LPKF Laser & Electronics (LPK) H1 2025 earnings summary

Executive summary

• Revenue grew 7.2% year-over-year to €59.2 million in H1 2025, with Q2 up 13.5% to €33.8 million despite challenging global market conditions.

• Adjusted EBIT improved to €-0.7 million from €-5.1 million, reflecting cost-saving measures and efficiency programs.

• Order intake dropped to €43.0 million from €61.1 million, and backlog fell to €34.8 million due to customer investment reluctance and competition in China.

• Efficiency initiatives, including Project North Star, are underway to drive structural cost reductions and sustainable earnings growth.

• Market volatility, especially from tariff and geopolitical uncertainties, continues to dampen investment sentiment and order entry.

Financial highlights

• H1 2025 EBIT improved to €-1.7 million from €-5.5 million, and adjusted EBIT margin improved to -1.2% from -9.2% year-over-year.

• Free cash flow was negative at €-9.4 million, mainly due to missing major order prepayments, but receivables collection initiatives helped offset this.

• Working capital increased to €43.2 million, mainly due to lower prepayments, with a 3% decrease in overdue receivables.

• Diluted EPS improved to €-0.12 from €-0.28 year-over-year.

• Net cash position as of June 30, 2025, was €-11.1 million, down from €-7.6 million a year earlier.

Outlook and guidance

• Full-year 2025 revenue guidance is €125–140 million, with adjusted EBIT margin expected between 6% and 9%.

• Q3 2025 revenue expected at €22–28 million, with adjusted EBIT between €-3.5 million and €0.5 million.

• No expectation of large high-volume solar orders in 2025; other segments have well-filled order funnels.

• North Star project aims for double-digit EBIT through structural cost reductions and efficiency gains, with major impacts expected from 2026.

• Medium-term ambition targets double-digit EBIT margin and significant revenue from new technologies like LIDE and ARRALYZE.