It’s Only Common Sense: Customers Need Confidence More Than Low Prices
Dan’s Biz Bookshelf: Revisiting 'The Popcorn Report'
The Marketing Minute: Why I Wrote 'Marketing in 17 Minutes'
SCHMID Group N.V., a global leader in advanced manufacturing solutions for the electronics and semiconductor industries, reports its unaudited financial results for the first half of 2026, covering the period ended June 30, 2026, and adjusts its full-year 2026 guidance.
Arthur Schuetz, Chief Financial Officer: “In the first six months of this year we have converted liabilities into equity, raised significant financing, brought our leverage to a more sustainable level, rebuilt working capital and invested into growth. We have seen significant pickup in orders in Q2, first in China and now increasingly across our global markets. Focus is now on execution, margins and cashflow, we have reduced overhead costs in Germany and are now implementing a purchasing cost reduction program. While 2026 will remain a transition year in terms of overall financial performance, we believe that our restructuring and operational groundwork in the last six months is progressing well. Together with the order momentum this will put us in a strong position for a good second half of this year and a very promising 2027 financial performance in terms of growth and margins.”
Key Highlights
- Revenues: €46.0 million for the six months ended June 30, 2026 (Q1: €18.2 million; Q2: €27.7 million) compared to €16.9 million for the same period last year; more than half of our revenues were from China which continues to perform stronger than expected while demand for machines manufactured in our German plant only recently accelerated
- Gross Profit: €9.8 million (gross margin: 21.2%) for the six months ended June 30, 2026 compared to €-1.6 million for the same period last year. Gross margin was lower than anticipated at this revenue level given the product mix shift towards our lower gross margin business in China
- Operating Result: €-8.0 million for the six months ended June 30, 2026 compared to €-7.8 million for the same period last year. The operating result was impacted by increased general administrative expenses due to share-based compensation (€1.4 million), “Sprint” restructuring costs (€0.4 million) and costs associated with the various recapitalization projects (€1.4 million). Foreign exchange losses of €1.7 million were also incurred
- Adjusted EBITDA (non-IFRS): €-0.6 million for the six months ended June 30, 2026 compared to €-11.6 million for the same period last year
- Net income: €-47.8 million for the six months ended June 30, 2026 compared to €-10.2 million for the same period last year. Net income was impacted mostly by non-cash effects related primarily to the accounting treatment of the XJ Harbour liability converted into shares on January 16, 2026 and to a lesser extent to the fair-value movements of the Company’s warrants
- Order Intake and Backlog: Order intake of €96.6 million year-to-date as of August 21, 2026 (H1 2026: €44.3 million) and order backlog of €95.0 million as of August 21, 2026 (June 30, 2026: €54.8 million). The Company experienced a significant increase in order activity in the last few months
- Deleveraging: Close to €30 million of reduction in financial debt between December 31, 2025 and June 30, 2026, including €30.75 million of debt converted into equity or set off since December 31, 2025, enabling the Company to invest into its growth plan
- Cash Position: €14.3 million of cash and cash equivalents as of July 31, 2026, following the closing of the $20.0 million 2029 Convertible Notes on July 14, 2026
- Full-Year 2026 Guidance: Revenue guidance of more than €100 million confirmed and Adjusted EBITDA margin guidance lowered to 6 to 9% (previously more than 12%), based on Adjusted EBITDA as defined in this release and order intake guidance of €125–150 million maintained, with the Company now expecting to be in upper half of that range
Order Intake and Order Backlog
Order intake in Q1 was €13.6 million, reached €30.7 million in Q2 and orders received thus far in Q3 through August 21, 2026 were €52.3 million, reaching a total of €96.6 million year-to-date on August 21, 2026. As previously communicated on July 14, 2026 order intake guidance has been raised to €125–150 million. The Company now expects to be in the upper half of that guidance range.
Order backlog stood at €95.0 million as of August 21, 2026.
Order intake and order backlog figures relate exclusively to orders for equipment and do not include orders associated with services or spare parts.
Revenue and Operating Results for H1 2026
Revenues increased significantly compared to a weak first half of 2025 as revenues for the segment Technical Equipment & Processes increased from €10.7 million to €39.4 million. Spare parts & services revenues were €6.4 million, increasing from the €5.9 million achieved in H1 2025. Licensing and other revenues amounted to €0.2 million in H1 2026.
General administrative expenses increased from €5.5 million in the first half of 2025 to €8.5 million in the first half of 2026 driven by the various reorganization programs which resulted in high expenses described in the Adjusted EBITDA reconciliation.
Other income and other expenses of €1.3 million and €-2.7 million respectively were impacted by a net foreign exchange loss of €1.7 million, while other income and other expenses in H1 2025 had benefited from €6.3 million foreign exchange gain for the six months ended June 30, 2025.
Adjusted EBITDA amounted to €-0.6 million and excludes expenses for ”Sprint“ related restructuring costs of €0.4 million, share-based compensation of €1.4 million with front-loaded expense recognition relative to the two-year service period, advisory expenses of €1.4 million related to the financings, debt-to equity swap, two Form-20-F filings within three months and various registration filings as well as €1.7 million of foreign exchange losses incurred in the first six months of this year. In the prior-year period for the six-months ended June 30, 2025, Adjusted EBITDA excludes on the same basis €6.3 million of foreign exchange gains.
