SÜSS MicroTec (SMHN) Q1 2026 earnings summary

Executive summary

• Q1 2026 achieved record order intake of €149.3 million, up 69.5% year-over-year, breaking seasonal patterns and driven by strong demand in both Advanced Backend Solutions and Photomask Solutions, especially from APAC and Chinese customers.

• Revenue for Q1 2026 was €86.5 million, down 30.7% year-over-year, reflecting weak order intake from mid-2025 and marking the expected low point for the year.

• Gross margin was 36.1%, within guidance but down 3.1 percentage points year-over-year; EBIT margin dropped to 4.3% due to reduced fixed cost coverage.

• Net profit fell 84.9% year-over-year to €2.5 million; EPS down to €0.13.

• Order momentum remains strong into Q2, with improved visibility and a growing backlog for 2027.

Financial highlights

• Order book at end of Q1 2026 stood at €330.1 million, with most scheduled for delivery in 2026 and €300 million in tool orders.

• Free cash flow increased to €23.2 million, a strong improvement year-over-year and quarter-over-quarter.

• CapEx was €2.5 million, mainly for technical equipment in Germany and Taiwan, up 47.1% year-over-year.

• Cash and cash equivalents rose to €120.9 million, up 22.5% from year-end 2025, driven by lower working capital.

• Equity ratio at 60.7%, with total assets at €224.7 million.

Outlook and guidance

• Sales are expected to improve sequentially through 2026, with Q1 as the low point; full-year guidance confirmed: sales €425–485 million, gross margin 35–37%, EBIT margin 8–10%.

• Management remains confident in achieving full-year revenue and profitability targets.

• Order momentum in Q2 is expected to be strong, potentially exceeding Q1 levels.

• Product mix for 2026 is not expected to change significantly; guidance assumes stable mix.

• 2026 is expected to be a transition year with a temporary sales dip and lower EBIT margin due to fixed-cost undercoverage and higher R&D expenses.