LPKF Laser & Electronics (LPK) investor relations material

Executive summary

• H1 2026 was challenging, with revenue down 38.3% year-over-year to €36.5 million, mainly due to a sharp drop in Solar; only Electronics showed growth, while Welding and Solar segments burdened earnings.

• The North Star transformation program completed its first wave, reducing headcount and costs, with a second wave underway to drive future profitability.

• Strategic focus is on Advanced Packaging, leveraging LIDE technology and targeting a €1.7 billion TAM by 2030, with ambitions for a double-digit EBIT margin by 2028.

• Persistent macroeconomic and geopolitical uncertainties, including conflicts and fragile supply chains, have led to cautious investment and delayed CapEx decisions.

• LIDE technology is gaining traction, with notable orders from specialty glass companies and academic institutions.

Financial highlights

• H1 2026 revenue was €36.5 million, down 38% year-over-year, with adjusted EBIT at -€10.4 million and EBIT margin at -28.5%.

• Net income was -€14.6 million, and free cash flow was -€11.5 million, reflecting restructuring and transformation costs.

• Orders on hand at the end of June were €34.7 million, stable year-over-year; incoming orders increased slightly to €44.0 million.

• Inventory increased by 22% to support expected H2 sales ramp-up.

• Cash and cash equivalents stood at €4.0 million as of June 30, 2026.

Outlook and guidance

• Full-year 2026 revenue guidance is €105–120 million, with adjusted EBIT margin between -3.0% and 4.5%; a stronger H2 is expected due to seasonality and opportunity funnel.

• Advanced Packaging is the main growth driver, with a target of 70% market share of the new TAM by 2030 and sustainable double-digit EBIT margin by 2028.

• Solar revenue is expected to remain weak in 2026, with perovskite ramp-ups anticipated from 2028.

• No significant short-term growth expected due to economic uncertainty; structural adjustments prioritized.