FREUDENSTADT, Germany, Aug. 25, 2026 (GLOBE NEWSWIRE) -- SCHMID Group N.V. $(SHMD)$ (the "Company" or "SCHMID"), a global leader in advanced manufacturing solutions for the electronics and semiconductor industries, reports its unaudited financial results for the first half of 2026, covering the period ended June 30, 2026, and adjusts its full-year 2026 guidance.

Arthur Schuetz, Chief Financial Officer: "In the first six months of this year we have converted liabilities into equity, raised significant financing, brought our leverage to a more sustainable level, rebuilt working capital and invested into growth. We have seen significant pickup in orders in Q2, first in China and now increasingly across our global markets. Focus is now on execution, margins and cashflow, we have reduced overhead costs in Germany and are now implementing a purchasing cost reduction program. While 2026 will remain a transition year in terms of overall financial performance, we believe that our restructuring and operational groundwork in the last six months is progressing well. Together with the order momentum this will put us in a strong position for a good second half of this year and a very promising 2027 financial performance in terms of growth and margins."

Key Highlights

   -- Revenues: EUR46.0 million for the six months ended June 30, 2026 (Q1: 
      EUR18.2 million; Q2: EUR27.7 million) compared to EUR16.9 million for the 
      same period last year; more than half of our revenues were from China 
      which continues to perform stronger than expected while demand for 
      machines manufactured in our German plant only recently accelerated 
 
   -- Gross Profit: EUR9.8 million (gross margin: 21.2%) for the six months 
      ended June 30, 2026 compared to EUR-1.6 million for the same period last 
      year. Gross margin was lower than anticipated at this revenue level given 
      the product mix shift towards our lower gross margin business in China 
 
   -- Operating Result: EUR-8.0 million for the six months ended June 30, 2026 
      compared to EUR-7.8 million for the same period last year. The operating 
      result was impacted by increased general administrative expenses due to 
      share-based compensation (EUR1.4 million), "Sprint" restructuring costs 
      (EUR0.4 million) and costs associated with the various recapitalization 
      projects (EUR1.4 million). Foreign exchange losses of EUR1.7 million were 
      also incurred 
 
   -- Adjusted EBITDA (non-IFRS): EUR-0.6 million for the six months ended June 
      30, 2026 compared to EUR-11.6 million for the same period last year 
 
   -- Net income: EUR-47.8 million for the six months ended June 30, 2026 
      compared to EUR-10.2 million for the same period last year. Net income 
      was impacted mostly by non-cash effects related primarily to the 
      accounting treatment of the XJ Harbour liability converted into shares on 
      January 16, 2026 and to a lesser extent to the fair-value movements of 
      the Company's warrants 
 
   -- Order Intake and Backlog: Order intake of EUR96.6 million year-to-date as 
      of August 21, 2026 (H1 2026: EUR44.3 million) and order backlog of 
      EUR95.0 million as of August 21, 2026 (June 30, 2026: EUR54.8 million). 
      The Company experienced a significant increase in order activity in the 
      last few months 
 
   -- Deleveraging: Close to EUR30 million of reduction in financial debt 
      between December 31, 2025 and June 30, 2026, including EUR30.75 million 
      of debt converted into equity or set off since December 31, 2025, 
      enabling the Company to invest into its growth plan 
 
   -- Cash Position: EUR14.3 million of cash and cash equivalents as of July 
      31, 2026, following the closing of the $20.0 million 2029 Convertible 
      Notes on July 14, 2026 
 
   -- Full-Year 2026 Guidance: Revenue guidance of more than EUR100 million 
      confirmed and Adjusted EBITDA margin guidance lowered to 6 to 9% 
      (previously more than 12%), based on Adjusted EBITDA as defined in this 
      release and order intake guidance of EUR125--150 million maintained, with 
      the Company now expecting to be in upper half of that range 

Order Intake and Order Backlog

Order intake in Q1 was EUR13.6 million, reached EUR30.7 million in Q2 and orders received thus far in Q3 through August 21, 2026 were EUR52.3 million, reaching a total of EUR96.6 million year-to-date on August 21, 2026. As previously communicated on July 14, 2026 order intake guidance has been raised to EUR125--150 million. The Company now expects to be in the upper half of that guidance range.

