Interim report
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Quarterly Financial Report 1 January - 30 September 2025 QUARTERLY FINANCIAL REPORT 1 January - 30 September 2026
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Quarterly Financial Report Content 2 CONTENT At a glance ................................................................................................................................ 3 Letter From The CEO ................................................................................................................ 4 Interim Management Report as of 30 September 2026 .......................................................... 9 Basic information on the Group ...................................................................................... 9 Report on economic position .......................................................................................... 9 Supplementary report ................................................................................................... 14 Opportunities and risks ................................................................................................. 14 Report on expected developments ............................................................................... 14 Consolidated financial statements ......................................................................................... 17 Consolidated statement of comprehensive Income .............................................................. 17 Consolidated Balance sheet ................................................................................................... 19 Consolidated statement of changes in equity ........................................................................ 21 Consolidated statement of cash flows ................................................................................... 23 Notes on the preparation of the Quarterly Financial Report ................................................. 25 Financial calendar ................................................................................................................... 27
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Quarterly Financial Report At a glance 3 AT A GLANCE LPKF Laser & Electronics SE Key Group figures after 9 months 2026 9 Months 2026 9 Months 2025 Revenue (Mio. EUR) 60.3 83.9 EBIT (Mio. EUR) -12.8 -3.3 EBIT margin (%) -21.2 -3.9 Adjusted EBIT (Mio. EUR) -8.9 -0.8 Adjusted EBIT margin (%) -14.7 -1.0 Free Cash Flow (Mio. EUR) -11.7 -5.4 EPS, diluted (EUR) -0.56 -0.24 Incoming orders (Mio. EUR) 65.1 65.4 As of 09/30/2026 As of 09/30/2025 Net working capital (Mio. EUR) 24.8 36.3 Equity ratio (%) 62.9 69.8 Orders on hand (Mio. EUR) 31.9 32.5 Employees 651 736 Segments and markets DEVELOPMENT ELECTRONICS Systems for printed circuit board development and research Systems for electronics production and the manufacture of glass components WELDING SOLAR Systems for plastic welding Systems for the production of solar cells and for laser transfer printing
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Quarterly Financial Report Letter From The CEO 4 LETTER FROM THE CEO Garbsen, 29 October 2026 Dear Shareholders, As in every financial report, it is a personal priority of mine to provide you with a transparent overview of our business performance. In the third quarter, this fell short of our expectations. I w ill inform you about this just as openly as I will about the progress we have made in individual areas. On 30 September 2026, we issued a profit warning. A key reason for this was that major orders in the solar business have not yet been received as expected. Also i n Advanced Packaging, expected orders have been delayed compared to our original planning. As a result, they will no longer contribute to revenue in the current year. These delays are weighing on our business performance and make the third quarter a weak one overall. Although we have made significant progress, developments in Advanced Packaging have so far progressed more slowly than we expected this year, underscoring just how complex and protracted the disruptive transformation of semiconductor production is. The AI-driven expansion of high-performance computers is increasing the demand for high- performance chips and broadening the potential applications for glass and LIDE in Advanced Packaging. Based on external market studies and our own analyses, we have ass essed the addressable market for our LIDE solutions: By 2030, it could grow to a cumulative total of approximately EUR 1.7 billion. A prerequisite for our participation is that we establish ourselves as a qualified and listed supplier in the relevant stages of the value chain. In recent years, LPKF has broadly positioned itself in the market for patterned glass in Advanced Packaging and has supported numerous customers and partners through initial system installations during the development and qualification phase. The first market participants have now reached the technical maturity required to award contracts for the production ramp-up phase. However, the production ramp -up phase is taking longer than originally expected, which is causing a corresponding delay in order intake. At the same time, we are observing increasing competition in this highly dynamic market for Advanced Packaging with glass. The decisive factor remains the timing, when development and qualification projects will result in orders for the production ramp-up. The Letter of Intent (LOI) we received in the third quarter from a leading Asian manufacturer is an important milestone and underscores our prospects of becoming part of the supply
