LPKF Publishes its Financial Results for First Half of 2025

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LPKF Group, a leading provider of high-precision and scalable manufacturing solutions for sectors such as semiconductors, electronics, life sciences, medical technology, and smart mobility, has reported a rise in revenue in its latest financial results. The LPKF Group reported an increase in revenue by 7.2% to EUR 59.2 million in the first half of 2025 and achieved an almost balanced adjusted EBIT (earnings before interest and taxes) of EUR -0.7 million. The company continued to grow in the second quarter of 2025, achieving revenues of EUR 33.8 million, which is 13.4% more compared with Q2 2024, and an adjusted EBIT of EUR 2.8 million, which is at the upper end of the forecast range.

As per CEO Klaus Fiedler, LPKF performed well in the first half of 2025 against the backdrop of exceptionally challenging economic conditions, especially when the US tariff policy is causing uncertainty in markets worldwide and dampening investment sentiment. This caution is also evident at LPKF: In numerous fields of application, customers are delaying placing orders due to a lack of planning security. “Despite our good market positioning and project pipeline, order intake is clearly below our expectations,” says Fiedler. “This will weigh on LPKF until our customers once again have a stable planning basis for their global value chains.”

In the second quarter, targeted cost-cutting measures further strengthened the positive earnings trend. Under the leadership of the new CFO, Peter Mümmler, the efficiency program is being consistently implemented and further developed. The increases in working capital are primarily due to higher receivables at the reporting date as a result of strong revenue in June and the absence of larger down payments for new orders in the Solar segment. The focus is therefore currently on actively managing payment flows and implementing short-term measures to strengthen cash flow. At EUR 43.0 million, order intake was below the previous year’s level (H1 2024: EUR 61.1 million), while the order backlog fell to EUR 34.8 million (H1 2024: EUR 65.5 million). While the Development and Welding segments grew significantly, Electronics and Solar in particular recorded declines. The order situation reflects the investment restraint of some customer groups and is not satisfactory overall from the perspective of the Management Board.

Business development varied across the individual segments.

The Electronics segment saw gains in its LIDE technology business, driven by the growing adoption of glass substrates in the semiconductor market. Despite a challenging environment, many manufacturers are already working with LPKF's pilot systems and scaling up activities. While strong collaboration across the value chain and expanded process qualifications position LPKF well for long-term growth and volume production, the core business in electronic module systems faced investment hesitation, particularly in Asia.

The Development segment recorded solid growth, especially in the US, though overall momentum was tempered by caution in Asia. ARRALYZE underperformed commercially but secured flagship projects, enhancing market visibility.

The Welding segment had a strong half-year, led by demand in consumer electronics and medical technology, with positive full-year expectations. The Solar segment performed as planned but saw weaker order intake, as Chinese firms opted for lower-cost local systems amid a tight investment climate. LPKF is prioritizing cost control and portfolio adjustments in response.

Strategic orientation

LPKF has achieved leading positions in many markets with its innovative technologies. However, consistent revenue growth across all business segments has not yet been achieved, and EBIT margins do not meet the company’s standards as a technology leader. The strategic focus is therefore on scaling the business and entering larger growth markets such as displays, semiconductors, and biotechnology. At the same time, the core business is being aligned towards modularized product architectures in order to use resources more efficiently and achieve double-digit EBIT margins in the medium term. “Our innovative strength is the basis of our success—now it’s a matter of translating it into scalable business models and tapping into new markets,” says Fiedler.

The underlying megatrends – such as miniaturization and rising demand for high-performance processor modules – remain intact and form the basis for LPKF's long-term profitable positioning.

Outlook

The risks to LPKF Laser & Electronics SE’s outlook and forecast have increased further in recent months. Global economic uncertainties, particularly due to the possible effects of US tariff policy, could further dampen customers’ willingness to invest and delay order intake for products in all segments of the Group. Despite these challenges and uncertainties, the company confirms its forecast for 2025 with consolidated revenue of EUR 125 to 140 million and an adjusted EBIT margin of between 6% and 9%.

The current third quarter will also be impacted by investment restraint due to the prevailing uncertainty regarding trade restrictions. This could hurt order intake in this period. Against this backdrop, the company expects revenue of between EUR 22 million and EUR 28 million for the third quarter of 2025 (Q3 2024: EUR 27.3 million) and an adjusted EBIT in the range of EUR -3.5 million to EUR 0.5 million (Q3 2024: EUR -0.6 million).

In the medium term, LPKF aims to achieve an attractive single-digit growth rate for its core business. The new business initiatives in the semiconductor, display, and biotechnology markets are expected to contribute low-three-digit million-euro revenues to the core business in the medium term. Based on revenue growth and the resulting economies of scale, the Management Board is aiming for an attractive double-digit EBIT margin for the LPKF Group in the coming years.

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