LPKF Laser & Electronics SE reported a challenging first half of 2026, with revenue declining 38.3% to EUR 36.5 million from EUR 59.2 million in the prior year, primarily due to weakness in the Solar segment. However, the company highlighted significant progress in its LIDE technology for Advanced Packaging, which is gaining traction in the semiconductor industry for AI applications. The total addressable market for LPKF's process solutions in Advanced Packaging has been revalued to approximately EUR 1.7 billion by 2030, up from a previous estimate of EUR 500 million, driven by AI-driven demand for high-performance chips.
Despite the revenue decline, LPKF's order backlog remained nearly flat at EUR 34.7 million, while new orders fell to EUR 19.9 million from EUR 43.0 million. EBIT turned negative at EUR -14.1 million, compared to EUR -1.7 million in the first half of 2025, and adjusted EBIT was EUR -10.4 million. The company attributed the results to global crises impacting its core business, particularly in solar, where customers are hesitant to invest due to the anticipated shift to perovskite technology.
CEO Klaus Fiedler noted that while the figures are not satisfactory, LPKF is well-positioned in Advanced Packaging with its LIDE technology, which is recognized as key for crack-free, high-precision glass processing. The company has supplied systems to leading semiconductor customers and received an order from a specialty glass manufacturer to qualify for future supply chains. Additionally, Penn State University ordered a LIDE system for semiconductor research.
The North Star transformation program, led by CFO Peter Mummler, is making progress, with the first wave of workforce reductions completed and a refined organizational structure established. The program aims to reduce costs and improve competitiveness, positioning LPKF for profitable growth. Mummler emphasized that North Star is crucial for lowering the cost base and securing innovative strength.
In its segments, the Development segment saw slightly lower revenue but higher order intake, with strong demand from China, Europe, and the defense sector. The Electronics segment reported higher revenue and order intake despite a weak second quarter, driven by demand for PCB depaneling solutions. The Solar segment suffered from investment reluctance, while the Welding segment saw lower revenue and negative earnings, though structural adjustments are underway.
Looking ahead, LPKF confirmed its full-year forecast of consolidated revenue between EUR 105 million and EUR 120 million and an adjusted EBIT margin of -3.0% to 4.5%. The company expects positive momentum in the Solar and Electronics segments in the second half. Medium-term, LPKF aims for a sustainable double-digit EBIT margin by 2028, driven by growth in Advanced Packaging, SMT, and Rapid PCB Prototyping. Despite short-term challenges, the company sees significant opportunities in perovskite technology for solar and in semiconductor applications.