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Quarterly Financial Report Letter From The CEO 5 chain for the production ramp-up phase. What matters here is not the volume of the LOI, but the fact that this leading manufacturer has clearly chosen LPKF. We already reported on an initial follow-up order for production purposes in the first quarter. Following this year’s delays, it is particularly important to secure strategically relevant orders and translate the opportunities offered by our technology into robust business growth. Together with our customers and partners, we are working on the next s teps and will continue to keep our investors transparently informed about strategic progress and timing challenges. Overall, business performance in the first nine months of 2026 remained unsatisfactory. The volatile macroeconomic environment and global crises continue to weigh on our core business: customers are postponing investments or making decisions more slowly. Geopolitical tensions, particularly the Iran conflict and its aftermath, are also increasing supply chain risks, complicating maritime trade, and driving up energy and raw material prices. This directly impacts our export-oriented business model. In the Solar segment, following very strong previous years, we are currently recording virtually no system sales. Customers are holding back on investments in anticipation of the expected technology shift toward perovskite solutions. Business Performance in the First Nine Months of 2026 LPKF generated consolidated revenue of EUR 60.3 million in the first nine months of 2026. In the same period of the previous year, revenue was EUR 83.9 million. Revenue thus declined by 28.1%. A significant factor in the revenue decline was substantially l ower revenue in the Solar segment. EBIT declined to EUR -12.8 million, compared with EUR -3.3 million in the prior-year period; the EBIT margin stood at -21.2%, compared with -3.9%. Adjusted EBIT totaled EUR -8.9 million, compared with EUR -0.8 million in the prior -year period. The adjusted EBIT margin changed from -1.0% to -14.7%. Adjusted EBIT is calculated by reducing EBIT by restructuring and severance costs, effects from changes in the scope of consolidation, and changes in the long-term incentive resulting from fluctuations in the performance factor or the stock price. Free cash flow amounted to EUR -11.7 million, compared with EUR -5.4 million in the prior year. Order intake reached EUR 65.1 million, down EUR 0.3 million from the prior-year figure of EUR 65.4 million. As of 30 September 2026, the order backlog totaled EUR 31.9 million, compared with EUR 32.5 million a year earlier. Net working capital decreased by EUR 11.5 million to EUR 24.8 million on a year-over-year basis. The number of employees fell from 736 to 651. Business Performance in the Third Quarter of 2026 In the third quarter of 2026, the LPKF Group generated consolidated revenue of EUR 23.9 million, which was 4% below the same quarter of the previous year (EUR 24.8 million). In the third quarter, the Welding (EUR +3.6 million) and Electronics (EUR +1.2 million) segments reported an increase in revenue compared to the same quarter of the previous year. The Solar (EUR -6.1 million) and Development (EUR -1.2 million) segments, on the other hand, showed a decline in revenue compared to the same quarter of the previous year.
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Quarterly Financial Report Letter From The CEO 6 Update on Segment Performance We are very well positioned in Advanced Packaging and see attractive prospects for our technology in a very large and attractive market. However, despite significant progress, the complex transformation of semiconductor production toward glass-based solutions is taking longer than originally expected. The Letter of Intent we received is significant not because of its volume – in the mid-single- digit millions of euros – but because one of the most important players in this market has selected LPKF as a supplier. Leading U.S. universities are also turning to LPKF. Following Penn State University, Purdue University in Indiana has also ordered a LIDE system. By purchasing an M5000 laser system from LPKF, researchers at Purdue aim to expand the technological capabilit ies of their nanotechnology center and strengthen their position as one of the leading institutions for semiconductor research in the U.S. The university also maintains extensive ties to major companies in the semiconductor industry. At the same time, we are expanding our offerings beyond the LIDE process: complementary technologies for the separation of glass -based packages and for the laser -based bonding of multilayer glass structures reinforce our profile as a systems provider. In a ddition, we are developing and testing technologies for the integration of co -packaged optics on glass substrates, in which the glass also performs optical functions. In the Development segment, order intake is above the prior -year level. Business in Europe and China is developing favorably, while uncertainties regarding the allocation of public funds in the education sector are weighing on our U.S. business. Through in tensive sales activities and numerous trade show appearances, we have strengthened our market presence. Demand for our systems for defense applications continues to grow. In the Electronics (SMT) segment, business performance in the first nine months was positive: both revenue and order intake were significantly higher than in the prior year. Our Tensor technology, which is a key differentiator of LPKF’s cutting systems, ma de a significant contribution to this. The significantly higher performance associated with this technology gave LPKF a noticeable competitive advantage. Overall, demand for our solutions for the precise laser cutting of printed circuit boards remains high. Laser-based separation of printed circuit boards thus remains an important component of our portfolio and offers long -term opportunities in light of the increasing use of laser-based manufacturing processes. In the Solar segment, the expected technological shift toward perovskite solutions continues to shape business performance. Customers are postponing investments, causing revenue after nine months to fall significantly below the prior -year level. The low or der intake underscores the persistently difficult market situation. In particular, the expected – but as yet unconfirmed – major solar order from China was a key factor in our decision to revise the forecast for the full year 2026. As a result, the solar business is weighing significantly on the Group’s revenue performance in the current year. At the same time, our strong technological foundation and leading market position provide a solid starting point for the next phase of development. We consider ourselves well-prepared to navigate this transition phase and to benefit disproportionately from a future ramp-up in production using new cell technologies.
