LPKF Laser & Electronics : 9-Month Financial Report 2025

About this update from Lpkf Laser & Electronics Se

Quarterly Financial Report 1 January - 30 September 2025 CONTENT At a glance 3 Letter From The CEO 4 Interim Management Report as of 30 September 2025 9 Basic information on the Group 9 Report on economic position 9 Supplementary report 13 Opportunities and risks 13 Report on expected developments 14 Consolidated financial statements 16 Consolidated statement of comprehensive Income 16 Consolidated Balance sheet 18 Consolidated statement of changes in equity 20 Consolidated statement of cash flows 22 Notes on the preparation of the Quarterly Financial Report 24 Financial calendar 26 AT A GLANCE LPKF Laser & Electronics SE Key Group figures after 9 months 2025 9 Months 2025 9 Months 2024 Revenue (Mio. EUR) 83.9 82.5 EBIT (Mio. EUR) -3.3 -6.7 EBIT margin (%) -3.9 -8.1 Adjusted EBIT (Mio. EUR) -0.8 -5.6 Adjusted EBIT margin (%) -1.0 -6.8 Free Cash Flow (Mio. EUR) -5.4 -1.7 EPS, diluted (EUR) -0.24 -0.35 Incoming orders (Mio. EUR) 65.4 84.1 As of 09/30/2025 As of 09/30/2024 Net working capital (Mio. EUR) 36.3 35.5 Equity ratio (%) 69.8 63.8 Orders on hand (Mio. EUR) 32.5 61.2 Employees 736 780 Segments and markets LETTER FROM THE CEO Garbsen, 30 October 2025 Dear Shareholders, Despite a challenging market environment and a difficult second quarter, LPKF looks to the future with optimism: successful developments in the third quarter and significant progress in key business areas confirm our position as a technological frontrunner. The export-oriented German mechanical engineering sector faces external challenges such as the automotive industry's crisis, geopolitical tensions, rising energy costs, and trade uncertainties, which affect both us and our customers. However, we are confident that we can maintain long-term market success despite the prevailing volatility. On 15 September, we had to communicate a revision of our revenue and profit outlook for the current fiscal year due to a significantly weak order intake in the second quarter. While this situation is regrettable, it simultaneously provides an opportunity to implement necessary structural changes to future-proof LPKF. Our goal is to be resilient as a technologically leading company, even in a challenging environment. We have already taken initial steps: stringent cost discipline has allowed us to noticeably lower the break-even point. However, we acknowledge that this alone is insufficient. Under the leadership of our CFO, Peter Mümmler, we launched the "North Star" initiative. This aims to achieve sustainable profitability with a double-digit EBIT margin, independent of revenue growth, and to strategically position LPKF for long-term success. Before diving deeper into this initiative, I would like to update you on our business performance over the first nine months. Business Development in the First Nine Months of 2025 During the first nine months, the LPKF Group slightly increased its revenue by 2% to EUR 83.9 million, achieving an adjusted EBIT of EUR -0.8 million (9M 24: EUR -5.6 million). LPKF met its forecast for the third quarter with a revenue of EUR 24.8 million (Q3 24: EUR 27.3 million) and an adjusted EBIT of EUR -0.1 million (Q3 24: EUR -0.6 million). Revenue for the third quarter was projected to be between EUR 22 and EUR 28 million and the adjusted EBIT between EUR -3.5 and EUR 0.5 million. Due to the weak second quarter and the absence of solar orders, order intake after nine months amounted to EUR 65.4 million - significantly lower than the prior year (9M 24: EUR 84.1 million). Consequently, the order backlog decreased from EUR 61.2 million in the corresponding period last year to EUR 32.5 million in the first nine months. The second quarter was heavily impacted by widespread investment restraint caused by uncertainties surrounding US tariff policies. This particularly affected order intake in Europe, while Asian customers postponed orders to restructure their supply chains due to increased tariffs. In contrast, the North American market experienced less noticeable caution. As a technology pioneer with only a few direct competitors, we have the advantage that our U.S. customers continue to choose our solutions despite the imposed tariffs. Updates on our Segments In the Electronics segment, we have consolidated all solutions for the series production of electronic modules, such as PCB cutting and the manufacturing of high-precision solder paste stencils. For both areas, the market environment has been challenging during the first nine months of 2025. Especially in the second quarter, a noticeable investment hesitation arose, influenced by unclear tariff situations. Encouragingly, the business with systems for PCB cutting showed significant improvement in the third quarter. Our innovative CuttingMaster 2000 laser system offers superior performance compared to established depaneling technologies, driving more electronics manufacturers to adopt laser technology. This market presents considerable growth potential. Our LIDE (Laser Induced Deep Etching) technology is a strategic growth initiative and a key enabler for applications such as advanced packaging in the semiconductor sector, display manufacturing, and microfluidics in medical technology. It facilitates precise processing of thin glass without causing damage and lies