DURHAM, N.C.–(BUSINESS WIRE)–Wolfspeed, Inc. (NYSE: WOLF) today announced that the Company has received $192.1 million in cash tax refunds from the advanced manufacturing tax credit under Section 48D. Funds include $186.5 million owed to the Company for both fiscal 2023 and fiscal 2024 taxes, as well as accrued interest.
This announcement reflects a portion of the approximately $1 billion total Section 48D cash tax refunds that the Company expects to receive. As of the end of the second quarter of fiscal 2025, the Company had accrued a total of $865 million in Section 48D tax credits. The Company expects receipt of more than $600 million in cash tax refunds in fiscal year 2026.
Wolfspeed intends to use the tax credit proceeds to strengthen its capital structure and for general corporate purposes. The Company expects that its cash balance at the end of its fiscal third quarter of 2025 will be approximately $1.3 billion, inclusive of these recently received 48D cash tax credits.
The Company is reaffirming its business outlook for the third quarter of fiscal 2025, including revenue from continuing operations of $170 million to $200 million and non-GAAP gross margin of (3)% to 7%. Wolfspeed also reaffirmed fiscal 2026 capital expenditures of approximately $150 million to $200 million, fiscal 2027 capital expenditures of approximately $30 million to $50 million, and projected positive levered free cash flow in fiscal 2027 following completion of refinancing transactions.
Wolfspeed continues to explore alternatives with regard to its convertible notes, in partnership with its advisors, and remains in a dialogue with lenders, including Apollo and Renesas. The Company also maintains constructive dialogue with the White House, its legislators, and the U.S. Department of Commerce to secure federal funding.
