Jenoptik shares jump as much as 8.5% on higher 2026 outlook, chip demand

Investing.com -- Shares of German photonics group Jenoptik AG jumped as much as 8.5% on Wednesday before paring gains to trade up 2.7% after the company raised its 2026 guidance to the upper half of its previous ranges, citing very strong demand from the semiconductor equipment sector.

The Executive Board now expects full-year revenue growth to reach the upper half of its previously guided single-digit percentage range, up from €1.05 billion in 2025. 

It also raised its EBITDA margin guidance to between 20.0% and 21.0%, from a prior range of 19% to 21%, compared with 18.4% in 2025.

Despite a significant decline in capital expenditure in the first half, the Executive Board anticipates full-year capital expenditure will be slightly below the previous year’s level of €77.4 million, with capacity for optics at the Jena site set to be expanded.

Jenoptik’s order intake rose 53% in the first half of 2026 to €723.4 million, from €472.7 million a year earlier, primarily due to strong momentum in the company’s OEM businesses. The Semiconductor & Advanced Manufacturing unit posted an 85.3% rise in order intake, which included a major order reported in the first quarter, driven by demand in both the lithography and inspection businesses. 

The Biophotonics unit’s order intake rose 44.9%, driven by the defense as well as medical technology and life science sectors, including a multi-year major medical technology order in the low double-digit million-euro range booked in the second quarter. 

The group’s book-to-bill ratio was 1.44, compared with 0.95 a year earlier, and the order backlog rose to €824.8 million from €590.8 million at the end of 2025.

Group revenue increased 1% to €503.2 million in the first half, from €498.4 million a year earlier. The Semiconductor & Advanced Manufacturing unit’s revenue rose 10.2% to €230.4 million, driven by stronger business in both the lithography and inspection areas of the semiconductor equipment industry. 

Biophotonics revenue fell 4.5% to €113.9 million, as the unit’s medical technology business could not match the prior year’s very strong revenue, as expected. Metrology & Production Solutions revenue fell to €79.7 million, partly due to the continuing difficult market situation in the automotive industry, while Smart Mobility Solutions revenue rose 10.7% to €68.3 million, driven by a strong performance in almost all regions.

Group EBITDA rose 25.5% to €98.9 million, with improved capacity utilization in the Semiconductor & Advanced Manufacturing unit, cost-cutting measures implemented in 2025 and a changed product mix representing the main earnings driver. 

The EBITDA margin reached 19.7%, up from 15.8%. Earnings after tax came in at €39.7 million, up from €25.3 million, which had included €2.6 million in income from discontinued operations. Earnings per share were €0.69, up from €0.42.

Capital expenditure fell to €19.7 million from €32.6 million in the first half, primarily attributable to technical equipment and machinery. Free cash flow before interest and taxes improved to €47.2 million from €43.2 million, despite an increase in working capital tied up due to higher demand. The equity ratio was 58.4%, down from 60.2% at the end of 2025, while net debt fell to €307.5 million from €317.4 million, and the leverage ratio improved to 1.4x from 1.6x.

"In the first half of the year, we saw particularly strong demand, especially in our OEM businesses, which focus on the semiconductor equipment, medical technology, life sciences and defense end markets," said Ralf Kuschnereit, Chief Technology Officer and Chief Operating Officer of Jenoptik.

"As this development was partly driven by some major orders, this very strong momentum may not continue in the second half of the year."

"Nevertheless, we expect 2026 to become a successful year for Jenoptik and have accordingly specified our guidance to the upper half of the previous range," said Prisca Havranek-Kosicek, Chief Financial Officer of Jenoptik.

The company said its forecast is subject to political and economic conditions not deteriorating, and that possible portfolio changes are not taken into account.