LPKF Laser & Electronics SE reported its half-year financial results on July 23, 2026, posting a sharp decline in revenue in what the company described as a challenging macroeconomic environment. At the same time, LPKF pointed to stronger long-term prospects in the Advanced Packaging market, especially for its LIDE technology, which it now says could serve an addressable market of approximately EUR 1.7 billion by 2030.

Revenue in the first half of 2026 fell to EUR 36.5 million, a decline of 38.3% from EUR 59.2 million in the same period a year earlier. The company said the decrease was mainly attributable to the Solar segment, where customers are postponing investments because of an expected technology transition toward perovskite cells. In the second quarter, revenue dropped to EUR 19.3 million from EUR 33.8 million in the prior-year period.

Earnings also weakened during the half year. EBIT was EUR -14.1 million, compared with EUR -1.7 million in the first half of the previous year, while adjusted EBIT came in at EUR -10.4 million. The order backlog was nearly unchanged at EUR 34.7 million, but new orders declined significantly to EUR 19.9 million from EUR 43.0 million.

Despite the weaker financial results, LPKF’s management highlighted the increasing relevance of its LIDE, or Laser Induced Deep Etching, technology for semiconductor applications. The company said it had completed a comprehensive reassessment of the addressable market for Advanced Packaging, raising its previous estimate by more than three times to EUR 1.7 billion by 2030. Advanced packaging is becoming more important as chipmakers seek to connect processors, memory, and other components more efficiently within compact packages, rather than relying only on conventional scaling. According to LPKF, the revised view is supported by the AI-driven expansion of high-performance computing, which is increasing demand for advanced chip packaging solutions.

“With LIDE, we are very well positioned in Advanced Packaging for AI applications, and the revenue potential is significantly better than previously assumed,” CEO Klaus Fiedler said.

LPKF said its LIDE technology is already being used by leading semiconductor customers and is regarded as an important enabler for crack-free, high-precision glass processing. During the second quarter, the company received an order from a leading specialty glass manufacturer and another from Penn State University. The university plans to use LIDE systems to qualify for future supply chains and demonstrate industrial applications.

The company is also broadening its portfolio beyond glass structuring. Its expanded areas of focus include singulation, laser-based bonding, and the integration of co-packaged optics on glass substrates. These applications place LPKF’s technology in areas closely tied to packaging density, interconnect performance, and optical data movement, all of which are key technical considerations in high-performance computing hardware.

LPKF said its North Star transformation program, overseen by CFO Peter Mummler, is advancing. The first wave of workforce reductions has been completed, and the company has further refined its future organizational structures. The program is intended to reduce costs, strengthen resilience, and preserve innovation capacity.

“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.

Performance differed across LPKF’s business segments. The Development segment reported good capacity utilization, with revenue slightly below the prior-year level but order intake significantly higher. The increase was driven by strong demand in China and Europe, as well as from defense and research institutions.

The Electronics segment recorded higher revenue and order intake, even though the second quarter was weak. LPKF said demand for PCB depaneling solutions continued. In the Solar segment, the company confirmed expectations for a difficult year, with revenue and orders far below the previous year’s levels as customers wait for the anticipated shift to perovskite technology. The Welding segment reported lower revenue and negative earnings, although structural adjustments are being implemented.

For the full year, LPKF confirmed its forecast for consolidated revenue of EUR 105 million to EUR 120 million and an adjusted EBIT margin ranging from -3.0% to 4.5%. The company said it expects positive momentum in the Solar and Electronics segments during the second half of the year.

Management also maintained its medium-term outlook and continues to target a sustainable double-digit EBIT margin by 2028. LPKF said the target is expected to be supported by growth in Advanced Packaging, SMT, and Rapid PCB Prototyping. The original press release is available at www.newmediawire.com.