Klaus Fiedler: There is no question that we cannot be satisfied with the business and earnings performance this year. Uncertainties arising from US trade policies affected our core business, starting in the second quarter, and led to a gap in incoming orders. Investment projects are being postponed, with European customers in particular holding back. Although trade agreements between the US and the EU, Korea, and Vietnam in the summer have created some planning foundations, we have concluded that the backlog in orders from the first half of the year can no longer be caught up or converted into revenue by year-end. Therefore, we have revised our outlook. To become more resilient to such market and revenue fluctuations and to sustainably strengthen our profitability, we have launched the „North Star“ initiative. Our goal remains to achieve a double-digit Ebit margin in the medium term.

Fiedler: Our forecast for 2025 now anticipates revenue between 115 and 125 million euros instead of 125 to 140 million euros. We expect the adjusted Ebit margin to be between 0 and 5 percent, down from the previous 6 to 9 percent.

Fiedler: I will not give an exact timeline. What matters is that our business model works. LPKF develops highly precise, scalable manufacturing processes worldwide for customers in growth markets such as semiconductors and electronics, life sciences and medical technology, or smart mobility. We are first movers in what we offer – and we intend to remain so. We serve various application areas with disruptive technologies and will leverage our business in larger markets than in the past.

Fiedler: We will not be content with being a leader in many small market segments. We need to be relevant in markets with significantly greater revenue potential. That is why we are aiming for more business in strategic future fields such as the semiconductor market. In glass structuring within the semiconductor sector – in semiconductor packaging – we see great potential. LPKF already has a firm foothold in this market. We are already operating in the eight-figure revenue range and growing profitably. A considerable number of globally relevant customers have purchased our products. There has only been one tender so far this year that we did not win.

Fiedler: We are still at the beginning, but we are already in the semiconductor market. Scale-up plans are now being developed to make us more relevant. We want to expand our portfolio and not just be a „one-trick pony“ that provides only a single process step. We will soon offer a second process step. Customers will receive more from us than just a machine for their factory equipment. Glass goes into the package in the semiconductor market, but in the future, glass will not only serve as a mechanical carrier in the semiconductor package – it will also be used as a light guide. Chips will communicate optically within the package. We want to position ourselves in the field of optical data transmission so that we become a strategic supplier to the semiconductor packaging industry.

Fiedler: For more than two years, a major project in the field of optical data transmission has been running with a large semiconductor customer, which has laid a solid foundation. I see the area on track. In the semiconductor packaging segment, I would have expected somewhat more follow-up orders toward initial volume ramp-ups in the third quarter. In the coming weeks, I will discuss timelines with customers in Korea.

Fiedler: Our traditional prototyping business is running solidly. Even customers in the US are buying within our expectations despite the tariffs. In the core business with the electronics industry, incoming orders fell significantly in the second quarter, but order volumes increased sharply in the third quarter. Customers have adapted to the new tariff situation. While several projects were delayed because certain production models are no longer economically viable due to the tariffs, we do not see the fundamental growth trajectory in this area being abandoned. This is reflected in the orders in the third quarter.

Fiedler: The welding segment has been heavily focused on the automotive sector for many years. That is changing. In the future, the automotive industry will order significantly less than in the past. The automotive sector, which has been a main revenue pillar, is disappearing and, in my view, will not return. We have therefore already shifted welding more toward medical technology and consumer electronics. This is also intended to ensure that, over the long term, we can compete in the welding segment in an increasingly competitive market, especially against competitors from China.

Fiedler: We do not want to follow the path of the Leister Group, which saw no future in its laser plastic welding business. We assess the prospects in our welding segment differently. We will position it very soon to ensure long-term competitiveness.

Fiedler: In the solar segment, we have already achieved our revenue targets with our major US customer this year. However, the customer is also strongly affected by trade policies due to global production chains. They will place orders with us, but where and when new production facilities will be set up is still unclear with regard to next year.

Fiedler: We are not seeing disruptions in the US, but currently mainly in China. There is a very negative business mood there, with few transactions taking place. Local manufacturers are increasingly gaining ground, especially in the low- and mid-end segments. We acted quickly in response. We need to eliminate all costs from the machines that the customer does not accept as added value in the price. In China, we will focus more on offering only the essential features in the future.

Fiedler: Specifically, we will comment on the third quarter on October 30. The resolution of tariff issues in August had a positive impact on incoming orders.

Fiedler: I would rather describe it as a disruption of regular business in the second quarter. However, it cannot be ruled out that the US administration will surprise us again and burden the business with new tariffs. We pass the tariffs in the US on to customers, who have to pay more, also because the dollar has weakened against the euro. What makes me confident is that customers in the US are still placing orders.

