LPKF Presents Half-Year 2026 Financial Report

Estimated reading time: 5 minutes

LPKF Laser & Electronics SE operated in a persistently challenging macroeconomic and geopolitical environment during the first half of 2026. While business – particularly in the solar segment – is suffering from investment reluctance and the fact that the technological shift toward perovskites has not yet materialized, the company is further expanding its position in the market for Advanced Packaging with glass and driving forward its internal transformation with the North Star program.

In the first half of 2026, LPKF generated revenue of EUR 36.5 million, down 38.3% from the prior-year figure of EUR 59.2 million. The primary cause of the decline is the significantly lower revenue in the Solar segment. In the second quarter, revenue fell from EUR 33.8 million to EUR 19.3 million.

As of 30 June, the order backlog stood at EUR 34.7 million, nearly at the previous year’s level, while new orders, at EUR 44.0 million, were slightly above the prior-year figure of EUR 43.0 million. EBIT amounted to EUR -14.1 million in the first half of the year (previous year: EUR -1.7 million) and to EUR -7.2 million in the second quarter (previous year: EUR +2.2 million). Adjusted EBIT was EUR -10.4 million for the first half of the year (previous year: EUR -0.7 million) and EUR -4.8 million in the second quarter (previous year: EUR +2.8 million). The difference between EBIT and adjusted EBIT is primarily attributable to restructuring and severance expenses, as well as changes in the value of stock options granted.

“Overall, the figures for the first half of the year are not satisfactory, as global crises are having a broad impact on our core business,” says Klaus Fiedler, CEO of LPKF SE. “At the same time, we see that with LIDE, we are very well positioned in Advanced Packaging for AI applications, and that, according to the latest market analyses, the revenue potential is significantly better than previously assumed. Now it is crucial to deliver the decisive proof of concept through strategically relevant orders.”

North Star transformation program makes progress

With the company-wide North Star transformation program, led by CFO Peter Mümmler, LPKF achieved important milestones in the first half of the year. The first wave of workforce reduction was completed in the second quarter. At the same time, the future organizational and process structure was significantly refined across sites.

The goal is to establish clear responsibilities and process-driven workflows, and to consistently anchor decision-making authority where the technical expertise lies. This forms the basis for sustainable cost reduction and a competitive structure to enable profitable growth in the future. The identified efficiency potential and the future organizational chart were translated into a structured process – involving information, consultation, and negotiation phases – in dialogue with employee representatives.

“North Star is a key lever for lowering our cost base, increasing our resilience, and at the same time securing our innovative strength,” said Mümmler. “This positions LPKF to benefit sustainably from future growth drivers, particularly in Advanced Packaging and the semiconductor industry.”

LIDE: Market potential rated significantly higher; strong position in Advanced Packaging

In recent years, LPKF has established a broad presence in the market for patterned glass in Advanced Packaging and has supplied numerous partners with initial systems during the development and qualification phases. LIDE (Laser Induced Deep Etching) technology is being successfully used by leading semiconductor customers and is recognized as the key to crack-free, high-precision glass processing. In addition, LPKF has expanded its portfolio to include further process steps, thereby strengthening its strategic relevance in the market.

In the second quarter, LPKF conducted a comprehensive reassessment of the addressable market in Advanced Packaging. Based on external market studies and its own analyses, the company estimates that the Total Addressable Market (TAM) for the process solutions offered by LPKF could grow to approximately EUR 1.7 billion by 2030 (previous estimate: EUR 500 million). Key drivers include the AI-driven expansion of high-performance computers and the associated increase in the number of wafer starts required for high-performance chips, which significantly boosts the volume of potential Advanced Packaging applications.

In the second quarter, LPKF received an order for a LIDE system from a leading specialty glass manufacturer that intends to use the technology to qualify for future supply chains in Advanced Packaging. In addition, Penn State University in Pennsylvania ordered a LIDE system to demonstrate the use of glass substrates for industrial applications in the semiconductor sector.

Building on this position, LPKF is gradually expanding its offerings beyond glass structuring –including solutions for the singulation of glass-based packages and the laser-based bonding of multilayer glass stacks. At the same time, the company is working on the integration of co-packaged optics (CPO) on glass substrates, thereby developing technologies for future generations of packaging.

Development in the segments

In the Development segment, LPKF reported good capacity utilization in the first half of 2026. Revenue was slightly below the prior-year level, while order intake increased significantly. While the U.S. business continues to suffer from delayed budget approvals, business in China and Europe is developing favorably. There is also solid demand from the defense sector as well as from research institutions and development departments that use LPKF systems for Rapid PCB Prototyping.

In the Electronics segment, first-half revenue and order intake were significantly higher than the prior-year figures despite a weak second quarter. In addition to customer reluctance to invest in the core business (excluding LIDE), geopolitical tensions led to delays in individual shipments. However, demand for solutions for the precise laser cutting of printed circuit boards remains strong; LPKF continues to view PCB depaneling as a long-term key component of its portfolio.

In the Solar segment, expectations of a challenging year have been confirmed. Customers are holding back on investments in anticipation of the technology shift towards perovskite cells; revenue and order intake are well below the prior-year level, which is having a noticeable negative impact on consolidated revenue. Thanks to its strong technological and market position, however, LPKF considers itself well-positioned to benefit disproportionately from a subsequent ramp-up following the technology shift.

In the Welding segment, revenue in the first half of the year was significantly below the prior-year level, and earnings turned negative again. The realignment towards applications in consumer electronics, smart robotics, and medical technology is progressing, but the necessary continuity in order intake has not yet been achieved. At its Fürth location, LPKF is implementing structural adjustments to improve profitability in the long term; initial measures are taking effect, as evidenced by the strong capacity utilization driven by large-scale projects in the smart robotics sector.

Outlook

Following a subdued first half of the year, LPKF faces a challenging second half. However, a look at the order books and the project pipeline indicates that the company can meet its full-year forecast. The Management Board expects positive momentum, particularly in the Solar and Electronics segments, and therefore confirms the forecast for the full year.

In light of increased economic and geopolitical uncertainty – including risks of war and fragile supply chains – and assuming a significantly lower revenue volume in the Solar segment, LPKF expects consolidated revenue of EUR 105 to 120 million for the financial year 2026 and an adjusted EBIT margin between -3.0% and 4.5%.

The Management Board is confident about the LPKF Group’s medium-term development. While the segments are currently performing differently, the goal remains clear: The Management Board aims to achieve a sustainable double-digit EBIT margin for the Group by 2028.

In the semiconductor market in particular, the company sees itself as very well positioned strategically – thanks to LIDE and the expansion of its product portfolio – and anticipates significant growth potential. The SMT (Surface Mount Technology) segment and Rapid PCB Prototyping also offer very solid growth prospects.

Despite the current weakness in orders in the solar business, LPKF expects the transition to perovskite technology to be a promising growth area with significant opportunities for LPKF. Following the strategic realignment in plastic welding, the Management Board also anticipates profitable long-term growth in this segment.

To position the LPKF Group as resilient and competitive, significant structural adjustments are currently being implemented, as no significant growth momentum is expected in the short term amid the ongoing phase of economic uncertainty.