LPKF Laser & Electronics (LPK) Q1 2026 earnings summary

Executive summary

• Solid start to 2026 amid a volatile macro environment, with strong order intake in Development and Electronics, but significantly lower revenue and negative EBIT mainly due to weak Solar performance.

• Advanced Packaging business progressing as expected, with successful prototyping, first production-related and capacity expansion orders, and a strategic roadmap expanding beyond LIDE technology.

• Company transformation ongoing, focusing on cost reduction, operational consolidation, and strategic positioning in growth markets, supported by the North Star program.

Financial highlights

• Q1 2026 revenue declined 32% year-over-year to EUR 17.1 million, mainly due to Solar business decline.

• Adjusted EBIT decreased by 68% year-over-year to EUR -5.7 million; EBIT margin dropped to -33.3%.

• Incoming orders up 18% year-over-year to EUR 24.1 million; book-to-bill ratio at 1.4.

• Free cash flow was -EUR 7.6 million, down 73% year-over-year.

• Employee count reduced by 5% year-over-year to 714 as part of efficiency measures.

Outlook and guidance

• 2026 guidance confirmed: revenue EUR 105–120 million, adjusted EBIT margin between -3.0% and 4.5%.

• No Advanced Packaging volume orders included in guidance; mid-term ambition for double-digit EBIT margin by 2028.

• Solar expected to remain weak in 2026, with recovery tied to perovskite technology readiness, likely by 2028.

• High restructuring costs (3–4% of revenue) expected in 2026 due to North Star program.