REC Silicon Drops 26% in YoY Revenue as Polysilicon Facility Shuts
POWER & RENEWABLE ENERGY

REC Silicon Drops 26% in YoY Revenue as Polysilicon Facility Shuts

Norway-based silicon material manufacturer REC Silicon reported a 26.5% year-over-year (YoY) drop in revenue for Q4 2024, with earnings of $29.7 million compared to $40.4 million in the same period in 2023. The company posted a loss of $0.75 per share, reversing from a profit of $0.25 per share in Q4 2023. Its EBITDA loss for the quarter was $5.3 million, slightly improved from a $5.4 million loss in Q4 2023. The company also recorded a net loss of $313.5 million, a significant YoY shift from a net profit of $104.4 million, with $297.8 million attributed to discontinued operations. REC Silicon announced the closure of its granular polysilicon facility in Moses Lake, discontinuing operations in the solar-grade materials segment to stabilise and explore future opportunities. Polysilicon production volume for Q4 2024 fell to 28 MT, down from 142 MT in Q3 2024, as part of the company’s exit from the Siemens polysilicon business. The company’s total polysilicon sales volumes, including by-products, were 377 MT for Q4 2024, up from 169 MT in the previous quarter. Semiconductor-grade polysilicon sales saw a 100% quarter-over-quarter (QoQ) increase, rising to 216 MT from 108 MT, while other grade polysilicon sales increased by 100 MT to 161 MT. However, average polysilicon prices dropped by 65.6% QoQ, with semiconductor-grade polysilicon prices declining 61.5% due to the sales mix between Czochralski (CZ) and Float Zone (FZ) products. For the full year 2024, REC Silicon’s revenue remained steady at $140.8 million, unchanged from 2023. The company reported a full-year net loss of $457.4 million, a 106% YoY decline from a net profit of $30.5 million. Despite a challenging market, semiconductor foundry revenue per wafer reached a record high, driven by strong AI chip demand, benefiting companies like TSMC and NVIDIA. However, overall materials sector performance was limited by low factory utilisation in automotive and power segments, impacted by weak electric vehicle growth and slower-than-expected global auto sales. Looking ahead, REC Silicon projects continued uncertainty due to economic and geopolitical factors, though it expects consumer electronics demand to improve in the latter half of 2025, spurred by data centre investments in AI and cloud computing. The company anticipates growth in global solar installations in 2025, despite reduced subsidy support, and sees potential growth in U.S. solar cell manufacturing driven by proposed tariffs and domestic policy changes. The company is transitioning to a pure-play silicon gas producer, a segment with better margin opportunities and less price volatility over shorter periods than polysilicon. (Mercom)

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Norway-based silicon material manufacturer REC Silicon reported a 26.5% year-over-year (YoY) drop in revenue for Q4 2024, with earnings of $29.7 million compared to $40.4 million in the same period in 2023. The company posted a loss of $0.75 per share, reversing from a profit of $0.25 per share in Q4 2023. Its EBITDA loss for the quarter was $5.3 million, slightly improved from a $5.4 million loss in Q4 2023. The company also recorded a net loss of $313.5 million, a significant YoY shift from a net profit of $104.4 million, with $297.8 million attributed to discontinued operations. REC Silicon announced the closure of its granular polysilicon facility in Moses Lake, discontinuing operations in the solar-grade materials segment to stabilise and explore future opportunities. Polysilicon production volume for Q4 2024 fell to 28 MT, down from 142 MT in Q3 2024, as part of the company’s exit from the Siemens polysilicon business. The company’s total polysilicon sales volumes, including by-products, were 377 MT for Q4 2024, up from 169 MT in the previous quarter. Semiconductor-grade polysilicon sales saw a 100% quarter-over-quarter (QoQ) increase, rising to 216 MT from 108 MT, while other grade polysilicon sales increased by 100 MT to 161 MT. However, average polysilicon prices dropped by 65.6% QoQ, with semiconductor-grade polysilicon prices declining 61.5% due to the sales mix between Czochralski (CZ) and Float Zone (FZ) products. For the full year 2024, REC Silicon’s revenue remained steady at $140.8 million, unchanged from 2023. The company reported a full-year net loss of $457.4 million, a 106% YoY decline from a net profit of $30.5 million. Despite a challenging market, semiconductor foundry revenue per wafer reached a record high, driven by strong AI chip demand, benefiting companies like TSMC and NVIDIA. However, overall materials sector performance was limited by low factory utilisation in automotive and power segments, impacted by weak electric vehicle growth and slower-than-expected global auto sales. Looking ahead, REC Silicon projects continued uncertainty due to economic and geopolitical factors, though it expects consumer electronics demand to improve in the latter half of 2025, spurred by data centre investments in AI and cloud computing. The company anticipates growth in global solar installations in 2025, despite reduced subsidy support, and sees potential growth in U.S. solar cell manufacturing driven by proposed tariffs and domestic policy changes. The company is transitioning to a pure-play silicon gas producer, a segment with better margin opportunities and less price volatility over shorter periods than polysilicon. (Mercom)

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