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Highlights

  • Six new contracts secured, boosting future revenues by over $250 million in chip supply.

  • FY2025 revenue guidance reduced to £19–£20 million due to customer-related delays.

  • FY2026 outlook remains positive with 80% of revenue already under contract.

EnSilica plc (LSE:ENSI), a leading designer of mixed-signal ASICs, has issued a trading update for the financial year ending 31 May 2025, highlighting robust contract wins that position the business for significant future growth, despite short-term revenue adjustments linked to customer-driven project delays.

In the first ten months of FY2025, EnSilica secured six new design and supply contracts, collectively valued at over $40 million in Non-Recurring Engineering (NRE) revenues to be realised over the next two years. These agreements, alongside other multi-million-pound design and manufacturing deals, raise the company’s expected lifetime revenue from chip supply contracts to more than $250 million.

Revenues from chip supply—central to the firm’s fabless semiconductor model—are anticipated to double in FY2025, reaching approximately £6 million compared to the previous year. This underscores the growing traction of EnSilica's solutions across its target markets.

However, the company also announced that two key projects have experienced timeline setbacks due to factors beyond its control, impacting the expected revenue and earnings for the current financial year.

The first delay concerns EnSilica’s ASIC design and supply agreement with SIAE MICROELETTRONICA, a global telecommunications firm and recipient of €149 million in EU IPCEI funding. The contract, originally expected to contribute significantly to FY2025 revenue and EBITDA, will now be phased across FY2026 and FY2027.

The second project, involving a high-value Edge AI chip, has also been postponed. The tape-out, a critical milestone for revenue recognition, has been pushed to the first half of FY2026, lowering anticipated FY2025 revenue by approximately £4 million and EBITDA by around £3 million.

As a result of these adjustments, EnSilica now expects FY2025 revenue to fall between £19 million and £20 million, with EBITDA ranging from £0.1 million to £0.5 million. Importantly, the total value of the delayed contracts remains unchanged, with revenue recognition merely deferred rather than lost.

Looking ahead, the company’s outlook remains optimistic. The Board forecasts FY2026 revenue in the range of £33 million to £35 million, with approximately 80% of that already underpinned by existing contracts. This visibility provides confidence in the Group’s growth trajectory, supported by an expanding NRE order book and rising chip supply income.