LPKF Laser & Electronics SE

LPKF reported 2025 revenue of EUR 115.3 million, down 6.2% year over year, and adjusted EBIT of EUR 0.8 million versus EUR 0.1 million previously. Order intake was EUR 91.6 million, and backlog was down 47% year over year. Peter Mummler said free cash flow improved by 400% and working capital improved by 34%; he also said employees were reduced by 6%. For 2026, management guided to revenue of EUR 105 million to EUR 120 million and adjusted EBIT of minus EUR 3 million to EUR 4.5 million, with Solar expected to remain weak and overall revenue still under pressure from the tariff situation and Iran-related uncertainty.

Klaus Fiedler framed 2025 as a year of mixed execution: cost discipline and portfolio shifts were visible, but macro volatility, tariffs, and Solar weakness weighed on results. He emphasized that growth is increasingly shifting outside Europe, while semiconductor-related opportunities, especially LIDE and advanced packaging, remain intact even if volume ramps are later than expected. His tone was cautious but constructive, repeatedly stressing focus, structural change, and readiness for a more volatile market, with double-digit EBIT margin targeted for 2028.

Peter Mummler focused on the financial reset under North Star. He said adjusted EBIT improved even as revenue fell 6%, and that the reported profitability was hit by about EUR 11 million of restructuring costs. He highlighted strong cash discipline, saying free cash flow improved by 400% thanks to better DSO collection and overdue receivables management, while inventories fell and DIO improved by 10%; overall working capital improved by 34%. He also pointed to a 6% reduction in employees and said the company has already taken first steps toward a lower breakeven point.

Analysts focused on LIDE timing, market share, perovskites, and competition. Management said LIDE qualification is done, but customer process-chain qualification took longer than expected; Klaus Fiedler described 2026 as the start of moderate production orders from a handful of customers, with clearer visibility by midyear and ramp-up deals expected to matter more in 2027. He said LPKF is still aiming for a 70% share in the early ramp phase and that the current customer base is two-digit in count. On perovskites, he said he sees two very large customers, one in the U.S. and one in China, and personally expects ramp not in 2027 but in 2028. On competition, he said Asia is “brutal” on pricing and local-for-local pressure, while he feels comfortable with the competitive position in the West.