SkyWater Technology’s Strategic Moves and Q2 2025 Results

Skywater Technology Inc ( (SKYT) ) has released its Q2 earnings. Here is a breakdown of the information Skywater Technology Inc presented to its investors.

SkyWater Technology, Inc., a U.S.-based semiconductor manufacturer, is recognized for its Technology as a Service model, which facilitates the production of innovative technologies across various sectors including aerospace, defense, and quantum computing. In its latest earnings report for the second quarter of 2025, SkyWater Technology announced financial results that met the upper end of their expectations, alongside the completion of its acquisition of Infineon’s U.S. fab, Fab 25, in Austin, Texas. This acquisition is expected to significantly boost the company’s revenue and cash flow starting in the third quarter, with Fab 25 projected to contribute at least $300 million annually.

Despite a challenging quarter with a 37% decrease in total revenue compared to the previous year, SkyWater reported a gross profit of $10.9 million, maintaining a gross margin of 18.5%. The company faced a net loss of $10 million, or $0.21 per share, reflecting a substantial increase from the previous year’s loss. However, SkyWater’s strategic acquisition and focus on emerging markets like quantum computing and advanced packaging are anticipated to drive growth in the coming years.

A key highlight of the quarter was the acquisition of Fab 25, which was funded through a new debt facility, providing the company with financial flexibility. This acquisition aligns with SkyWater’s mission to enhance U.S.-based semiconductor manufacturing capabilities. Additionally, the company is making strides in quantum computing and advanced packaging, which are expected to contribute to its growth trajectory.

Looking ahead, SkyWater Technology remains optimistic about its growth prospects, particularly with the integration of Fab 25 and its ongoing projects in quantum computing and advanced packaging. The company is poised for a strong growth year in 2026, despite potential delays in Department of Defense program funding. Management’s focus on expanding capabilities and securing a robust supply chain positions SkyWater well for future success.