LPKF Laser & Electronics (LPK) investor relations material

Strategic direction, market positioning, and technology leadership

• Focus on disruptive in-house laser processes and entry into larger market segments, especially advanced semiconductor packaging and glass core substrates, to drive growth.

• Holds dominant market share in glass processing equipment for semiconductors, with 80% share in advanced packaging (excluding local China), and aims to capture 70% of the expanding market.

• Developed and patented LIDE process, enabling defect-free, high-precision glass structuring for next-generation chip architectures and advanced packaging.

• Expanding portfolio to include glass singulation, laser bonding, ablation, and co-packaged optics for future semiconductor needs.

• Strategic roadmap targets ramp-up of advanced packaging and co-packaged optics from 2027, aiming for high-volume production by 2030.

Market trends and industry developments

• Semiconductor industry is shifting toward glass-based substrates and through-glass vias, with major players like Intel, Samsung, and TSMC investing in commercialization.

• Glass substrates offer superior performance, cost, and scalability for AI and HPC chips, with industry-wide pilot lines and joint ventures underway.

• Perovskite tandem solar modules are emerging as a next-generation solution, with global PV production reaching 700 GWp in 2024.

• Solar market remains niche but presents new opportunities as perovskite technology matures.

• Laser welding and depaneling technologies are expanding into new applications, including automotive, medical, and consumer sectors.

Financial performance and outlook

• Q1 2026 saw a 32% revenue decline and negative EBIT, mainly due to weak solar demand, but order intake increased by 18%.

• Cost-saving measures under the North Star program supported EBIT and efficiency, with workforce reduced by 5%.

• 2026 guidance confirmed at €105–120m revenue and -3.0% to 4.5% adjusted EBIT margin, with mid-term ambition for double-digit EBIT margin by 2028.

• Advanced packaging business progressing, with first capacity expansion order and advanced talks for production ramp-up.

• Financing secured through extended syndicated loan agreement to 2028, supporting transformation and innovation investments.