SkyWater Technology’s Q3 2024: Record Revenue Growth

Skywater Technology Inc ( (SKYT) ) has released its Q3 earnings. Here is a breakdown of the information Skywater Technology Inc presented to its investors.

SkyWater Technology Inc., a U.S.-based semiconductor manufacturer, specializes in technology realization services, serving diverse markets including aerospace, defense, and biomedical sectors.

In its third quarter of 2024, SkyWater Technology reported record revenues of $93.8 million, marking a 31% year-over-year increase, alongside improved gross margins and a notable shift to profitability.

Key highlights from the report include a significant 847% increase in tools revenue, contributing to the overall revenue surge. The company’s operational efficiencies and strategic execution on a major aerospace and defense program boosted gross margins to 21.6% on a GAAP basis. Additionally, the company reported a GAAP net income of $1.5 million, reversing a loss from the previous year, with an adjusted EBITDA of $11.0 million, up 33% year-over-year.

SkyWater continues to expand its capabilities through customer-funded capital expenditures and strategic partnerships, as demonstrated by a new supply agreement with NanoDx and involvement in the Microelectronics Commons projects under the CHIPS Act.

Looking forward, SkyWater Technology anticipates sequential growth in its Advanced Technology Services business in Q4 2024, with a positive outlook for 2025, including expected growth in wafer services and continued margin improvements.