EQS-News: LPKF publishes 9-month report: Progress despite challenging conditions

LPKF publishes 9-month report: Progress despite challenging conditions

• Business performance recovers in the third quarter
• Business development and growth potential vary between segments
• “North Star” strategic programme: measures launched for long-term profitability

Garbsen, 30 October 2025 - Despite ongoing global challenges, high-tech engineering company LPKF Laser & Electronics SE made progress in key business segments in the third quarter of 2025. The 9-month report published today provides an overview of business performance that varies from segment to segment.

The LPKF Group increased its revenue by a slight 2% to EUR 83.9 million in the first nine months of 2025. At the same time, adjusted EBIT improved to EUR -0.8 million (prior-year period: EUR -5.6 million). In the third quarter, the Group achieved revenue of EUR 24.8 million and an adjusted EBIT of EUR -0.1 million, thus fulfilling the forecast for this period. According to this, third-quarter revenue should be between EUR 22 and 28 million and adjusted EBIT between EUR -3.5 and 0.5 million.

At EUR 65.4 million, incoming orders after nine months were significantly below the previous year’s figure of EUR 84.1 million due to a weak second quarter and a lack of solar orders. The order backlog fell from EUR 61.2 million in the prior-year period to EUR 32.5 million. General investment restraint in the second quarter, caused in part by uncertainty surrounding US tariff policies, led to orders being postponed in Europe and Asia in particular. The impact in North America, however, was less pronounced.

Update on developments in the segments

The business performance of LPKF Group’s segments in the first nine months of 2025 was mixed. After a challenging phase, the Electronics segment recorded strong growth in the third quarter. Business with PCB laser cutting systems gained considerable momentum – particularly with the CuttingMaster 2000, a powerful laser system for separating PCBs – and offers significant growth potential.

LIDE technology (Laser Induced Deep Etching) is a key technology from LPKF for the precise processing of thin glass materials, particularly for applications in the semiconductor and display sectors. Next-generation computing as a megatrend as well as increasing demand for glass substrates for advanced packaging are driving LIDE as a central solution for modern semiconductor production. LPKF has established a leading position in this market and is strengthening it with innovative technology integration such as the singulation of glass-based packages and the development of co-packaged optics (CPO) with glass substrates, which promotes energy efficiency and system performance in AI applications and high-speed networks. By taking these steps, LPKF is establishing itself as a strategic partner for the next generation of semiconductor technologies.

In the Development segment, demand was high in North America, while momentum in the Asian market remained limited. However, increased government R&D budgets in the defence sector offer good prospects for the future. LPKF is strategically reviewing the direction of its ARRALYZE segment since commercial progress in the biotechnology market is falling short of expectations. Despite the market challenges, LPKF continues to see great potential in innovative single-cell analysis technology for the rapidly growing biotechnology market. The company is investigating ways to overcome the high barriers to entry by cooperating with an experienced and established partner.

In the Welding segment, LPKF notched up successes in the consumer electronics and medical technology markets during the reporting period, while the automotive industry continued to weaken. A structural adjustment was initiated at the Fürth site to ensure sustainable profitability.

The Solar segment is currently going through a challenging phase. Revenue remained stable thanks to large orders from the previous year, but incoming orders have been limited to service calls and spare parts deliveries. Investment restraint related to a possible switch to perovskite coating technology in particular is creating uncertainty. LPKF has responded by controlling costs and adjusting its product portfolio. The company is well-positioned to benefit from a technology breakthrough based on perovskite.

Strategic orientation - “North Star” programme launched

In September, LPKF launched the “North Star” strategic programme, a comprehensive package of measures to sustainably increase profitability and secure long-term competitiveness. It aims to achieve a double-digit EBIT margin, strengthen resilience to revenue variability and implement clear improvements in operations, research, development, sales, administration, infrastructure and service. All these measures should be fleshed out by the end of the year in order to provide a clear strategy for the coming years.

“Our technologies have already achieved leading positions in many markets and replaced existing solutions. However, it is now crucial to secure our profitability even if revenue fluctuates or stagnates. ‘North Star’ is laying the foundations for our company to be sustainably successful in future," emphasises Peter Mümmler, CFO of LPKF. “We are not only continuing to work on our fixed costs, but are also focussing on LPKF's entire structural positioning in order to build a strong foundation for a stable, attractive EBIT margin,” notes Mümmler.

In addition to optimising its operations, LPKF is also focussing on the scalability of its business model and the cultivation of new high-volume markets such as semiconductor, display and biotechnology applications. “The market potential is vast and growing thanks to the ongoing miniaturisation of electronics and growing demand due to developments such as artificial intelligence. We are determined to capitalise on these opportunities,” says Klaus Fiedler, CEO of LPKF.

Forecast

Due to the challenging economic conditions, the Management Board adjusted the full-year forecast for 2025 on 15 September. The Group now anticipates revenue of between EUR 115 and 125 million (previously: EUR 125 to 140 million) and an adjusted EBIT* margin between 0% and 5% (previously: 6% to 9%).

Medium-term outlook

The Management Board is confident about the medium-term performance of the LPKF Group. While the segments are currently growing at different paces, the overall goal remains clear: The Management Board is aiming for a sustainable double-digit EBIT margin for the Group.

The company has strategically positioned itself very well with LIDE and its expanded product portfolio and sees tremendous growth potential, particularly in the semiconductor market. The SMT sector (surface mount technology) and PCB rapid prototyping also offer very solid growth prospects.

Despite the current weakness in solar orders, LPKF sees the transition to perovskite technology as a highly promising growth area with considerable opportunities for LPKF. The Management Board also expects long-term profitable growth in the Welding segment following the strategic realignment in plastic welding.

Before the LPKF Group can be positioned for long-term resilience and competitiveness, significant structural adjustments will have to be made since no significant growth impetus can be expected in the short term in the current phase of economic uncertainty.

*Adjusted EBIT is EBIT adjusted for restructuring and severance costs, effects from changes in the scope of consolidation and changes in the long-term incentive (LTI) due to fluctuations in the performance factor or the share price. LPKF expects these costs to amount to 1-2% of revenue in the 2025 financial year.

About LPKF

As a high-tech mechanical engineering company, LPKF develops high-precision, scalable manufacturing processes that are used in growth markets such as semiconductors & electronics, life science & medical technology, smart mobility and research & development. Founded in 1976, the company is headquartered in Garbsen near Hanover and operates worldwide via subsidiaries and representative offices. LPKF employs approx. 700 people and strives tirelessly to drive technological progress with innovative solutions and make a lasting, positive change in the world. The shares of LPKF Laser & Electronics SE are traded on Deutsche Börse’s SDAX (ISIN 0006450000).