at the heart of our innovation strategy. This Apr, we successfully defended our core patent before the European Patent Office, and on 1 September, the validity of the patent was confirmed in Korea. The semiconductor market is gradually gaining momentum, spurred by the "Next Generation Computing" megatrend, which drives increasing demand for materials like glass substrates, greatly benefiting LIDE technology demand. By collaborating closely along the entire value chain and continuously improving our processes, we meet the highest technological standards and strengthen our role as partners for volume manufacturing. Most manufacturers have already opted for LIDE technology and invested in initial systems. While LPKF is ready for the transition to mass production, other production chain processes still require improvements in yield and throughput-tasks our customers are diligently addressing. Our goal is to expand our position in the dynamically growing semiconductor market and offer a diversified technology portfolio. Beyond focusing solely on LIDE, we aim to provide comprehensive solutions throughout the value chain, including laser technology for singulating glass-based packages, a critical step in semiconductor manufacturing. Leveraging our expertise in this area, we will soon integrate this process into our portfolio, offering our customers a broader range of innovative technologies. As part of a larger customer project, LPKF has been exploring the integration of Co-Packaged Optics (CPO) with glass substrates-an advanced application that transcends our LIDE technology. This innovative solution integrates optical components into chip enclosures, replacing traditional electrical data connections with faster, more energy-efficient optical links. Glass substrates play a crucial role in this technology due to their superior electrical performance, thermal efficiency, and stability, meeting the demands of AI applications, data centers, and high-speed networks. With CPO's enormous potential for the semiconductor market, LPKF is positioning itself as a strategic partner for the development of scalable chip architectures, setting new standards in next-generation semiconductor packaging. The Vitrion Foundry in Garbsen is increasingly becoming a pivotal part of small-series manufacturing for highly precise glass products. Despite challenging market conditions, we successfully implemented new orders during the third quarter while further strengthening our technological foundation. In addition to supporting our LIDE systems business for the semiconductor market, the facility in Garbsen manufactures innovative glass components for specialized applications, including cutting-edge technologies such as quantum computers, high-frequency modules, satellite communication systems, and other demanding niche markets. In the Development segment, the first nine months were very satisfactory and in line with our expectations. Business was particularly strong in North America, while order intake from Asia was rather subdued, indicating overall cautious market dynamics in this region. In view of the foreseeable increase in government R&D budgets in the defense sector, we are confident about the future in this environment. Institutes and research facilities around the world are financed in part by government subsidies. Despite a number of geopolitical challenges, we see little impact on investment behavior in the current fiscal year, but we are continuing to monitor this closely, particularly with regard to the US. In the biotechnology market, we are intensifying our efforts to strategically position ourselves with ARRALYZE. Although this market is growing strongly globally, commercial progress in the first nine months fell significantly short of our expectations. We remain convinced that we have developed an innovative and powerful product for single-cell analysis in ARRALYZE. However, we have found that the barriers to entry into the biotechnology market-especially for a previously unknown player such as LPKF-are higher than originally assumed. Against this background, we are currently exploring opportunities to overcome these barriers to entry by cooperating with an experienced and established partner. In the Welding segment, we recorded successful business with welding systems for consumer electronics products in the first nine months. Order intake in the reporting period was significantly higher than in the previous year. Despite the positive developments already demonstrated by our increased focus on the medical technology and consumer electronics markets, the automotive market will continue to play an important role for plastic welding in the future. We have numerous long-standing customers in this area and will serve and support them to the best of our ability. However, we clearly see that a general recovery in the automotive industry, which could lead to new growth in the field of plastic welding in the short term, is not currently foreseeable. At present, we must also assume that the existing orders from the consumer electronics industry will remain project-based and therefore do not represent a sustainable basis for our business. It is therefore essential not only to increasingly tap into new growth markets such as medical technology, but also to adapt our structures at the Fürth site in Germany to the expected lower