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Quarterly Financial Report Letter From The CEO 7 In the Welding segment, revenue after nine months was significantly below the prior -year level. Our focus on attractive applications outside the traditional automotive industry – particularly in consumer electronics, smart robotics, and medical technology – is progressing; however, the necessary continuity in order intake is still lacking for sustainably profitable growth. We have successfully completed the structural changes at the Fürth site in Germany, thereby making the organization more efficient. We continue to see attractive growth opportunities in our new target markets and are working to translate these into sustainable, profitable business growth. North Star Transformation Program Our North Star program is a central component of our strategy to achieve a double-digit EBIT margin by 2028. We expect annual cost savings of just over EUR 8 million. Due to the varying timelines for the rollout of individual measures, the cost -saving effe cts will materialize gradually during the current financial year and in subsequent years. Implementation is proceeding according to plan; we have successfully completed the first phase of the program. In the second phase, we are preparing a functional organizational structure with centralized functions for development, operations, engineering, production/supply chain, and sales, as well as strong product lines and corporate functions. We expect this to generate further annual cost savings. The operational changes required for this and the planned workforce reduction are currently the subject of discussions and negotiations with the works council. At the same time, we are moving forward with internal preparations: The future leadership team has been appointed, and the key value -added processes have been defined. We will continue to refine and implement this structure until the planned launch of the new organization on 1 January 2027. Outlook Following a subdued first nine months, we are facing a challenging fourth quarter. On 30 September we adjusted our forecast for the financial year 2026. We now expect consolidated revenue of EUR 93 to 100 million (previously: EUR 105 to 120 million) and an adjusted EBIT margin of -7.0% to -2.5% (previously: -3.0% to 4.5%). We remain confident about the LPKF Group’s medium -term development. While our segments are currently performing differently, our goal remains clear: We are aiming for a sustainable double-digit consolidated EBIT margin by 2028. In the semiconductor market in particular, we see very strong strategic positioning and significant growth potential with LIDE and the expansion of our product portfolio. Our SMT division and Rapid PCB Prototyping also offer very solid growth prospects. Despite the current weakness in orders in the solar business, we see the transition to perovskite technology as a promising growth area with significant opportunities for LPKF. Following the strategic realignment in plastic welding, we also expect profitab le long-term growth in this segment. To ensure the LPKF Group remains resilient and competitive in the long term, we are currently implementing significant structural adjustments, which we must continue to pursue consistently. In this phase of economic uncertainty, the clear priority is there fore to
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Quarterly Financial Report Letter From The CEO 8 strengthen our structural foundation, meaning that no significant growth momentum is to be expected in the short term. On behalf of the Management Board, I would like to thank our employees for their great dedication in a challenging environment and you, dear shareholders, for your trust and support. Sincerely, Dr. Klaus Fiedler Chief Executive Officer
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Quarterly Financial Report Interim Management Report as of 30 September 2026 9 INTERIM MANAGEMENT REPORT AS OF 30 SEPTEMBER 2026 BASIC INFORMATION ON THE GROUP The basic information on the LPKF Group in the combined management and Group management report for 2025 continues to apply unchanged. REPORT ON ECONOMIC POSITION NET ASSETS, FINANCIAL POSITION AND RESULTS OF OPERATIONS OF THE GROUP Earnings situation In the third quarter of 2026, the LPKF Group generated consolidated revenue of EUR 23.9 million, down 4% from the same quarter of the prior year (EUR 24.8 million). The revenue for the first nine months totaled EUR 60.3 million (EUR 83.9 million). The decline was the result of the Welding segment (EUR -8.8 million), the Solar segment (EUR -14.6 million), the Development segment (EUR -0.6 million), and the Electronics segment, which recorded a slight increase (EUR +0.5 million). In the third quarter of 2026, the Electronics (EUR +1.2 million) and Solar (EUR +3.2 million) segments recorded an upturn in turnover compared with the same quarter of the prior year. By contrast, the Welding (EUR -4.0 million) and Development (EUR -1.2 million) segments reported a decrease in turnover compared with the same quarter of the prior year. The decline in revenue in the Welding segment is primarily due to a major contract that was completed in the prior year. In the first nine months, EBIT (earnings before interest and taxes) stood at EUR -12.8 million (prior year: EUR -3.3 million). In the third quarter of 2026, EBIT was EUR 1.3 million (prior year: EUR -1.6 million). The adjusted EBIT for the first nine months was EUR -8.9 million (prior year: EUR -0.8 million) and for the third quarter of 2026 was EUR 1.6 million (prior year: EUR -0.1 million). Adjusted EBIT is calculated by reducing EBIT by restructuring and severance costs, effects from changes in the scope of consolidation, and changes in the long-term incentive resulting from fluctuations in the performance factor or the stock price. The LPKF Group did not recognize any deferred tax assets on the loss incurred in the first nine months, as the limit for recognizing such assets under IAS 12 based on the time horizons and the cap on the maximum amount of deferred tax liabilities had already been exhausted. After nine months, orders received totaled EUR 65.1 million, was slightly below the prior- year figure of EUR 65.4 million. The order backlog as of 30 September 2026, of EUR 31.9 million, was slightly below the prior-year figure of EUR 32.5 million.
