AT&S delivers a strong first quarter and reaffirms full-year guidance

AT&S delivers a strong first quarter and reaffirms full-year guidance
 

Q1 2026/27

• Currency-adjusted revenue growth of 40%
• EBITDA up 134% to € 165 million, 30.1% margin
• At € 73 million, EBIT exceeds the figure for the entire previous financial year
• EPS of € 0.93 vs. €-1.55 in the previous year
• Hybrid convertible bond of € 400 million successfully placed

Outlook financial year 2026/27

• Increased outlook confirmed: currency-adjusted revenue growth of 45–55% and EBITDA margin of 32–37%
• Strong market demand continues
• Capacity expansions based on long-term customer agreements fully on schedule

Leoben – “We had a very successful start to the new financial year. Unlike previous years, all key performance indicators are positive and underscore the strength of our strategy,” says AT&S CEO Michael Mertin. “We are benefiting from continued strong demand in our core markets and – like all our customers – see significant growth potential in the coming years. The expansion of our sites in China and Malaysia, which is supported by customer agreements, as well as the expansion in Austria are clear signs of the trust that our customers place in AT&S. This is why they are joining us in our commitment to expanding our production capacity – because we have a broad range of technological expertise and therefore optimally demonstrate openness to technology going forward.”

First quarter of 2026/27

Consolidated revenue rose to € 549 million in the first quarter of 2026/27 (PY: € 399 million), which corresponds to an increase by 40% adjusted for currency effects. The sharp increase was driven in particular by positive volume and pricing effects, which more than offset negative exchange rate effects.

EBITDA improved by roughly 134% to € 165 million – adjusted for currency effects the increase amounted to 163%. The increase in earnings is primarily due to higher volumes, the comprehensive cost optimization and efficiency program and a better pricing environment. The EBITDA margin, at 30.1%, exceeded the prior-year level by more than 12 percentage points. Depreciation and amortization increased – at a significantly lower rate – by € 5 million to € 92 million (17% of revenue) due to additions to assets and technology upgrades.

EBIT amounted to € 73 million (PY: € -16 million) and thus exceeded the cumulative figure of € 66 million in the financial year 2025/26 despite negative currency effects. The EBIT margin was 13.4%. Finance costs – net improved from
€ -44 million in the first quarter of the previous year to € -32 million, most notably due to currency effects. After a loss of € -56 million in the first quarter of the previous year, the profit for the period was clearly positive at € 41 million in the first quarter of 2026/27, leading to an improvement in earnings per share to € 0.93 (PY: € -1.55).

Net CAPEX declined from € 54 million in the previous year to € 35 million. The majority of investments were used for the new plant in Kulim. Cash flow from operating activities – which does not yet include any significant cash inflows from the recent customer agreements regarding the expansions in Chongqing and Kulim – amounted to € 40 million and dropped compared to the previous year (€ 184 million). In the previous year, this figure included cash flows of € 146 million from resuming the international factoring program. Operating free cash flow was positive once again at € 5 million (PY: € 130 million).

On June 16, 2026, the company issued a € 400 million hybrid convertible bond with 2.5% interest. The initial conversion price amounts to € 254. AT&S intends to use the net proceeds from the issuance of the convertible bond for general corporate purposes, including the refinancing of existing debt and to strengthen its capital base.

Total assets increased significantly compared the beginning of the financial year and amounted to € 5,247 million at the end of June 2026, primarily driven by the issued convertible bond. As a result, the equity ratio rose by 6.4 percentage points to 29.0%.

Cash and cash equivalents increased to € 1,184 million (March 31, 2026: € 738 million). Unused credit lines totaled € 91 million. The net debt/EBITDA ratio of the last twelve months improved from 3.2 (as of March 31, 2026) to 1,9. This was driven by a reduction in net debt as a result of the placement of the hybrid bond and the continuous improvement in EBITDA.

Expansion in Kulim

In mid-June, AT&S announced the expansion of its production site in Kulim, Malaysia, based on agreements with its customer AMD and another leading technology company. This further reinforces AT&S’s strong technological position and deepens long-standing partnerships with leading customers in the semiconductor industry. Building on the successful ramp-up of plant 1, the expansion includes the fit-out of the existing structure of plant 2 and the construction of a new manufacturing site for IC substrate cores and advanced PCBs.

The planned investments of € 1.5 to 2.0 billion are fully supported by long-term customer commitments. These agreements are subject to final negotiation and conclusion. This relates primarily to securing demand in the long term and to the cash flow profile of the expansion. Contributions to revenue and earnings will be recognized over time in accordance with project progress and the provision of services.

AT&S had already decided in May to expand capacities at its site in Chongqing, China. The required CAPEX in the double-digit million euro range will also be fully supported by long-term customer agreements. The company expects these measures to result in a positive effect on EBIT, also in the high double-digit million range, in the financial year 2026/27.

Outlook 2026/27

AT&S confirms the outlook for the financial year 2026/27 with constant-currency revenue growth of 45 to 55% compared to the previous year. The expected EBITDA margin of 32 to 37% means another significant increase in profitability. The management plans CAPEX of roughly € 1.0 to 1.2 billion for 2026/27 and positive operating free cash flow supported by the operating business and expected customer payments.

The forecast does not include a significant deterioration of the geopolitical situation and of the currently tight supply situation for certain materials. The management continues to monitor the developments very carefully in order to be able to respond to changes at any time.

AT&S Austria Technologie & Systemtechnik Aktiengesellschaft – Advanced Technologies & Solutions

AT&S is a global technology company and leading manufacturer of high-end IC substrates and complex printed circuit boards. AT&S develops and produces leading-edge interconnect technologies for key digital industries: AI infrastructure, high-performance computing, mobile devices, automotive, aerospace, industrial and medical technology. With production sites in Austria (Leoben, Fehring), China (Shanghai, Chongqing), Malaysia (Kulim), India (Nanjangud) and a European competence center for R&D and IC substrate production in Leoben, AT&S is actively shaping the digital transformation – through forward-looking investments in research and development and the responsible use of resources. The company currently employs nearly 15,000 people. Further information can also be found at www.ats.net