sales level in order to ensure adequate profitability in this area in the long term. Sales in the Solar segment developed according to plan in the first nine months of the year on the basis of large orders from the previous fiscal year. However, order intake consisted entirely of service and spare parts deliveries, which reached a significant volume but remained below the volume of system sales. The business environment for LPKF is currently unfavorable, particularly in China. In addition, there is a clear global reluctance to invest in high-volume systems due to the expected technological shift towards perovskite coatings. As it is still unclear when and to what extent this technology will prevail, market conditions remain uncertain. LPKF is responding to these developments with strict cost control and a targeted adjustment of its product portfolio to the lower requirements of the Chinese market. At the same time, a breakthrough in perovskite technology would open up significant opportunities for LPKF, as the company has innovative solutions and in-depth expertise to operate successfully in this growth market. For the 2026 fiscal year, there are currently significantly fewer projects in the sales pipeline than in previous years. Strategic Direction As part of our strategic "North Star" program, we initiated a comprehensive set of measures in September aimed at sustainably improving LPKF's profitability. The goal is clearly defined: achieving a sustainable double-digit EBIT margin, strengthening our resilience to revenue fluctuations, and safeguarding our long-term competitiveness. The program focuses on five key operational areas: operations, research & development, sales, administration & infrastructure, and service. By the end of the year, we intend to finalize extensive plans for all measures to gain a clear outline of the scope and timeframe for improvements across these focus areas. Although our technologies have successfully replaced conventional solutions in many markets, securing leading positions, a consistent growth across all business areas has not materialized recently. Furthermore, our current EBIT margins fall short of our aspirations. The "North Star" program provides the foundation to achieve attractive profitability even amidst stagnating or significantly fluctuating revenues. To this end, we are not only analyzing fixed costs but also reviewing our structural setup across all areas of the company. In parallel, we continue focusing on scaling our business model and accessing new volume markets, particularly in the areas of displays, semiconductors, and biotechnology. This aligns with long-term growth drivers such as the ongoing miniaturization in the electronics industry and increasing demand for high-performance process solutions driven by developments in artificial intelligence (AI). Our strategic direction is designed to address these promising market potentials and position LPKF for a sustainable, profitable future. The "North Star" program establishes a basis for lasting success in an increasingly dynamic competitive environment. Outlook The current economic conditions pose significant challenges for LPKF. As an export-oriented technology company, we are strongly influenced, directly and indirectly via our customers, by the ongoing tariff issues and geopolitical tensions. Experiences from recent years further illustrate that we are in an era of enduring volatility and cannot assume that global crises will resolve quickly. In light of these developments, the Management Board revised the forecast for the fiscal year 2025 on 15 September 2025. LPKF now expects consolidated revenue of EUR 115 to EUR 125 million (previously: EUR 125 to EUR 140 million) and an adjusted EBIT margin ranging between 0% to 5% (previously: 6% to 9%). Target for the coming years The Management Board remains optimistic about the mid-term development of the LPKF Group. While our segments currently experience varying growth developments, our objectives remain clear: we aim for sustainable double-digit EBIT margins at a Group level. In particular, we see excellent strategic positioning and significant growth potential within the semiconductor market, driven by LIDE technology and the expansion of our product portfolio. Our SMT and rapid prototyping sector salso offer solid growth perspectives. Despite current weaknesses in solar order intake, the transformation to perovskite technology represents a promising growth field with substantial opportunities for LPKF. Following the strategic realignment in plastic welding, we anticipate long-term profitable growth in this segment as well. To position the LPKF Group resiliently and competitively over the long term, it is essential first to implement major structural adjustments. Consequently, no significant growth impetus is to be expected in the short term during the current phase of economic uncertainty. On behalf of the Management Board, I thank our employees at all our sites for their dedication during challenging times, and I extend my gratitude to you, our valued shareholders, for your continued support and trust. Sincerely, Dr. Klaus Fiedler Chief Executive Officer INTERIM MANAGEMENT REPORT AS OF 30 SEPTEMBER 2025 BASIC INFORMATION ON THE GROUP The basic information on the LPKF Group in the combined management and Group management report for 2024 continues