Q2 2026 PVA TePla AG Earnings Call

August 6, 2026

Sebastian Gonsior: With that, let's get started, Jalin, over to you.

Speaker #1: Let's get started. Angeline, over to you.

Speaker #2: Thanks, Sebastian. And good morning, ladies and gentlemen. Thank you for joining our earnings call. Today, we will take you through the first six months of the year and discuss the development of PVA TePla.

Jalin Ketter: Thank you, Sebastian, good morning, ladies and gentlemen. Thank you for joining our earnings call. We will take you today through the H1 of the year of the development of PVA TePla. Yeah, I'm afraid that anyone who joined the call today expecting a lot of news will be disappointed because we are on track, this is good news because we are executing what we said to do. Let us look back 1 year, let's recapitulate where we have stand. We were in the middle of our transformation, we had clear targets, high expectations, we were still rolling out the measures needed to get there. Today, we are 1 year later, we can see that we have come a good way.

Speaker #2: But yeah, I'm afraid that anyone who joined the call today expecting a lot of news will be disappointed, because we are on track—and this is good news, because we're executing what we said we would do.

Speaker #2: Let us look back one year, and let's, yeah, recapitulate where we stand. We were in the middle of our transformation, and we had clear targets, high expectations, but we were still rolling out the measures needed to get there.

Speaker #2: And today, we are one year later, and we can see that we have come a long way. Our technologies are widely accepted in our target markets, and we have made significant improvements across all of our business segments.

Jalin Ketter: Our technologies are widely accepted in our target markets, we have made significant improvements across all of our business segments. In the areas we identified as important, we have started the necessary changes. Yeah, this applies, for example, to an efficiency improvement program in the Material Solutions segment beyond others. Of course, not everything is in place yet because transforming our organization is something which is a long-term process. Not every measure we have implemented also shows results immediately. All in all, also the last quarter assured we are moving in the right direction, we will follow the path we have chosen. The coming quarters will show that our strategy is gradually taking effect and that will also be reflected in our figures.

Speaker #2: In the areas we have identified as important, we have started the necessary changes. And, yes, this applies, for example, to an efficiency improvement program in the Materials Solutions segment, among others.

Speaker #2: But, of course, not everything is in place yet, because transforming our organization is a long-term process, and not every measure we have implemented also shows results immediately.

Jalin Ketter: Of course, not everything is in place yet because transforming our organization is something which is a long-term process. Not every measure we have implemented also shows results immediately. All in all, also the last quarter assured we are moving in the right direction, we will follow the path we have chosen. The coming quarters will show that our strategy is gradually taking effect and that will also be reflected in our figures.

Speaker #2: All in all, also the last quarter assured we are moving in the right direction, and we will follow the path we have chosen. The coming quarters will show that our strategy is gradually taking effect, and, yeah, that will also be reflected in our figures.

Speaker #2: Before our CFO, Marcos Gross, takes you through the H1 results in detail, I would like to give you an overview of a few key aspects.

Jalin Ketter: Before our CFO, Markus Groß, takes us through the H1 results in detail, I would like to give you an overview on a few key aspects. I'm pleased to report a solid demand and improving performance across our business. Our order intake increased by more than 80% year-on-year in both segments. Material Solutions and Metrology supported this outcome. Metrology is contributing a growing share of our group revenue and in Material Solutions, we expect a recovery in the H2 of this year and also beyond. To support our margin targets in that area, we rolled out an efficiency program to improve our profitability. Compared with the Q1 2026, our revenue and earnings have improved. Our strong order book gives us visibility for the coming quarters, we expect revenue and earnings to improve gradually.

Speaker #2: And I'm pleased to report solid demand and improving performance across our business. Our order intake increased by more than 80% year on year in both segments.

Speaker #2: Materials Solutions and Metrology supported this outcome. Metrology is contributing a growing share of our group revenue, and in Materials Solutions, we expect a recovery in the second half of this year and also beyond.

Jalin Ketter: Metrology is contributing a growing share of our group revenue and in Material Solutions, we expect a recovery in the H2 of this year and also beyond. To support our margin targets in that area, we rolled out an efficiency program to improve our profitability. Compared with the Q1 2026, our revenue and earnings have improved. Our strong order book gives us visibility for the coming quarters, we expect revenue and earnings to improve gradually.

Speaker #2: To support our margin targets in that area, we rolled out an efficiency program to improve our profitability. Compared with the first quarter of 2026, our revenue and earnings have improved.

Speaker #2: Our strong order book gives us visibility for the coming quarters, and we expect revenue and earnings to improve gradually. Considering this, we confirm our full-year 2026 guidance, with EBITDA expected in the lower half of the guidance range.

Jalin Ketter: Considering these points, we confirm our full year guidance 2026 with an EBITDA expected in the lower half of the guidance range. You can see we are progressing. Quarter by quarter, our performance is improving. We expect this trend to continue. We are doing that step by step, and we are very confident that this will bring us back onto our growth path exactly as we have planned. With saying that, I now hand over to Markus before we are coming to the strategic part again.

Speaker #2: So you can see we are progressing. Quarter by quarter, our performance is improving, and we expect this trend to continue. We are doing that step by step, and we are very confident that this will bring us back onto our growth path exactly as we have planned.

Speaker #2: So we're saying that I now hand over to Marcos before we come to the strategic part again.

Speaker #3: Thank you, Jaylin, and a warm welcome from my side, and good morning. So let's directly start with our group revenue. After a rather soft start in Q1 of '26, we're seeing a quarter-over-quarter increase of 20%, up to almost €66 million, which means we're seeing an 8% increase year over year in Q2.

Markus Groß: Thank you, Jalin, and a warm welcome from my side and good morning. Let's directly start with our group revenue. After a rather soft start into Q1 of 2026, we're seeing a quarter-over-quarter increase of 20% up to almost EUR 66 million, which means we're seeing an 8% increase year-over-year in Q2. Both segments contributed to this development. We're seeing a 7% increase in Material Solutions and 9% in Metrology. Looking at H1, the revenue is more or less at the same level as in H1 of 2025. In detail, Material Solutions is with EUR 67.6 million in revenue, 10% below H1 of 2025. Based on our order book, we expect this development to turn around in H2 of 2026. On the other hand, Metrology is with EUR 53 million, 20% above H1 of 2025.

Speaker #3: Both segments contributed to this development, so we're seeing a 7% increase in Materials Solutions and 9% in Metrology. Looking at H1, the revenue is more or less at the same level as in the first half of '25, but in detail, Materials Solutions is at €67.6 million in revenue, 10% below the first half of '25.

Markus Groß: We're seeing a 7% increase in Material Solutions and 9% in Metrology. Looking at H1, the revenue is more or less at the same level as in H1 of 2025. In detail, Material Solutions is with EUR 67.6 million in revenue, 10% below H1 of 2025. Based on our order book, we expect this development to turn around in H2 of 2026. On the other hand, Metrology is with EUR 53 million, 20% above H1 of 2025.

Speaker #3: But based on our order book, we expect this development to turn around in the second half of '26. And, on the other hand, metrology is, with €53 million, 20% above the first half of '25.

Speaker #3: And this shows the success of the group's strategic transformation. Looking at the order intake, we're seeing an increase of 13% in the first and second quarter of '26, and with €30 million in Materials Solutions, we are having follow-up orders for compound materials like indium phosphide.

Markus Groß: This shows the success of the group's strategic transformation. Looking at the order intake, we're seeing an increase of 13% in Q2 of 2026. With EUR 30 million in Material Solutions, we are having follow-up orders for compound materials like indium phosphide. In Metrology, EUR 35 million means we're a bit above the expected run rate of EUR 30 million. H1 is a great success from our view. The sustained customer demand for advanced semiconductor materials is shown with an increase of 80% year-over-year in H1 of 2026. With EUR 89 million in Material Solutions and almost EUR 100 million in Metrology. Looking at the development over the single quarters, we can see that Q1 was exceptionally strong. With Q2, we're returning to a more normalized level.

Speaker #3: And metrology, €35 million, means we're a bit above the expected run rate of €30 million. The first half is a great success from our view, and the sustained customer demand for advanced semiconductor materials is shown with an increase of 80% year over year in the first half of '26.

Markus Groß: The sustained customer demand for advanced semiconductor materials is shown with an increase of 80% year-over-year in H1 of 2026. With EUR 89 million in Material Solutions and almost EUR 100 million in Metrology. Looking at the development over the single quarters, we can see that Q1 was exceptionally strong. With Q2, we're returning to a more normalized level.

Speaker #3: That's €89 million in Materials Solutions and almost €100 million in Metrology. Looking at the development over the single quarters, we can see that Q1 was exceptionally strong.

Speaker #3: And with Q2, we're returning to a more normalized level. As I said, metrology, with €35 million, is above the expected run rate of €30 million, and materials solutions, with the project nature of the business, is more lumpy. But the underlying demand environment is intact, and looking in the direction of H2, we're seeing continued demand in our target markets coming from our structural growth drivers.

Markus Groß: As I said, Metrology with EUR 35 million is above the expected run rate of EUR 30 million. Material Solutions with the project nature of the business is more lumpy. The underlying demand environment is intact. Looking in the direction of H2, we're seeing a continued demand in our target markets coming from our structural growth drivers. For H2 of 2026, we expect the order intake to remain at a solid level, but again, showing some volatility due to the project business in Material Solutions. For Metrology, we are very happy to report to you that our existing product lines in H1 of 2027 are already at full capacity. The production lines currently under construction also quickly filling up. With the first orders we received for 2028, our visibility is also increasing.

Speaker #3: So, for the second half of '26, we expect the order intake to remain at a solid level, but again showing some volatility due to the project business in Materials Solutions.

Markus Groß: For H2 of 2026, we expect the order intake to remain at a solid level, but again, showing some volatility due to the project business in Material Solutions. For Metrology, we are very happy to report to you that our existing product lines in H1 of 2027 are already at full capacity. The production lines currently under construction also quickly filling up. With the first orders we received for 2028, our visibility is also increasing.

Speaker #3: For metrology, we're very happy to report to you that our existing product lines in H1 of '27 are already at full capacity, and the production lines currently under construction are also quickly filling up.

Speaker #3: And with the first orders we received for '28, our visibility is also increasing. The group's profitability is improving in the second quarter, but H1 results remain impacted by lower utilization and one-off effects.

Markus Groß: The group's profitability is improving in Q2, but H1 results remained impacted by lower utilization and one-off effects. Generally speaking, Metrology and its gross profit margin is on the expected high level. In Material Solutions, we're a bit below, especially if you compare it with H1 2025, where we had a very strong product mix. With the large orders we received in Q4 2025 and Q1 2026, we're still in an engineering and sourcing phase. This means the revenue contributions are still low, and in some areas of our group, we're suffering from underutilization because the production hasn't started there yet for these projects. This will turn around in H2 2026.