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Quarterly Financial Report Interim Management Report as of 30 September 2026 10 Capitalized research and development expenses included EUR 3.4 million in development costs for products and software ( prior year: EUR 4.6 million). Other income of EUR 2.4 million was below the prior-year figure (prior year: EUR 2.6 million). The decline compared to the same period last year resulted primarily from lower currency effects (EUR -0.2 million). The cost of materials ratio, at 30%, was slightly below the prior-year figure of 34%. As of 30 September 2026, the LPKF Group employed 651 people, 85 fewer than on 30 September 2025. The decline in headcount was in line with revenue trends and occurred primarily in the production and development divisions. Personnel expenses for the reporting period totaled EUR 40.0 million, down from the prior-year figure (EUR 40.7 million). The decrease was primarily due to the reduction in headcount. Depreciation and amortization for the reporting period totaled EUR 5.6 million, down EUR 0.2 million from the prior-year figure. Of this amount, EUR 2.1 million was attributable to depreciation and amortization of capitalized in -house work (prior year: EUR 2.3 million). Other operating expenses of EUR 15.2 million, were below the prior-year figure of EUR 19.5 million. The decline was primarily due to lower expenses for research and development (EUR -0.9 million), contract work (EUR -0.8 million), travel expenses (EUR -0.5 million), expenses for rent, utilities, and real estate (EUR -0.4 million) and lower voluntary social benefits (EUR -0.2 million). In addition, the one -time effect of the deconsolidation of LPKF Japan in the prior year, amounting to EUR 1.5 million, was no longer present. At the same time, legal and consulting costs rose by EUR 1.5 million to a total of EUR 3.2 million (prior year: EUR 1.6 million) due to the North Star program. The use of overdraft facilities resulted in a small amount of interest expense for short -term withdrawals and loans. After interest and taxes, consolidated net income amounted to EUR -13.7 million EUR (prior year: EUR -5.0 million). Financial position The Group’s cash and cash equivalents decreased during the reporting period from EUR 10.0 million as of 31 December 2025, to EUR 4.7 million. The cash and cash equivalents balance comprising cash and cash equivalents and current account liabilities decreased to EUR -6.9 million compared with the same period last year (prior year: EUR -7.5 million). Cash flow from operating activities amounted to EUR -8.1 million after nine months (prior year: EUR 0.0 million). The negative operating cash flow for the reporting period resulted from the net loss for the Group. In the third quarter, cash inflow from operating activities totaled EUR 1.0 million. Capital expenditures, at EUR 1.2 million, were below the level of the same quarter of the prior year. Following a cash outflow from investing activities of EUR -3.7 million in the first nine months (prior year: EUR -5.4 million), free cash flow amounted to EUR -11.7 million (prior year: EUR -5.4 million). Cash outflow from financing activities amounted to EUR -1.9 million (prior year: EUR -1.4 million), primarily due to interest payments and the repayment of lease liabilities.
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Quarterly Financial Report Interim Management Report as of 30 September 2026 11 The LPKF Group has the necessary funds for investments and further growth, consisting of cash and cash equivalents and available credit lines. Net assets Asset and capital structure analysis Compared with 31 December 2025, noncurrent assets decreased by EUR -1.7 million to EUR 58.2 million. The change was primarily due to property, plant, and equipment (EUR -2.1 million). This was offset by an increase in intangible assets of EUR 0.9 million. Current trade receivables decreased by EUR 1.9 million to EUR 11.6 million during the reporting period. Inventories increased by EUR 5.1 million to EUR 24.7 million. This is primarily attributable to a needs-based increase in inventory, which is at the previous year’s level. Cash and cash equivalents decreased by EUR 5.3 million and stood at EUR 4.7 million as of 30 September 2026. Overall, current assets decreased by EUR 2.4 million to EUR 44.3 million. Net working capital increased by EUR 0.4 million, from EUR 24.4 million as of 31 December 2025, to EUR 24.8 million as of 30 September 2026. Inventories rose by EUR 5.1 million, while accounts receivable decreased by EUR 1.7 million. Trade payables decreased by EUR 0.3 million. Cash and cash equivalents decreased by EUR 5.3 million to EUR 4.7 million as of 30 September 2026, due to the decline in revenue. At 62.9% as of 30 September 2026, the equity ratio was lower than the 69.8% recorded at the end of 2025. Long-term liabilities increased by EUR 0.7 million. Current liabilities rose by EUR 8.7 million to EUR 33.2 million. The increase is primarily due to higher liabilities to banks (EUR +8.7 million). Current provisions decreased by EUR 2.5 million to EUR 4.6 million as of 30 September 2026. The decrease is primarily due to the reduction in “Other provisions” as part of the North Star restructuring measures. Long-term provisions increased by EUR 1.2 million to EUR 1.5 million, which is primarily attributable to the increase in provisions for long -term incentives (EUR 1.2 million). Other than that, the balance sheet structure did not change significantly. Investments Capital expenditures within the Group were lower in the first nine months of the financial year than in the same period of the previous year.
