Wolfspeed Inc Stock Price, News & Analysis

Wolfspeed (NYSE: WOLF) has announced a strategic restructuring plan through a pre-packaged Chapter 11 bankruptcy process, aimed at strengthening its financial position. The company has secured support from key lenders holding 97% of senior secured notes and 67% of convertible notes. The restructuring will reduce total debt by ~70% ($4.6 billion) and cut annual cash interest payments by ~60%. The company maintains $1.3B in cash and expects to complete the process by Q3 2025. Under the plan, existing equity holders will receive 3-5% of new common equity, while the company will receive $275M in new financing. The restructuring agreement includes a $250M paydown of senior secured notes and an exchange of $5.2B existing convertible notes. Wolfspeed plans to continue normal operations, serving customers and paying vendors throughout the process.

Renesas Electronics announced a significant financial restructuring agreement with Wolfspeed (NYSE: WOLF), following Wolfspeed's financial challenges. The restructuring will convert Renesas' $2.062 billion deposit into convertible notes ($204M), common stock (38.7% ownership), and warrants (5% fully diluted). The restructuring will be executed through Chapter 11 bankruptcy proceedings, expected to complete by September 2025. Renesas anticipates recording a substantial loss of approximately 250 billion yen in its consolidated financial statements for H1 2025. The restructuring agreement comes after Wolfspeed's May 2025 disclosure of potential in-court solutions to strengthen its balance sheet. The convertible notes will mature in June 2031 and are convertible to 13.6% of Wolfspeed's shares on a non-diluted basis.

Wolfspeed (NYSE: WOLF) has appointed Dr. David Emerson as Executive Vice President and Chief Operating Officer in a newly created role. Dr. Emerson, former Executive VP of Wolfspeed's LED Products division, will oversee operations, supply chain, and quality divisions across the company's 200-millimeter facility footprint. The appointment aligns with Wolfspeed's strategic focus on operational excellence and transition to pure-play 200-millimeter production.

CEO Robert Feurle highlighted Dr. Emerson's experience in leading the LED business through market disruption and global expansion. The role is crucial for reaccelerating revenue growth, achieving profitability, and completing the 200-millimeter transition. Dr. Emerson will focus on reducing customer lead times, enhancing manufacturing quality, and ensuring consistent delivery of silicon carbide solutions for automotive, industrial, and energy markets.

Wolfspeed (NYSE: WOLF) has announced significant changes to its Board of Directors. The company has appointed Paul Walsh, former CFO of Allegro Microsystems, and Mark Jensen, former U.S. Managing Partner of Technology Industry at Deloitte, to its Board. Both will serve on the Audit Committee. Walsh brings extensive semiconductor industry experience and CFO expertise, while Jensen contributes significant finance and accounting background. Meanwhile, Stacy Smith will not seek re-election and will depart before the 2025 annual meeting.

The appointments come as Wolfspeed actively engages with lenders to improve its capital structure, with the new directors expected to provide valuable guidance in restructuring and balance sheet negotiations. The company aims to reach a comprehensive solution that supports its long-term success in silicon carbide technology.

Wolfspeed (NYSE: WOLF) reported its Q3 FY2025 financial results, showing a decline in performance. The company's consolidated revenue decreased to $185 million from $201 million year-over-year. The Mohawk Valley Fab contributed $78 million in revenue, up from $28 million. The company experienced significant margin pressure, with GAAP gross margin falling to -12% from 11%, and non-GAAP gross margin declining to 2% from 15%. Underutilization costs at Mohawk Valley Fab were $26.3 million.

The company highlighted progress in strengthening its capital structure, including completing a $200 million ATM offering and receiving $192 million in Section 48D cash tax refunds. Under new CEO Robert Feurle, Wolfspeed is focusing on its pure-play 200-millimeter capabilities and working with lenders to address its capital structure.

Wolfspeed announced that Neill Reynolds will step down from his position as Executive Vice President and Chief Financial Officer, effective May 30, 2025. Reynolds has agreed to remain with the company until this date to facilitate ongoing negotiations with lenders and assist in strengthening the company's capital structure.

The transition comes at a crucial time as Wolfspeed continues its liability-management initiatives. Reynolds will participate in the company's fiscal third quarter earnings call on May 8. Thomas Werner, Executive Chairman, expressed gratitude for Reynolds' contributions and commitment during this transition period.

The company has initiated a search for a permanent CFO through a leading executive-search firm, considering both internal and external candidates. Importantly, Wolfspeed has reaffirmed its previously announced financial guidance for the third quarter of fiscal 2025.

Wolfspeed (NYSE: WOLF), the global leader in silicon carbide technology, has scheduled its fiscal third quarter earnings conference call and audio webcast for May 8, 2025, at 5:00 pm Eastern Standard Time. The earnings call will feature presentations from Thomas Werner (chairman of the board), Robert Feurle (chief executive officer), and Neill Reynolds (chief financial officer). Investors can access both the live webcast and earnings release through Wolfspeed's Investor Relations website.

Wolfspeed (NYSE: WOLF) has received $192.1 million in cash tax refunds from the advanced manufacturing tax credit under Section 48D, including $186.5 million for fiscal 2023 and 2024 taxes plus interest. This is part of approximately $1 billion in total expected Section 48D refunds, with over $600 million anticipated in fiscal 2026.

The company reaffirmed its Q3 FY2025 guidance, projecting revenue of $170-200 million, with a non-GAAP gross margin of -3% to 7% and a GAAP net loss of $(295)-$(270) million. Wolfspeed expects its cash balance to reach approximately $1.3 billion by the end of Q3 FY2025.

The company also confirmed its previous guidance including reduced capital expenditures for FY2026-2027, targeting EBITDA break-even at $800 million annual revenue, and projecting positive levered free cash flow in FY2027. Wolfspeed continues discussions with lenders, including Apollo and Renesas, while maintaining dialogue with the U.S. Department of Commerce regarding federal funding.

Wolfspeed (NYSE: WOLF), the global leader in silicon carbide technology, has appointed Robert Feurle as its new Chief Executive Officer, effective May 1, 2025. Feurle, a semiconductor industry veteran with over 20 years of experience, will succeed Thomas Werner, who will return to his role as Chairman of the Board.

Feurle brings extensive experience from leadership roles at major semiconductor companies, most recently serving as Executive VP and GM of the Opto Semiconductors Business Unit at ams-OSRAM AG, where he managed over 10,000 employees globally. His track record includes successful tenures at Infineon Technologies, Micron Technology, Qimonda, and Siemens.

The new CEO will focus on improving Wolfspeed's financial performance, accelerating its path to positive free cash flow, and strengthening its balance sheet. Feurle, who holds dual US-German citizenship, will relocate to the company's Durham, North Carolina headquarters.