Speaker #3: Generally speaking, metrology and its gross profit margin are at the expected high level. But in materials solutions, we're a bit below—especially if you compare it with the first half of '25, where we had a very strong product mix. And with the large orders we received in the last quarter of '25 and the first quarter of '26, we're still in an engineering and sourcing phase.

Speaker #3: This means the revenue contributions are still low, and in some areas of our group, we're suffering from underutilization because production hasn't started yet for these projects.

Speaker #3: But this will turn around in the second half of '26. Based on the order book, we can see that the gross profit margins in Materials Solutions will improve, and also the underutilization will end.

Markus Groß: Based on the order book, we can see that the margins, the gross profit margins in Material Solutions will improve, and also the underutilization will end. As I said, we're seeing an improvement in the quarterly profitability. If you look at the gross profit margin, which was 30% in Q2, we were coming from 28.5%, and for the upcoming quarters, we expect the gross profit margin to increase gradually. Both segments combined had then 29.3% due to the weak Q1. The EBITDA and the EBITDA margin were impacted by one-offs. The EBITDA in Q2 reduced from EUR 6.7 million down to EUR 3 million. Here we are having non-period expenses, which impacted Q2 of a little less than EUR 4 million. The most relevant here is the recognition of a provision for potential compensation with a customer in Material Solutions.

Speaker #3: As I said, we're seeing an improvement in the quarterly profitability. If you look at the gross profit margin, which was 30% in the second quarter—we were coming from 28.5%.

Speaker #3: And for the upcoming quarters, we expect the gross profit margin to increase gradually, then 29.3%, due to the weak first quarter. The EBITDA and the EBITDA margin were impacted by one-offs, so EBITDA in the second quarter reduced from €6.7 million down to €3 million, and here we are having non-period expenses which impacted the second quarter, of a little less than €4 million.

Markus Groß: Both segments combined had then 29.3% due to the weak Q1. The EBITDA and the EBITDA margin were impacted by one-offs. The EBITDA in Q2 reduced from EUR 6.7 million down to EUR 3 million. Here we are having non-period expenses, which impacted Q2 of a little less than EUR 4 million. The most relevant here is the recognition of a provision for potential compensation with a customer in Material Solutions.

Speaker #3: The most relevant point here is the recognition of a provision for potential compensation with a customer in Materials Solutions. Looking at Materials Solutions, we can see continued order momentum, but the profitability is currently not where we want it to be.

Markus Groß: Looking at Material Solutions, we can see a continued order momentum, but the profitability is currently not where we want it to be. As I said, gross profit margin is impacted by the product mix and underutilization, and also the EBITDA by non-period expenses. For the moment, or as of now, we don't see any effects like we had in Q2 for the rest of the year. We expect the gross profit margin to improve and the recovery in the margins in Q3 and Q4. In Metrology, we're seeing a continued growth in revenue and the order intake. The EBITDA is currently impacted by strategic investments, which are temporarily waiting on our profitability. These investments are in our infrastructure for sales and services, and also increased R&D activities.

Speaker #3: As I said, gross profit margin is impacted by the product mix and underutilization, and also the EBITDA by non-period expenses. For the moment, or as of now, we don't see any effects like we had in the second quarter for the rest of the year.

Speaker #3: We expect the gross profit margin to improve, and the recovery in the margins in the third and fourth quarter. In metrology, we're seeing continued growth in revenue and order intake.

Markus Groß: We expect the gross profit margin to improve and the recovery in the margins in Q3 and Q4. In Metrology, we're seeing a continued growth in revenue and the order intake. The EBITDA is currently impacted by strategic investments, which are temporarily waiting on our profitability. These investments are in our infrastructure for sales and services, and also increased R&D activities.

Speaker #3: But the EBITDA is currently impacted by strategic investments, which are temporarily weighing on our profitability. These investments are in our infrastructure, for sales and services, and also increased R&D activities.

Speaker #3: The second quarter also was impacted by expenses for free demo systems, which decreased our EBITDA in the second quarter as well. So, wrapping it up, in the first half of '26, we achieved revenue of €120 million.

Markus Groß: Q2 also was impacted by expenses for free demo systems, which decreased our EBITDA in Q2 as well. Wrapping it up. In H1 2026, we achieved revenue of EUR 120 million. For Q3, we expect the revenue in the direction of Q2 2026 and an acceleration in Q4, which is coming from our order book. We're very confident here.

Speaker #3: For the third quarter, we expect the revenue to be in the direction of the second quarter of '26, and an acceleration in the fourth quarter, which is coming from our order book, so we're very confident here.

Speaker #3: The EBITDA in the first half has been heavily impacted by one-offs, and due to the stabilization and increase in the gross profit margins—and especially in the fourth quarter with the product mix and materials solutions—we're expecting to be in the third quarter, approaching double-digit levels again.

Markus Groß: The EBITDA in H1 has been heavily impacted by one-offs, and due to the stabilization and increase in the gross profit margins, and especially in Q4 with the product mix in Material Solutions. We're expecting to be in Q3 approaching double-digit levels again, and confirming our guidance in terms of the revenue and also in terms of the EBITDA, but we see ourselves here at the lower half of the guidance range. That's it from my side, and I'm handing back over to Joanne.

Speaker #3: And confirming our guidance in terms of the revenue and also in terms of the EBITDA, but we see ourselves here at the lower half of the guidance range.

Speaker #3: So that's it from my side, and I'm handing back over to Jalen.

Speaker #2: Thanks, Marcus. Let me give you an update on our strategic initiative. Yeah, you know, we are also increasing synergies and efficiency across our group, bringing things together that belong together, and focusing on the things that have the most growth potential for us.

Jalin Ketter: Thanks, Markus. Let me give you an update on our strategic initiatives. We are increasing also synergies and efficiency across our group, bringing things together that belong together, focusing on the things that are having most growth potential for us within our strategic markets. That also means that we step by step drive the organization to new requirements, which are coming on the one hand side out of our target markets, but also from the new clients where we are qualifying ourselves as a vendor. I would like to briefly go and explain two key aspects in this context. You remember that next to our acoustic metrology, also the optical metrology is an important field of technology within PVA.

Speaker #2: Within our strategic markets—and yeah, that also means that we, step by step, drive the organization to new requirements, which are coming on the one hand out of our target markets, but also from the new clients where we are qualifying ourselves as a vendor.

Speaker #2: And yeah, I would like to briefly go and explain two key aspects in this context. You remember that, next to our acoustic methodology, the optical methodology is also an important field of technology within PVA.

Speaker #2: And with this technology, we have been addressing very front-end-related markets in the past with more, yeah, manual systems, half-automated systems—a little bit similar to what we have seen as a development on the acoustic side, yeah, where we started there.

Jalin Ketter: With this technology, we have been addressing very front-end related markets in the past with more manual systems, half-automated systems, a little bit similar to what we have seen as a development on the acoustic side, where we started there. A roadmap that we are having in front of us and where we agreed internally to execute that, will clearly bring us to more back-end related, more packaging related applications. We will address them also with more automated systems, so bringing more volume into that business. To focus our team on that path, we are further consolidating all of our optical metrology activities in one organization into PVA Vision. This also means that we finally built a center of excellence for our optical metrology in our facility in Dresden.

Speaker #2: Our roadmap that we have in front of us, and where we agreed internally to execute that, will clearly bring us to more back-end related, more packaging-related applications, which we will address then also with more automated systems.

Jalin Ketter: We will address them also with more automated systems, so bringing more volume into that business. To focus our team on that path, we are further consolidating all of our optical metrology activities in one organization into PVA Vision. This also means that we finally built a center of excellence for our optical metrology in our facility in Dresden.

Speaker #2: So yeah, bringing more volume into that business. To focus our team on that path, we are further consolidating all of our optical methodology activities in one organization, into PVA Vision.

Speaker #2: And this also means that we have finally built a center of excellence for our optical methodology in our facility in Dresden. This move further enhanced our organization and is also consolidating resources, bringing people together to focus them really on activities with the most important growth potential.

Jalin Ketter: This move further enhance our organization and is also consolidating resources, bringing people together to focus them really on activities with the most important growth potential. In order to support the efficiency on our Material Solutions business, we have placed a strong focus on our profitability. We are redesigning our operational processes, and we started with that at one of our sites as a pilot. This includes initiatives such as introducing new processes, but also new leadership structures. We will have a roll-out phase for other facilities as soon as we have validated the processes that we implemented and the success that we see from that. This activity is part of our long-term margin growth strategy on the Material Solutions side, and the impact of that activities will get visible over time. There is not a one-off effect that we will see directly, but a gradual development.

Speaker #2: In order to support efficiency in our materials solutions business, we have placed a strong focus on our profitability. We are redesigning our operational processes, and we started with that at one of our sites as a pilot.

Speaker #2: And this includes initiatives such as, yeah, introducing new processes, but also new leadership structures. We will have a rollout phase for other facilities as soon as we have validated the processes that we implemented and seen success from that.

Jalin Ketter: This includes initiatives such as introducing new processes, but also new leadership structures. We will have a roll-out phase for other facilities as soon as we have validated the processes that we implemented and the success that we see from that. This activity is part of our long-term margin growth strategy on the Material Solutions side, and the impact of that activities will get visible over time. There is not a one-off effect that we will see directly, but a gradual development.

Speaker #2: Yes, this activity is part of our long-term margin grid strategy on the materials solutions site, and the impact of these activities will become visible over time.

Speaker #2: So, there is not a one-off effect that we will see directly, but rather a gradual development. I also want to focus on some important technology developments in materials solutions today.

Jalin Ketter: I also want to focus on some important technology developments in Material Solutions today. As indium phosphide is an enabling material for the communication between data center, we drive our R&D efforts in this field and focus within our midterm targets on that. We also know that there is a huge interest on your side to learn a little bit more how these activities are contributing to our targets. Artificial intelligence is fueling this demand in indium phosphide substrates, but also then, of course, in our furnaces. There's a shift from smaller wafer sizes to larger six-inch wafers at the moment, which is combined with a structurally tight supply. This creates a real opportunity for us to move into that market.

Speaker #2: As indium phosphide is an enabling material for the communication between data centers, we drive our R&D efforts in this field and focus within our long-term targets on that.

Speaker #2: And we also know that there is a huge interest on your side to learn a little bit more about how these activities are contributing to our targets.

