Release Date: March 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- LPKF Laser & Electronics SE (XTER:LPK, Financial) experienced strong growth in its solar business unit, with excellent operational execution and a positive bottom line.
- The company received its first mass production order in the display sector, indicating strong positioning in the semiconductor market.
- LPKF's strategic growth fields, particularly in semiconductor packaging related to light, showed significant growth, almost doubling in 2024 compared to 2023.
- The company implemented cost reduction measures in the second half of 2024, leading to a better fixed cost structure and positive impact on the bottom line for 2025.
- LPKF maintained a strong market share in electronics and prototyping, with positive developments in order entry in the second half of 2024.
Negative Points
- LPKF Laser & Electronics SE (XTER:LPK) faced headwinds in several product lines, particularly in welding and prototyping, leading to a downturn in revenue.
- The automotive market, a significant part of the welding business unit, was very slow in 2024 and is expected to remain slow in 2025.
- The company had to take one-time costs for structural changes, impacting the overall EBIT, which was only at break-even.
- Incoming orders were slightly below the previous year, mainly due to delays in solar orders from China.
- The prototyping sector experienced a decline in revenue due to reduced CapEx appetite among customers, affecting overall profitability.
Q & A Highlights
Q: Can you quantify the restructuring or margin improvement steps implemented in 2024?
A: Klaus Fiedler, CEO, stated that the measures already implemented will result in a 6.4 million reduction in fixed costs. Additional measures, such as make-or-buy decisions for corporate services, will be addressed in 2025, with an expected 4.7 million relevant impact within the year.
Q: What is the outlook for the different segments in 2025?
A: Bettina Schafer, Head of Investor Relations, indicated a positive outlook for electronics, driven by the light dynamic and bulk orders. Development is expected to see cautious growth, while welding remains conservative due to the automotive market's slow recovery. Solar is planned conservatively due to China's cautious CapEx spending.
Q: How does the company plan to handle the competitive landscape in the semiconductor sector?
A: Klaus Fiedler, CEO, emphasized maintaining a strong technology edge and being vigilant about competition. The company is the selected partner for many players in Korea and is actively addressing any areas where competitors might have an advantage.
Q: What are the expectations for the light segment in 2025?
A: Bettina Schafer, Head of Investor Relations, mentioned that while specific guidance for the light segment cannot be provided, growth is planned. Order entry for operational ramps in the semiconductor sector is expected in 2025, but revenue from bulk semiconductor orders is not planned for that year.
Q: Can you provide insights into the profitability and development costs of the Alys project?
A: Klaus Fiedler, CEO, noted that rapid prototyping has a healthy profitability with a nice double-digit EBIT. The Alys project incurs a low to mid 7-figure cost, which is a significant dent in EBIT. The company is monitoring the project closely to ensure strategic alignment and future market potential.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
