This article first appeared on GuruFocus .
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Revenue:Group revenue up 1% year-on-year in H1 2026; excluding currency effects, growth was close to 3%.
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Order Intake:Group order intake up more than 50% year-on-year in H1 2026.
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Book-to-Bill Ratio:H1 book-to-bill ratio rose sharply to 1.4.
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Order Backlog:Order backlog grew substantially to around EUR825 million.
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EBITDA:Group EBITDA reached around EUR99 million, up more than 25% year-on-year.
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EBITDA Margin:Improved by almost 400 basis points year-on-year.
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EBIT:EBIT up 56% year-on-year, with margin jumping to 12.3%.
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Earnings Per Share:Reached EUR0.69 versus EUR0.42 in the prior year.
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Segment Revenue - Semiconductor & Advanced Manufacturing:Revenue up around 10% year-on-year.
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Segment Revenue - Biophotonics:Revenue down almost 5% year-on-year.
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Segment Revenue - Smart Mobility Solutions:Revenue up almost 11% year-on-year.
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Segment EBITDA Margin - Semiconductor:Recorded a very strong EBITDA margin of close to 32%.
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Segment EBITDA Margin - Biophotonics:Operated at a strong margin level of almost 22%.
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Segment Order Intake - Biophotonics:H1 2026 order intake up 45% year-over-year.
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Free Cash Flow:Improved slightly year-on-year.
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2026 Guidance - Revenue:Now expects revenue growth of between 5% and 9% (upper half of initial guidance).
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2026 Guidance - EBITDA Margin:Now expects EBITDA margin between 20% and 21% (upper half of initial guidance).
Release Date: August 12, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Order intake surged over 50% year-on-year in H1 2026, driven by strong demand in semiconductor and biophotonics, with a book-to-bill ratio of 1.4 and a record backlog of around EUR825 million.
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Group revenue returned to growth in Q2, with H1 revenue up 1% year-on-year (close to 3% excluding currency effects), led by a 10% increase in the semiconductor and advanced manufacturing segment.
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EBITDA rose over 25% year-on-year to around EUR99 million, with the margin improving by nearly 400 basis points, driven by a lower cost base, better product mix, and the absence of one-time relocation costs.
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The semiconductor business achieved a very strong EBITDA margin of close to 32%, reflecting operational leverage and improved mix, with expectations of continued strong performance in H2.
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Management raised full-year 2026 guidance, now expecting revenue growth of 5% to 9% and an EBITDA margin of 20% to 21%, both in the upper half of the original ranges.
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The new CEO, Dominic Dorfner, brings a fresh perspective and has expressed confidence in the company's technology and growth potential, while the ongoing strategy review could unlock further value.
Negative Points
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Order intake in H1 included pull-forward effects, particularly in biophotonics, and management cautioned that the exceptional order dynamics may not continue in H2, leading to potential volatility.
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Biophotonics revenue declined almost 5% year-on-year in H1, impacted by a strong prior-year dental business and a weaker medtech performance, despite strong defense demand.
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The Metrology and Production Solutions (MPS) business remains slightly loss-making, with continued weakness in the European automotive sector and a challenging market environment.
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Operating cash flow was reduced due to higher working capital needs from the strong order intake, and the working capital ratio is expected to remain above 2025 levels in H2.
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The company faces capacity constraints in its semiconductor business, with expansion projects in Jena and Dresden not expected to contribute significantly until later, potentially limiting near-term output.
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The strategic review process is ongoing, with no outcomes expected before year-end, creating uncertainty for investors and delaying potential portfolio actions.
Q & A Highlights
Q: Can you provide more color on the order intake dynamics, specifically whether the strong semi orders represent a one-time bulk order or early ordering, and what the visibility is for converting the record backlog into sales to meet the raised guidance? A: Prisca Havranek-Kosicek (CFO) clarified that the large one-time order in Q2 was in the biophotonics medtech space, while pull-forward effects were more related to biophotonics (defense and life science) rather than semi. For semi, the demand reflects the ongoing industry ramp-up, not specific pull-forwards. With a backlog above EUR825 million, the company has strong visibility. The conversion gap to revenue is explained by the different business models, as solutions businesses (like MPS) have shorter lead times and can convert orders into sales within the year, unlike the longer-cycle optics business.
