SCHMID Sees Strong Market Recovery, Sets Optimistic Outlook for 2026

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The financial year 2024 and the first quarter of 2025 continued to be marked by trade policy uncertainties that made investment decisions of our customers hesitant. The market relevant to SCHMID's products and services recorded a significant recovery in the second quarter of 2025. Driven by technologically sophisticated products in the areas of advanced packaging, AI servers, and military & space applications, we expect significantly higher sales growth for 2026 compared to the financial years 2024 and 2025. Our expectations are supported by a healthy order backlog of more than EUR 53 million as of mid-November 2025 in contracted orders only in the machinery segment (not accounting for orders in our services segment).

Update on 2024 Unaudited, Preliminary Financial Results

The financial year 2024 was affected by a significant weakness in demand in China for SCHMID, which was largely caused by increasing trade conflicts. This development caused SCHMID sales to only amount to approximately €61 million in 2024 and adjusted EBITDA of approximately €0 million in 2024. The (unadjusted) EBITDA, a non-IFRS financial measure (fur further detail on "Non-IFRS Financial Measures" see section below), for the financial year 2024 was impacted by several special effects: On the one hand, an IFRS2 accounting charge was determined as previously disclosed by SCHMID due to the de-SPAC process with such IFRS2 charge amounting to approximately €-71.7 million. In addition, additional costs of approximately €6.7 million in relation to the listing on the Nasdaq and the related de-SPAC transaction impacted our EBITDA in 2024. On the other hand, the Company currently expects a gain from the initial consolidation effect from our battery division (our energy storage business) to be re-recognized on the balance sheet in 2024 with an additional deconsolidation effect of the sale of the majority stake of the battery division to a Turkish joint venture partner in the same year; the total effect of this transaction is approximately a positive effect of up to €22.3 million. Taken together, this results in a preliminary, unadjusted EBITDA of approximately €-56 million for the financial year 2024.

The financial figures for 2024 are preliminary and unaudited and are subject to potentially significant change based on the completion of the audit for the financial year 2024.

Adjusted Outlook for 2025 and Update on Financial Status of SCHMID

The delayed recovery of the market, which SCHMID has only seen impacting its order books since the middle of the second quarter of 2025, is reflected in our expected results for 2025. We now expect sales to be notably higher than 2024 within a range of €72 million to €77 million for the full financial year of 2025 but lower than our guidance published in December 2024. Our unadjusted EBITDA for the full financial year 2025 is expected to amount to approximately 15% of our sales in line with our guidance published in December 2024. The now expected sales and EBITDA figures for 2025 were impacted by the wait-and-see attitude of our customers at the beginning of 2025 which meant that our expected sales could no longer be achieved due to order lead times. Our EBITDA for the financial year 2025 is positively influenced by currency effects and a one-time effect of €5 million from a waiver by our majority shareholders in relation to €5 million financial liabilities to our majority shareholders on our balance sheet dating back to 2016 for no consideration or compensation in September 2025. This waiver was part of the restructuring of the SCHMID's financial liabilities as detailed below.

SCHMID has been in discussions with investors about a potential equity or debt investment into SCHMID in 2025. During the summer of 2025, SCHMID and a potential equity investor had detailed discussions about an investment into SCHMID. However, as this planned investment by the equity investor in SCHMID was halted as a result of an unexpected intervention of the equity investor's national regulator in September 2025, SCHMID initiated a broader financing process with several investors in the third quarter of 2025, which will lead to a significant reduction in financial liabilities totaling over €30 million. This reduction relates to (a) the issuance of SCHMID Group N.V. shares to XJ Harbour HK Limited at a share price of USD 2.15 per share for more than USD 26 million (i.e. a debt-to-equity swap), (b) the issuance and then transfer of SCHMID Group N.V. shares to a Korean creditor at USD 2.50 per share (i.e. also a debt-to-equity swap) and (c) the waiver of €5 million of financial liabilities by our majority shareholders for no consideration.

In addition to the successful completion of these transactions lowering our financial indebtedness by over €30 million, a financing package of at least a double-digit million amount for the next 24 months is currently being negotiated with several debt investors and is expected to be finalized within the next 2-4 weeks. With this financial measure, SCHMID aims to achieve the necessary financial strength for further R&D activities, cost coverage of accrued IPO costs, sufficient working capital for its growth course, and strategic M&A activities. Following finalization of any potential financing package, SCHMID intends to complete its 2024 financial statements and publish its annual report for the financial year 2024 on Form 20-F.

"Now that customers have adjusted to the new normal in mid-2025 following the uncertainties surrounding tariffs, we see our growth expectations confirmed. Our expanded product portfolio is specifically geared toward the technological challenges posed by AI applications. At the same time, there is a trend toward volume expansion in high-tech applications. This gives SCHMID opportunities for disproportionate growth. At the same time, cost reduction programs are being actively pursued to ensure long-term success," said Christian Schmid, CEO of SCHMID.

Outlook for 2026

For the financial year 2026, we expect sales revenue of over EUR 100 million based on our current market expectations of double-digit growth compared to 2025 and based on our order intake status. Taking into account this level of sales, we expect an Adjusted EBITDA margin of more than 12 % on sales.