Speaker #2: Artificial intelligence is fueling this demand in indium phosphide substrates, but also, then, of course, in our furnaces. And there's a shift from smaller wafer sizes to larger six-inch wafers at the moment, which is combined with a structurally tight supply.

Speaker #2: And this creates a real opportunity for us to move into that market. Our proven technology and also our delivery capacity are, yeah, bringing us to a very good position to win qualifications and to also support that very fast ramp-up phase that our customers need now.

Jalin Ketter: Our proven technology and also our delivery capacity are bringing us to a very good position to win qualifications and to also support that very fast ramp-up phase that our customers need now. Our internal estimates point to a very high demand of furnaces in this market. Our current expectations are leading to a rough volume between 500 and 600 furnaces in a base case scenario. As competition in this area comes more from internal design, we expect the addressable market down to 20% to 30% of the total market. With the position that we are having in that field with the equipment available at that right time, we are very confident to win a significant share of this addressable market. Let me finally give you an update also on our midterm R&D pipeline.

Speaker #2: Our internal estimates point to a very high demand for furnaces in this market, and, yeah, our current expectations are leading to a rough volume between 500 and 600 furnaces in the base case scenario.

Speaker #2: But as competition in this area comes more from internal design, we expect the addressable market to be down to 20% to 30% of the total market.

Jalin Ketter: As competition in this area comes more from internal design, we expect the addressable market down to 20% to 30% of the total market. With the position that we are having in that field with the equipment available at that right time, we are very confident to win a significant share of this addressable market. Let me finally give you an update also on our midterm R&D pipeline.

Speaker #2: And with the position that we are having in that field, with, yeah, the equipment available at the right time, we are very confident to win a significant share of this addressable market.

Speaker #2: Yeah, let me finally give you an update also on our mid-term R&D pipeline. We already have mentioned our activities in a very promising material.

Jalin Ketter: We already have mentioned our activities in a very promising material, aluminum nitride, in prior calls. We are primary partner in all major European aluminum nitride activities already today and supporting the scale-up in this next generation semiconductor material. It's a material which is very important for high power applications.

Speaker #2: Aluminum nitride. In prior calls, we are the primary partner in all major European aluminum nitride activities already today, and we are supporting the scale-up in this next-generation semiconductor material.

Speaker #2: It's a material which is very important for high-power applications. Our role in this field has developed now from, yeah, providing the R&D equipment into also owning the process ourselves. So that means that we're preparing ourselves to have the full solution available at the time when the market is bringing that material to industrial use, yeah.

Jalin Ketter: Our role in this field developed now from providing the R&D equipment into also owning the process by ourselves. That means that we are preparing ourselves to have the full solution available at the time when the market is bringing that material to an industrial use. Bringing us in a very good position for that as well. Both research and industrial ramp-up keeps us in the forefront of innovation in power electronics and UV photonics. Ladies and gentlemen, as you can see, we are following a clear roadmap to deliver our strategy. That does not happen overnight, but the progress is visible and we will keep moving forward in that regard. Thanks for your attention now. We are happy to take your questions.

Speaker #2: And bringing us into a very good position for that as well. Both research and industrial ramp-up keep us at the forefront of innovation in power electronics and UV photonics.

Speaker #2: Ladies and gentlemen, as you can see, we are following a clear roadmap to deliver our strategy. That does not happen overnight, but the progress is visible, and we will keep moving forward in that regard.

Speaker #2: So, thanks for your attention. We are now happy to take your questions.

Speaker #1: All right, thank you very much, Jaline and Marcus. We will now open the floor for your questions. As usual, we kindly ask you to limit yourself to about two to three questions per person at a time, so that we can give everyone a chance to participate.

Sebastian Gonsior: All right. Thank you very much, Jalin and Markus, we will now open the floor for your questions. As usual, we kindly ask you to limit yourself to about two to three questions per person at a time, so that we can give everyone the chance to also participate. If you, of course, have further questions, you are welcome to re-enter the queue or contact us afterwards, of course, for a one-on-one. I see the first one is Maissa Keskes.

Speaker #1: And if you, of course, have further questions, you're welcome to re-enter the queue or contact us afterwards, of course, for a one-on-one. So I see the first one is Maïssa sa Cascas.

Speaker #2: Hi Maïssa. Can you hear us?

Jalin Ketter: Hi, Maissa. Can you hear us?

Speaker #3: Good morning. Yes, good morning.

Sebastian Gonsior: Good morning.

Maissa Keskes: Hello, can you hear me?

Speaker #4: Good morning. Thank you for taking my question. I will start with the first one. Siltronic mentioned last week that they are in close discussions with their key equipment suppliers regarding additional equipment for their Singapore fab, to prepare for the expected recovery in wafer demand.

Sebastian Gonsior: Yes. Good morning.

Maissa Keskes: Good morning. Thank you for taking my question. I will start with the first one. Siltronic mentioned last week that they are in close discussion with their key equipment suppliers regarding additional equipment for their Singapore fab to prepare for the expected recovery in the wafer demand. Could you share whether you are seeing similar momentum in customer discussion, and how should we think about the timing of potential orders? Is this something that could materialize over the coming quarters, or is it more likely for 2027, with deliveries taking place maybe before 2028?

Speaker #4: Could you share whether you are seeing similar momentum in customer discussion, and how should we think about the timing of potential orders? Is this something that could materialize over the coming quarters, or is it more likely for '27, with deliveries taking place maybe before 2028?

Speaker #2: Yeah, so we are not commenting on single customers at all, but let me give you an overview of the silicon market and how we see contribution.

Jalin Ketter: Yeah. We are not commenting on single customers at all, but let me give you an overview on the silicon market and how we see contribution to our activities. I already said that in that timeframe until 2027, we see a higher demand on available capacity coming up, and this will be something which is combined or coming with further investments and also for securing equipment in that side. We also expect a good contribution to our midterm volume targets coming from that investment phase.

Speaker #2: To our activities—already said that in that timeframe until 2027, we see a higher demand on wafer capacity coming up, and this will be something which is, yeah, combined or coming with further investments and also further growing equipment on that side.

Speaker #2: And we also expect a good contribution to our mid-term volume targets coming from that investment phase.

Speaker #4: Okay, thank you. You highlighted that you are already seeing some initial reservations for new meteorologic capacity for '28. Could you provide more color on this demand?

Maissa Keskes: Okay. Thank you. You highlight that you are already seeing some initial reservation for new metrology capacity for 2028. Could you provide more colors on this demand? I know that you don't disclose the name of the customer, but maybe an indication on the geographical mix and an indication of the level of the backlog expected for 2027 and 2028.

Speaker #4: I know that you don’t disclose the name of the customer, but maybe you could provide an indication of the geographical mix, and an indication of the level of the backlog expected for ’27 and ’28.

Speaker #2: Yeah, it's coming from two areas. So it's the North American market and the Asian market, which is already contributing to that. What we see is that we are now through that qualification phase, which means that we are getting more and more transparency on the volumes that are expected to be invested over the next years.

Jalin Ketter: Yeah. It's coming from two areas. It's the North American market and the Asian market, which is already contributing to that. What we see is that we are now through that qualification phases, which means that we are getting more and more transparency on the volumes that are expected to invest over the next years. That brings us to a point where we have already visibility over the next years, partly also into 2029. The order intake is developing more gradually, so step-by-step increasing, which is coming from the two areas. On the one hand side, we are working with forecast-related plans with our customers, so orders are getting in the book step-by-step, and not as expected is more one-off effect in certain quarters. It's more gradually on that side.

Speaker #2: And that brings us to a point where we already have visibility over the next years, partly also into 2029. The order intake is developing more gradually, so it is increasing step by step.

Jalin Ketter: The order intake is developing more gradually, so step-by-step increasing, which is coming from the two areas. On the one hand side, we are working with forecast-related plans with our customers, so orders are getting in the book step-by-step, and not as expected is more one-off effect in certain quarters. It's more gradually on that side.

Speaker #2: This is coming from two areas. On the one hand, we are working with forecast-related plans with our customers, so orders are getting in the books step by step.

Speaker #2: And not as expected, is more one-off effects in certain quarters. So it's more gradually on that side. And the other thing that you are not seeing from the outside, probably, is that with that focusing on the areas with the most important growth potential, also on the metrology side, you remember that we announced in the first quarter that we closed our site in Coburg and consolidated the optical or the people which were working in the optical business to our team in PVA Vision.

Jalin Ketter: The other thing that you are not seeing from the outside probably is that with that focusing on the areas with the most important growth potential, also on the Metrology side. You remember that we announced in Q1 that we closed our site in Coburg and consolidated the optical, or the people which were working in the optical business to our team in PVA Vision GmbH. We are focusing with our capacity on the most important things, and this also brings the order volume from activities which are not having too much scale potential a little bit down, and they are already compensated by the volumes coming from the new qualification processes. Additionally, that old markets where we have been in from that ultrasound metrology are not as active today as they have been before.

Speaker #2: So we are focusing our capacity on the most important things. And this also brings the order volume from activities which do not have too much scale potential a little bit down.

Jalin Ketter: We are focusing with our capacity on the most important things, and this also brings the order volume from activities which are not having too much scale potential a little bit down, and they are already compensated by the volumes coming from the new qualification processes. Additionally, that old markets where we have been in from that ultrasound metrology are not as active today as they have been before.

Speaker #2: And they are already compensated by the volumes coming from that new qualification processes. Additionally, those old markets where we have been in from that, yeah, ultrasound metrology, are not as active today as they have been before.

Speaker #2: So there is a change in our order book from that more manual and, yeah, semi-automated system technology to that high-volume activity. We already had a recap of that in the year-end call, where I explained how it was in 2025.

Jalin Ketter: There is a change in our order book from that more manual and semi-automated system technology to that high volume activity. We already had a recap to that in year-end call, where I explained how it was in 2025. We had already a 50/50 level nearly of that and this year we can say that volume area significantly overachieved that more manual system area. That change, you have to take that also in consideration when you're having a look on how that order volume is developing on the Metrology side.

Speaker #2: So we had already a, yeah, 50/50 level nearly of that. And this year we can say that that volume area significantly overachieved that more manual system area.

Speaker #2: So that change has to also—you have to take that also into consideration when you're having a look at how that volume or order volume is developing on the metrology side.

Speaker #4: Okay, thank you. Very helpful.

Maissa Keskes: Okay, thank you. Very helpful.

Speaker #1: All right, thank you. Michael Kuhn is next.

Sebastian Gonsior: All right. Thank you. Michael Kuhn is next.

Speaker #3: Good morning. Good morning, Michael.

Michael Kuhn: Good morning.

Jalin Ketter: Good morning.

