SCHMID Group cuts profit margin outlook, keeps revenue target above €100M

SCHMID Group N.V. (NASDAQ: SHMD) reported revenue of €46.0 million for the first half of 2026, up from €16.9 million in the same period a year earlier, according to a company press release. More than half of revenues came from China.

Gross profit reached €9.8 million, representing a 21.2% gross margin, compared to a gross loss of €1.6 million in the first half of 2025. The operating loss was €8.0 million, roughly in line with the €7.8 million operating loss reported in the prior-year period. The net loss widened to €47.8 million from €10.2 million, driven primarily by non-cash accounting effects related to the conversion of the XJ Harbour liability into shares in January 2026 and fair-value movements in the company's warrants.

Adjusted EBITDA, a non-IFRS measure, improved to €-0.6 million from €-11.6 million in the first half of 2025.

The company lowered its full-year 2026 Adjusted EBITDA margin guidance to 6–9%, down from a prior target of more than 12%, citing a weaker-than-expected first-half performance and a product mix shift toward lower-margin business in China. The full-year revenue guidance of more than €100 million was maintained.

Order intake reached €96.6 million year-to-date as of August 21, 2026, with €52.3 million received in the third quarter through that date. The full-year order intake guidance range of €125–150 million was maintained, with the company now expecting results in the upper half of that range.

The company reduced financial debt by close to €30 million between December 31, 2025, and June 30, 2026, including €30.75 million converted into equity. Cash and cash equivalents were €2.3 million as of June 30, 2026, rising to approximately €14.3 million as of July 31, 2026, following the closing of $20.0 million in 2029 Convertible Notes on July 14, 2026.

In March 2026, the company delivered its first InfinityLine H+ system for panel level packaging to a U.S. technology company. In June 2026, it signed a letter of intent for a new manufacturing campus in Zhongshan, China, expected to begin operations in approximately the fourth quarter of 2027 at a total investment of around €11 million.

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