SCHMID (SHMD) Q4 2025 earnings summary

Executive summary

• 2025 marked a transition year with a challenging H1 due to tariff uncertainties, followed by a strong operational recovery in H2 driven by new product commercialization and margin focus.

• Secured new financing, reduced debt, and increased investor engagement, positioning for growth in 2026.

• Strategic focus shifted to margin improvement, cost discipline, and aligning management incentives with shareholders through increased share-based compensation.

• Strong business momentum in China, with slower order momentum in Europe, but order book remains robust.

• The company is intensifying market engagement, planning regular investor updates and quarterly trading disclosures.

Financial highlights

• 2025 revenues totaled EUR 110 million, with H1 at EUR 60 million and H2 at EUR 50 million.

• Adjusted EBITDA margin improved to 13.1% in H2 2025 after negative margins in H1; H2 EBIT margin was 8.5%.

• Ended 2025 with over EUR 90 million in order intake and a healthy order book of EUR 51 million.

• Q1 2026 revenues were EUR 18.2 million, order intake EUR 13.6 million, and order backlog EUR 49 million.

• Working capital underinvestment of EUR 20 million at 2025 year-end, now mostly replenished.

Outlook and guidance

• 2026 guidance reaffirmed: revenues above EUR 100 million, adjusted EBITDA margin significantly above 12%, and order intake of approximately EUR 114 million.

• Order mix is expected to shift further toward AI infrastructure and optical modules, reaching about 70% by end of 2026.

• Strong H2 2026 anticipated, driven by AI server demand and flip chip BGA substrate expansion.

• Q2 2026 order intake expected to improve significantly over Q1.

• Medium-term margin targets: 20% EBITDA and 14% EBIT, in line with 2022-2023 performance.