Speaker #1: Hi.

Sebastian Gonsior: Good morning, Michael.

Michael Kuhn: Hi. Kind of follow up on, let's say, backlog and metrology equipment. At some point in the presentation, I think you mentioned that your production is kind of running at capacity and that you're adding production lines. Maybe you could give some context in terms of how much of a sales volume you are currently able to handle, maybe on an annualized basis, and what your, let's say, production growth plans would imply in terms of annual capacity, into 2027 and 2028.

Speaker #3: Kind of a follow-up on, let's say, backlog and metrology equipment. At some point in the presentation, I think you mentioned that your production is kind of running at capacity and that you're adding production lines. Maybe you could give some context in terms of how much sales volume you are currently able to handle, maybe on an annualized basis.

Speaker #3: And what would your, let's say, production growth plans imply in terms of annual capacity into 2027 and 2028?

Speaker #2: Yeah, so the actual capacity that we are having when we foresee how the orders that we are now getting and that are forecasted are contributing into 2027—then, for the first half year, everything that we are already having for that volume business today is already used in capacity.

Jalin Ketter: The actual capacity that we are having, when we foresee how that orders that we are now getting and that are forecasted are contributing into 2027, then for the H1, everything that we are already having for that volume business today is already used in capacity. We are working on a ramp-up of that capacity, which will go live until year-end. That brings us to a higher capacity starting from 2027, which is already also starting to fill up. Yeah.

Speaker #2: We are working on a ramp-up of that capacity, which will, yeah, go live until year-end. And that brings us to higher capacity starting from 2027, which is already also starting to fill, yeah.

Speaker #3: Okay, so that would be current capacity closer to maybe 100 million annual sales, and then a significant step up towards year-end. Is that a realistic way to think about it?

Michael Kuhn: Okay. That would be current capacity closer to maybe EUR 100 million annual sales and then a significant step-up towards year-end. Is that a realistic way to think about it?

Speaker #2: Roughly.

Speaker #3: Okay. Secondly, on qualifications with customers—obviously, you are making progress here. You mentioned during the call that you also delivered more free demo systems.

Jalin Ketter: Roughly.

Michael Kuhn: Okay. Secondly, on qualifications with customers, obviously, you are making progress here. You mentioned during the call that you also delivered more free demo systems. Can you share with us how many qualification processes you're currently in and maybe what timelines you would roughly expect until those can be finalized?

Speaker #3: Can you share with us how many qualification processes you're currently in and maybe what timelines you would roughly expect until those can be finalized?

Speaker #2: Yes, so the majority of qualification processes that we already talked about—that we are in—have been finalized. So, we are in the volume business now with these customers.

Jalin Ketter: Yeah. The majority of qualification processes that we already talked about that we are in, has been finalized. We are in the volume business now with these customers. There are some additional accounts that we're working on where we are not in volume yet. Half of the big players, we are already in close contract and final agreements with, and the other half is something where we are working and when we are taking this split, I think then we are in line with what we are doing.

Speaker #2: So, there are some additional accounts we're working on, where we are not in volume yet. So, half of the big players we are already in close contact and final agreements with, and the other half is something we are working on. And where we're taking this split, I think then we are in line with what we are doing.

Speaker #3: Okay, excellent. And then, last question on indium phosphide. Very helpful quantification of the market here. Maybe if we look at the market opportunity that you see there and your addressable market, can you share with us on which time frame you expect this market opportunity to materialize?

Michael Kuhn: Okay, excellent. Last question on indium phosphide. Very helpful quantification of the market here. Maybe if we look at those, let's say, market opportunities as you see there and your addressable market, can you share with us, let's say, on which timeframe you expect this market opportunity to materialize? Is that something for the next three years, five years? Maybe to get a little more of an understanding here and maybe also a rough indication what the price tag for such a furnace would be.

Speaker #3: Is that something for the next three years, five years? Maybe you could give a little more of an understanding here? And perhaps also a rough indication of what the price tag for such a furnace would be.

Speaker #2: Yes, so as framed on the slides, we see that market development from 2027 to 2030. We already have the first orders in our books that we are executing.

Jalin Ketter: Yeah. As framed on the slides, we see that market development, from 2027 to 2030. We already have the first orders in our books that we are executing. In 2026, it's a very low volume, that's why we excluded that already in that forecast. Starting from 2027, we see an increase of the volumes. We see the market very strong growing until 2030, and then we have to reevaluate over the time frame how the general market is developing and if there is a higher demand again for photonic activities. Yeah. This is something that is hard to already disclose today on. We are on a very well position to qualify ourselves at these activities.

Speaker #2: In 2026, it's more a very low volume. That's why we have already excluded that in the forecast. And starting from 2027, we see an increase in the volumes.

Speaker #2: We see the market very strong, growing until 2030, and then we have to, yeah, re-evaluate over that time frame how the general market is developing and if there is a higher demand again for photonic activities, yeah.

Speaker #2: So, this is something that is hard to already disclose today. But we are very well positioned to qualify ourselves for these activities.

Speaker #2: We already are working with customers in that field. And, yeah, with the addressable market of 2020 to 30% of that total volume, we think that we really win a high share of that open market.

Jalin Ketter: We are already working with customers in that field and with the addressable market of 20% to 30% of that total volume, we think that we really win a high share of that open market.

Speaker #3: Understood. Thank you.

Michael Kuhn: Understood. Thank you.

Speaker #1: Okay, Hartmut Merz, please.

Sebastian Gonsior: Okay, Hartmut Moers, please.

Speaker #2: Good morning. Can you hear us?

Jalin Ketter: Good morning. Can you hear us?

Speaker #1: Hartmut? Okay, apparently there are some technical difficulties. Well then, Konstantin Hesse, please.

Sebastian Gonsior: Hartmut? Okay, apparently there's some technical difficulties. Well, Constantin Hesse, please.

Speaker #5: Good morning. Can you hear me?

Speaker #2: Good morning.

Constantin Hesse: Good morning. Can you hear me?

Speaker #3: Yes, good morning, Constantine.

Sebastian Gonsior: Good morning.

Markus Groß: Good morning.

Speaker #5: Perfect. Morning, morning, guys. Okay, so three questions from me, and then I'll jump back to the queue. Look, I want to start a little bit with setting expectations here.

Sebastian Gonsior: Yes. Good morning, Constantin.

Constantin Hesse: Perfect. Morning, guys. Three questions from me, then I'll jump back to the queue. Look, I want to start a little bit with setting expectations here. We are now in a situation where you're guiding us towards the lower end of the EBITDA margin guidance because of profitability being weaker in H1. If I look at H2, the jump is substantial, right? We're going from EUR 4.4 million in EBITDA in H1. You guided us for Q3. Q3 looks like it's going to be in the range of something around EUR 6 to 7 million, which means we need at least EUR 16, 17, 18 million in Q4, which are margins north of 20% in order to even deliver the lower end of the guidance.

Speaker #5: We are now in a situation where you're guiding us towards the lower end of the bid margin guidance because profitability was weaker in the first half.

Speaker #5: If I look at the second half, I mean, the jump is substantial, right? We're going from 4.4 million in EBITDA in the first half, you guided us for Q3, Q3 looks like it's going to be in the range of something around 6 to 7 million, which means we need at least 16, 17, 18 million in Q4, which our margins north of 20% in order to even deliver the lower end of the guidance.

Speaker #5: So I want to understand a little bit what the visibility is here and how confident you are that you can actually deliver this, and what the risks are that we could potentially see another guidance downgrade on the back of that.

Constantin Hesse: I want to understand a little bit what the visibility is here and how confident you are that you can actually deliver this, and what the risks are that we could potentially see another guidance downgrade on the back of that. Let's start with that question, please.

Speaker #5: So let's start with that question, please.

Speaker #3: Okay, yeah, sure. Constantine, I think these are valid questions. So, our guidance for the second half is based on your updated forecast. Most of the revenue we're expecting in the second half is coming from our order book.

Markus Groß: Okay. Yeah, sure, Konstantin. I think those are valid questions. Our guidance for the H2 is based on an updated forecast we're having here, and most of the revenue we're having in the H2 is coming from our order book. We have a quite good visibility there, and this means we can also quite good assess the gross profit margins we're expecting from these orders. Giving all of these in combination brings us to that we see ourselves in the EBITDA in the lower half of the guidance. We have quite a good visibility there. And you asked for risks. Obviously there are things we can't control, but looking at it currently, we're quite confident there.

Speaker #3: So we have quite good visibility there, and this means we can also quite well assess the gross profit margins we're expecting from these orders.

Speaker #3: And so, giving all these in combination brings us to that we see ourselves in the EBITDA in the lower half of the guidance. So, we have quite a good visibility there.

Speaker #3: And you asked for risks. So, obviously, there are things we can't control, but looking at it currently, we're quite confident there.

Speaker #5: Can I just understand what are these? So what are the are there risks there are execution related or anything that could potentially lead to lower numbers?

Constantin Hesse: Can I just understand what are these? Are there risks that are execution related or anything that could potentially lead to lower numbers?

Speaker #3: Yeah, it's execution related. There are things we can't control. If a customer says, yeah, don't deliver the system, and it's revenue recognition at the point in time, then that doesn't work.

Markus Groß: Yeah, it's execution related then. There are things we can't control. If a customer says, Yeah, don't deliver the system, and it's revenue recognition at the point in time, then that doesn't work. Currently we're looking at this, we were quite confident there.

Speaker #3: But currently, we're looking at this. We were quite confident there.

Speaker #5: Understood. Okay, thanks. Same question—just about order intake momentum, right? I mean, metrology obviously picked up sequentially, and we saw a bit of a decline in material solutions.

Constantin Hesse: Understood. Okay, thanks. Same question, just on order intake momentum, right? Metrology obviously picked up sequentially, and we saw a bit of a decline in Material Solutions. Just thinking about Q3, Q4 cadence here. What you have been communicating is that we're going to see an acceleration in H2, I think mostly in Q4, but we will probably already see an acceleration in Q3 from what I understand. Can you just give us a little bit of an idea? That's on the Metrology side, right? I want to understand a little bit the Material Solutions side as well, because obviously that is quite lumpy, but just trying to understand from this Q2 level, right, that we saw in order intake, how should we think about the development of Material Solutions in Q3 and Q4? Do you expect a gradual improvement there as well, or rather flattish?

Speaker #5: Just thinking about Q3, Q4 cadence here. So what you have been communicating is that we're going to see an acceleration in the second half.

Speaker #5: I think mostly in Q4, but we will probably already see an acceleration in Q3, from what I understand. Can you just give us a little bit of an idea—so that's on the metrology side, right?

