Jenoptik (JEN) Q2 2025 earnings summary

Executive summary

• Revenue and EBITDA declined year-over-year in H1 2025, mainly due to semiconductor sector weakness, but Q2 showed sequential improvement in order intake and demand.

• Management intensified cost controls, reduced headcount, and focused on process improvements to address market fragmentation and uncertainty.

• Free cash flow and cash conversion improved, with cash conversion rising from 21% to 55% year-over-year and free cash flow reaching €43.2m.

• Strategic focus remains on growth in AR/VR, optical communication, and defense, with the sale of Prodomax unlikely to close in 2025.

Financial highlights

• H1 2025 revenue was €498.4m, down 7.8% year-over-year; EBITDA fell 22.3% to €78.8m, with margin at 15.8%; EBIT dropped 37.8% to €39.6m.

• Order intake for H1 2025 was €473m–€524.4m, down 9.9% year-over-year, but Q2 showed improvement over Q1.

• EPS was €0.42, down from €0.69; gross margin declined to 31.2% from 33.7%.

• Net debt increased slightly to €402.5m–just over €400m; leverage at 2.0x.

• Free cash flow before interest and tax payments rose to €43.2m; capital expenditure for H1 2025 was €32.6m, down from €42.9m prior year.

Outlook and guidance

• 2025 revenue and EBITDA margin are expected in the lower half of previous guidance (revenue: -5% to +5% vs. 2024; EBITDA margin: 18.0–21.0%).

• CapEx for 2025 is anticipated to be significantly below 2024’s €114.6m.

• Management expects a demand pick-up in H2, especially in semiconductors, but highlights increased risks from tariffs, FX, and geopolitical uncertainties.

• Guidance assumes stable political and economic conditions; potential portfolio changes not included.