Elmos Semiconductor (ELG) Q2 2026 earnings summary

Executive summary

• Sales rose over 15% year-over-year to €314.5 million in H1 2026, driven by strong demand for innovative semiconductor solutions and new product launches.

• Operating EBIT margin improved to 24.1%, with operating EBIT reaching €75.8 million, and operating adjusted free cash flow margin surged 150% to €55.5 million.

• Share price increased by 50% year-to-date, leading to inclusion in the MDAX index in June 2026, enhancing visibility among institutional investors.

• Growth is driven by structural trends in automotive electronics, such as electrification, ADAS, and intelligent vehicle architectures, rather than short-term vehicle production fluctuations.

• The company confirmed its full-year guidance, citing a robust project pipeline and ongoing high demand.

Financial highlights

• H1 2026 sales: €314.5 million (+15.4% YoY); Q2 2026 sales: €162.0 million (+11.2% YoY).

• Gross profit for H1 2026: €142.0 million (+23.4% YoY), gross margin at 45.2% (up from 42.2%).

• Operating EBIT for H1 2026: €75.8 million (24.1% margin); reported EBIT including non-operational effects was €63.7 million.

• Operating adjusted free cash flow: €55.5 million (17.7% of sales), more than double prior year.

• Capital expenditures for H1 2026 were €8.8 million (2.8% of sales), down 51.2% year-over-year.

Outlook and guidance

• Full-year 2026 guidance confirmed: sales growth of 12% ±2pp, operating EBIT margin of 23–26%, and capital expenditures around 5% of sales.

• Operating adjusted free cash flow margin expected at 19% ±2pp; guidance based on EUR/USD exchange rate of 1.15.

• H2 sales expected at approximately €338 million, with potential upside from selective pricing actions.

• Guidance excludes effects from the transition to cash-settled share-based compensation.

• Majority of 2030 sales target (~€1 billion) already secured through design wins and follow-up business.