Constantin Hesse: Can you just give us a little bit of an idea? That's on the Metrology side, right? I want to understand a little bit the Material Solutions side as well, because obviously that is quite lumpy, but just trying to understand from this Q2 level, right, that we saw in order intake, how should we think about the development of Material Solutions in Q3 and Q4? Do you expect a gradual improvement there as well, or rather flattish?

Speaker #5: I want to understand a little bit about the material solutions side as well, because obviously that is quite lumpy. But just trying to understand from this Q2 level, right, that we saw in order intake—how should we think about the development of material solutions in Q3 and Q4?

Speaker #5: Do you expect a gradual improvement there as well, or rather flattish? Just to give us a bit of a dynamic—just an understanding of the cadence for both metrology and material solutions, please.

Constantin Hesse: Just to give us a bit of a dynamic, just an understanding of the cadence for both Metrology and Material Solutions, please.

Speaker #3: So, yeah, in material solutions, based on the projects we're currently discussing, we're confident that we will be on a very good level, comparable to H1.

Markus Groß: Yeah, Material Solutions based on the project we're currently discussing, we're looking confident that we will be on a very good level comparable to H1. If it's then in Q3 or in Q4, it's currently hard to tell because it's depending on when we will close the contracts there. For the ongoing discussions, we're looking confident in terms of there. Metrology, based on the forecast, we're expecting that it will gradually increase over H2 of 2026 and then be at a substantial level for going forward.

Speaker #3: But if it's then in Q3 or in Q4, it's currently hard to tell because it depends on when we will close the contracts there.

Speaker #3: But for the ongoing discussions, we're looking confident in terms of that. And metrology—yeah, based on the forecast, we're expecting that it will gradually increase over the second half of '26.

Speaker #3: And then year B at a substantial level for the year going forward.

Speaker #5: So you mean material solutions, right? Not metrology.

Constantin Hesse: You mean Material Solutions, right? Not Metrology.

Speaker #3: Only metrology.

Speaker #5: Oh, sorry. So I understand. For material solutions, you expect a similar level to H1, and then a gradual improvement in metrology.

Markus Groß: No, Metrology.

Constantin Hesse: Oh, sorry. I understood. Material Solutions, you expect similar level to H1 and then a gradual improvement in Metrology. Is that correct?

Speaker #5: That's is that correct?

Speaker #3: I wouldn't say improvement; I would say development.

Markus Groß: I wouldn't say improvement. I would say development.

Speaker #5: Okay, sounds good. Just a quick question to understand—this provision that you took in Material Solutions, what is that related to?

Constantin Hesse: Okay. Sounds good. Just to understand, this provision that you took in Material Solutions, what is that related to?

Speaker #3: Yeah, it's related to an older project with a customer, where this is the best feasible solution for us. But it's an ongoing discussion. We are talking here about the provision.

Markus Groß: It's related to an older project with a customer, where this is the best feasible solution for us, but it's an ongoing discussion. We are talking here about a provision, I can't go into much more detail here for the moment.

Speaker #3: So, I can't go into much more detail here for the moment.

Speaker #5: Was that a quality problem with an equipment, or could that potentially lead to any revisions in whatever you have in your portfolio?

Constantin Hesse: Was that a quality problem with an equipment, that could potentially lead to any revisions in whatever you have in your portfolio?

Speaker #3: No, it's not a structural issue. It's one of its individual systems for one customer. We're talking about you.

Markus Groß: No, it's not a structural issue. It's one of its individual system for one customer we're talking about here.

Speaker #5: Understood. Okay, I'll go back into the queue. Thank you.

Constantin Hesse: Understood. Okay. I'll go back into the queue. Thank you.

Speaker #1: Thank you. Martin Jungfleisch is next.

Sebastian Gonsior: Thank you. Martin Jungfleisch is next.

Speaker #2: Oh, hey, good morning, all. Just on the ultrasound metrology for HBM, right? So, does this high-volume order for HBM depend on a certain tech insertion, like hybrid bonding, or is this particularly designed, for example, for 16-high stacks and not really designed for 12-high stacks?

Martin Jungfleisch: Oh, hey. Good morning, all. Just on the ultrasound metrology for HBM, right? This high volume order for HBM depend on a certain tech insertion, like hybrid bonding, or is this particularly designed, for example, for 16-high stacks, and not really designed for 12-high stacks? Just, is this high volume order, well, orders, are they tied to tech insertion? Maybe also on that, when do you know what kind of share you will get? Are these customers telling you they are dual sourcing, triple sourcing, maybe even single sourcing? Any color on that? Thank you.

Speaker #2: So, just—yeah. Are these high-volume orders tied to certain tech inflection points? And then, maybe also on that, when do you know what kind of share you will get?

Speaker #2: Are these customers telling you they're dual sourcing, triple sourcing, maybe even single sourcing? Any color on that? Thank you.

Speaker #4: Yeah. So, yeah, the production processes of the HBM or the development steps are not important for the qualification. So it's important for 16 stacks and also for other, more future-related developments.

Jalin Ketter: Yeah. The production processes of the HBM or the development steps are not important for the qualification. It's important for 16-stacks and also for other more future-related production activities. It's just about the 3D structure and the quality control of that single levels, and there is not a restriction that we are seeing from the technology side that we cannot see something because there are changes in the process. That's not important for us. The orders are coming step by step. What we see, or maybe what changed also in our expectation from last year, is that they are not placed in one-off orders in volume. It's a forecast that is closely discussed with the customer and where we are step-by-step getting the orders into our books. It's more a continuous process.

Speaker #4: Production activities. So it's just about the 3D structure and the quality control of that single level, and there is not a restriction that we are seeing from the technology side — that we cannot see something because there are changes in the process.

Speaker #4: So that's not important for us. The orders are coming step by step. What we see, or maybe what has also changed in our expectations from last year, is that they are not placed in one-off orders in volume.

Jalin Ketter: That's not important for us. The orders are coming step by step. What we see, or maybe what changed also in our expectation from last year, is that they are not placed in one-off orders in volume. It's a forecast that is closely discussed with the customer and where we are step-by-step getting the orders into our books. It's more a continuous process.

Speaker #4: It's a forecast that is closely discussed with the customer and where we are, step by step, getting the orders into our books. So it's more of a continuous process.

Speaker #4: With our expectation on, yeah, our targets that we set at T1 market, normally this kind of customers are working with the dual service or sometimes also triple source concept.

Jalin Ketter: With our expectation on our targets that we set us to win market share, we expected that normally these kind of customers are working with a dual source or sometimes also triple source concept. We are seeing not much competition in that field today. We are also, with the targets that we set ourselves, are not expecting to be everywhere as a single-source supplier and not to win all the customers. We are making good progress to further move into that market and not seeing much traffic on that side.

Speaker #4: Yes. We are seeing not much competition in that field today. But we are also, with the targets that we set ourselves, not expecting to be everywhere as a single-source supplier.

Speaker #4: And not to win all the customers, but we are making good progress to further move into that market and not seeing much traffic on that side.

Speaker #1: Okay. Edwin de Jong, please.

Sebastian Gonsior: Okay. Eben De Jong, please.

Speaker #2: Yes. Can you hear me? Yes. Okay, Edwin.

Eben De Jong: Yes. Can you hear me?

[Analyst 1]: Yes. Can you hear me?

Speaker #1: Great, good morning. Good to hear from you again. Maybe let's start with a broader view. So, we've seen investments in the semi industry taking off quite a bit.

Jalin Ketter: Yes. Good morning.

Eben De Jong: Great. Good morning. Good to hear from you again. Maybe a little bit with a broader view. We've seen investments in the semi industry taking off quite a bit. The expectations were for a $1 trillion industry at 2030 a couple of years ago, and now it is already approaching EUR 2 billion, and let's say you see everybody is investing more and more. We have there for PVA TePla, we had, I think, addressable markets of EUR 550 million for acoustic metrology, for instance, by 2028. Given the higher investment levels, do you also have a changed view, or has there been any change in view of how your addressable market is developing?

[Analyst 1]: Great. Good morning. Good to hear from you again. Maybe a little bit with a broader view. We've seen investments in the semi industry taking off quite a bit. The expectations were for a $1 trillion industry at 2030 a couple of years ago, and now it is already approaching EUR 2 billion, and let's say you see everybody is investing more and more. We have there for PVA TePla, we had, I think, addressable markets of EUR 550 million for acoustic metrology, for instance, by 2028. Given the higher investment levels, do you also have a changed view, or has there been any change in view of how your addressable market is developing?

Speaker #1: So the expectations were for a $1 trillion industry by 2030 a couple of years ago, and now it's already approaching $2 billion. And let's say you see everybody is investing more and more.

Speaker #1: Yeah. We have for PVA, we had, I think, addressable markets of 550 million for acoustic metrology, for instance, in the by 2028. And given the higher investment levels, do you already do you also have a change view or has there been any change in view of how the how your addressable market is developing?

Speaker #4: Yeah, we also see those activities, and we also see that there are some further investment plans underway. But they are not finally in place yet.

Jalin Ketter: Yeah. We also see that activities, we also see that there are some further investment plans underway. They are not finally in place yet, so that we can take them into our calculation already today. From what we are seeing from the outside, there is potential that that market that we are seeing at the moment has potential to increase, we would, from our point of view, see it too early to adjust our targets in that field.

Speaker #4: So that we can take them into our calculation already today. From what we are seeing from the outside, there is potential that the market we are seeing at the moment has potential to increase, but from our point of view, we see it as too early to adjust our targets in that field.

Speaker #1: So it's still a little bit too early. And then on silicon carbides, I get the feeling that that's changing a little bit there. So there's a lot of demand coming from data centers now, and also on the automotive side, it seems to be on the brink of recovery.

Eben De Jong: It's still a little bit too early. On silicon carbide. I get the feeling that they're changing a little bit there. There's a lot of demand coming from data centers now, and also on the automotive side, it seems to be on the brink of recovery. How is it with your position there, and how's the 12-inch systems? Are you already having orders for them, for instance?

[Analyst 1]: It's still a little bit too early. On silicon carbide. I get the feeling that they're changing a little bit there. There's a lot of demand coming from data centers now, and also on the automotive side, it seems to be on the brink of recovery. How is it with your position there, and how's the 12-inch systems? Are you already having orders for them, for instance?

Speaker #1: How is it with your position there, and how are the 12-inch systems? Are you already having orders for them, for instance?

Speaker #4: Yeah. So, yeah, silicon carbide is something that is continuously happening in our activities. So it's more a steady-going business rather than, yeah, coming in volumes.

