LPKF Laser & Electronics (LPK) H2 2025 earnings summary

Executive summary

• Revenue for FY2025 was €115.3 million, down 6.2% year-over-year, at the lower end of adjusted guidance.

• EBIT improved to €0.8 million (adjusted), reflecting visible cost-saving measures despite lower revenue.

• Regional revenue mix shifted, with North America and Asia growing, while Europe now represents less than 25% of revenue.

• Order intake dropped to €91.6 million, significantly below the previous year, mainly due to a slowdown in the solar segment.

• Strategic focus on advanced packaging, rapid prototyping, and welding, with solar and electronics facing headwinds.

Financial highlights

• Adjusted EBIT margin improved year-over-year, driven by restructuring and cost reduction (North Star program).

• Free cash flow increased by 400% year-over-year, supported by improved asset management and receivables collection.

• Working capital improved by 34% year-over-year, with DSO reduced by 40% and DIO by 10%.

• Order backlog in solar dropped by 47% year-over-year.

• Employee headcount reduced by 6% as part of cost-saving measures.

Outlook and guidance

• FY2026 revenue guidance: €105–120 million; adjusted EBIT expected between -€3 million and -€4.5 million.

• Double-digit EBIT margin targeted for 2028, driven by growth in advanced packaging and cost discipline.

• Solar segment expected to remain weak in 2026, with recovery anticipated as perovskite technology matures (ramp-up in 2028).

• Advanced packaging and SMT electronics seen as key growth drivers; welding to benefit from diversification into consumer, medical, and robotics.