LPKF lowers its revenue and earnings guidance for the full year 2024

LPKF lowers its revenue and earnings guidance for the full year 2024
Ad hoc announcement – Garbsen, December 9, 2024

LPKF Laser & Electronics SE continues to experience weaknesses in the European automotive market specifically, with customers’ ongoing reluctance to make new investments or pushing out deliveries.

Based on the very latest information received from several customers across all business segments other than Solar, it is now very likely that around EUR 5 - 7 million worth of equipment which was ordered or due to be ordered but shipped in December will now shift to January and February 2025.

On that basis, LPKF reduces its guidance for the financial year 2024. LPKF now expects consolidated revenue of EUR 118 - 123 million (previously: EUR 125 - 130 million). Given the probable loss of contribution margins from the missed revenue, the company now expects to break even on the basis of the adjusted EBIT margin (previous forecast: 3.5 - 6.5%).

As previously communicated, LPKF has identified specific areas in which the company can improve efficiency and materially reduce costs. Concrete measures to reduce operating costs and increase efficiency throughout the Group are now being implemented with high priority. LPKF expects that this will result in total annualized savings of around EUR 5 - 7 million. The company is diligently working on additional cost optimisations to further increase these savings and significantly improve its EBIT margin in 2025.

Despite the adverse short term market volatility affecting its core business, LPKF’s mid-term growth momentum remains unshaken.

The momentum in the LIDE (Laser Induced Deep Etching) business continues to be strong, with LPKF still expecting to double its sales in 2024 in this area relative to the previous year. With its patented LIDE glass processing method, LPKF delivers the key technology for boosting the performance of microchips and enabling new display applications. This paradigm shift in the semiconductor industry has led to a continuous strong increase in demand for LPKF's unique LIDE systems. LPKF is confident that this will also shortly translate into first orders for serial production.

The shares of LPKF Laser & Electronics SE are traded in the Prime Standard of the German Stock Exchange (ETR: LPK, ISIN: 0006450000).

Explanation of key figures
EBIT: Earnings before interest and taxes
EBIT margin: Earnings before interest and taxes / revenue x 100
Adjusted EBIT: Adjusted EBIT is EBIT adjusted for restructuring and severance costs and changes in the long-term incentive (LTI) resulting from fluctuations in the performance factor or the share price. LPKF expects these costs to amount to 0.5–1.5% of revenue in financial year 2024. The adjusted EBIT is reported to enable a comparison of operational profitability by eliminating special items, including between periods.



Contact:
Bettina Schäfer, Senior Manager Investor Relations & Corporate Communication
investorrelations@lpkf.com