Order backlog stood at EUR95.0 million as of August 21, 2026.

Order intake and order backlog figures relate exclusively to orders for equipment and do not include orders associated with services or spare parts.

Revenue and Operating Results for H1 2026

Revenues increased significantly compared to a weak first half of 2025 as revenues for the segment Technical Equipment & Processes increased from EUR10.7 million to EUR39.4 million. Spare parts & services revenues were EUR6.4 million, increasing from the EUR5.9 million achieved in H1 2025. Licensing and other revenues amounted to EUR0.2 million in H1 2026.

General administrative expenses increased from EUR5.5 million in the first half of 2025 to EUR8.5 million in the first half of 2026 driven by the various reorganization programs which resulted in high expenses described in the Adjusted EBITDA reconciliation.

Other income and other expenses of EUR1.3 million and EUR-2.7 million respectively were impacted by a net foreign exchange loss of EUR1.7 million, while other income and other expenses in H1 2025 had benefited from EUR6.3 million foreign exchange gain for the six months ended June 30, 2025.

Adjusted EBITDA amounted to EUR-0.6 million and excludes expenses for "Sprint" related restructuring costs of EUR0.4 million, share-based compensation of EUR1.4 million with front-loaded expense recognition relative to the two-year service period, advisory expenses of EUR1.4 million related to the financings, debt-to equity swap, two Form-20-F filings within three months and various registration filings as well as EUR1.7 million of foreign exchange losses incurred in the first six months of this year. In the prior-year period for the six-months ended June 30, 2025, Adjusted EBITDA excludes on the same basis EUR6.3 million of foreign exchange gains.

Cash Flow, Indebtedness and Financing

Cash provided by operating activities was EUR-29.3 million, mainly driven by spending on working capital of EUR26.1 million, from an unusually low negative working capital as of December 31, 2025 to a more normalized EUR14 million as of June 30, 2026. The Company expects working capital to be at the same level or lower by year-end.

Cash used in investing activities was EUR2.5 million, of which EUR0.8 million related to investments in property, plant and equipment.

Cash provided by financing activities was EUR32.6 million of which EUR33.1 million was generated from the 2028 Convertible Note and the SEPA financing.

On May 23, the Company converted into equity EUR30.75 million owed to members of the Schmid family shareholder group.

As of June 30, 2026 the Company had a total of EUR23.4 million of debt, excluding debt related to the convertible instruments. Of this EUR17.5 million of debt was owed to its shareholders and related parties as well as EUR5.9 million of debt to financial institutions and other third parties. $12 million of the 2028 Convertibles issued in January and EUR2.5 million of the 2025 Convertible loan issued in December 2025 to related parties remained outstanding as of June 30, 2026. As a subsequent event, on August 21, 2026 a further $1 million was converted and $11 million of the 2028 Convertible Notes remained outstanding and on July 14, 2026 the new $20 million 2029 Convertible Note was funded. The 2029 Convertible Notes can only be converted once all of the 2028 Convertible Note has been converted. No further standby equity purchase agreement issuance occurred after June 30, 2026.

Cash and cash equivalents were EUR2.3 million as of June 30, 2026 (December 31, 2025: EUR1.6 million). Following the closing of the $20.0 million 2029 Convertible Notes on July 14, 2026, cash and cash equivalents were approximately EUR14.3 million as of July 31, 2026; in addition, approximately $21 million remain available at the Company's discretion under the standby equity purchase agreement. Based on the current business plan, the existing order backlog and contractually agreed milestone payments, the Company expects its available liquidity, together with cash flows from operations, to be sufficient to fund its operations and to meet its obligations as they fall due for at least the next twelve months.

The Company does not currently anticipate material further drawdowns under the standby equity purchase agreement in 2026 and does not plan to incur additional indebtedness at the level of SCHMID Group N.V. or its German subsidiary. The new Chinese manufacturing campus is expected to require around EUR11 million of expenditure to be financed primarily through local project financing. This financing and some potential local bank loans or working capital financing from Chinese banks without any security from SCHMID Group N.V. or our German subsidiary are permitted under the Company's existing financing arrangements up to a maximum of EUR20 million.

Potential Dilution