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Quarterly Financial Report Interim Management Report as of 30 September 2026 12 Segment performance The following table provides an overview of the operating segments’ performance: Revenue Adjusted EBIT 0 in Mio. EUR 9 Months 2026 9 Months 2025 9 Months 2026 9 Months 2025 0 Electronics 20.5 20.0 -3.4 -5.4 Development 17.5 18.1 0.5 0.1 Welding 11.2 20.0 -4.5 2.1 Solar 11.2 25.8 -1.5 2.4 Total 60.3 83.9 -8.9 -0.8 Adjusted segment EBIT includes the segments’ operating activities and the Group-wide allocations attributable to them, adjusted for restructuring and severance expenses, as well as changes in long-term incentives resulting from fluctuations in the performance factor or the stock price. EMPLOYEES The following table shows the development in employee numbers in the first nine months of 2026: Area 09/30/ 2026 12/31 2025 Development 171 201 Production 102 131 Service 92 97 Sales 138 142 Administration 148 156 Total 651 727 The total number of employees as of 30 September 2026 corresponds to 602 full-time equivalents (FTE), compared to 684 FTE at the end of 2025. OVERALL ASSESSMENT OF THE GROUP'S ECONOMIC SITUATION LPKF continues to anticipate a challenging and uncertain market environment for the fourth quarter of financial year 2026. The main factors driving this outlook are, in particular, ongoing geopolitical and trade tensions and the resulting reluctance on the part of customers to invest.
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Quarterly Financial Report Interim Management Report as of 30 September 2026 13 The North Star efficiency improvement program is a central component of the company’s strategy to achieve a double -digit EBIT margin by 2028. The company expects annual cost savings of just over EUR 8 million. Due to the staggered rollout of the individual measures, the cost -saving effects will materialize gradually in the current financial year and in subsequent years. Implementation is proceeding according to plan; the first phase of the program has been successfully completed. As part of the second phase of the program, the company is preparing a functional organizational structure with centralized functions for development, operations, engineering, production and supply chain, as well as sales. This structure is complemented by strong product lines and corporate functions. The company expects this to yield further annual cost savings. The operational changes required for this and the planned workforce reduction are currently the subject of consultations and negotiations with the works council. LPKF addresses potential liquidity risks through forward -looking, currency -differentiated liquidity and working capital planning. In addition to the key factors affecting cash flows, this planning also takes into account risks that could impact the future liquidity situation. The LPKF Group has only a low level of debt. In addition to its own cash and cash equivalents, LPKF had access to a credit line of up to 12.5 million EUR in cash as of 30 September 2026, under a syndicated loan for working capital. In addition to the cash, the syndicated loan also includes an additional guarantee facility of 7.5 million EUR. The syndicated loan comprises a working capital facility of EUR 25.0 million and a guarantee facility of EUR 7.5 million. It continues to be provided by five globally active financing partners with a term ending on 31 December 2028. The Management Board assesses the Group’s earnings, assets, and financial position as solid and orderly in light of the ongoing program to increase profitability and the syndicated loan agreement. It continues to assume that the Group has sufficient resour ces to continue its business operations for at least another twelve months and that the going -concern assumption is appropriate as the basis for financial reporting.
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Quarterly Financial Report Interim Management Report as of 30 September 2026 14 SUPPLEMENTARY REPORT No significant events with a material effect on the net assets, financial position or results of operations of LPKF have occurred since the reporting date on 30 September 2026. OPPORTUNITIES AND RISKS The opportunities and risks facing the LPKF Group are presented and explained in detail in the combined management report and Group management report for 202 5. These explanations remain unchanged. In particular, the opportunity mentioned in the 2026 Half-Year Financial Report – namely, the entry into high -volume manufacturing in Advanced Packaging – has further materialized through a letter of intent from a leading Asian manufacturer. From the company's perspective, there are currently no risks that could jeopardize its continued existence, nor are there any such risks apparent for the future. REPORT ON EXPECTED DEVELOPMENTS MANAGEMENT'S ASSESSMENT OF THE GROUP'S EXPECTED DEVELOPMENT Development of the Group For 2026, and particularly for the fourth quarter, leading international economic institutions continue to expect moderate growth in the global economy, though this growth remains subdued by historical standards. The International Monetary Fund forecasts global growth of around 3.0 - 3.1% for 2026 (IMF, World Economic Outlook Updates 2026), the OECD anticipates approximately 2.8 - 2.9% (OECD Economic Outlook 2026), while the World Bank has raised its forecast to around 2.6% (World Bank, Global Economic Prospects 2026). The global economy continues to be characterized by regionally varying growth rates, persistently high geopolitical risks – particularly in the Middle East – fluctuations in energy prices, the monetary policies of major central banks, and the ongoing process of adjustment to an environment of higher interest rates and the energy transition. Overall, global economic output is thus expected to continue on a positive but subdued trajectory, although uncertainty in the macroeconomic environment remains above average. Geopolitical tensions remained at a very high level throughout the reporting period and continued to manifest themselves through the ongoing military conflict in the Middle East, particularly in Iran. Despite isolated diplomatic initiatives, the conflict h as not yet been permanently resolved; the associated risks to the global economy remain real and tangible. The medium- and long-term impacts on global economic development still cannot be reliably quantified.
