This article first appeared on GuruFocus .
Release Date: March 25, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Jenoptik AG ( JNPKF ) implemented a new organizational structure, increasing accountability and transparency.
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The company successfully brought its new micro-optics facility in Dresden online, positioning for future growth.
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Strong performance in the biophotonics business, with revenue up by 10%, driven by defense and med tech sectors.
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Smart mobility solutions business saw a revenue increase of almost 9%, particularly in the US market.
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Despite a challenging environment, Jenoptik AG ( JNPKF ) improved its operating cash flow and reduced debt significantly.
Negative Points
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Overall revenue in 2025 declined by approximately 6% year on year, impacted by weaker order intake trends.
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The semiconductor business faced a 12% revenue drop due to softer demand in the lithography sector.
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Order intake for the semiconductor and advanced manufacturing unit was down by around 11% year on year.
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The metrology and production solutions business experienced a decline in orders due to ongoing weakness in the automotive market.
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EBITDA margin contracted by 150 basis points year on year, influenced by lower fixed cost absorption and product mix effects.
Q & A Highlights
Q: In Q4, Jenoptik's EBITDA margin in the semi activities was around 30%. Is this an indication of a new level of profitability we can expect going forward? A: Dr. Priska Harrannek, Head of Investor Relations, explained that while the Q4 margin was strong due to a better product mix and cost reductions, it also included one-time effects. Moving forward, they expect good margins but anticipate cost inflation and additional resources needed for ramp-up, which may not lead to a different margin environment in 2026.
Q: Can you provide more details on increasing your share of wallet in the inspection space and the sales split between lithography and inspection activities? A: Dr. Priska Harrannek highlighted that the inspection business has seen growth in both order intake and revenue, contrasting with the lithography business. Strategically, they aim to build a second large pillar outside of lithography, focusing on gaining a larger share of the wallet from customers.
Q: Regarding Prodomax, the order intake was low in 2025, and the backlog is almost done. What are the expectations for 2026, and what measures are being implemented to mitigate this? A: Dr. Priska Harrannek noted that Prodomax experienced an order cancellation in Q4 2025, reflecting a volatile demand situation in the North American OEM space. Prodomax is asset-light with flexible costs, and management is monitoring the situation closely. They believe the demand will return given Prodomax's strong market position.
Q: Do you expect a similar sequential margin development in 2026 as in 2025, considering the subdued Q1 growth rate? A: Dr. Priska Harrannek expects Q1 2026 revenues to be below Q1 2025 due to current demand patterns and internal capacities. However, they anticipate an acceleration in demand and revenue in subsequent quarters, with a stronger H2 compared to H1.
Q: Can you provide more color on capacity availability and the order-to-revenue conversion cycle in the semis business? A: Dr. Priska Harrannek explained that classical optical components have longer lead times, while micro-optics have shorter cycles. They have ample capacity in Dresden for future growth and have added moderate capacity in Germany. Operational execution will be key to balancing demand and capacity.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