Jalin Ketter: Yeah. silicon carbide is something that is continuously happening in our activities, it's more a steady-going business rather than coming in volumes. We also have first discussions on the 300 millimeter side, which is something that we expect that it will be adapted in the market over the next few months. Yeah.

Speaker #4: We also have yeah, first discussions on the 300 millimeter side which is something that we expect that it will be adapted in the market over the next few months.

Speaker #4: Yeah. And yeah, on the market side, you're right. So the data center part is something which is driving the activities, but also, automotive-wise, there is some activity starting to come up again.

Eben De Jong: Okay. Next few months. Great.

[Analyst 1]: Okay. Next few months. Great.

Jalin Ketter: Yeah, on the market side, you're right. The data center part is something which is driving the activities, also automotive-wise, there is some activity starting to come up again.

Speaker #1: Yeah. And as you said, I'm reading a lot about indium phosphide nowadays. Maybe getting back to a question of a colleague earlier: if you look at system prices for these furnaces for indium phosphide, should we think more about in the range of a silicon crystal puller, or more of...

Eben De Jong: As you said there as well, I'm reading a lot about the indium phosphide nowadays. Maybe getting back to a question of a colleague earlier. If you look at system prices for these furnaces for indium phosphide, should we think more about in the range of a silicon crystal puller or more of, let's say, silicon carbide furnace? What kind of direction should we think of?

[Analyst 1]: As you said there as well, I'm reading a lot about the indium phosphide nowadays. Maybe getting back to a question of a colleague earlier. If you look at system prices for these furnaces for indium phosphide, should we think more about in the range of a silicon crystal puller or more of, let's say, silicon carbide furnace? What kind of direction should we think of?

Speaker #1: Let's say silicon carbide furnace—what kind of direction should we think of?

Speaker #4: It's between, but it's a, let's say, low one-digit million amount that we are talking about per system. Depending on the setup—it always depends on how improved the system is, what add-ons it has, and so on.

Jalin Ketter: It's between, it's a, let's say, EUR low one-digit million amount that we're talking about per system.

Eben De Jong: Okay.

[Analyst 1]: Okay.

Jalin Ketter: Depending on the setup, always depends on how improved the system is, what add-ons that has, and so on.

Speaker #1: Okay. Okay. Thank you very much. And then I'll say maybe finally on the optical side, and so the optical metrology, do you have there applications for, let's say, signaling warpage or maybe is it more for glass bonding, or what is exactly the high potential metrology part there?

Eben De Jong: Okay. Thank you very much. Let's say maybe finally on the optical side, and so the optical metrology. Do you have there applications for, let's say, wafer warpage, or maybe is it more for glass bonding, or what is exactly the high potential metrology part there?

[Analyst 1]: Okay. Thank you very much. Let's say maybe finally on the optical side, and so the optical metrology. Do you have there applications for, let's say, wafer warpage, or maybe is it more for glass bonding, or what is exactly the high potential metrology part there?

Speaker #4: Yeah. It's coming with the, yeah, with the challenges and tension that are coming up with the new bonding processes and the developments that we are currently seeing, which are also beneficial for our ultrasound technology.

Jalin Ketter: Yeah. It's coming with the challenges on tension that is coming up with that new bonding processes and the developments that we are at the moment seeing, which are also beneficial for our ultrasound technology. Everything where they're changing processes and where it's challenging to create new material combinations to combine materials together, there is a lot of tension in the processes, and this is a part of the activity where we are targeting for.

Speaker #4: So everything where they're changing processes and where it's challenging to create new material combinations, to, yeah, combine materials together, and there is a lot of tension in those processes, and this is a part of the activity where we are targeting for.

Speaker #1: I'll push you. You are reading that that part of the market is growing and is starting to increase. Could it be?

Eben De Jong: You are reading that that part of the market is growing and is starting to increase.

[Analyst 1]: You are reading that that part of the market is growing and is starting to increase.

Speaker #4: Yeah, it's actually it's something which was very important for the front-end area in the past and where we are also having a lot of activities on the front-end side.

Jalin Ketter: Yeah, it's something which was very important for the front-end area in the past, and where we are also having a lot of activities on the front-end side. The importance of that activities are starting to move more into more back-end related applications, and this is something where we are working together with institutes to further qualify technology in that areas and, yeah, moving it to our customers.

Speaker #4: And the importance of that activity is starting to move more into back-end related applications. This is something where we are working together with institutes to further qualify technology in that area and, yeah, moving it to our customers.

Speaker #1: All right, thank you very much.

Eben De Jong: All right. Thank you very much.

[Analyst 1]: All right. Thank you very much.

Speaker #2: Thank you. Bastian Brach, please.

Sebastian Gonsior: Thank you. Bastian Brey, please.

Speaker #5: Good morning. My questions are centered on the organizational changes you outlined on slide 12. Can you roughly quantify the expected cost synergies in Metrology and Material Solutions, and when should we expect them to become visible?

Bastian Brey: Good morning. My questions are centered on the organizational changes you outlined on slide 12. Can you roughly quantify the expected cost synergies in Metrology and Material Solutions and when we should expect them to become visible? The second one is, can you give a bit more color on which operational processes are being redesigned as part of the Material Solutions program? Thank you.

[Analyst 2]: Good morning. My questions are centered on the organizational changes you outlined on slide 12. Can you roughly quantify the expected cost synergies in Metrology and Material Solutions and when we should expect them to become visible? The second one is, can you give a bit more color on which operational processes are being redesigned as part of the Material Solutions program? Thank you.

Speaker #5: And the second one is, can you give a bit more color on which of the operational processes are being redesigned as part of the material solutions program?

Speaker #5: Thank you.

Speaker #4: Yeah. Let's split that question. So the financial impacts are coming more in the areas that we already announced in the first quarter. So, there is the closing of the facility in Coburg, where we are now consolidating our team activities and team capacity to those more growing areas.

Jalin Ketter: Yeah. Let's split that question. The financial impacts are coming more on the areas which we already announced in Q1. There is that closing of the facility in Coburg, where we are now consolidating our team activities and team capacity to that more growing areas. That second step is a focus on the right things and the roadmaps that we designed internally and where the team is now coming together to really work on the execution of that roadmap. It's bringing a higher focus in the organization, also bringing a better and easier work together, having a facility on one site, in our new site in Dresden with an application lab where they can work on that technology. It's more a focus rather than a restructuring part that we stepped into with that announcement that we have done now.

Speaker #4: And that second step is a focus on the right things and the roadmaps that we designed internally, and where the team is now coming together to, yeah, really work on the execution of those roadmaps.

Speaker #4: And it's bringing a higher focus in the organization, also bringing a, yeah, better and easier way to work together, having a facility on one side in our new site in Dresden with an application lab where they can work on that technology.

Jalin Ketter: It's bringing a higher focus in the organization, also bringing a better and easier work together, having a facility on one site, in our new site in Dresden with an application lab where they can work on that technology. It's more a focus rather than a restructuring part that we stepped into with that announcement that we have done now.

Speaker #4: So, it's more a focus rather than a restructuring part that we stepped into with that announcement that we have done now. On the material solution side, we, yeah, have some after-growth targets that we also, yeah, provided to you within our Capital Markets Day last year.

Jalin Ketter: On the Material Solutions side, we have some after growth targets that we also provided to you within our capital markets day last year. When you see the margin growth that we want to achieve, there is still some way to go on the material side, and this is why we reviewed our cost structure and the efficiency on the production processes and redesigned things. The processes are changing. It's coming with a reduction of our lead times. It's the availability of material. It's the cost structure itself, more strategic purchasing that is coming in. The leadership structure has changed. So it's really a kind of reorganization of our operational part in that field, where we already started in one of our sites and are still having some things to final design, but the rollout will already start in 2026.

Speaker #4: And when you see the margin grids that we want to achieve, there is still some way to go on the material side. And that's why we, yeah, reviewed our cost structure and the efficiency of the production processes and, yeah, redesigned things.

Speaker #4: So the processes are changing. It's coming with a reduction of our lead times, the availability of material, and the cost structure itself. More strategic purchasing is coming in.

Jalin Ketter: The processes are changing. It's coming with a reduction of our lead times. It's the availability of material. It's the cost structure itself, more strategic purchasing that is coming in. The leadership structure has changed. So it's really a kind of reorganization of our operational part in that field, where we already started in one of our sites and are still having some things to final design, but the rollout will already start in 2026.

Speaker #4: The leadership structure has changed, so it's really a kind of reorganization of our operational part in that field. We have already started in one of our sites and still have some things to finalize in the design, but that rollout will already start in 2026.

Speaker #4: We will see, then, step by step the positive contribution coming from those changes to our margin grid.

Jalin Ketter: We will see step-by-step positive contribution coming from that changes to our margin growth.

Speaker #5: Okay, thank you. And do you have a timeline in mind for when you want to complete the rollout?

Bastian Brey: Okay, thank you. Do you have a timeline in mind where you want to complete the rollout?

[Analyst 2]: Okay, thank you. Do you have a timeline in mind where you want to complete the rollout?

Speaker #4: Yeah, it's a continuous process that we are running there. But yeah, on that side, the majority of that restructuring is done within 2027.

Jalin Ketter: Yeah, it's a continuous process that we are running there. On that side, the majority of that restructuring is within 2027 done. There is not much to do afterwards, but we always will have a look on that efficiency topic. It's not stopping. It's more a mindset change as well that we are doing in that area to always review the processes and go for improvement in that areas coming with that new market. Always when we are stepping into that more advanced market areas, we also have a need to change our activities in the production lines and in our service structure, because it's different to what we have done before.

Speaker #4: Yeah. So, there is not much to do afterwards, but we always will have a look at that efficiency topic. So, it’s not stopping. Yeah, it’s more a mindset change as well that we are doing in that area—to always review the processes and go for improvement in those areas coming with the new markets.

Speaker #4: Yeah, because always when we are stepping into those more advanced market areas, we also have a need to change our activities in the production lines and in our service structure, because it's different from what we have done before.

Speaker #5: Okay. Perfect. Thank you very much.

Speaker #2: All right, thank you. Adam Jakubowski is next.

Bastian Brey: Okay, perfect. Thank you very much.

[Analyst 2]: Okay, perfect. Thank you very much.

Speaker #4: Good morning.

Speaker #3: Good morning. Can you hear me?

Sebastian Gonsior: All right. Thank you. Adam Jakubowski is next.

Speaker #6: Good morning. Yes.

Speaker #3: Yeah, great. Thank you for taking my questions. I have two questions. One is regarding the indium phosphide business—it concerns the capacities. Would the existing capacities be sufficient if the business develops as you expect?