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Quarterly Financial Report Interim Management Report as of 30 September 2026 15 It has already become apparent over the course of the year that the conflict significantly increases the risk of sustained disruptions to global supply chains and heightened volatility in the energy markets. During periods of rising tensions, there were at times noticeable spikes in energy prices, which can consequently have a significant impact on the costs of energy-intensive materials and plastics – whether permanently or periodically. Furthermore, geopolitical tensions have the potential to adversely affect the availability of transportation capacity as well as the level of transportation costs. During the reporting period, the Group has already taken proactive measures to mitigate these risks, including the early reservation of transportation capacity, the diversification of supply and transportation routes, and continuous monitoring of market an d supply conditions. Nevertheless, the risk remains that a possible escalation or persistence of tensions in other regions of the world could place additional strain on the overall economic environment and, consequently, on the Group’s business. Despite the uncertain economic outlook, LPKF sees growth opportunities for the Group in the medium term. The strategic focus of LPKF Laser & Electronics SE is on capitalizing on the historic opportunity in the semiconductor market and establishing itself as a recognized supplier for advanced packaging applications, while consistently capitalizing on the oppor tunities in its core business. Looking ahead, the semiconductor business is expected to play a dominant role in the portfolio, both strategically and in terms of its contribution to revenue and earnings; however, the core business remains a central pillar for balancing out the cyclical nature of the semiconductor market and providing a broader and more stable foundation for the business. In the Management Board’s assessment, thanks to the North Star program launched in September 2025 to sustainably improve profitability, the company is financially stable despite the current economic situation and is being positioned to return to sustainable profitability. LPKF is well -positioned to expand its business activities through market -ready new developments, an even stronger focus on customer needs, and operational improvements. Investments in the development of n ew technologies and applications are being carried out in full despite the currently challenging economic conditions. The Management Board continues to see significant potential for sustainably increasing the company’s revenue and earnings. This potential stems from the technologies mastered by LPKF, the ability to integrate them into high -performance solutions, and the e xceptional expertise of its employees. It enables the company to offer its customers a decisive value proposition. LPKF will continue to remain agile and flexible as a company in order to respond quickly to changes in economic conditions. Overall, LPKF anticipates profitable growth in the medium term, even in a volatile economic environment. Financially, the company is and remains solidly positioned and has the necessary resources for investments and further growth.
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Quarterly Financial Report Interim Management Report as of 30 September 2026 16 Key figures Forecast for fiscal year 202 6 On 30 September 2026, LPKF revised its forecast for financial year 2026 and now expects consolidated revenue of EUR 93 to 100 million (previously: EUR 105 to 120 million) and an adjusted EBIT margin of -7.0% to -2.5% (previously: -3.0% to 4.5%), corresponding to adjusted EBIT of EUR -6.5 to -2.5 million. Adjusted EBIT is calculated by excluding restructuring and severance costs, effects from changes in the scope of consolidation, and adjustments to the Long -Term Incentive (LTI) resulting from fluctuations in the performance factor or the stock price. For financial year 2026, LPKF anticipates exceptionally high restructuring costs of approximately 3 - 4% of revenue as part of the North Star transformation program. Outlook for the Coming Years The Management Board is confident about the medium -term development of the LPKF Group. While the segments are currently performing differently, the goal remains clear: The Management Board aims to achieve a sustainable double-digit consolidated EBIT margin by 2028. Particularly in the semiconductor market, the company sees itself as very well positioned strategically – thanks to LIDE and the expansion of its product portfolio – and anticipates significant growth potential. The SMT division and Rapid PCB Prototyping also offer very solid growth prospects. Despite the current weakness in orders in the solar business, LPKF expects the transition to perovskite technology to be a promising growth area with significant opportunities for LPKF. Following the strategic realignment in plastic welding, the Management Board also anticipates profitable long-term growth in this segment. To position the LPKF Group for sustainable resilience and competitiveness, the Management Board is currently implementing significant structural adjustments that must be consistently pursued. In this phase of economic uncertainty, the clear priority is the refore on strengthening the structural foundation, meaning that no significant growth momentum is expected in the short term.
