Jenoptik (ETR:JEN) management used its fiscal 2025 results call to outline progress on strategic initiatives, discuss a year shaped by a weaker semiconductor lithography environment, and provide guidance for a return to profitable growth in 2026. CFO Dr. Prisca Havranek-Kosicek was joined by Head of Investor Relations Andreas Theisen for the presentation and Q&A.
Strategic actions and 2025 market backdrop
Havranek-Kosicek described 2025 as “a very busy year,” highlighting three main strategic milestones: a new organizational structure intended to make the company “leaner” and increase accountability and reporting transparency; the ramp-up of its “biggest single investment,” a new micro-optics fab in Dresden; and progress in the semiconductor business toward growing “share of wallet” in inspection.
The company also noted that its management team is expected to be complete again soon with Dominic Dorfner joining as new CEO, referencing a release issued the prior day.
Orders and revenue: mixed trends across business units
On a group level, Jenoptik reported order intake down about 3% year-over-year, but management emphasized divergent trends across its strategic business units. In Semiconductor & Advanced Manufacturing, order intake fell around 11%, influenced by supply chain fluctuations in lithography and an order cancellation in the first quarter that had been discussed previously. Management said customer activity in inspection remained strong throughout the year.
Biophotonics saw order intake rise about 19%, driven by momentum in defense offerings and positive development in life-science applications. In MedTech, order momentum softened in the second half after the launch of a new generation product in dentistry, while management cautioned that defense-related ordering can be lumpy with occasional large, multi-year orders.
In the solutions businesses, Metrology & Production Solutions (MPS) orders were slightly down amid weakness in automotive markets, while Smart Mobility Solutions (SMS) recorded “robust mid-single-digit” order intake growth. The book-to-bill ratio was 0.95, and backlog declined to around EUR 591 million. Management said it anticipates converting more than 80% of that backlog into revenue in 2026.
Group revenue in 2025 fell about 6% year-over-year to roughly EUR 1.05 billion, including a 1 percentage point negative impact from EUR/USD movements. Semiconductor revenue declined 12%, reflecting softer lithography demand, while inspection revenue developed “very well.” Biophotonics revenue rose 10%, driven primarily by defense and MedTech, according to management. MPS revenue was pressured by the difficult European automotive market, while SMS revenue increased nearly 9% as Jenoptik’s U.S. go-to-market transition gained traction following a strategic decision to build its own sales and service force.
Profitability, cost actions, and cash flow
Jenoptik reported group EBITDA of nearly EUR 193 million, down about 13% year-over-year. Havranek-Kosicek said EBITDA improved sequentially each quarter and that margins in the second half exceeded 20%, though the full-year EBITDA margin contracted by 150 basis points year-over-year, including about one percentage point impact related to the company’s cost reduction program.
By business unit, Semiconductor & Advanced Manufacturing EBITDA fell nearly 18% due to lower utilization and mix effects, but management said the segment maintained a “strong” margin of around 26% for the full year and about 29% across the second half (Q3 and Q4). Biophotonics margin improved to more than 20% due to higher utilization and favorable mix, although management stressed that “semi type margins are not realistically in the cards” for that unit. MPS profitability was hurt by lower revenues and reduced fixed-cost absorption, while SMS margin improved by more than 200 basis points to 13.6% on higher revenue and operating leverage.
Management said strict cost control was a key priority in 2025, noting headcount (FTE) declined almost 5% versus the prior year. Gross margin fell 130 basis points year-over-year, mainly due to lower fixed-cost absorption and product mix effects, especially in semiconductors. Functional expenses declined 1% despite labor cost inflation and restructuring costs, while depreciation and amortization rose slightly.
Jenoptik also reiterated it recognized a little above EUR 3 million in income from a settlement related to the sale of Vincorion (its former mechanical defense activities). Earnings per share were EUR 1.26 versus EUR 1.62 in the prior year, management said. The executive board and supervisory board proposed a dividend of EUR 0.40 for fiscal 2025, up from EUR 0.38. ROCE was 8.4%, below management’s ambition level.
Cash generation was a bright spot, with operating cash flow pre-tax improving “considerably” on lower working capital inflows. Combined with normalized capital expenditures, free cash flow increased by nearly EUR 50 million, enabling debt and leverage reduction.
2026 guidance: revenue growth and 19%–21% EBITDA margin
For fiscal 2026, Jenoptik guided to single-digit percentage revenue growth year-over-year and an EBITDA margin of 19% to 21%. CapEx is expected to be slightly below the prior year, with management saying spending is trending toward maintenance levels now that the Dresden investment is largely behind the company.
Management provided additional modeling color, including an expected FX headwind of roughly 1 percentage point—similar to 2025. The company expects benefits from its cost-saving program and the absence of 2025’s one-time restructuring expenses, partly offset by labor cost inflation, including a German labor cost agreement “above 3%” taking effect in April 2026. Management said energy costs may rise but should not be a major factor because Jenoptik is not energy-intensive.
Jenoptik also noted it is refinancing some German debenture bonds and expects financial results “broadly in line” with the prior year. Importantly for phasing, management expects first-quarter 2026 revenue to be below first-quarter 2025 due to order book structure and capacity availability, and anticipated a stronger second half than first half.
Q&A: margins, demand signals, and growth areas
In response to questions about a roughly 30% semiconductor segment margin in Q4, Havranek-Kosicek cautioned against extrapolating a new run rate, citing favorable product mix, lower costs from the reduction program, and one-time effects such as bonus provision releases. She said the need to add resources for a ramp-up, along with wage inflation, would not suggest a “different margin environment” for 2026.
On semiconductor inspection, management reiterated the business grew in 2025 in both order intake and revenue and remains a strategic priority to build a “second large pillar” alongside lithography, which is still larger in volume.
Addressing Prodomax, management said the unit experienced a mid-single-digit million euro order cancellation in Q4 2025 and that demand in the North American OEM space remains “volatile and quite subdued.” Jenoptik characterized Prodomax as “asset-light” with flexibility in its cost base, but acknowledged that depressed revenues would weigh on profitability. Management said it views the downturn as temporary and more a matter of “when” demand returns than “if.”
On growth opportunities, management reiterated focus areas discussed in prepared remarks, including AI-driven semiconductor demand, optical communication for data centers (microlens arrays in transceivers), defense applications, and continued SMS expansion in the U.S. Theisen added that Jenoptik’s “UFO Probe Card” business—used to test photonic integrated circuits—is currently “single-digit million euro” in size and is not expected to become a major group P&L driver, despite expected growth.
On capital allocation, management reiterated priorities laid out at its 2023 Capital Markets Day: support organic growth first, then return capital to shareholders primarily through dividends, while noting M&A is not a current focus.
About Jenoptik (ETR:JEN)
Jenoptik AG provides advanced photonic solutions and smart mobility solutions in Germany and internationally. The company provides imaging solutions and cameras, including microscope and thermographic camera, imaging modules, polymer-based camera modules, and miniaturized digital microscope subsystem; and laser and laser technology, such as laser ablation, scoring, cutting, and rangefinder, as well as laser OEM solutions comprising diode laser and disk laser technology, diode pumped disk lasers, laser systems, and LK heat sink.
