LPKF Laser & Electronics SE reported a challenging first half of 2026, with revenue falling 38.3% to EUR 36.5 million from EUR 59.2 million in the prior year, primarily due to weakness in the Solar segment. The company's EBIT dropped to EUR -14.1 million, compared to EUR -1.7 million a year earlier. Despite the downturn, LPKF highlighted significant progress in its LIDE technology for Advanced Packaging, which it believes positions the company for substantial future growth, particularly in the semiconductor market.
The company's LIDE (Laser Induced Deep Etching) technology, used for precision glass processing in semiconductor packaging, has gained traction with leading customers. LPKF now estimates the total addressable market for its Advanced Packaging process solutions could reach approximately EUR 1.7 billion by 2030, up from a previous estimate of EUR 500 million. This revaluation is driven by AI-related demand for high-performance computing and increased wafer starts. In Q2, LPKF received an order from a specialty glass manufacturer and from Penn State University for LIDE systems.
CEO Klaus Fiedler acknowledged the unsatisfactory half-year results but expressed confidence in the company's strategic positioning. He emphasized the need to secure decisive proof-of-concept orders. The company is also advancing its North Star transformation program, led by CFO Peter Mummler, which aims to reduce costs and improve competitiveness. The first wave of workforce reductions was completed in Q2, and organizational restructuring is underway.
By segment, the Electronics segment saw higher revenue and order intake year-over-year despite a weak Q2, while the Development segment reported stable capacity utilization. The Solar segment suffered from investment delays as customers await a technology shift to perovskite cells. The Welding segment faced revenue declines and negative earnings, though restructuring efforts are showing initial results.
Looking ahead, LPKF confirmed its full-year 2026 forecast of consolidated revenue between EUR 105 and 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, the management aims for a sustainable double-digit EBIT margin by 2028, driven by growth in Advanced Packaging, SMT, and Rapid PCB Prototyping.
The company's strategic focus on LIDE and expansion into related process steps, such as singulation and laser bonding, are expected to drive long-term growth. LPKF also sees opportunities in co-packaged optics on glass substrates for future packaging generations.
For more details, refer to the original press release on NewMediaWire.
