LPKF Laser & Electronics SE reported a challenging first half of 2026, with revenue falling 38.3% to EUR 36.5 million, primarily due to investment reluctance in the solar segment as the industry awaits a shift to perovskite technology. Despite the decline, the company highlighted significant progress in its LIDE technology for Advanced Packaging, which it now sees as a key growth driver with an addressable market estimated at approximately EUR 1.7 billion by 2030, up from a previous estimate of EUR 500 million.
The company's order backlog stood at EUR 34.7 million as of June 30, nearly flat year-over-year, while new orders dropped to EUR 19.9 million from EUR 43.0 million. EBIT fell to EUR -14.1 million in the first half, compared to EUR -1.7 million a year earlier. Adjusted EBIT, which excludes restructuring costs and stock option adjustments, was EUR -10.4 million.
CEO Klaus Fiedler acknowledged the unsatisfactory figures but expressed confidence in LPKF's strategic positioning. “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,” he said.
The company is making headway with its North Star transformation program, led by CFO Peter Mummler. The first wave of workforce reductions was completed in the second quarter, and the organizational structure has been refined to establish clearer responsibilities and process-driven workflows. “North Star is a key lever for lowering our cost base, increasing our resilience, and at the same time securing our innovative strength,” Mummler said.
LIDE technology, which enables crack-free, high-precision glass processing, is gaining traction with leading semiconductor customers. In the second quarter, LPKF received an order from a leading specialty glass manufacturer aiming to qualify for future Advanced Packaging supply chains, and Penn State University ordered a system for industrial semiconductor applications. The company is also expanding its portfolio to include solutions for singulation of glass-based packages and laser-based bonding of multilayer glass stacks, as well as integrating co-packaged optics on glass substrates.
Segment performance varied widely. The Development segment saw slightly lower revenue but increased order intake, with strong demand from China, Europe, and the defense sector. The Electronics segment posted significantly higher revenue and orders despite a weak second quarter, driven by demand for laser cutting of PCBs. The Solar segment, however, confirmed expectations of a challenging year, with revenue and orders well below prior-year levels. The Welding segment saw revenue fall sharply and earnings turned negative, though adjustments at the Fürth location are beginning to show results.
Looking ahead, LPKF confirmed its full-year forecast of consolidated revenue between EUR 105 million and EUR 120 million, with 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. By 2028, the Management Board aims to achieve a sustainable double-digit EBIT margin, driven by growth in Advanced Packaging, SMT, and Rapid PCB Prototyping.
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