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Quarterly Financial Report Consolidated financial statements 17 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FROM 1 JANUARY TO 30 SEPTEMBER 2026 in EUR thousand 01-09 / 2026 01-09 / 2025 Revenue 60,349 83,947 Changes in inventories of finished goods and work in progress 2,618 -1,513 Other own work capitalized 3,386 4,586 Other income 2,415 2,639 Cost of materials -20,885 -26,925 Staff costs -39,979 -40,667 Depreciation and amortization -5,555 -5,832 Impairment expenses (including reversals) on financial assets and contract assets 40 -2 Other expenses -15,202 -19,495 Operating Result (EBIT) -12,812 -3,261 Finance income 5 2 Finance costs -685 -889 Earnings before tax -13,492 -4,148 Income taxes -215 -897 Consolidated net profit/loss -13,708 -5,045 Other comprehensive income Items that will not be reclassified to profit or loss Revaluations of defined benefit plans 0 0 Tax effects 0 0 Items that will be reclassified to profit or loss Currency translation differences 31 -1,010 Other comprehensive income after taxes 31 -1,010 Total comprehensive income -13,676 -6,055 in EUR Earnings per share (basic) -0.56 -0.24 Earnings per share (diluted) -0.56 -0.24
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Quarterly Financial Report Consolidated statement of comprehensive Income 18 FROM 1 JULY TO 30 SEPTEMBER 2026 in EUR thousand 07-09 / 2026 07-09 / 2025 Revenue 23,898 24,786 Changes in inventories of finished goods and work in progress 1,218 -173 Other own work capitalized 1,188 1,458 Other income 921 816 Cost of materials -8,293 -8,343 Staff costs -10,916 -12,017 Depreciation and amortization -1,754 -1,794 Impairment expenses (including reversals) on financial assets and contract assets -1 37 Other expenses -4,983 -6,330 Operating Result (EBIT) 1,279 -1,559 Finance income 2 1 Finance costs -315 -280 Earnings before tax 966 -1,839 Income taxes -84 -263 Consolidated net profit/loss 882 -2,102 Other comprehensive income Items that will not be reclassified to profit or loss Revaluations of defined benefit plans 0 0 Tax effects 0 0 Items that will be reclassified to profit or loss Currency translation differences -277 0 Other comprehensive income after taxes -277 0 Total comprehensive income 605 -2,102 in EUR Earnings per share (basic) 0.04 -0.09 Earnings per share (diluted) 0.04 -0.09
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Quarterly Financial Report Consolidated Balance sheet 19 CONSOLIDATED BALANCE SHEET AS OF 30 SEPTEMBER 2026 in EUR thousand 09/30/ 2026 12/31/ 2025 ASSETS Intangible assets and goodwill 19,934 18,969 Property, plant and equipment 35,418 37,462 Right of use assets (Leasing) 1,832 2,219 Other financial assets 152 152 Other non-financial assets 259 262 Deferred tax assets 638 857 Non-current assets 58,234 59,921 Inventories 24,703 19,641 Trade receivables 11,596 13,491 Income tax receivables 161 438 Other non-financial assets 3,114 3,113 Cash and cash equivalents 4,722 10,038 Current assets 44,296 46,721 Total assets 102,530 106,642
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Quarterly Financial Report Consolidated Balance sheet 20 in EUR thousand 0 09/30/ 2026 12/31/ 2025 0 EQUITY 0 Subscribed capital 0 24,497 24,497 Capital reserve 0 15,463 15,463 Other reserves 0 12,942 12,894 Net retained profits 0 11,640 25,244 Equity 0 64,542 78,098 0 LIABILITIES Provisions for pensions and similar obligations 476 492 Other financial liabilities 0 770 1,415 Deferred income 0 259 291 Contract liabilities 0 468 426 Other provisions 0 1,521 302 Deferred tax liabilities 0 1,250 1,125 Non-current liabilites 0 4,743 4,051 Other provisions 0 4,569 7,122 Other financial liabilities 0 12,285 3,891 Deferred income 36 36 Trade payables 0 4,295 4,606 Contract liabilites 0 6,782 3,717 Other non-financial liabilities 0 5,278 5,121 Current liabilities 0 33,245 24,493 Liabilities 0 37,988 28,544 0 0 Total equity and liabilities 0 102,530 106,642
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Quarterly Financial Report Consolidated statement of changes in equity 21 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY AS OF 30 SEPTEMBER 2026 Other reserves in EUR thousand Subscribed capital Capital reserve Other retained earnings As of 01/01/2026 24,497 15,463 10,560 Consolidated net profit/loss Other comprehensive income after taxes Total comprehensive income 0 0 0 Changes in the consolidation scope Share-based payment As of 09/30/2026 24,497 15,463 10,560 Other reserves in EUR thousand Subscribed capital Capital reserve Other retained earnings Adjusted as of 01/01/2025 24,497 15,463 10,529 Consolidated net profit/loss Other comprehensive income after taxes Total comprehensive income 0 0 0 Use of authorized capital Share-based payments Adjusted as of 09/30/2025 24,497 15,463 10,529
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Quarterly Financial Report Consolidated statement of changes in equity 22 Revaluations of defined benefit plans Share-based payment reserve Foreign currency translation reserve Net retained profits Total equity -237 1,034 1,434 25,348 78,099 -13,708 -13,708 0 31 151 0 120 31 -13,708 -13,557 0 0 0 0 0 -237 1,154 1,465 11,640 64,542 Revaluations of defined benefit plans Share-based payment reserve Foreign currency translation reserve Net retained profits Total equity -247 737 2,271 38,512 91,762 -5,045 -5,045 0 -1,011 -1,013 0 -2 -1,011 -5,045 -6,058 0 0 1 1,081 1,082 0 222 0 0 222 -247 957 1,261 34,548 87,010
