Jenoptik (JEN) Q2 2025 earnings summary

Executive summary

• H1 2025 was marked by challenging economic conditions, especially in semiconductors, with order intake, revenue, and EBITDA down year-over-year but sequential improvement in Q2.

• Management intensified cost controls, reduced headcount, and focused on process improvements and growth in AR/VR, optical communications, and defense.

• Free cash flow and cash conversion improved significantly, with cash conversion rising from 21% to 55% year-over-year.

• The group reorganized into four SBUs in 2025, streamlining structure for efficiency and customer focus.

• Sale of Prodomax remains planned but is unlikely within the current strategy period due to cross-border complexities.

Financial highlights

• Revenue for H1 2025 was €498.4m, down 7.8% year-over-year, mainly due to weak semiconductor demand; gross margin declined to 31.2%.

• EBITDA fell 22.3% to €78.8m, with margin at 15.8%; EBIT dropped 37.8% to €39.6m.

• EPS was €0.42 versus €0.69 last year; earnings after tax were €25.3m, down 37.2%.

• Order intake was €473m–€524.4m, down 9.9% year-over-year, but Q2 showed higher demand than Q1.

• Free cash flow before interest and tax payments increased to €43.2m; net debt rose slightly to €402.5m, with leverage at 2.0x.

Outlook and guidance

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

• Capital expenditure will be substantially lower than 2024’s €114.6m.

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

• Guidance assumes stable political and economic conditions; forecasts beyond 2025 are unreliable.