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1. Company Snapshot

1.a. Company Description

X-FAB Silicon Foundries SE operates as an analog/mixed-signal semiconductor technology foundry.The company manufactures silicon wafers for automotive, industrial, consumer, medical, and mobile communications, and other applications; and analog/mixed-signal integrated circuits, sensors, and micro-electro-mechanical systems.It also provides manufacturing and design support services for customers that design analog/mixed-signal integrated circuits and other semiconductor devices, as well as engineering and prototyping, outsourcing, technical, and design support services.


The company serves integrated device manufacturers, original equipment manufacturers, and fabless semiconductor companies.It operates in Belgium, Germany, the United Kingdom, Austria, France, Switzerland, Denmark, Sweden, Finland, Netherlands, Ireland, Singapore, China, Japan, Thailand, Malaysia, Korea, Taiwan, Hong Kong, New Zealand, the United States, and internationally.The company was founded in 1992 and is based in Tessenderlo, Belgium.


X-FAB Silicon Foundries SE is a subsidiary of XTRION NV.

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1.b. Last Insights on XFAB

X-FAB Silicon Foundries' recent performance was negatively impacted by high capex requirements and uncertain payback on large-scale investments, according to Bernstein, which initiated coverage with a Market Perform rating and €5.50 price target. Analysts have trimmed their price target to €6.00, citing cautious near-term order visibility. The company's Q4 and full-year 2025 results, released on February 5, 2026, likely influenced the stock's performance. Additionally, X-FAB's exposure to cyclical volatility and high capex requirements may be deterrents to investors, as noted by Bernstein.

1.c. Company Highlights

2. X-FAB's FY 2025 Earnings: A Resilient Performance Amidst Uncertainty

X-FAB reported a robust financial performance for FY 2025, with total sales reaching $870.3 million, an increase of 7% compared to FY 2024. The company's revenue growth was driven by its core business, which represented 94% of total revenue. In the fourth quarter, revenues came in at $222.3 million, up 18% year-on-year and down 3% quarter-on-quarter. The earnings per share (EPS) for the quarter was $0.0114, missing estimates of $0.08. Despite the EPS miss, the company's revenue was within the guided range of $215 million to $225 million.

Publication Date: Mar -05

📋 Highlights
  • Q4 Revenue Decline:: Fourth quarter revenue fell 3% sequentially to $222 million, despite an 18% year-on-year increase.
  • Core Markets Dominance:: Core markets contributed 94% of total revenue, with $204 million in Q4, up 13% YoY but down 5% sequentially.
  • Microsystem Milestone:: Microsystem revenue hit $100 million in 2025, a first, with 24% QoQ growth but 11% YoY increase.
  • Automotive Revenue Drop:: Automotive revenue dropped 10% sequentially to $133 million, up 3% YoY, due to inventory corrections and LTA expirations.
  • Full-Year Guidance Met:: 2025 sales totaled $870.3 million, meeting the upper end of guidance ($840–$870M), with a 7% YoY increase.

Segment Performance

The company's CMOS and SOI revenue was up 7% year-on-year and down 5% quarter-on-quarter, while microsystem revenue was up 24% year-on-year and down 9% sequentially. Automotive revenues came in at $133 million, up 3% year-on-year and down 10% quarter-on-quarter, primarily due to inventory corrections in the supply chain. The company's industrial and medical businesses showed strength, with design wins and a high level of interest in its microsystem capabilities.

Outlook and Guidance

X-FAB's management remains cautious about the near term, but is encouraged by the momentum in its CMOS and SOI prototyping revenues and the interest in its microsystem capabilities. The company's silicon carbide business is on track for recovery. As Damien Macq, the new CEO, noted, "We're committed to building and delivering robust growth on the momentum already in place." Analysts estimate revenue growth of 8.0% for FY 2026.

Valuation

X-FAB's current valuation metrics suggest that the market is pricing in moderate growth expectations. The company's P/S Ratio is 0.8, and the EV/EBITDA ratio is 5.13. The ROE is 2.89%, and the ROIC is 3.86%. These metrics indicate that the company's profitability is relatively low, but the valuation is not excessive. With an expected revenue growth rate of 8.0% in FY 2026, the stock may offer some upside potential.

3. NewsRoom

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Discover 3 European Stocks That May Be Trading Below Estimated Value

Feb -12

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X-FAB Fourth Quarter and Full Year 2025 Results

Feb -05

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X-Fab Silicon initiated with a Market Perform at Bernstein

Jan -15

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Looking At The Narrative For X FAB Silicon Foundries ENXTPA XFAB After Analyst Reset

Jan -08

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What Analysts Think Is Shifting The Story For X-FAB Silicon Foundries Stock

Dec -25

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How the Narrative Surrounding X FAB Silicon Foundries Is Shifting After the Price Target Cut

Dec -10

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Why The Narrative Around X-FAB Is Changing After Recent Analyst and Market Updates

Nov -09

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Will X-FAB (ENXTPA:XFAB)’s CEO Transition and Lower Earnings Signal a Shift in Strategic Focus?

