SCHMID Group Maintains 100M-Plus Revenue Target but Cuts 2026 Margin Outlook

SCHMID Group N.V. (NASDAQ:SHMD) reported a sharp increase in first-half revenue for 2026, but lowered its full-year profitability guidance after weaker-than-anticipated margins and a greater contribution from lower-margin business in China.

Revenue reached €46.0 million for the first six months of the year, up substantially from €16.9 million in the corresponding period of 2025. China accounted for more than half of the group’s first-half sales.

Gross Profit Returns to Positive Territory

Gross profit improved to €9.8 million, representing a gross margin of 21.2%. That compared with a gross loss of €1.6 million in the first half of last year.

The operating loss was broadly unchanged at €8.0 million, versus a loss of €7.8 million a year earlier. Adjusted EBITDA, which SCHMID reports as a non-IFRS measure, improved considerably to a loss of €0.6 million from a loss of €11.6 million in the first half of 2025.

However, the reported net loss widened sharply to €47.8 million from €10.2 million. SCHMID attributed much of the increase to non-cash accounting effects linked to the January 2026 conversion of the XJ Harbour liability into shares and changes in the fair value of its warrants.

SCHMID Cuts Adjusted EBITDA Margin Forecast

Following the first-half performance, SCHMID lowered its full-year 2026 Adjusted EBITDA margin guidance to between 6% and 9%, compared with its previous target of more than 12%.

The company cited weaker-than-expected profitability during the first half and a shift in its product mix towards lower-margin business in China.

Despite the margin downgrade, SCHMID maintained its expectation for full-year revenue of more than €100 million.

Order Intake Strengthens During Third Quarter

The company reported year-to-date order intake of €96.6 million as of August 21, 2026, including €52.3 million secured during the third quarter up to that date.

SCHMID retained its full-year order intake forecast of between €125 million and €150 million and now expects the final figure to fall within the upper half of that range.

The stronger order momentum provides additional visibility for the remainder of 2026 as the company works towards its unchanged annual revenue target.

Debt Reduction Improves Capital Structure

SCHMID also made progress in reducing its financial debt during the first half. Debt declined by close to €30 million between December 31, 2025 and June 30, 2026, including €30.75 million converted into equity.

Cash and cash equivalents stood at €2.3 million at the end of June. By July 31, the balance had increased to approximately €14.3 million following the July 14 closing of $20.0 million in 2029 Convertible Notes.

SCHMID Advances U.S. Technology and China Expansion Plans

Operationally, SCHMID delivered its first InfinityLine H+ system for panel level packaging to a U.S. technology company in March 2026, marking progress in its advanced manufacturing equipment business.

The company also signed a letter of intent in June for a new manufacturing campus in Zhongshan, China. The facility is expected to require an investment of approximately €11 million and is currently targeted to begin operations around the fourth quarter of 2027.

While SCHMID’s first-half revenue growth and improving order intake point to stronger commercial activity, the reduced Adjusted EBITDA margin forecast highlights continued pressure on profitability as the company manages its changing geographic and product mix.

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