LPKF Laser & Electronics SE navigated a persistently challenging macroeconomic and geopolitical environment in the first half of 2026, reporting revenue of EUR 36.5 million, down 38.3% from EUR 59.2 million in the same period last year. The decline was primarily attributed to significant lower revenue in the Solar segment, as customers hesitate to invest amid a pending technological shift toward perovskite cells. The company's EBIT fell to EUR -14.1 million, compared to EUR -1.7 million a year earlier, while adjusted EBIT stood at EUR -10.4 million.
Despite the headwinds, LPKF is making strategic progress. The company's LIDE (Laser Induced Deep Etching) technology for glass processing in Advanced Packaging is gaining traction, particularly for AI applications. A comprehensive reassessment of the addressable market for Advanced Packaging now estimates the Total Addressable Market (TAM) for LPKF's process solutions could reach approximately EUR 1.7 billion by 2030, up from a previous estimate of EUR 500 million. Key drivers include the AI-driven expansion of high-performance computers and increased wafer starts for high-performance chips. In the second quarter, LPKF received an order from a leading specialty glass manufacturer for a LIDE system to qualify for future supply chains in Advanced Packaging, and Penn State University ordered a system to demonstrate glass substrates for industrial semiconductor applications.
LPKF's North Star transformation program, led by CFO Peter Mummler, is making progress. The first wave of workforce reduction was completed in the second quarter, and the future organizational structure has been refined to establish clear responsibilities and process-driven workflows. The program aims to lower the cost base, increase resilience, and secure innovative strength, positioning LPKF to benefit from growth drivers in Advanced Packaging and the semiconductor industry.
Segment performance varied. The Development segment reported good capacity utilization with slightly lower revenue but significantly higher order intake, driven by solid demand from China and Europe. The Electronics segment saw higher revenue and order intake, despite a weak second quarter, with strong demand for laser cutting solutions for PCBs. The Solar segment experienced a challenging environment, with revenue and order intake well below prior-year levels, confirming expectations. The Welding segment revenue was significantly below the prior year, with negative earnings, though structural adjustments at the Fürth location are beginning to show positive effects.
Looking ahead, LPKF faces a challenging second half but confirms its full-year forecast of consolidated revenue between EUR 105 and 120 million and an adjusted EBIT margin between -3.0% and 4.5%. The company expects positive momentum, particularly in the Solar and Electronics segments. Despite current weakness in solar orders, LPKF views the transition to perovskite technology as a promising growth area. The Management Board aims for a sustainable double-digit EBIT margin by 2028, with strong strategic positioning in the semiconductor market through LIDE and expanded product portfolio. The North Star program is expected to drive significant structural adjustments, with restructuring costs anticipated to be approximately 3-4% of revenue in 2026.
