SkyWater Technology Reports Q1 2025 Financial Results

Skywater Technology Inc ( (SKYT) ) has released its Q1 earnings. Here is a breakdown of the information Skywater Technology Inc presented to its investors.

SkyWater Technology, Inc. is a U.S.-based semiconductor manufacturer known for its Technology as a Service model, which facilitates the production of diverse technology categories including mixed-signal CMOS, rad-hard ICs, and photonics, primarily serving the aerospace, defense, and quantum computing sectors.

In its first quarter of 2025, SkyWater Technology reported financial results that slightly exceeded expectations, despite facing challenges in its Advanced Technology Services (ATS) due to federal budget delays affecting Department of Defense program funding. The company saw significant growth in its Wafer Services business, driven by the successful launch of its ThermaView platform.

Key financial metrics showed a decline in total revenue to $61.3 million, a 23% decrease from the previous year. ATS development revenue fell by 14%, while Wafer Services revenue decreased by 25%. Despite these declines, the gross profit improved by 10% year-over-year, reaching $14.3 million, with a gross margin increase to 23.3%. The company reported a GAAP net loss of $7.3 million, or $0.15 per share, and an adjusted EBITDA of $4.0 million.

Strategically, SkyWater is progressing towards the acquisition of Infineon’s Fab 25, which is expected to enhance its domestic foundry capacity. This move aligns with its mission to support U.S. semiconductor onshoring efforts. Additionally, the company is advancing its Florida operations to ramp up its Advanced Packaging platform in the latter half of 2025.

Looking forward, SkyWater Technology remains optimistic about achieving year-over-year revenue growth in both ATS and Wafer Services, contingent on the resolution of federal funding delays. The company anticipates sharing more details about its strategic vision following the anticipated mid-2025 closing of the Fab 25 acquisition.