to apply unchanged. Changes in the scope of consolidation are presented in the notes to this interim report under "Notes on the preparation of the quarterly financial report". REPORT ON ECONOMIC POSITION NET ASSETS, FINANCIAL POSITION AND RESULTS OF OPERATIONS OF THE GROUP Earnings situation The LPKF Group generated consolidated revenue of EUR 24.8 million in the third quarter of 2025, down 9% on the same quarter of the previous year (EUR 27.3 million). Revenue after nine months totaled EUR 83.9 million, which is 2% more than in the same period last year (EUR 82.5 million). The increase resulted from the Welding (+ EUR 6.8 million), Electronics (+ EUR 0.8 million), and Development (+ EUR 0.5 million) segments. The strong increase in sales in the Welding segment is in particular due to the successful business in the consumer electronics sector in the first nine months. The Solar segment (- EUR 6.6 million) reported lower sales. The Welding (+ EUR 3.6 million) and Electronics (+ EUR 1.2 million) segments recorded an increase in sales in Q3 2025 compared with the same quarter of the previous year. The Solar (- EUR 6.1 million) and Development (- EUR 1.2 million) segments recorded a decline in sales in Q3 2025 compared with the same quarter of the previous year. The sharp decline in sales in the Solar segment is attributable to the unfavorable business environment in China and the prevailing reluctance to invest due to the expected switch to perovskite technology. In the first nine months, EBIT (earnings before interest and taxes) amounted to EUR -3.3 million (previous year: EUR -6.7 million). EBIT in the third quarter amounted to EUR -1.6 million (previous year: EUR -1.2 million). Adjusted EBIT amounted to EUR -0.8 million in the first nine months (previous year: EUR -5.6 million) and EUR -0.1 million in the third quarter (previous year: EUR -1.6 million). Adjusted EBIT is EBIT adjusted for restructuring and severance costs, effects from changes in the scope of consolidation, and changes in the longterm incentive due to fluctuations in the performance factor or share price. The LPKF Group recognized deferred tax assets on the loss incurred in the first nine months in accordance with IAS 12 in the maximum amount of EUR 0.4 million, taking into account the recoverability and upper limit of the existing deferred tax liabilities. At EUR 65.6 million, order intake after nine months was below the previous year's figure of EUR 84.1 million. At EUR 32.5 million, the order backlog as of 30 September 2025 was below the previous year's figure of EUR 61.2 million. The sharp decline in the order backlog is in particular due to the prevailing reluctance to invest in the solar segment. Capitalized own work included EUR 4.6 million in development work for products and software (previous year: EUR 3.4 million). Other income was EUR 2.6 million, up from the previous year (previous year: EUR 2.4 million). The increase compared with the same period of the previous year was mainly due to higher currency gains (+ EUR 0.3 million). At 34%, the material usage ratio was at the same level as the previous year, which is mainly attributable to the product mix. As of 30 September 2025, the LPKF Group employed 736 people, 44 fewer than on September 30, 2024. The decline in the number of employees was in line with the development of sales and mainly affected the service, production, and development departments. Personnel expenses in the reporting period amounted to EUR 40.7 million, down from EUR 43.1 million in the previous year. The decrease was mainly due to the decline in the number of employees. Depreciation and amortization amounted to EUR 5.8 million in the reporting period, EUR 0.3 million below the previous year's figure. Of this amount, EUR 2.3 million was attributable to depreciation and amortization of capitalized own work (previous year: EUR 2.5 million). Other operating expenses amounted to EUR 19.5 million, up from EUR 19.0 million in the previous year. The increase was mainly due to higher other operating expenses (+EUR 1.5 million), which rose in particular as a result of the deconsolidation of LPKF Japan, as well as higher expenses for currency losses (+EUR 0.4 million) and closing costs (+EUR 0.1 million). On the other hand, expenses for insurance and contributions (EUR -0.5 million), R&D costs (EUR -0.2 million), sales commissions (EUR -0.2 million), travel and entertainment expenses (EUR -0.2 million), and social security and training costs (EUR -0.1 million) declined. The use of overdraft facilities resulted in minor interest expenses for short-term withdrawals and loans. After interest and taxes, consolidated net income amounted to EUR -5.0 million (previous year: EUR -8.5 million). Financial position The Group's cash and cash equivalents rose from EUR 5.1 million as of 31 December 2024 to EUR 5.6 million in the reporting period. Financial resources funds, consisting of cash and cash equivalents and current account liabilities, fell to EUR -7.5 million compared with the same period of the previous year (previous year: EUR 6.9 million), which is due to the incurring of current account liabilities. Cash flow from operating activities amounted to EUR 0.0 million after nine months (previous year: EUR 3.3 million). The balanced operating cash flow for the reporting period was mainly due to the build-up of net working