LPKF Laser & Electronics SE reported a challenging first half of 2026, with revenue declining 38.3% to EUR 36.5 million, primarily due to investment reluctance in the solar segment and a delayed shift to perovskite technology. However, the company highlighted significant progress in its Advanced Packaging business using its LIDE (Laser Induced Deep Etching) technology, which is gaining traction with semiconductor customers and has led to a reassessment of the total addressable market (TAM) to approximately EUR 1.7 billion by 2030, up from a previous estimate of EUR 500 million.
Klaus Fiedler, CEO of LPKF SE, acknowledged the unsatisfactory first-half figures, attributing them to global crises impacting core business. He emphasized that the company is well positioned in Advanced Packaging for AI applications and that the revenue potential is now seen as significantly higher. The company's North Star transformation program, led by CFO Peter Mummler, achieved key milestones, including completing the first wave of workforce reductions and refining the organizational structure to establish clear responsibilities and process-driven workflows. The program aims to lower costs and increase resilience while securing innovative strength for future growth drivers like Advanced Packaging.
In the second quarter, LPKF received an order for a LIDE system from a leading specialty glass manufacturer for qualifying future supply chains in Advanced Packaging. Additionally, Penn State University ordered a LIDE system for demonstrating glass substrates in semiconductor applications. The company is expanding its portfolio beyond glass structuring to include singulation of glass-based packages and laser-based bonding of multilayer glass stacks, as well as integrating co-packaged optics on glass substrates.
Segment-wise, the Development segment reported good capacity utilization with slightly lower revenue but significantly higher order intake, driven by business in China and Europe. The Electronics segment saw higher revenue and order intake despite a weak second quarter, with strong demand for PCB depaneling solutions. The Solar segment confirmed expectations of a challenging year, with customers holding back investments due to the anticipated technology shift to perovskite cells. The Welding segment experienced significantly lower revenue and turned negative, but structural adjustments at its Fürth location are taking effect, with strong capacity utilization from large-scale projects in smart robotics.
Given the increased economic and geopolitical uncertainty, LPKF expects consolidated revenue of EUR 105 to 120 million for the full year 2026 and an adjusted EBIT margin between -3.0% and 4.5%. The Management Board aims for a sustainable double-digit EBIT margin by 2028, driven by growth in the semiconductor market, particularly with LIDE technology. Despite current weakness in solar orders, the company expects the transition to perovskite technology to be a promising growth area.
LPKF's North Star transformation program is a key lever for reducing costs and increasing competitiveness. The company anticipates exceptionally high restructuring costs of approximately 3-4% of revenue in 2026 as part of the program. For more details, refer to the original release at NewMediaWire.
