Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported August 25, 2026
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SCHMID's accelerating order intake, driven by flip-chip BGA substrate capacity investments and AI server board demand, signals continued expansion in the advanced packaging layer of the AI infrastructure buildout. The company's record backlog and capacity expansion in China position it to capture further demand as chipmakers and substrate manufacturers scale panel-level packaging and glass-core substrate production.
SCHMID reported H1 2026 revenue of €46.0M, with Q2 revenue of €27.8M up from €18.2M in Q1. Equipment revenue grew to €39.4M from €10.7M in the prior-year half, while spare parts and services revenue rose to €6.4M from €5.9M. Gross margin of 21.2% was below expectations due to lower scale and a shift toward China, which management expects to reverse in H2. The company reduced total debt from €53M to €23M via a €30.8M debt-to-equity swap and raised €33M in new capital. Order intake accelerated to €52.3M in the first eight weeks of Q3, bringing YTD intake to €96.6M, and the company delivered its first InfinityLine H+ for 700x700mm panel-level packaging to a US customer.
Management characterized 2026 as a transition year but expressed confidence in a strong second half and a promising 2027, driven by accelerating order intake from flip-chip BGA substrate capacity investments and AI server board demand. They raised FY2026 order intake guidance to €125M–€150M and expect to land in the upper half of that range. Revenue guidance remains unchanged at at least €100M, while adjusted EBITDA margin guidance was set at 6%–9% for the full year. The company is executing a second phase of its Sprint cost program targeting at least 5% savings on purchasing expenses, with most savings expected by year-end and design-to-cost benefits flowing into 2027. Management also highlighted plans to consolidate and expand its Chinese manufacturing campus in Zhongshan, doubling production capacity, with the new facility expected operational by Q4 2027. They stated they are well financed for the next six months and see no need for additional equity, preferring to use non-recourse debt in China at attractive rates (~2.7%).
“We already achieved a €52.3 million order intake in Q3. and are totaling 96.6 million order intake year to date.”
on Order intake acceleration
“We published and raised our order intake guidance for 2026 in July this year, to €125 million to €150 million, And based on what I currently see and information I have, I do expect us to land in the upper area of that guidance.”
on Guidance raise
“If you look at the order backlog, €89 million, that is pretty much a record.”
on Order backlog
On the order guidance for this year, you have talked about the upper half of the €125M–€150M range and you already have nearly €97M through mid-August. What gives you confidence to get the remaining portion, and how much is tied to identified projects already in negotiation?
Roland Rettenmeier responded that most of the projected order intake for the rest of the year is already in negotiation. Arthur Schütz added that most orders are in, with a few small remaining, and they know exactly which machines will be manufactured in Germany and China. He noted that most orders received recently or in the next few months will flow into 2027.
On demand trends, you talked about acceleration over the 8 weeks. What do you attribute the new demand to relative to the first half?
Roland Rettenmeier explained that in Q1, big substrate manufacturers were planning staged investments through new factories, which took time. In Q2, those plans were finalized, and SCHMID began recognizing orders for equipping these new factories in late Q2 and into Q3.
I saw in July that Intel made an announcement about a partnership with Lens Technology talking about glass core substrates. What kind of conversations have you been having with your customers over the last few months on glass core substrates?
Roland Rettenmeier said that glass solves many issues over composite materials, and many players in the Intel, NVIDIA, and AMD supply chains are looking at glass core substrates for better flatness, smoothness, dielectric constants, and signal integrity. SCHMID is engaged with most major supply chain players, supporting them with technology and equipment to make glass core substrates real.