Struggling Start for Jenoptik in the Business Year
- 🤝 Tech Conglomerate
Sluggish Beginning for Jenoptik in the Fiscal Year - Tumultuous commencement of the fiscal year for Jenoptik
Jenoptik AG, the tech powerhouse, is facing the harsh reality of a tumultuous economy: revenue, earnings, and orders are all trailing last year's figures, according to the board during their presentation of Q1 2025 results in Jena.
"Jenoptik's business journey was impacted by a rough economic landscape at the start of the year," declared CEO Stefan Traeger. Despite his hope for improvement later in the year, he admitted to a more modest order intake so far compared to the same period last year.
Softer sales and decreased profits in the first quarter
"We remain optimistic that demand will rebound in the second half of the year, particularly in the semiconductor equipment industry," shared Traeger. However, he cautioned that the chances of a swift recovery have dwindled.
Jenoptik offers production equipment for the chip industry. In Q1 2025, the company garnered revenue of €243.6 million, representing a 4.9% decrease compared to the same period last year. Sales dipped in Germany, other European countries, and Asia.
Earnings before interest and taxes (EBIT) amounted to €16.9 million, significantly lower than the same period last year with €26.0 million. The net result for the quarter dropped to €9.2 million from €15.4 million in the previous year. The order intake in Q1 stood at €204.6 million, falling short of the previous year's level of €242.0 million. Jenoptik has recently expanded its production capacities, opening a factory for semiconductor equipment production in Dresden in May.
Cautious projection for 2025
Jenoptik employs around 4,300 individuals, with approximately a third stationed abroad. The company, a key player in Eastern Germany and included in the MDax index, specializes in optical systems, lasers, and measuring technology for industrial applications, as well as lasers and equipment for traffic monitoring.
Like many companies, Jenoptik emphasized the numerous concerns regarding future economic development and risks on foreign markets. "The outlook for the business year 2025 is shaped by above-average market uncertainties," explained the board. In 2024, Jenoptik generated approximately €1.1 billion in revenue.
- Jenoptik AG
- Optics
- Economy
- Semiconductor Equipment
- Jena
- Thuringia
- Revenue
- Orders
According to additional data:
Adjusted for subscribers, foreign currency effects, and IFRS factors, revenue in Q1 2025 fell 3.8%, with the semiconductor & advanced manufacturing division experiencing decreased revenue due to reduced demand and a one-off non-recurring product adjustment. This segment reported an adjusted EBIT of €21.4 million, down from €35.5 million in Q1 2024.
Meanwhile, the biophotonics segment grew, underpinned by a strong dental business, contributing an adjusted EBIT of €15.6 million compared to €4.6 million the previous year. The metrology & production solutions division faced seasonal effects and a weak automotive market, resulting in an adjusted EBIT of €3.4 million, up from €1.7 million.
The strategic smart mobility solutions division displayed robust performance, particularly in the Americas and Middle East/Africa, generating an adjusted EBIT of €1.9 million compared to €0.1 million a year ago. Overall, the adjusted EBIT decreased due to lower revenue and product mix effects, totaling €44.5 million with an adjusted EBIT margin of approximately 18.6%.
In response to the current market challenges, Jenoptik extended its financial targets for 2025 for one year. Despite the difficult market conditions, the company remains financially sound and is continuing to invest significantly in advanced production facilities for micro-optics and sensors (over €70 million) to bolster its technological capabilities and market position.
Jenoptik is also actively expanding in photonics-related fields and maintaining a diverse portfolio across semiconductor equipment, life sciences, and smart mobility markets. Overall, the slow start to the year in the semiconductor segment has weighed on the company's performance, but it remains optimistic about a gradual recovery in the semiconductor equipment market later in the year, albeit with extended financial targets to 2026.
- Jenoptik AG is forecasting an extended financial outlook to 2026 due to the slow start in the semiconductor equipment market, a key focus of their business, which has been affected by the current market challenges.
- Given the economic uncertainties and risks on foreign markets, Jenoptik AG, a tech conglomerate specializing in optical systems, lasers, and measuring technology, is emphasizing the need to invest significantly in advanced production facilities for micro-optics and sensors, utilizing finances from the business sector.
