LPKF Laser & Electronics (LPK) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was stable at EUR 25.3 million, matching the previous year, with adjusted EBIT up 21% year-over-year due to cost-saving measures and operational improvements.

• Order intake and backlog declined year-over-year, mainly due to shipment of a major solar order in 2024, but operational execution and cost discipline remained strong.

• Free cash flow improved by 17% year-over-year, driven by profitability and working capital optimization.

• Strategic focus on innovation, market penetration in display and advanced packaging, and continued cost discipline.

• Geopolitical risks, especially US tariffs, and global economic uncertainty are expected to impact investment decisions and order intake.

Financial highlights

• Adjusted EBIT margin improved to -13.5% from -16.7% year-over-year, with net loss for Q1 2025 at EUR -4.3 million, an improvement from EUR -5.1 million.

• Free cash flow was EUR -4.4 million, an improvement from EUR -5.3 million in Q1 2024.

• Earnings per share improved to EUR -0.18 from EUR -0.21 year-over-year.

• Orders on hand decreased 31% year-over-year to EUR 46.0 million.

• Equity ratio remained high at 69.4% (69.7% at year-end 2024).

Outlook and guidance

• FY 2025 revenue guidance is EUR 125–140 million, with adjusted EBIT margin expected at 6–9%.

• Q2 2025 revenue guidance is EUR 28–35 million, with adjusted EBIT between EUR -1.7 million and 3.0 million.

• Expectation of stronger profitability in H2 2025, driven by backlog conversion and cost program ramp-up.

• Medium-term ambition: upper single-digit percentage growth in core business, low triple-digit million sales in new areas, and double-digit EBIT margin.

• Break-even point targeted between EUR 30–33 million per quarter, with further cost reductions planned into 2026.