LPKF Laser & Electronics SE reported a challenging first half of 2026, with revenue declining 38.3% to EUR 36.5 million compared to EUR 59.2 million in the prior year. The drop was primarily attributed to investment reluctance in the solar segment as the industry awaits a technological shift toward perovskite cells. However, the company highlighted significant progress in its LIDE (Laser Induced Deep Etching) technology for Advanced Packaging in semiconductors, which it now estimates represents a total addressable market (TAM) of approximately EUR 1.7 billion by 2030, up from a previous estimate of EUR 500 million.
LPKF's EBIT for the first half stood at EUR -14.1 million, compared to EUR -1.7 million last year, while adjusted EBIT was EUR -10.4 million. The difference largely reflects restructuring and severance costs associated with the North Star transformation program, which is aimed at reducing costs and improving competitiveness. CEO Klaus Fiedler noted that while the half-year figures are not satisfactory due to global crises, the company is well positioned in Advanced Packaging for AI applications. "Now it is crucial to deliver the decisive proof of concept through strategically relevant orders," he said.
The North Star program, led by CFO Peter Mummler, achieved milestones including the completion of the first wave of workforce reductions and refinement of the organizational structure. The program is designed to establish clear responsibilities and process-driven workflows, forming the basis for sustainable cost reduction and profitable growth. "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.
In the second quarter, LPKF conducted a comprehensive reassessment of the addressable market for Advanced Packaging. Based on external studies and internal analyses, the company now expects the TAM for its process solutions to grow to EUR 1.7 billion by 2030, driven by AI expansion and increased wafer starts for high-performance chips. During the quarter, LPKF received an order for a LIDE system from a leading specialty glass manufacturer for qualification in future supply chains. Additionally, Penn State University ordered a system to demonstrate glass substrates for industrial semiconductor applications. The company is expanding beyond glass structuring into singulation of glass-based packages and laser-based bonding of multilayer glass stacks, as well as integrating co-packaged optics (CPO) on glass substrates.
Segment performance varied. The Development segment saw slightly lower revenue but significantly higher order intake, with strong demand from China, Europe, and the defense sector. The Electronics segment reported higher revenue and order intake despite geopolitical delays, with continued demand for PCB depaneling solutions. The Solar segment experienced weak revenue and order intake as customers await the perovskite shift. The Welding segment saw lower revenue and negative earnings, though structural adjustments at the Fürth location are underway, with capacity utilization improving in smart robotics.
Looking ahead, LPKF confirmed its full-year forecast for 2026, expecting consolidated revenue of EUR 105 to 120 million and an adjusted EBIT margin between -3.0% and 4.5%. The company anticipates positive momentum in the Solar and Electronics segments in the second half. Medium-term, the Management Board aims for a sustainable double-digit EBIT margin by 2028, driven by LIDE and expansion in the semiconductor market. Despite current solar weakness, LPKF expects the transition to perovskite technology to offer significant growth opportunities. The company is implementing structural adjustments to enhance resilience and competitiveness amid ongoing economic uncertainty.
