Germany's LPKF Laser nine-month revenue falls 28% on weak solar business

Overview

• German laser manufacturing firm's nine-month revenue fell 28% yr/yr, impacted by a weak solar business

• Adjusted EBIT margin dropped to -14.7% from -1.0% a year earlier

• Company completed first phase of North Star efficiency program; cost savings gradually taking effect

Outlook

• LPKF expects 2026 revenue of €93 mln to €100 mln

• Company sees 2026 adj EBIT margin between -7.0% and -2.5%

• Company maintains medium-term target of double-digit EBIT margin by 2028

Result Drivers

• SOLAR BUSINESS WEAKNESS - Co said significantly weaker solar business was a key factor in revenue decline

• ADVANCED PACKAGING DELAYS - Delays in expected orders for Advanced Packaging weighed on results, per CEO Klaus Fiedler

• SEGMENT VARIATION - Electronics and Development segments saw higher order intake, but US Development business faced headwinds from public education budget uncertainty

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the electronic equipment & parts peer group is "buy."

• Wall Street's median 12-month price target for LPKF Laser & Electronics SE is €22.75, about 95.3% above its October 28 closing price of €11.65

• The stock recently traded at 64 times the next 12-month earnings vs. a P/E of 723 three months ago

Reuters Recommended Reads

• Oct 27 - Switzerland's INFICON Q3 sales jump, lifts FY outlook on firm semiconductor demand

• Oct 27 - Netherlands' ASM International Q3 revenue jumps on strong growth in memory sales

• Oct 28 - Chip gear maker KLA's Q1 revenue beats analyst estimates on AI demand

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)