Adam Jakubowski: Good morning. Good morning. Can you hear me? Good morning. Yes. Yeah. Great. Thank you for taking my questions. I have two questions. One is regarding the indium phosphide business. It regards the capacities. Would the existing capacities be sufficient if the business develops as you expected? Or is another larger investment program necessary?

[Analyst 3]: Good morning. Good morning. Can you hear me? Good morning. Yes. Yeah. Great. Thank you for taking my questions. I have two questions. One is regarding the indium phosphide business. It regards the capacities. Would the existing capacities be sufficient if the business develops as you expected? Or is another larger investment program necessary?

Speaker #3: Or is there another, larger investment program necessary?

Speaker #4: No, that's as we expected. So we already stepped into the R&D steps in that. We are continuing with the projects that we started, and we are just catching the market now.

Jalin Ketter: No, that's as we expected. We already stepped into the R&D steps for that, and we further continue with the projects that we started, and we are just catching the market now.

Speaker #3: Okay. Okay. And the second question is about your investment plans for 2026. As I understand it, the CapEx was expected to remain at the previous year's level.

Adam Jakubowski: Okay. The second question, your investment plans for 2026. As I understood it, the CapEx was expected to remain at the previous year's level. In H1, it was only EUR 7 million. Have you pushed the plans back, or is there more to come in H2?

[Analyst 3]: Okay. The second question, your investment plans for 2026. As I understood it, the CapEx was expected to remain at the previous year's level. In H1, it was only EUR 7 million. Have you pushed the plans back, or is there more to come in H2?

Speaker #3: But in the first half of the year, it was only €7 million. Have you scaled the plans back, or is there more to come in the second half of the year?

Speaker #6: Yeah, so we are expecting more to come in the second half of the year. We are behind, but this is due to the planning. The majority of the CapEx will be in the second half, then.

Markus Groß: Yeah. We are expecting more to come in H2. It seems like we're lagging a little bit behind, but this is due to the planning. The majority of the CapEx will be in H2 then.

Speaker #3: Okay, great. Thank you very much.

Speaker #2: I am not a major next.

Speaker #4: Good morning.

Adam Jakubowski: Okay, great. Thank you very much.

[Analyst 3]: Okay, great. Thank you very much.

Speaker #2: Good morning. Can you hear me?

Speaker #4: Yes.

Speaker #6: Yes.

Sebastian Gonsior: Arjan Noordam is next.

Speaker #2: I just had a question about, for the second half, for it to be flat in the second half. Is that something that's realistically achievable?

Arjan Noordam: Good morning.

[Analyst 4]: Good morning.

Sebastian Gonsior: Good morning. Can you hear me?

Arjan Noordam: Yes.

[Analyst 4]: Yes.

Speaker #2: How so?

Sebastian Gonsior: Yes.

Arjan Noordam: I just had a question about for H2 for OpEx. OpEx would be flat in H2. Is it something realistically that you can achieve? How so?

[Analyst 4]: I just had a question about for H2 for OpEx. OpEx would be flat in H2. Is it something realistically that you can achieve? How so?

Speaker #6: So, the OPEX is expected at a lower level than in the first half because there were some non-period expenses and some one-offs we are not expecting for the second half.

Speaker #2: Okay, okay. And my second question would be about optic metrology. So, how do you think you can differentiate from established players like KLA or other competitors?

Markus Groß: The OpEx is expected at a lower level than in H1 because there were some non-period expenses and some one-offs we're not expecting for H2.

Speaker #2: Is this like.

Speaker #4: We're not in competition with these kinds of players. So this is an area of the market where none of the big players is sitting, same as in our ultrasound metrology.

Arjan Noordam: Okay. My second question would be about optical metrology. How do you think you can differentiate from established players like KLA or other competitors?

[Analyst 4]: Okay. My second question would be about optical metrology. How do you think you can differentiate from established players like KLA or other competitors?

Speaker #2: Okay, okay, that's helpful. My last question would be about, yeah, you spoke briefly about customer qualification. I think last time you said there is still, like, the second Korean memory player that was in qualification.

Jalin Ketter: We're not in competition with these kind of players. This is area of the market where no one of the big players is sitting the same as in our ultrasound metrology.

Arjan Noordam: Okay. That's helpful. My last question would be about, you talked briefly about customer qualification. I think last time you said there is still the second Korean memory player that was in qualification. Is it already closed?

[Analyst 4]: Okay. That's helpful. My last question would be about, you talked briefly about customer qualification. I think last time you said there is still the second Korean memory player that was in qualification. Is it already closed?

Speaker #2: Is it already closed?

Speaker #4: Yeah. When we look at the market with the big players, we already have half of those big players qualified, and for the other half, we are still working on it.

Speaker #2: Okay. Okay. Yes, those are my questions. Thank you very much. And thank you. Apple's capital, please.

Jalin Ketter: Yeah. As and when we take the market with the big players, we are having half of the big players already qualified and the other half is something where we are working on.

Speaker #7: Good morning.

Speaker #4: Good morning.

Speaker #7: This is Sean. Good morning. So, Sean, this is from Apple's Capital. Maybe some follow-on questions to the metrology area. There is a space which is getting hotter and hotter, and this maybe was not well discussed as you build your midterm plan.

Arjan Noordam: Okay. Yes. Those are my questions. Thanks very much.

[Analyst 4]: Okay. Yes. Those are my questions. Thanks very much.

Sebastian Gonsior: Thank you. Apo Capital, please.

Christian Frieß: Good morning.

[Analyst] (Apo Capital): Good morning.

Speaker #7: It's co-packaged optics. How much is co-packaged optics also something your technology is used in? This may widen up mid- to longer-term available markets for your solutions.

Sebastian Gonsior: Good morning.

Christian Frieß: Christian Frieß from Apo Capital. Maybe some follow-on questions to the Metrology area. There is a space which is getting hot and hotter, and this maybe was not as well discussed as you build your midterm plan. It's co-packaged optics. How much is co-packaged optics? Is that something your technology is used and just maybe widen up mid to longer term available market for your solutions?

[Analyst] (Apo Capital): Christian Frieß from Apo Capital. Maybe some follow-on questions to the Metrology area. There is a space which is getting hot and hotter, and this maybe was not as well discussed as you build your midterm plan. It's co-packaged optics. How much is co-packaged optics? Is that something your technology is used and just maybe widen up mid to longer term available market for your solutions?

Speaker #4: Yeah. It's also relevant in certain aspects, and it's beneficial for that development. So, when we are talking about increasing market activities in this area, it also means that we are further focusing our activities on this area.

Jalin Ketter: It's also relevant in certain aspects, and it's beneficial for that development. When we are talking about increasing market activities on this area, also means that we are further focusing our activities on this area.

Speaker #7: Okay.

Speaker #4: Which means that, so when you—I think it's very important to repeat that at that stage. When you see the development in the acoustic market, please keep in mind that there are activities which are no longer taking place in that field.

Speaker #4: And which are already covered with that high-volume part of the business. And there is a diverse field of activities; it’s also not only running into that just logic and memory part.

Christian Frieß: Okay.

[Analyst] (Apo Capital): Okay.

Jalin Ketter: Which means that, I think it's very important to repeat that on that stage. When you see the development on that acoustic market, please take in mind that there are activities which are not taking place anymore in that field and which are already covered with that high volume part of the business. There is a diverse field of activities. It's also not only running into that just logic and memory part. We are also active at other players, which are next to these kind of customers, like the OSATs and so on.

Speaker #4: So we are also active with other players, which are, yeah, next to this kind of customers, like the OSATs and so on.

Speaker #7: Okay. So that would be the next question. How important are OSATs, and will they become more important? Because they might be followers with new technologies, maybe as customers?

Speaker #7: So, they are more important maybe for the years 2029 and 2030. Is that right?

Speaker #4: Yeah, it's the same. So it's of the same importance, just the volumes are different in the areas where we are, at the moment, talking about and where we are qualifying ourselves, too.

Christian Frieß: That has been put in the next question. How important are OSATs? Will they get more important because they are followers with new technologies, maybe as customers. Of course, they are more important maybe for the years 2029 and 2030. Is that right?

[Analyst] (Apo Capital): That has been put in the next question. How important are OSATs? Will they get more important because they are followers with new technologies, maybe as customers. Of course, they are more important maybe for the years 2029 and 2030. Is that right?

Speaker #4: Yeah. So compared to those very big logic and memory players, there is also a very important activity for us with a higher volume of players in those other markets.

Jalin Ketter: Yeah, it's the same. It's insane important. Just the volumes are different to the areas where we are at the moment talking about and where we are qualifying ourselves to. Yeah, compared to that very big logic and memory players, there is also a very important activity for us, with also higher volume of players in that other markets. We are in that, but by customer, the volume is less than at that big logic and memory players.

Speaker #4: We are in that. But by customer, the volume is less than at the big logic and memory players.

Speaker #7: Yeah, thanks a lot. On this optical space, will optical be larger than your original thought, or is it everything like you had maybe originally planned?

Speaker #4: We are in our plans.

Speaker #7: Okay. Finally, you mentioned that you see not so much complication where you have maybe already designed in. If you, maybe with the other half of large customers you are now still in negotiations, also come to a comparable result that you are partly get maybe sold suppliers.

Christian Frieß: Thanks a lot. On this optical space, will optical be larger than you originally thought, or is it everything like as maybe originally planned?

[Analyst] (Apo Capital): Thanks a lot. On this optical space, will optical be larger than you originally thought, or is it everything like as maybe originally planned?

Speaker #7: Is the available market therefore larger than originally thought because there's less competition?

Jalin Ketter: We are in our plans.

Christian Frieß: Okay. Finally, you mentioned that you see not so much competition where you have maybe already signed in. If you maybe with the other half of large customers you are now still in negotiations, also come to a comparable result that your party kept maybe sole suppliers. Is therefore the available market larger than originally thought because it's less competition?

[Analyst] (Apo Capital): Okay. Finally, you mentioned that you see not so much competition where you have maybe already signed in. If you maybe with the other half of large customers you are now still in negotiations, also come to a comparable result that your party kept maybe sole suppliers. Is therefore the available market larger than originally thought because it's less competition?

Speaker #4: Yeah, so this is a development that we have to keep a close eye on. We are not expecting in our targets that we are single source everywhere.

Speaker #4: Normally, customers like that are working with a dual source concept, and we did not expect to win every customer. In our, yeah, target that we set.

Speaker #4: So the more we are winning, the more positive this is contributing to our guidance.