Cash Flow, Indebtedness and Financing
Cash provided by operating activities was €-29.3 million, mainly driven by spending on working capital of €26.1 million, from an unusually low negative working capital as of December 31, 2025 to a more normalized ~€14 million as of June 30, 2026. The Company expects working capital to be at the same level or lower by year-end.
Cash used in investing activities was €2.5 million, of which €0.8 million related to investments in property, plant and equipment.
Cash provided by financing activities was €32.6 million of which €33.1 million was generated from the 2028 Convertible Note and the SEPA financing.
On May 23, the Company converted into equity €30.75 million owed to members of the Schmid family shareholder group.
As of June 30, 2026 the Company had a total of €23.4 million of debt, excluding debt related to the convertible instruments. Of this €17.5 million of debt was owed to its shareholders and related parties as well as €5.9 million of debt to financial institutions and other third parties. $12 million of the 2028 Convertibles issued in January and €2.5 million of the 2025 Convertible loan issued in December 2025 to related parties remained outstanding as of June 30, 2026. As a subsequent event, on August 21, 2026 a further $1 million was converted and $11 million of the 2028 Convertible Notes remained outstanding and on July 14, 2026 the new $20 million 2029 Convertible Note was funded. The 2029 Convertible Notes can only be converted once all of the 2028 Convertible Note has been converted. No further standby equity purchase agreement issuance occurred after June 30, 2026.
Cash and cash equivalents were €2.3 million as of June 30, 2026 (December 31, 2025: €1.6 million). Following the closing of the $20.0 million 2029 Convertible Notes on July 14, 2026, cash and cash equivalents were approximately €14.3 million as of July 31, 2026; in addition, approximately $21 million remain available at the Company’s discretion under the standby equity purchase agreement. Based on the current business plan, the existing order backlog and contractually agreed milestone payments, the Company expects its available liquidity, together with cash flows from operations, to be sufficient to fund its operations and to meet its obligations as they fall due for at least the next twelve months.
The Company does not currently anticipate material further drawdowns under the standby equity purchase agreement in 2026 and does not plan to incur additional indebtedness at the level of SCHMID Group N.V. or its German subsidiary. The new Chinese manufacturing campus is expected to require around €11 million of expenditure to be financed primarily through local project financing. This financing and some potential local bank loans or working capital financing from Chinese banks without any security from SCHMID Group N.V. or our German subsidiary are permitted under the Company’s existing financing arrangements up to a maximum of €20 million.
Potential Dilution
The table below sets out the Company’s outstanding financing instruments in consolidated form for the convenience of investors; the terms of each instrument are set out in full in the agreements filed with the U.S. Securities and Exchange Commission. As of August 21, 2026, the Company had 60,958,903 Ordinary Shares outstanding, excluding 5,000,000 earn-out shares which have been issued but have not vested and are subject to forfeiture on April 30, 2027 if the share price does not reach $15 (for 2.5 million earn-out shares) or $18 (for the other 2.5 million earn-out shares). Shares and options related to share-based compensation have been excluded from this analysis.
Operational Developments
On March 4, 2026, SCHMID delivered its first specialized InfinityLine H+ for panel level packaging with formats up to 700×700mm to a leading U.S. technology company.
On June 9, 2026, the Company signed a preliminary manufacturing project letter of intent and investment framework agreement with the local authorities of the Banfu Industrial Zone, Zhongshan, Guangdong Province, for a new company-owned manufacturing campus consolidating the two currently leased Chinese facilities. The campus is expected to provide nearly double the effective manufacturing capacity compared its currently leased two facilities in China, with a total investment of approximately €11 million, financed primarily through local Chinese bank financing secured by the project assets; operations are expected to begin approximately Q4-2027.
The Malaysian subsidiary, serving as spare-parts and service hub for Asia outside China and Taiwan, expanded on the first significant revenues generated in 2025.
Outlook for the Second Half of 2026 and Amended Full-Year Guidance
The Company confirms its full-year 2026 revenue guidance of more than €100 million. Based on the weaker than expected first-half financial results and on orders and current visibility on second-half performance the Company now expects a full-year 2026 Adjusted EBITDA margin of 6 to 9% (the previous communicated full-year 2026 Adjusted EBITDA margin guidance was that such margin would be more than 12%). Our full-year 2026 guidance for order intake remains at €125–150 million, however the Company now expects to be in the upper half of that range.
As anticipated Q1 order intake was seasonally weak and the Company has seen a significant pick-up in particular in China since Q2. Given order visibility we expect a significant pick-up of revenues for our German plant in H2, leading to roughly an equal split between our two plants in H2 and leading to higher margin product mix. We have identified more than 40 full-time-equivalents across German overhead functions for reduction during H1 with most departures taking place in Q3 and expect €4 million in annual savings from “Sprint” cost saving program in German overhead to take full effect during H2 2026.
Having successfully executed “Sprint”, the Company is now entering the next phase “Sprint II”, a purchasing cost reduction program, targeting savings of approximately 5% of material expenses. The majority of the savings are expected to be realized by year-end and the remaining savings are expected to be captured as design to cost improvements are implemented.