capital. Advance payments received as of 30 September were EUR 6.3 million below the figure as of 31 December 2024, while the Group's receivables fell by EUR 7.8 million. Liabilities decreased by EUR 1.6 million. At the same time, inventories fell by EUR 0.9 million. As a result, net working capital improved by EUR 0.9 million in the first nine months. In the third quarter, cash flow from operating activities amounted to EUR 5.9 million. At EUR 1.9 million, capital expenditure was above the level of the same quarter of the previous year. After a cash outflow from investing activities of EUR 5.4 million in the first nine months (previous year: EUR 5.0 million), free cash flow amounted to EUR -5.4 million (previous year: EUR -1.7 million). Cash flow from financing activities amounted to EUR -1.4 million (previous year: EUR -2.5 million), mainly due to the repayment of lease liabilities and interest payments. The LPKF Group has the necessary funds for investments and further growth, consisting of cash and cash equivalents and available credit lines. Net assets Asset and capital structure analysis Compared to 31 December 2024, non-current assets decreased by EUR 0.4 million to EUR 65.4 million. The change was mainly due to property, plant and equipment (EUR -2.1 million). This was offset by an increase in intangible assets of EUR 2.0 million. Current trade receivables fell by EUR 7.8 million to EUR 22.3 million during the reporting period. Inventories decreased by EUR 0.9 million to EUR 26.0 million. This is primarily due to deliveries made in the Solar segment. Cash and cash equivalents decreased by EUR 0.5 million to EUR 5.6 million as of 30 September 2025. Overall, current assets decreased by EUR 6.6 million to EUR 59.3 million. Net working capital decreased from EUR 37.2 million on 31 December 2024, to EUR 36.3 million on 30 September 2025. Inventories fell by EUR 0.9 million, while receivables decreased by EUR 7.8 million. Liabilities fell by EUR 1.6 million, while advance payments received for customer projects fell by EUR 6.3 million. At 69.8% as of 30 September 2025, the equity ratio was above the ratio at the end of 2024 of 69.7%. Non-current liabilities increased by EUR 0.6 million, mainly due to a EUR 0.5 million increase in deferred tax liabilities. Current liabilities decreased by EUR 2.8 million to EUR 32.6 million, which was mainly due to a lower level of contractual liabilities on the reporting date. Other than that, the balance sheet structure did not change significantly. Investments In the first nine months, the Group invested EUR 0.4 million more than in the same period of the previous year. Investments in property, plant and equipment and intangible assets amounted to EUR 5.4 million, of which additions to capitalized development costs amounted to EUR 4.5 million. Segment performance The following table provides an overview of the operating segments' performance: Revenue Adjusted EBIT 9 Months 9 Months 9 Months 9 Months in Mio. EUR 2025 2024 2025 2024 Electronics 20.0 19.2 -5.4 -5.6 Development 18.1 17.6 0.1 -1.5 Welding 20.0 13.2 2.1 -3.8 Solar 25.8 32.5 2.4 5.3 Total 83.9 82.5 -0.8 -5.6 Adjusted EBIT for the segments includes the operating business of the segments and the Group allocations attributable to them, adjusted for restructuring and severance expenses, effects from the deconsolidation of LPKF Laser & Electronics K.K., and changes in the longterm incentive due to fluctuations in the performance factor or share price. EMPLOYEES The following table shows the development in employee numbers in the first nine months of 2025: 09/30/ 12/31 Area 2025 2024 Development 202 212 Production 136 148 Service 97 110 Sales 143 147 Administration 158 156 Total 736 773 The total number of employees as of 30 September 2025 corresponds to 692 full-time equivalents (FTE), compared to 720 FTE at the end of 2024. OVERALL ASSESSMENT OF THE GROUP'S ECONOMIC SITUATION LPKF continues to anticipate a challenging overall economic environment for 2025. The current challenges facing the industry, such as cost pressure, weak domestic demand, and geopolitical uncertainties, are being exacerbated by customs policy measures. International trade conflicts and protectionist measures are leading to higher tariffs and longer delivery times, which is further impacting the competitiveness and profitability of many companies. The clarification of US customs regulations in the first half of August led LPKF to conduct a comprehensive review of all ongoing customer projects. It was found that many customers in various markets are reorganizing their supply chains, which is leading to project postponements. While European customers continue to be very cautious, there is greater willingness to invest in Asia. Business in North America remains stable at a high level. Nevertheless, the overall order situation remains noticeably below original expectations. LPKF is countering potential liquidity risks with forward-looking, currency-differentiated liquidity and working capital planning.In addition to the significant influences on cash flows, this also takes into account risks that could have an impact on the future liquidity situation. The LPKF Group has only low levels of debt. In addition to its own liquid funds, LPKF also has a credit line of up to EUR 15.5 million in cash available for working capital as part of a