Fiedler: The share of our business in North America in total revenue is approaching 40 percent. North America and Asia, including Korea, are our most important regions. As a European, it pains me to say that Europe’s relevance for us is decreasing. While revenue was long distributed roughly a third each to North America, Asia, and Europe, I see Europe’s share in the future at a quarter or even lower. The advanced packaging semiconductor industry has positioned itself early and strongly in the US and Asia, while Europe is unfortunately not very active in this field.

Fiedler: LPKF’s business is globally oriented. As long as we are globally competitive with our products and cost structures, I consider our orientation and strategy to be correct.

Fiedler: We are exposed to external factors that we cannot influence. We – and by that I also mean Peter Mümmler, LPKF’s new CFO – therefore want to focus more on what we can influence: the structures of how we operate and manage our business. External factors that impose burdens should no longer have such a strong impact on LPKF’s results in the future.

Mümmler: „North Star“ is not purely a cost-cutting programme; its goal is to increase profitability. But it is, of course, also about reducing the burden from the fixed-cost segment and thus becoming less vulnerable to market and revenue fluctuations in the future.

Mümmler: Our goal is to make the organisation leaner and more efficient by leveraging synergies between business units. We achieve this through optimised processes and increased use of modern IT solutions. For example, simple tasks can be automated, standardised, or relocated to sites with more attractive cost structures – such as our subsidiary in Slovenia – through the use of artificial intelligence. But it is not just about reducing fixed costs; it is also about implementing LPKF’s innovative strengths better and faster.

Mümmler: It means making individual decisions more boldly, which involves a certain level of brutal honesty. For example, it can be sensible to stop innovation projects early if the expected return on investment is not promising. We need to focus our resources on concrete market opportunities and respond agilely to changes given reduced planning certainty worldwide. In my view, that is the greatest lever. Specific measures for the „North Star“ project will be determined in the next one to two months.

Mümmler: Fixed costs account for roughly two-thirds of total costs. The goal is to reduce fixed costs by a double-digit percentage.

Mümmler: We are pursuing a structural streamlining, meaning this is a long-term project. We launched North Star in September and are reviewing all areas of the company, with the aim of having a clear picture of all measures and a roadmap by November. We also need to ensure that the project does not negatively impact our business.

Mümmler: With „North Star,“ we are driving structural change. If resources are freed up in two years, we can make use of natural turnover. We do not simply want to cut staff, but to find solutions that improve LPKF. We also want to grow, which requires employees. We will also reallocate resources.

Mümmler: It would be presumptuous to give an exact number without concrete measures, but we need to increase our efficiency by more than 10 percent. Our goal is to avoid redundancies as much as possible.

Mümmler: Our goal is to avoid redundancies as much as possible.

Fiedler: LPKF must become more resilient. We need to be structurally prepared for disruptions. Recent history shows that disruptions and shocks are occurring at increasingly shorter intervals. Short-term cost reductions and occasional adjustments are no longer sufficient.

Fiedler: I would describe it as constructive cooperation. We receive very valuable input from AOC regarding the market and product portfolio. Their suggestions and ideas on how we could operate more efficiently are also valuable.

Fiedler: No. We are well aware ourselves that we must face the realities of the economic and political environment and make ourselves more resilient. Just looking at our operational results makes that clear.

Fiedler: I am pleased that LPKF has a shareholder in AOC holding more than 10 percent of shares. We regularly speak with investors to highlight the significant potential we see in LPKF. I would also welcome it if investors in the granular free float increased their engagement. We can influence that by taking the right steps in the semiconductor segment and improving our results. Considering the potential for LPKF, I am optimistic: If we bring our proven business model and disruptive technologies into new, large application areas and make ourselves more resilient, this will also be reflected positively in the share price. I still consider a public listing of LPKF to be sensible and justified.

Since January 2022, Klaus Fiedler has been the CEO of LPKF. The PhD-trained physicist is an experienced technology expert in the fields of microsystems, sensors, and imaging. Before joining LPKF, the 54-year-old worked as Head of Corporate Ventures at the Mainz-based specialty glass manufacturer Schott. Previously, Fiedler held positions at Knowles Electronics in China, NXP in Austria, and Philips Research in the USA and Germany. His contract as LPKF board member currently runs until the end of 2028.

Since April 2025, Peter Mümmler has been CFO at LPKF. His career began as an industrial clerk at Siemens, where he completed various management development programs and spent over 25 years working in purchasing, controlling, IT, M&A and integration, finance and auditing, as well as global production operations. In 2020, the 57-year-old moved to Alstom Transportation, and in 2024 he became interim CFO and managing director at the freight transport systems provider Kiepe Electric. As an LPKF board member, Mümmler is appointed until March 2028.