LPKF Presents Quarterly Financial Report

LPKF Presents Quarterly Financial Report

• Weak solar business weighs on nine-month results
• LIDE further established as a key technology in Advanced Semiconductor Packaging
• First phase of the North Star efficiency program successfully completed
• Revised full-year forecast and medium-term margin target remain unchanged

Garbsen, 29 October 2026 – LPKF Laser & Electronics SE generated consolidated revenue of EUR 60.3 million in the first nine months of 2026. Compared to the same period last year, this represents a decline of 28.1%. The significantly weaker solar business was a key factor in this decline. Expected orders in Advanced Packaging were also delayed. At the same time, the company made progress in positioning its glass-based semiconductor technologies and in implementing its North Star efficiency program.

“Business performance is falling short of our expectations. In particular, outstanding solar orders and delays in Advanced Packaging are weighing on the current year,” says Klaus Fiedler, CEO of LPKF. “Our task now is to translate technological advances into solid orders while simultaneously strengthening the company’s structural foundation.”

Decline in Revenue Weighs on Earnings

EBIT after nine months stood at EUR -12.8 million, compared to EUR -3.3 million in the prior year. Adjusted EBIT amounted to EUR -8.9 million, compared to EUR -0.8 million; the adjusted EBIT margin reached -14.7%, compared to -1.0%.

Order intake remained virtually unchanged from the prior-year’s level of EUR 65.4 million, coming in at EUR 65.1 million. As of 30 September 2026, the order backlog totaled EUR 31.9 million, compared to EUR 32.5 million a year earlier. Free cash flow was EUR -11.7 million, compared to EUR -5.4 million. Net working capital decreased by EUR 11.5 million year-over-year to EUR 24.8 million.

Advanced Packaging: Progress Toward Production

In Advanced Packaging, LPKF is working to establish its technology for the precise processing of glass in semiconductor manufacturing. Numerous customers and partners are already using systems in development and qualification projects. However, the transition to production applications is taking longer than originally expected; at the same time, competition is intensifying.

In the third quarter, LPKF received a Letter of Intent (LOI) from a leading Asian manufacturer with a volume in the mid-single-digit million-euro range. This opens up the prospect for the company to become part of the supply chain for the production ramp-up. LPKF had already reported on an initial follow-up order for production purposes in the first quarter. “The LOI is an important strategic milestone for us. What is decisive here is not its volume, but the fact that a globally leading manufacturer has chosen LPKF as a supplier,” says Fiedler.

At the same time, LPKF is expanding its product portfolio to include technologies for the separation of glass-based semiconductor packages and for the laser-based joining of multilayer glass structures. In addition, the company is developing and testing solutions for the integration of optical functions on glass substrates.

Mixed Performance Across Business Segments

In the Electronics segment, revenue and order intake after nine months were significantly higher than the previous year’s figures. Demand for systems for the precise laser cutting of printed circuit boards and Tensor technology contributed to this.

The Development segment also recorded order intake above the previous year’s level. However, positive developments in Europe and China were offset by headwinds in the U.S. business due to uncertainties surrounding public education budgets.

In the Solar segment, customers are postponing their investments in light of the expected shift to perovskite solutions. In particular, an expected but as yet unconfirmed major order from China was a key factor in the adjustment of the full-year forecast.

Welding reported revenue after nine months that was significantly below the prior-year level. The shift toward applications outside the traditional automotive industry is progressing. However, the necessary continuity in order intake is still lacking for sustainably profitable growth. The structural changes at the Fürth site in Germany have been completed.

North Star: First Phase of the Program Completed

The North Star program, aimed at achieving a double-digit EBIT margin by 2028, is proceeding according to plan. The first phase of the program has been successfully completed; the expected annual cost savings of just over 8 million EUR are taking effect gradually. “With North Star, we are strengthening our profitability in a sustainable manner. The second phase of the program is intended to enable additional annual savings through a functional organizational structure,” says CFO Peter Mümmler. The new organizational structure is scheduled to take effect on 1 January 2027; the future leadership team has been appointed, and the key value-added processes have been defined. The necessary operational changes and the planned workforce reduction are currently the subject of consultations and negotiations with the works council.

Outlook: Challenging Final Quarter Expected

For 2026, LPKF expects consolidated revenue of EUR 93 to 100 million and an adjusted EBIT margin of -7.0% to -2.5%, in line with the forecast revised on 30 September. Previously, the company had expected revenue of EUR 105 to 120 million and an adjusted EBIT margin of  -3.0% to 4.5%.

The Management Board is confident about the LPKF Group’s medium-term development. While the segments are currently performing differently, the goal remains clear: The Management Board aims to achieve a sustainable double-digit EBIT margin for the Group by 2028.

In the semiconductor market in particular, the company sees very strong strategic positioning and significant growth potential with LIDE and the expansion of its product portfolio. The SMT (Surface Mount Technology) division and Rapid PCB Prototyping also offer very solid growth prospects.

Despite the current weakness in orders in the solar business, LPKF expects the transition to perovskite technology to be a promising growth area with significant opportunities for LPKF. Following the strategic realignment in plastic welding, the Management Board also anticipates profitable long-term growth in this segment.

To position the LPKF Group as resilient and competitive, significant structural adjustments are currently being implemented, as no significant growth momentum is expected in the short term given the ongoing phase of economic uncertainty.

*Adjusted EBIT is calculated by excluding restructuring and severance costs, effects from changes in the scope of consolidation, and adjustments to the Long-Term Incentive (LTI) resulting from fluctuations in the performance factor or the stock price. For the financial year 2026, LPKF anticipates exceptionally high restructuring costs of approximately 3-4% of revenue as part of the North Star transformation program.

About LPKF

LPKF is a leading international technology group specializing in laser-based manufacturing solutions. The company develops high-precision, energy-efficient, and sustainable technologies for demanding industries, including the semiconductor, electronics, solar, and medical technology sectors. With its patented LIDE technology, LPKF sets new standards in glass processing for Advanced Packaging. A global network, approximately 700 employees, and decades of development expertise enable innovative solutions across the entire value chain. LPKF is headquartered in Garbsen, Germany and is listed on the SDAX of the German Stock Exchange (ISIN 0006450000).