syndicated loan as of 30 September 2025. In addition to the cash, the syndicated loan also includes an additional guarantee facility of EUR 7.5 million. The syndicated loan is provided by five globally active financing partners, has a term of three years and can be adjusted in terms of both amount and term with the consent of the financing partners. The Management Board assesses the earnings, asset, and financial position as solid and orderly. It continues to assume that the Group has sufficient resources to continue its business activities for at least another twelve months and that the going concern assumption is appropriate as the basis for accounting. SUPPLEMENTARY REPORT No significant events with a material effect on the net assets, financial position or results of operations of LPKF have occurred since the reporting date on 30 September 2025. OPPORTUNITIES AND RISKS The opportunities and risks facing the LPKF Group are presented and explained in detail in separate reports in the combined management report and Group management report for 2024. These explanations remain unchanged. The current challenges facing the LPKF Group are further exacerbated by customs policy measures, even though trade agreements by the US in the summer have restored the basis for planning. However, there is a risk that new US tariffs could further dampen customers' willingness to invest and delay order intake for products from all segments of the Group. On the other hand, the company sees a realistic opportunity to generate increased revenue in strategic growth areas such as the semiconductor market. From the company's perspective, there are currently no risks that could jeopardize its continued existence, nor are there any such risks apparent for the future. REPORT ON EXPECTED DEVELOPMENTS MANAGEMENT'S ASSESSMENT OF THE GROUP'S EXPECTED DEVELOPMENT Development of the Group Forecasts for the global economy in 2025 vary, but institutions such as the International Monetary Fund (IMF) expect global growth of around 3.0%. In Germany, growth of only around 0.2% is forecast. Inflation rates are expected to fall, but uncertainties due to trade conflicts and geopolitical developments remain high and outweigh the opportunities for the global economy. Due to weak order intake in the second quarter, LPKF has revised its full-year forecast for 2025 downward. Despite the uncertain economic outlook, LPKF sees growth opportunities for the Group in the coming years thanks to its strategic orientation. The recently launched "North Star" initiative, which aims to strengthen the company's structural resilience and profitability in the long term, plays a central role in this. With a focus on optimizing organizational structures and processes, as well as targeted market development through innovative technologies such as LIDE, LPKF is pursuing the goal of achieving a double-digit EBIT margin in the long term and ensuring competitiveness in an increasingly volatile market environment. LPKF is specifically applying its proven innovation approach-achieving market leadership with disruptive technologies-to larger and high-growth application fields in the display, semiconductor, and biotechnology sectors. At the same time, the core business is being consistently geared towards modularized product architectures in order to realize economies of scale and use resources efficiently. The expansion of after-sales services also effectively supports further growth. This strategic combination of technological expansion and operational focus creates the basis for fully exploiting the scalability of the business model and achieving sustainable double-digit EBIT margins. Future M&A activities could also contribute to value enhancement and will continue to be examined in a targeted manner in order to promote strategic growth and realize synergies. The measures already implemented to reduce fixed costs showed real effects in the first 9 months of the year and have already shifted the break-even point further down. Investments in the development of new technologies and applications are being carried out in full despite the difficult economic conditions. LPKF will remain agile and flexible as a company in order to be able to react quickly to any changes in the economic environment. Overall, LPKF expects further profitable growth in the medium term even in a volatile economic environment. Financially, the company is and will remain well positioned and has the necessary funds for investments and further growth. Key figures Forecast for fiscal year 2025 Based on current global economic developments and taking into account specific influencing factors, the Management Board of LPKF Laser & Electronics SE adjusted its forecast for financial year 2025 on 15 September 2025. The adjustment was made on the basis of a review of ongoing customer projects and an insurmountable backlog in order intake from the first half of the year. Consolidated revenue : Revenue is now expected to range between EUR 115 and 125 million (previous forecast: EUR 125 to 140 million). Adjusted EBIT margin*: The adjusted EBIT margin is estimated at 0% to 5% (previous: 6% to 9%). This corresponds to an adjusted EBIT of EUR 0 - 6 million. In order to limit the impact on the annual results, the Management Board is focusing more strongly on cost reduction measures and the optimization of structures and