The lowered EBITDA margin guidance (6-9% vs >12%) signals H2 profitability will be weaker than previously expected despite strong order intake. The massive net loss and heavy dilution overhang from convertible notes and warrants (up to 20% at $12/share) will pressure the stock. Monitor Q3 business update in mid-October for margin trajectory and order conversion to revenue. The order backlog of €95M provides some revenue visibility, but execution risk on margins and cash flow remains high.
Price Chart
Executive Summary
SCHMID Group reported H1 2026 revenue of €46.0M (up 172% YoY from €16.9M) but net loss widened to €-47.8M from €-10.2M, driven by non-cash financial charges and recapitalization costs. The company lowered its full-year 2026 Adjusted EBITDA margin guidance to 6-9% from >12%, while confirming >€100M revenue guidance and raising order intake expectations to the upper half of €125-150M. The massive net loss, guidance cut, and heavy dilution overhang from convertible notes and warrants make this bearish despite the revenue growth and order momentum.
Key Financial Metrics
Key Facts
- H1 2026 revenue €46.0M vs €16.9M YoY (+172%), driven by China equipment sales
- Net loss widened to €-47.8M from €-10.2M, largely due to €38.8M financial result (non-cash debt conversion effects)
- Full-year 2026 Adjusted EBITDA margin guidance lowered to 6-9% from previously >12%
- Order intake €96.6M YTD through Aug 21; backlog €95.0M; company expects upper half of €125-150M guidance
- Cash €14.3M as of July 31 after $20M 2029 Convertible Note closed July 14
- Potential dilution from convertibles/warrants at $5/share: 9.3M new shares (+13%); at $7: 7.5M (+11%); at $12: 14.9M (+20%)
- Operating cash flow -€29.3M in H1, driven by €26.1M working capital build from negative to normalized levels
- €30.75M of debt converted to equity in May 2026; total financial debt reduced ~€30M since Dec 2025
Financial Impact
Revenue up 172% YoY to €46.0M but net loss -€47.8M; guidance cut on EBITDA margin from >12% to 6-9%; potential dilution 11-20% depending on share price
Risk Factors
- Guidance cut on EBITDA margin from >12% to 6-9% signals weaker H2 profitability than expected
- Massive net loss of -€47.8M driven by non-cash financial charges and recapitalization costs
- Heavy potential dilution from convertible notes, warrants, and options — up to 20% at $12/share
- Negative operating cash flow of -€29.3M; working capital normalization may pressure liquidity
- High debt load with €23.4M in debt plus convertible instruments; €11M capex needed for China campus
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3350283 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 21, 2026 5d ago | 6-K | $3.11 | awaiting T+5 | — | $2.78 (−10.61%) |
Oct 1, 2026 25d ago | EFFECT | $4.45 $3.97 | ▼ −10.69% | ▼ −11.99% | $2.78 (−37.46%) |
Oct 1, 2026 25d ago | EFFECT | $4.45 $3.97 | ▲ +10.69% | ▲ +11.99% | $2.78 (+37.46%) |
Oct 1, 2026 25d ago | EFFECT | $4.45 $3.97 | ▼ −10.69% | ▼ −11.99% | $2.78 (−37.46%) |
Oct 1, 2026 25d ago | EFFECT | $4.45 $3.97 | ▼ −10.69% | ▼ −11.99% | $2.78 (−37.46%) |
Sep 8, 2026 6w ago | Insider Cluster | $3.35 $3.20 | ▼ −4.48% | ▼ −3.36% | $2.78 (−17.01%) |
Aug 25, 2026 8w ago | 6-K | $3.42 $3.11 | ▼ −9.06% | ▼ −8.53% | $2.78 (−18.71%) |
Aug 25, 2026 8w ago | Press Release | $3.42 $3.11 | ▲ +9.06% | ▲ +8.53% | $2.78 (+18.71%) |
Jul 24, 2026 13w ago | EFFECT | $4.12 $4.04 | ▲ +1.82% | ▲ +2.20% | $2.78 (+32.44%) |
Jul 14, 2026 14w ago | 6-K | $4.34 $4.38 | ▲ +0.92% | ▲ +1.90% | $2.78 (−35.94%) |
US Market Status
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