AT&S fights against price pressure: sales stable, loss of loss drastically grown!

AT&S fights against price pressure: sales stable, loss of loss drastically grown!

AT & S, the leading manufacturer of circuit boards and IC substrates, fights with a challenging market environment. In the first nine months of the 2024/25 financial year, the company recorded a dramatic decline in the group result of 6.9 million euros in the previous year to a minus of 95.3 million euros. Despite these setbacks, sales remained stable at 1.2 billion euros, such as orf.at reported. Financial director Petra Preining emphasized that the extreme price pressure in the industry was omnipresent and that one continuously adapts to the difficult conditions.

The decline of the EBITDA is particularly striking by 13 percent to 231.7 million euros, which is mainly due to higher start -up costs and the continued price pressure. The sale of the work in Ansan, South Korea, to the Italian technology group Somacis was completed at the end of January 2025 to strengthen the financial position of AT&S, as well as ats.net reported. However, the new works in Malaysia and Austria should help the company to seek average sales growth of around 20 percent in the long term.

Strategic adjustments and outlook

The corporate management has already initiated extensive cost optimization and efficiency programs in order to counter the pressure. The number of employees dropped from 13,922 to 13,402, which reflects the adjustment measures. The market forecasts also indicate ongoing challenges, especially in the areas of automotive and industry, where demand stagnates. The expected recovery of market prices for circuit boards and IC substrates remains uncertain, which results in an adaptation of business expectations for the coming years.

The upcoming changes are part of a comprehensive transformation process that is geared towards ensuring future growth. Despite the difficulties, AT&S is confident and calculates that the opening of the new production facilities in combination with strategic adjustments will enable positive development.