.4 million.
Other operating expenses of €123 million included €105 million of non-recurring impairment charges, among them €41 million on SmartSiC assets and €29 million on the Pasir Ris Singapore extension. A one-off foreign exchange loss of €17 million was recorded in the first quarter of fiscal year 2026.
"Our Q4’26 showed sequential improvement over Q3’26, above guidance, with continued momentum in AI-driven activities," chief executive Laurent Rémont said in a statement.
By segment for the full year, Mobile Communications revenue was €309 million, down 41% at constant currency and scope; Edge and Cloud AI was €214 million, up 8% at constant currency and scope; and Automotive and Industrial was €69 million, down 44% at constant currency and scope. Combined FD-SOI and Photonics-SOI revenue, excluding Imager-SOI, grew 25% year-on-year.
Net debt fell to €56 million from €94 million, with a net debt-to-EBITDA ratio of 0.4 times. Cash and cash equivalents stood at €562 million at March 31, 2026.
For fiscal year 2027, Soitec said it expects first-quarter revenue up around 15% year-on-year at constant currency and scope.
Morgan Stanley said the guidance was "better than feared, although phasing looks like the main driver," and added that "the investment case remains tied to the medium-term photonics outlook."
Soitec said "FY27 profitability is expected to be impacted by low fab loading, FX and lower funding."
Capital expenditure cash-out is expected at around €100 million, versus €135 million in fiscal year 2026. Soitec said it has hedged approximately 95% of its fiscal year 2027 foreign exchange net exposure at an average rate of 1.19 euros per dollar.