Nov -07

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.87%)

6. Segments

Process Control Monitor Wafer

Expected Growth: 8%

X-FAB Silicon Foundries SE's Process Control Monitor Wafer growth is driven by increasing demand for IoT and 5G devices, adoption of advanced semiconductor technologies, and rising need for quality control in wafer manufacturing. Additionally, growing investments in Industry 4.0 and smart manufacturing initiatives are fueling the segment's 8% growth.

Non-Recurring Engineering and Technology Services

Expected Growth: 7%

X-FAB Silicon Foundries SE's 7% growth in Non-Recurring Engineering and Technology Services is driven by increasing demand for customized semiconductor solutions, expansion into emerging markets, and strategic partnerships with leading OEMs. Additionally, investments in R&D and process improvements have enhanced the company's competitiveness, further fueling growth.

Discounts and Warranty Credits

Expected Growth: 6%

X-FAB Silicon Foundries SE's 6% growth in Discounts and Warranty Credits is driven by increasing demand for semiconductor products, effective cost management, and strategic partnerships. Additionally, the company's focus on quality and reliability has led to a reduction in warranty claims, resulting in higher warranty credits. Furthermore, X-FAB's competitive pricing strategy has enabled it to offer attractive discounts, boosting sales and revenue.

Other

Expected Growth: 5%

X-FAB Silicon Foundries SE's 5% growth is driven by increasing demand for specialized semiconductor products, expansion into emerging markets, and strategic partnerships. Additionally, the company's focus on analog and mixed-signal technologies, as well as its ability to adapt to changing market conditions, contribute to its growth momentum.

7. Detailed Products

Analog and Mixed-Signal ICs

Custom and standard analog and mixed-signal integrated circuits for a wide range of applications, including automotive, industrial, medical, and consumer electronics.

RF and Microwave ICs

Custom and standard RF and microwave integrated circuits for wireless communication systems, including 5G, Wi-Fi, Bluetooth, and satellite communications.

Power Management ICs

Custom and standard power management integrated circuits for voltage regulation, power conversion, and battery management.

Microcontrollers and Processors

Custom and standard microcontrollers and processors for a wide range of applications, including automotive, industrial, medical, and consumer electronics.

Sensors and Actuators

Custom and standard sensors and actuators for a wide range of applications, including automotive, industrial, medical, and consumer electronics.

Foundry Services

Custom IC design, manufacturing, and testing services for fabless companies and system companies.

8. X-FAB Silicon Foundries SE's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes is moderate for X-FAB Silicon Foundries SE, as there are alternative technologies and suppliers available in the market.

Bargaining Power Of Customers

The bargaining power of customers is high, as they have multiple options for sourcing silicon wafers and can negotiate prices and terms with X-FAB.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low, as X-FAB has a diversified supplier base and can switch to alternative suppliers if needed.

Threat Of New Entrants

The threat of new entrants is low, as the capital requirements for entering the silicon wafer manufacturing industry are high, and there are significant barriers to entry.

Intensity Of Rivalry

The intensity of rivalry is high, as the silicon wafer manufacturing industry is highly competitive, and companies like X-FAB face intense competition from established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 21.36%
Debt Cost 4.80%
Equity Weight 78.64%
Equity Cost 13.54%
WACC 11.67%
Leverage 27.17%

11. Quality Control: X-FAB Silicon Foundries SE passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Elmos

A-Score: 5.0/10

Value: 4.0

Growth: 6.4

Quality: 7.6

Yield: 1.9

Momentum: 8.0

Volatility: 2.3

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First Sensor

A-Score: 4.4/10

Value: 2.4

Growth: 5.2

Quality: 5.5

Yield: 1.2

Momentum: 2.5

Volatility: 9.7

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X-FAB Silicon Foundries

A-Score: 4.3/10

Value: 7.5

Growth: 7.2

Quality: 3.8

Yield: 0.0

Momentum: 5.5

Volatility: 2.0

1-Year Total Return ->

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SÜSS MicroTec

A-Score: 4.2/10

Value: 6.4

Growth: 8.9

Quality: 7.6

Yield: 0.6

Momentum: 1.5

Volatility: 0.0

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Oxford Instruments

A-Score: 3.6/10

Value: 1.7

Growth: 4.8

Quality: 5.9

Yield: 1.2

Momentum: 4.0

Volatility: 4.0

1-Year Total Return ->

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Valens Semi

A-Score: 2.8/10

Value: 7.8

Growth: 4.2

Quality: 4.4

Yield: 0.0

Momentum: 0.0

Volatility: 0.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

4.7$

Current Price

4.7$

Potential

-0.00%

Expected Cash-Flows