SkyWater Technology, Inc. reported significant financial performance improvements in its fiscal year 2025, ending December 28, 2025, with total revenue reaching $442.1 million, a 29% increase from $342.3 million in fiscal year 2024. The company achieved a net income of $123.4 million, a substantial recovery from a net loss of $2.5 million in the previous year. This turnaround was bolstered by a $111.7 million bargain purchase gain from the acquisition of Fab 25, a semiconductor manufacturing facility, which contributed to the overall financial results.
The fiscal year 2025 saw notable operational changes, including the integration of Fab 25, which significantly expanded SkyWater's manufacturing capacity and capabilities. The acquisition, completed on June 30, 2025, was financed through a new Amended Loan Agreement that increased the company's borrowing capacity to $350 million. This strategic move is expected to enhance SkyWater's position in the semiconductor market, particularly in foundational-node manufacturing, which is critical for various applications including aerospace, automotive, and defense.
SkyWater's operational metrics reflected a mixed performance across its segments. The Legacy SkyWater segment experienced a revenue decline of 22% to $266.8 million, primarily due to reduced demand in the aerospace and defense sectors, attributed to shifts in U.S. government spending priorities. Conversely, the newly established SkyWater Texas segment generated $175.3 million in revenue, primarily from Wafer Services, indicating strong initial performance post-acquisition. The company reported a total employee headcount of 1,551 as of the end of the fiscal year, reflecting its commitment to maintaining a skilled workforce to support its expanded operations.
Looking ahead, SkyWater's management expressed optimism about future growth, driven by increased customer investments in advanced technology development and the anticipated benefits from the CHIPS and Science Act, which aims to bolster domestic semiconductor manufacturing. However, the company also acknowledged potential risks, including reliance on a limited number of key customers, ongoing market volatility, and the need to navigate complex regulatory environments. The pending merger with IonQ, announced on January 25, 2026, is expected to further shape the company's strategic direction, pending necessary approvals.
In summary, SkyWater Technology, Inc. demonstrated a strong recovery in fiscal year 2025, marked by significant revenue growth and a return to profitability, driven by strategic acquisitions and operational expansions. The company is poised for future growth, although it must navigate various market and operational challenges as it integrates new capabilities and prepares for its merger with IonQ.
About SkyWater Technology, Inc
SkyWater Technology is a U.S.-based pure-play semiconductor foundry offering advanced development, manufacturing, and packaging services. It specializes in analog, mixed-signal, rad-hard, photonics, MEMS, and emerging technologies for high-growth markets like defense, aerospace, automotive, and bio-health. Its integrated model accelerates time-to-market, supports custom solutions, and leverages proprietary IP, serving customers seeking secure, domestic, and innovative microelectronics solutions.
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