processes in order to increase the company's resilience and better cushion market volatility. Target for the coming years 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. CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FROM 1 JANUARY TO 30 SEPTEMBER 2025 01-09 / 01-09 / in EUR thousand 2025 2024 Revenue 83,947 82,472 Changes in inventories of finished goods and work in progress -1,513 3,767 Other own work capitalized 4,586 3,427 Other income 2,639 2,400 Cost of materials -26,925 -30,524 Staff costs -40,667 -43,141 Depreciation and amortization -5,832 -6,152 Impairment expenses (including reversals) on financial assets and contract assets -2 47 Other expenses -19,495 -19,001 Operating Result (EBIT) -3,261 -6,705 Finance income 2 2 Finance costs -889 -755 Earnings before tax -4,148 -7,458 Income taxes -897 -1,086 Consolidated net profit/loss -5,045 -8,544 Other comprehensive income Items that will not be reclassified to profit or loss Revaluations of defined benefit plans 0 0 Tax effects 0 0 Items that will be reclassified to profit or loss Currency translation differences -1,010 34 Other comprehensive income after taxes -1,010 34 Total comprehensive income -6,055 -8,510 in EUR Earnings per share (basic) -0.24 -0.35 Earnings per share (diluted) -0.24 -0.35 FROM 1 JULY TO 30 SEPTEMBER 2025 07-09 / 07-09 / in EUR thousand 2025 2024 Revenue 24,786 27,295 Changes in inventories of finished goods and work in progress -173 2,501 Other own work capitalized 1,458 1,150 Other income 816 776 Cost of materials -8,343 -10,836 Staff costs -12,017 -13,523 Depreciation and amortization -1,794 -2,171 Impairment expenses (including reversals) on financial assets and contract assets 37 0 Other expenses -6,330 -6,394 Operating Result (EBIT) -1,559 -1,202 Finance income 1 1 Finance costs -281 -189 Earnings before tax -1,839 -1,390 Income taxes -263 -198 Consolidated net profit/loss -2,102 -1,588 Other comprehensive income Items that will not be reclassified to profit or loss Revaluations of defined benefit plans 0 0 Tax effects 0 0 Items that will be reclassified to profit or loss Currency translation differences 0 0 Other comprehensive income after taxes 0 0 Total comprehensive income -2,102 -1,588 in EUR Earnings per share (basic) -0.09 -0.07 Earnings per share (diluted) -0.09 -0.07 CONSOLIDATED BALANCE SHEET AS OF 30 SEPTEMBER 2025 09/30/ 12/31/ in EUR thousand 2025 2024 ASSETS Intangible assets and goodwill 24,851 22,856 Property, plant and equipment 38,230 40,290 Right of use assets (Leasing) 1,465 1,858 Other financial assets 143 143 Other non-financial assets 208 211 Deferred tax assets 489 383 Non-current assets 65,386 65,741 Inventories 25,968 26,892 Trade receivables 22,328 30,108 Income tax receivables 1,263 839 Other non-financial assets 4,153 2,958 Cash and cash equivalents 5,596 5,053 Current assets 59,308 65,850 Total assets 124,694 131,591 09/30/ 12/31/ in EUR thousand 2025 2024 EQUITY Subscribed capital 24,497 24,497 Capital reserve 15,463 15,463 Other reserves 12,501 13,289 Net retained profits 34,548 38,512 Equity 87,009 91,761 LIABILITIES Provisions for pensions and similar obligations 482 486 Other financial liabilities 825 905 Deferred income 300 352 Contract liabilities 403 239 Other provisions 725 593 Deferred tax liabilities 2,359 1,876 Non-current liabilites 5,094 4,451 Other provisions 2,740 3,193 Other financial liabilities 13,789 7,125 Deferred income 107 319 Trade payables 5,831 7,362 Contract liabilites 5,722 12,187 Other non-financial liabilities 4,402 5,193 Current liabilities 32,591 35,379 Liabilities 37,685 39,830 Total equity and liabilities 124,694 131,591 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY AS OF 30 SEPTEMBER 2025 Other reserves in EUR thousand Subscribed capital Capital reserve Other retained earnings As of 01/01/2025 24,497 15,463 10,529 Consolidated net profit/loss Other comprehensive income after taxes Total comprehensive income 0 0 0 Changes in the consolidation scope Share-based payment As of 09/30/2025 24,497 15,463 10,529 Other reserves in EUR thousand Subscribed capital Capital reserve Other retained earnings Adjusted as of 01/01/2024 24,497 15,463 10,529 Consolidated net profit/loss Other comprehensive income after taxes Total comprehensive income 0 0 0 Use of authorized capital Share-based payments Adjusted as of 09/30/2024 24,497 15,463 10,529 Revaluations of defined benefit plans Share-based payment reserve Foreign currency translation reserve Net retained profits Total equity -247 737 2,271 38,512 91,762 -5,045 -5,045 0 -1,011 -1,013 0 -2 -1,011 -5,045 -6,058 1,081 1,081 222 0 222 -247 957 1,261 34,548 87,009 Revaluations of defined benefit plans Share-based payment reserve Foreign currency translation reserve Net retained profits Total equity -547 490 1,701 42,982 95,115 -8,544 -8,544 275 35 310 275 0 35 -8,544 -8,234 0 0 0 39 39 0 156 0 0 156 -272 646 1,736 34,477 87,076 CONSOLIDATED STATEMENT OF CASH FLOWS FROM 1 JANUARY TO 30 SEPTEMBER 2025 01-09 / 01-09 / in EUR thousand 2025 2024 Cash flow from operating activities Consolidated net profit/loss -5,045 -8,544 Adjustments: Tax expenses 895 1,085 Financial expenses 889 755 Financial income -2 -2 Depreciation/amortization of non-current assets 5,832 6,152 Gains/losses on the disposal of property, plant and equipment -9 -15 Impairment losses/reversals 248 320 Other non-cash expenses and