LPKF Laser & Electronics SE faced a persistently challenging macroeconomic and geopolitical environment in the first half of 2026, with revenue falling 38.3% to EUR 36.5 million compared to EUR 59.2 million in the prior year. The primary cause was significantly lower revenue in the Solar segment, where investment reluctance and the slow transition to perovskite technology weighed on results. Nevertheless, the company is making strategic progress in Advanced Packaging with its LIDE (Laser Induced Deep Etching) technology and advancing its internal North Star transformation program.
In the second quarter, revenue dropped to EUR 19.3 million from EUR 33.8 million a year earlier. EBIT stood at EUR -14.1 million for the first half, compared to EUR -1.7 million in the prior year, while adjusted EBIT was EUR -10.4 million. The order backlog as of June 30 was nearly flat at EUR 34.7 million, but new orders fell sharply to EUR 19.9 million from EUR 43.0 million. CEO Klaus Fiedler acknowledged the figures are not satisfactory, citing global crises impacting the core business, but highlighted the company's strong positioning in Advanced Packaging for AI applications.
A key announcement in the report is a reassessment of the addressable market for Advanced Packaging. Based on external studies and internal analysis, LPKF now estimates the Total Addressable Market (TAM) for its process solutions could reach approximately EUR 1.7 billion by 2030, up from a previous estimate of EUR 500 million. This revaluation is driven by AI-fueled expansion of high-performance computing and increased wafer starts for advanced chips. The LIDE technology is recognized as crucial for crack-free, high-precision glass processing and is already used by leading semiconductor customers. In the second quarter, LPKF received an order from a specialty glass manufacturer and another from Penn State University, both for LIDE systems.
The North Star transformation program, led by CFO Peter Mummler, achieved milestones including completion of the first workforce reduction wave and refinement of the organizational structure. The program aims to establish clear responsibilities, process-driven workflows, and sustainable cost reductions. Mummler stated that North Star is a key lever for lowering the cost base and securing innovative strength, positioning LPKF to benefit from growth drivers in Advanced Packaging and the semiconductor industry.
Segment performance varied. The Development segment saw slightly lower revenue but higher order intake, with solid demand from defense and research. The Electronics segment reported significantly higher revenue and orders, despite a weak second quarter, driven by demand for PCB depaneling solutions. The Solar segment faced confirmed challenges, with customers delaying investments due to the perovskite technology shift. In the Welding segment, revenue fell sharply and earnings turned negative, but structural adjustments are underway.
Looking ahead, LPKF expects positive momentum in the Solar and Electronics segments and confirms its full-year forecast of consolidated revenue between EUR 105 and 120 million and an adjusted EBIT margin of -3.0% to 4.5%. The company aims for a sustainable double-digit EBIT margin by 2028. Despite current headwinds, the management sees significant growth potential in the semiconductor market, driven by LIDE and portfolio expansion, as well as in SMT and Rapid PCB Prototyping. The full press release is available at newmediawire.com.
