SCHMID Group N.V. reports H1 2025 Financial Results and Guidance Update

Core Insights - SCHMID Group N.V. reported a decline in revenues and gross profits for the first half of 2025 compared to the same period in 2024, primarily due to weak performance in Asia, China, and Europe [3][8] - The company has updated its full-year 2025 sales guidance, indicating that sales will be at the lower end of the previously estimated range due to delays in receiving advance payments and project postponements [5][6] - The company is actively pursuing additional funding through equity and debt investments to support its operations and growth [7][10] Financial Performance - Revenues for the first half of 2025 were €16.9 million, down from €29.7 million in the same period last year, attributed to lower order volumes in Asia, Europe, and the USA [8] - The gross profit for the first half of 2025 was €-1.7 million, a significant decrease from €5.6 million in the previous year, mainly due to low revenue levels [8] - The operating result for the first half of 2025 was €-7.8 million, an improvement from €-70.1 million in the same period last year, driven by lower revenue and negative gross profit [8] Outlook and Guidance - The company expects full-year 2025 sales to be between €72 million and €77 million, with an unadjusted EBITDA margin projected at approximately 15% [5][6] - For 2026, the company anticipates sales revenue exceeding €100 million and an adjusted EBITDA margin of more than 12% [11] Funding and Financial Structure - The company has successfully concluded negotiations for a debt-equity swap with XJ Harbour Ltd., which will offset over USD 26 million in financial liabilities [7] - A loan facility agreement amounting to up to €10 million has been signed, with the first tranche of €2.5 million expected to be drawn down shortly [7][9] - The company also raised €200,000 through a loan with a related party, with a market-standard interest rate and a maturity of 15 months [9] Assets and Liabilities - As of June 30, 2025, total assets were €111.6 million, slightly up from €110.5 million at the end of 2024 [20][22] - The equity attributable to owners of the group was €-55.3 million, compared to €-43.3 million at the end of 2024, indicating a deterioration in financial health [21]