income 1,170 325 Changes: Inventories 160 -4,015 Trade receivables 6,792 11,626 Other assets -1,273 -871 Provisions -268 -31 Trade payables -1,437 -3,310 Other liabilities -6,998 282 Other: Interest received 2 2 Income taxes refund (paid) -954 -501 Cash flow from operating activities 2 3,258 Cash flow from investing activities Investments in intangible assets -4,678 -3,582 Investments in property, plant and equipment -727 -1,419 Revenue from the disposal of assets 22 13 Cash flow from investing activities -5,383 -4,988 01-09 / 01-09 / in EUR thousand 2025 2024 Cash flow from financing activities Dividends paid 0 0 Interest paid -821 -591 Proceeds from (financial) borrowings 0 -700 Payments of lease liabilities -585 -159 Payments for repaying loans 0 -1,000 Cash flow from financing activities -1,406 -2,450 Change in financial resources funds Increase (+) /decrease (-) in financial resources funds (cash and cash equivalents and account liabilities) -6,787 -4,180 Financial resources funds as of 1 January -1,164 10,678 Effects of exchange rate changes 422 411 Financial resources funds as of end of reporting period -7,529 6,909 NOTES ON THE PREPARATION OF THE QUARTERLY FINANCIAL REPORT This financial report as of 30 September 2025 complies fully with the provisions of IAS 34. The interpretations of the International Financial Interpretations Committee (IFRIC) have been taken into account. The figures for the previous period have been calculated using the same principles, unless new standards required changes. The same applies to the accounting and valuation methods and the calculation methods used in the interim financial statements. New standards applicable in the current fiscal year have already been applied. Estimates of amounts presented in previous interim reporting periods of the current fiscal year, the last annual financial statements, or in previous fiscal years have not been changed in this financial report. There have been no significant changes in contingent liabilities and contingent assets since the last balance sheet date. This financial report has not been audited or reviewed. Information on events of particular significance after the balance sheet date is provided in the supplementary report to the interim management report. Basis of consolidation In addition to the Group's parent company LPKF Laser & Electronics SE, Garbsen, the following subsidiaries have been included in the consolidated financial statements: Name Full consolidation Registered office Equity interest in % LPKF SolarQuipment GmbH Suhl, Germany 100.0 LPKF WeldingQuipment GmbH Fürth, Germany 100.0 LPKF Laser & Electronics d.o.o. Naklo, Slovenia 100.0 LPKF Distribution Inc. Tualatin (Portland), US 100.0 LPKF (Tianjin) Co. Ltd. Shanghai, China 100.0 LPKF Shanghai Co., Ltd. Shanghai, China 100.0 LPKF Laser & Electronics Korea Ltd. Seoul, Korea 100.0 LPKF Laser & Electronics Vietnam Co., Ltd. Bac Ninh, Vietnam 100.0 Following the transfer of the sales and service business in Japan to a long-standing distribution partner on 1 January 2025, LPKF Laser & Electronics K.K. was finally wound up in the third quarter of 2025. Transactions with related parties There are no reportable business relations with related parties of the LPKF Group. Garbsen, 30 October 2025 LPKF Laser & Electronics SE The Management Board Dr. Klaus Fiedler Peter Mümmler Chief Executive Officer Chief Financial Officer FINANCIAL CALENDAR 30 October 2025 Publication of 9-months report 26 March 2026 Publication of Annual Report 2025 30 April 2026 Publication of 3-months report 2026 04 June 2026 Annual General Meeting 2026 23 July 2026 Publication of 6-months report 2026 25 October 2026 Publication of 9-months report 2026 CONTACT & PUBLISHING INFORMATION Published by Text LPKF Laser & Electronics SE LPKF Laser & Electronics SE Osteriede 7 30827 Garbsen Cover Layout Germany LPKF Laser & Electronics SE Telephone: +49 5131 7095-0 Photo: Svenja Schudak Telefax: +49 5131 7095-90 Substrate for Micro-Quantum [email protected] Systems https://www.lpkf.com Internet For more information on LPKF Laser & Electronics SE and the addresses of our subsidiaries, please go to https://www.lpkf.com . This financial report can also be downloaded from our website. Transparency note AI-supported applications were also used to support the creation of this report. All content was finally checked and approved by responsible employees. Disclaimer This financial report contains forward-looking statements that are based on the Management Board's current estimates and forecasts and on information currently available. These forward-looking statements are not to be understood as guarantees of forecast future performance and results. Instead, future performance and results depend on a large number of risks and uncertainties and are based on assumptions that might not prove accurate. We disclaim any obligation to update these forward-looking statements. For mathematical reasons, rounding differences may occur in percentage figures and numbers in the tables, illustrations and texts of this report. This financial report is published in German and English. In case of any discrepancies, the German version shall prevail. LPKF Laser & Electronics SE Osteriede 7 30827 Garbsen Germany Phone: +49 5131 7095-0 Telefax: +49 5131 7095-90 https://www.lpkf.com

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