SCHMID Reports H1 2025 Financial Results and Guidance Update

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SCHMID Group N.V.., a global leader in providing solutions to the high-tech electronics, photovoltaics, glass, and energy systems industries, reports its unaudited financial results for the first half of 2025, covering the period ended June 30, 2025 and updates its full-year 2025 guidance.

Key Highlights

• Revenues: €16.9 million for the six months ended June 30, 2025 compared to €29.7 million for the same period last year due to lower order volumes in Asia, Europe and the USA
• Gross Profit: €-1.7 million for the six months ended June 30, 2025 compared to €5.6 million for the same period last year principally as a result of the low revenue
• Other income: €6.1 million for the six months ended June 30, 2025 mainly results from FX translation effects on foreign currency liabilities, which arose due to the weaker performance of the USD compared to the Euro. In the same period of last year, other income was €10.4 million.
• Operating Result: €-7.8 million for the six months ended June 30, 2025 compared to €-70.1 million for the same period last year principally as a result of the low revenue and negative gross profit.
• Adjusted EBITDA (non-IFRS)*: €-5.3 million for the six months ended June 30, 2025 compared to €6.1 million for the same period last year

Revenue and Operating Results for H1 2025

SCHMID Group N.V.'s revenues and gross profits were lower in the first half of 2025 than in the comparable period of 2024, in particular due to weak revenues in Asia, China and Europe. The production plant in Freudenstadt was not operating at full capacity in the first quarter of 2025. Order intake improved noticeably in the middle of the second quarter of 2025. Since then, both production plants of the Company have been operating at full capacity again. However, due to accounting for new orders, such new orders did not yet translate into corresponding sales in the six month period ended June 30, 2025. The low sales level led to a negative gross profit in the first half year 2025.

The Group's operating results were impacted by the negative gross profit. However, the valuation of financial liabilities denominated in USD resulted in a positive valuation effect after the USD has performed weakly against the Euro in the first half year. Nevertheless, the Group achieved a negative operating result for the first half of the year overall.

Adjusted Outlook for 2025 and Update on Financial Status of SCHMID

We published an outlook for 2025 in the Company's Form 6-K filed with the Securities and Exchange Commission (SEC) on November 17, 2025. Based on our backlog and our delivery schedule at that time, we previously estimated that our sales will be within a range of €72 million to €77 million for the full financial year of 2025 and our unadjusted EBITDA will be approximately 15% of our sales.

Due to delays in receiving contractual advance payments and the resulting project postponements, sales for 2025 will be at the lower end of the estimated range. Even at the lower end of the sales range, we can reconfirm our EBITDA margin projection of approximately 15%.

The machines subject to delivery delays will be included in sales figures for the first and second quarter of 2026.

In our press release dated November 17, 2025, we referred to ongoing discussions with investors about possible equity or debt investments in SCHMID Group in 2025. Negotiations with XJ Harbour Ltd. regarding a debt-equity swap have been successfully concluded and a shareholders' meeting will be held on December 23, 2025 to authorize the issuance of shares to XJ Harbour Ltd. offsetting more than USD 26 million in financial liabilities to XJ Harbour Ltd. As previously announced, negotiations with potential debt investors have been ongoing. A two-tranche loan facility agreement with Black Forest Special Situations I, a Cayman Islands incorporated vehicle (the "Lender") backed by a consortium of lenders, including several of the Company’s board members, was signed and is expected to be closed with the first tranche to be drawn down on December 18, 2025. This loan facility amounts to up to €10 million, with the first tranche amounting to €2.5 million. The second tranche of up to €7.5 million is expected to be drawn down early in 2026 following the Lender raising further funds. The loan facility includes an equity conversion right, exercisable under certain circumstances by the Lender which would convert the amounts outstanding under the loan facility at a share price of USD 2.15 per share into shares of the Company. Additionally, the Company raised €200,000 separately, as part of the same overarching realignment of the Company's financial structure, by the conclusion of a loan with a related party of the Schmid family. The agreed interest rate is market standard and the loan has a maturity of 15 months.

Negotiations with other possible debt and equity investors remain ongoing. The Group expects that further funds to support and accelerate the growth of the Company will be raised within the coming months.

Once the two tranches of the loan facility, amounting to up to €10 million have been received, SCHMID intends to complete its 2024 financial statements and publish its annual report for the financial year 2024 on Form 20-F. SCHMID expects that its Form 20-F for 2024 will be filed in February 2026.

Outlook for 2026

For the financial year 2026, we confirm our expectation of realizing sales revenue of over EUR 100 million and, taking into account this level of sales, an Adjusted EBITDA margin of more than 12 % on sales.