SCHMID (SHMD) Revenue Surges but Adjusted EBITDA Margin Outlook Cut Amid China Exposure
SCHMID Group N.V. (NASDAQ: SHMD) reported a significant revenue increase of 172% to €46 million in the first half of 2026, driven by strong demand and an expanding order backlog. However, management revised its full-year adjusted EBITDA margin outlook downward from over 12% to between 6% and 9%, citing weaker-than-expected profitability linked to a product mix skewed toward lower-margin operations in China. Despite the revenue growth, SCHMID posted an IFRS operating loss of €8 million—wider than the previous year—and used €29.3 million in cash from operating activities due to working-capital buildup. The company maintained its full-year revenue target above €100 million and expects a stronger contribution from its German plant in H2, which should improve margins. The bear case highlights that China accounted for more than half of first-half sales but failed to deliver positive adjusted EBITDA. Management is also implementing cost-saving initiatives, including overhead reductions at the German site and material expense savings.
Topics: china_operations ebitda_margin_outlook revenue_growth