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Quarterly Financial Report Consolidated statement of cash flows 23 CONSOLIDATED STATEMENT OF CASH FLOWS FROM 1 JANUARY TO 30 SEPTEMBER 2026 in EUR thousand 01-09 / 2026 01-09 / 2025 Cash flow from operating activities Consolidated net profit/loss -13,708 -5,045 Adjustments: Tax expenses 215 895 Financial expenses 685 889 Financial income -5 -2 Depreciation/amortization of non-current assets 5,555 5,832 Gains/losses on the disposal of property, plant and equipment -40 -9 Impairment losses/reversals -81 248 Other non-cash expenses and income 118 1,170 Changes: Inventories -4,770 160 Trade receivables 2,170 6,792 Other assets 35 -1,273 Provisions -1,387 -268 Trade payables -321 -1,437 Other liabilities 3,064 -6,998 Other: Interest received 5 2 Income taxes refund (paid) 409 -954 Cash flow from operating activities -8,056 2 Cash flow from investing activities Investments in intangible assets -3,465 -4,678 Investments in property, plant and equipment -293 -727 Revenue from the disposal of assets 73 22 Cash flow from investing activities -3,684 -5,383
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Quarterly Financial Report Consolidated statement of cash flows 24 in EUR thousand 01-09 / 2026 01-09 / 2025 Cash flow from financing activities Dividends paid 0 0 Interest paid -548 -821 Proceeds from (financial) borrowings 0 0 Payments of lease liabilities -751 -585 Payments for repaying loans -583 0 Cash flow from financing activities -1,882 -1,406 Change in cash and cash equivalents Increase (decrease) in cash and cash equivalents -13,622 -6,787 Cash and cash equivalents as of 1 January 7,038 -1,164 Effects of exchange rate changes on cash and cash equivalents -354 422 Cash and cash equivalents as of end of reporting period -6,938 -7,529
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Quarterly Financial Report Notes on the preparation of the Quarterly Financial Report 25 NOTES ON THE PREPARATION OF THE QUARTERLY FINANCIAL REPORT This financial report as of 30 September 2026 complies fully with the provisions of IAS 34. The interpretations of the International Financial Interpretations Committee (IFRIC) have been taken into account. The figures for the previous period have been calculated using the same principles, unless new standards required changes. The same applies to the accounting and valuation methods and the calculation methods used in the interim financial statements. New standards applicable in the current fiscal year have already been applied. Estimates of amounts presented in previous interim reporting periods of the current fiscal year, the last annual financial statements, or in previous fiscal years have not been changed in this financial report. There have been no significant changes in contingent liabilities and contingent assets since the last balance sheet date. This financial report has not been audited or reviewed. Information on events of particular signific ance after the balance sheet date is provided in the supplementary report to the interim management report. Basis of consolidation In addition to the Group's parent company LPKF Laser & Electronics SE, Garbsen, the following subsidiaries have been included in the consolidated financial statements: Name Equity interest Full consolidation Registered office in % LPKF SolarQuipment GmbH Suhl, Germany 100.0 LPKF WeldingQuipment GmbH Fürth, Germany 100.0 LPKF Laser & Electronics d.o.o. Naklo, Slovenia 100.0 LPKF Distribution Inc. Tualatin (Portland), US 100.0 LPKF (Tianjin) Co. Ltd. Shanghai, China 100.0 LPKF Shanghai Co., Ltd. Shanghai, China 100.0 LPKF Laser & Electronics Korea Ltd. Seoul, Korea 100.0 LPKF Laser & Electronics Vietnam Co., Ltd. Bac Ninh/Vietnam 100.0
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Quarterly Financial Report Notes on the preparation of the Quarterly Financial Report 26 Transactions with related parties There are no reportable business relations with related parties of the LPKF Group. Garbsen, 29 October 2026 LPKF Laser & Electronics SE The Management Board Dr. Klaus Fiedler Peter Mümmler Chief Executive Officer Chief Financial Officer
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Quarterly Financial Report Financial calendar 27 FINANCIAL CALENDAR 24 March 2027 Publication of Annual Report 2026 28 April 2027 Publication of three-months report 2027 03 June 2027 Annual General Meeting in Hanover 28 July 2027 Publication of six-months report 2027 27 October 2027 Publication of nine-months report 2027
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Quarterly Financial Report Financial calendar 28 CONTACT & PUBLISHING INFORMATION Published by Text LPKF Laser & Electronics SE LPKF Laser & Electronics SE Osteriede 7 30827 Garbsen Cover Layout Germany LPKF Laser & Electronics SE Telephone: +49 5131 7095-0 Cover: Jenko Sternberg Design Telefax: +49 5131 7095-90 Foto: Nils Anspach, LPKF investorrelations@lpkf.com www.lpkf.com Cover The image shows a multilayer glass substrate with integrated optical waveguides, a cavity for mounting a photonic integrated circuit, and embedded TGVs at the bottom for electrical signal routing – a key structure for achieving the data rates and energy efficiencies required for future AI and high‑performance chipsets using co-packaged optics. Internet For more information on LPKF Laser & Electronics SE and the addresses of subsidiaries, please go to www.lpkf.com. This financial report can also be downloaded from the LPKF website. Disclaimer This financial report contains forward -looking statements that are based on the Management Board’s current estimates and forecasts and on information currently available. These forward -looking statements are not to be understood as guarantees of forecast future performanc e and results. Instead, future performance and results depend on a large number of risks and uncertainties and are based on assumptions that might not prove accurate. We disclaim any obligation to update these forward -looking statements. For mathematical r easons, rounding differences may occur in percentage figures and numbers in the tables, illustrations and texts of this report. This financial report is published in German and English. In case of any discrepancies, the German version shall prevail.