Q: Given the strong order intake, should we expect the semi order intake level of roughly EUR170-180 million per quarter to continue, and what are the current utilization levels in inspection and lithography operations? A: Prisca Havranek-Kosicek (CFO) cautioned that while demand remains good, the record exceptional levels seen in H1 may not necessarily continue. The focus is on execution and output given the strong backlog. Utilization levels vary across the factory footprint, and the company is adding machines and people, particularly ramping up the Dresden fab and expanding classical optics capacity in Jena, which caters to both inspection and lithography customers.
Q: Can you elaborate on the demand trends in the semi space, specifically discussions with main lithography and inspection customers regarding 2027 demand, capacity requests, and supply concerns? A: Prisca Havranek-Kosicek (CFO) stated that the demand dynamics between Q1 and Q2 are broadly the same, with the lithography business seeing very strong orders. The semi ramp-up is in full swing, and the company is focused on supporting customers and ensuring delivery capability. While visibility is good, the company cannot provide more specific flavor on future quarters due to the dynamic nature of the semi business.
Q: Could you provide more color on the multiyear order in medtech, the key drivers behind the very strong semi margin, and the outlook for the MPS business given soft revenues but better orders? A: Prisca Havranek-Kosicek (CFO) explained that the multiyear order is in the medtech space (not life science or dental), but declined to give more specifics due to the concentrated key account strategy. The strong semi margin is driven by volume and mix, and the company is confident this will continue, despite lag effects from factor costs and new hires. For MPS, a better H2 is expected across all lines of business, driven by seasonality and encouraging order intake, although the automotive demand environment has deteriorated compared to initial expectations.
Q: Regarding the capacity ramp-up, are you able to find the necessary headcount, and is your supply chain able to keep pace with the expansion? Also, does Jenoptik sell to Chinese semi equipment OEMs, and what are the defense optics demand trends? A: Prisca Havranek-Kosicek (CFO) confirmed that the company can generally find enough people, with an increased apprenticeship program. The supply chain is ramping up in lockstep, with no tangible constraints currently, though risks are being mitigated. Strategically, Jenoptik does not sell to Chinese suppliers in its semi business, a decision that remains intact. Defense optics is expected to grow in the short to medium term, but the H1 order intake should not be extrapolated as defense orders are often concentrated and multiyear in nature.
Q: Can you provide an update on the strategic review process and when we can expect to hear the findings? A: Prisca Havranek-Kosicek (CFO) reiterated that the strategy process is in full swing, and the Executive Board expects to communicate key findings towards the end of the year at the earliest. She could not provide a more specific timeline, asking for patience as the new executive team goes through proper processes.
Q: Can you provide more color on the Prodomax business, as it saw some order intake in Q2? Should we view this as an early sign of improvement? A: Prisca Havranek-Kosicek (CFO) stated that while the uptick in orders in Q1 and Q2 is encouraging, it is too early to call it a trend given the subdued order development over the previous four to six quarters. The geopolitical and economic situation in North America has not changed substantially. The strategic intent to divest this business remains unchanged.
Q: Can you talk about the demand trends in the AR/VR space for TRIOPTICS, given recent market activity from major tech companies? A: Prisca Havranek-Kosicek (CFO) noted that while there is more dynamics in the industry broadly, the company does not anticipate major order intake from AR/VR in the very near future. However, the project pipeline is full, and the legacy optical testing and inspection business is performing well.
Q: Have you been able to raise prices in your classical semi businesses to offset input costs? A: Prisca Havranek-Kosicek (CFO) declined to provide commercial details due to the concentrated nature of the semi business, but assured that conversations with customers are constructive and reiterated the good profitability seen in the semi business overall.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
