SCHMID Group reported a 172% year-over-year surge in first-half 2026 revenue to €46.0 million, driven by a 268% jump in equipment sales to €39.4 million. The company swung to a gross profit of €9.8 million from a €1.6 million loss a year earlier, posting a 21.2% gross profit margin. However, shares fell 9.38% to $4.39 after the presentation, leaving the stock well below its 52-week high of $10.65 despite a 78% gain over the past 12 months.
The company’s net loss widened to €47.8 million in H1 2026 from €32.4 million in the prior-year period, reflecting a €1.7 million foreign exchange loss compared with a €6.3 million gain in H1 2025. Adjusted EBITDA loss narrowed to €0.6 million from €11.6 million, though the company reduced its full-year adjusted EBITDA margin guidance to a range of 6-9%, down from the prior target of above 12%. General and administrative expenses rose to €8.5 million from €5.5 million, partly offsetting the revenue growth.
SCHMID raised €33 million through convertible notes and a standby equity purchase agreement, reducing total debt by €30.75 million via a debt-to-equity swap. Excluding convertibles, debt declined from €53.0 million at year-end 2025 to €23.4 million by June 30, 2026. The company also secured €20 million in non-recourse financing for its Chinese operations, with no parent company guarantees required. Operating cash outflow totaled €29.3 million in H1, while working capital investment reached €26 million.
Order momentum remained strong, with year-to-date intake through August 21 at €96.6 million and order backlog at €95.0 million. Third-quarter orders totaled €52.3 million, including a €37 million repeat order for advanced HDI-ML and mSAP equipment. The company raised its full-year order intake guidance to the upper half of the €125-150 million range, while maintaining a minimum revenue target of €100 million for 2026.
Cost reduction initiatives continued, with Sprint I in Germany achieving its €4 million annual savings target by eliminating over 40 full-time equivalent positions. Sprint II targets at least a 5% reduction in purchasing costs, which account for more than half of total expenses, through supplier renegotiation and design-to-cost measures. Strategic investments included a new €11 million manufacturing campus in Guangdong Province and the establishment of a Malaysian facility, both aimed at expanding capacity to support higher revenue levels.