Jalin Ketter: This is a development that we have to take a close eye on, and we're not expecting in our targets that we are single source everywhere. Normally, customers like that are working with a dual source concept, and we did not expect to win every customer in our target that we set at. As more we are winning, as more positives, this is contributing to our guidance.

Speaker #7: Great. And when you finally find it—if I heard it right, and you confirmed it, Markus confirmed it—that in 2027 there should be meaningful growth in metrology.

Speaker #4: In 2027, we are having a higher contribution on the metrology side already, because what we see as forecasts that are running into 2027, and also orders that are already placed in 2027, is showing us that the production lines that we are foreseeing and that we discussed with customers will be filled well in 2027.

Christian Frieß: Great. Maybe finally, if I heard it right, Markus confirmed it, said in 2027, there should be a meaningful close in Metrology.

[Analyst] (Apo Capital): Great. Maybe finally, if I heard it right, Markus confirmed it, said in 2027, there should be a meaningful close in Metrology.

Speaker #7: Thanks a lot.

Jalin Ketter: In 2027, we are having a higher contribution on Metrology side already because what we see as forecasts that are running into 2027 and also orders that are already placed in 2027 is showing us that the production lines that we foresee and that we discussed with customers will be filled well in 2027.

Speaker #2: All right, then. We have a caller from the UK. Could you please state your name and then briefly ask your question?

Speaker #6: Good morning, everyone. It's Gustav from Bernberg. Thank you for taking my questions as well.

Speaker #2: Good morning.

Speaker #6: I'll start with one—morning, morning. I'll start with one on the one-offs and the lower GDPR guidance for the year. What in particular was the cost surprise in Q2 relative to what we had previously?

Christian Frieß: Thanks a lot.

[Analyst] (Apo Capital): Thanks a lot.

Sebastian Gonsior: All right. We have a caller from the UK. Could you please state your name and then just briefly ask your question?

Speaker #6: And could you, in that context, maybe also quantify all of the one-off effects that were booked in your profits in H1, which will not reoccur in H2?

[Analyst] (Berenberg): Good morning, everyone. It is Gustav from Berenberg. Thank you for taking my questions as well.

Gustav Froberg: Good morning, everyone. It is Gustav from Berenberg. Thank you for taking my questions as well.

Speaker #7: So, I had some acoustic problems understanding your question. But if I got it right, you were asking for some more details on the one-offs.

Jalin Ketter: Good morning.

[Analyst] (Berenberg): Oh, morning. I will start with one on the one-offs and the lowered EBITDA guidance for the year. What in particular was the cost surprise in Q2 relative to what you had previously? Could you, in that context, maybe also quantify all of the one-off effects that were good in your profits in H1, which will not reoccur in H2?

Gustav Froberg: Oh, morning. I will start with one on the one-offs and the lowered EBITDA guidance for the year. What in particular was the cost surprise in Q2 relative to what you had previously? Could you, in that context, maybe also quantify all of the one-off effects that were good in your profits in H1, which will not reoccur in H2?

Speaker #7: So, these are all non-period related. The ones I mentioned in Q2 were a little less than €4 million. The largest one is the provision, and then there are several smaller ones. An example here is that the LTI program running from '23 to '26 was, at the end of year '25, calculated with the Black-Scholes model. The development of the share during the first half, where the market valuation increase was relevant, was not matching the expectation coming from the volatility in the model.

Markus Groß: I had some acoustic problems understanding your question, but if I got it right, you were asking for some more details on the one-off. These are all non-period related. The ones I mentioned in Q2 with being a little less than EUR 4 million, the largest one is the provision, and then there are several smaller. One example here is that the ATI program running from 2023 to 2026 was at the end year 2025, calculated with the Black-Scholes model and the development of the share during the H1 where the market valuation increase is irrelevant was not matching the expectation coming from the volatility and the model and this added on some additional costs here. There are several small, I think it is not helpful here to go into much more detail with those. Happy to have a follow-up call with you.

Speaker #7: And this added on some additional costs here. But there are several smaller ones; I think it's not helpful here to go into much more detail with those.

Speaker #7: But happy to have a follow-up call with you.

Speaker #6: No problem, thank you. So that was the surprise, I guess. Were there any other one-offs related to other things that we may have discussed in Q1 or so already, that slipped our mind, that will not recur in H2, such that you kind of get to guidance?

Speaker #7: Yeah. So we factored everything we know as of today in our guidance. So we don't expect any surprises here there.

Speaker #6: Okay, great. The question on metrology: Obviously, down on the order intake side, quarter over quarter, which was expected, which is fine. But could you give us a steer on how you see the ramp-up in metrology orders for Q3 and Q4, and maybe give us an indication as to whether or not you are feeling better or worse about the ramp-up in metrology orders expected for Q3 and H2 versus what you felt last quarter?

[Analyst] (Berenberg): No problem. Thank you. That was the surprise, I guess. Were there any other one-offs related to other things that we may have discussed in Q1 or so already that might have slipped our mind that will not recur in H2 such that you kind of get to guidance?

Gustav Froberg: No problem. Thank you. That was the surprise, I guess. Were there any other one-offs related to other things that we may have discussed in Q1 or so already that might have slipped our mind that will not recur in H2 such that you kind of get to guidance?

Markus Groß: Yeah. We factored everything we know as of today in our guidance, we don't expect any surprises here there.

Speaker #4: Yeah. As said, so this is a gradual increase that we are seeing step by step over the quarters. Which is coming on the one side that we are making more activities out of that high volume areas but also having an increasing situation on the order in total.

[Analyst] (Berenberg): Okay, great. A question on Metrology. Obviously down on the order intake side quarter over quarter, which was expected, which is fine, could you give us a steer on how you see the ramp-up in Metrology orders for Q3 and Q4, and maybe give us an indication as to whether or not you are feeling better or worse about the ramp-up in Metrology orders expected for Q3 and H2 versus what you felt last quarter?

Gustav Froberg: Okay, great. A question on Metrology. Obviously down on the order intake side quarter over quarter, which was expected, which is fine, could you give us a steer on how you see the ramp-up in Metrology orders for Q3 and Q4, and maybe give us an indication as to whether or not you are feeling better or worse about the ramp-up in Metrology orders expected for Q3 and H2 versus what you felt last quarter?

Speaker #4: We are having a better situation today than we had before, because we have a lot more transparency on what is coming next and what the final and resident plans of our customers are.

Speaker #4: We will see that step by step in our orders, so it's not a one-off impact that we will see in one quarter where order intake is jumping up.

Jalin Ketter: As said, this is a gradual increase that we are seeing step by step over the quarters, which is coming on the one side that we are making more activities out of that high volume areas, but also having an increasing situation on the order in total. We are having a better situation today as we had before because we are having a lot more transparency on what is coming next and what are the final investment plans of our customers. We will see that step by step in our orders. It's not a one-off impact that we will see in one quarter where order intake is jumping up. It's more a steady development that we are now in and where we are seeing with that four to six months, depending on the customer lead times ahead that orders are coming in.

Speaker #4: It's more a steady development that we are now in, and where we are seeing that, yeah—forward to six months, depending on the customer lead times ahead, that orders are coming in.

Speaker #6: Great. And just to follow up on that, should we base that on the order intake you showed in metrology for Q2, or should we base that on the H1 order intake?

Speaker #4: Two. H2. Q2. Sorry.

Speaker #6: Great, thank you. Last question from me on the Indian polysilicon side. Obviously, that’s a large market opportunity, and thank you for quantifying it. But may I ask which customers you have on the Indian polysilicon side today? Of course, I’m not expecting you to name any names, but it would be great to understand a little bit better where they are located geographically.

[Analyst] (Berenberg): Great. Just to follow up on that, shall we base that on the order intake that you showed in Metrology for Q2, or should we base that on the H1 order intake?

Gustav Froberg: Great. Just to follow up on that, shall we base that on the order intake that you showed in Metrology for Q2, or should we base that on the H1 order intake?

Speaker #6: Maybe you have a big spread but it would be good to know which geography is the most important.

Speaker #4: Yeah. Sorry, but that market is so tight we are not commenting on anything on that customer side. So we are already in agreements with customers, and we are extending our activities in the market.

Jalin Ketter: Q2, sorry.

Speaker #4: But it's too tight to disclose on anything.

[Analyst] (Berenberg): Great. Thank you. Last question from me on indium phosphide. Obviously, large market opportunity, thank you for quantifying. May I ask which customers do you have in indium phosphide today? Of course, I'm not expecting you to name any names, it would be great to understand a little bit better where they are located geographically. Maybe you have a big spread, it would be good to know which geography is the most important.

Gustav Froberg: Great. Thank you. Last question from me on indium phosphide. Obviously, large market opportunity, thank you for quantifying. May I ask which customers do you have in indium phosphide today? Of course, I'm not expecting you to name any names, it would be great to understand a little bit better where they are located geographically. Maybe you have a big spread, it would be good to know which geography is the most important.

Speaker #6: No problem. Thank you very much.

Speaker #2: All right. Thank you. We're a more time with Hart and Merce. Maybe this time it works.

Speaker #4: Good morning.

Speaker #7: Good morning. Can you hear me now? Yes. Good morning.

Speaker #2: Great.

Speaker #7: So, most of my questions have already been answered. I'd just like to follow up on the one-offs. Could you give a bit more color on the provisions you booked?

Jalin Ketter: Yeah. Sorry, that market is so tight, we are not commenting on anything on that customer side. We are already in agreements with customers, and we are extending our activities in the market, but it's too tight to disclose on anything.

Speaker #7: So as I understood you, it was in material solutions. But what area of material solutions, and what is or was the problem—without going into specific details or naming any customers?

[Analyst] (Berenberg): No problem. Thank you very much.

Gustav Froberg: No problem. Thank you very much.

Sebastian Gonsior: All right. Thank you. We're a little over time, but maybe let's try one more time with Hartmut Moers. Maybe this time it works.

Speaker #7: Yeah. As I said, I'm sorry, but we're currently still in negotiations here, so I can't go into much more detail. I can tell you that it's not a structural problem—it's an old model, and it's a thing from the past.

Jalin Ketter: Good morning.

Hartmut Moers: Good morning. Can you hear me now?

Markus Groß: Yes. Good morning.

Hartmut Moers: Great. Most of my questions have been answered already. I just would like to follow up on the one-offs. Could you give a bit more color on the provisions you booked? As I understood you, it was in Material Solutions, but what area of Material Solution and what is or was the problem, without going into specific details and naming any customers?

Speaker #7: We don't expect these things to happen in the future here. And it's also a market we're not addressing in that fashion anymore. Okay. And did you have any extraordinary sort of reminders in the first quarter, similar to that, that do not reoccur in the second half of the year?

Speaker #7: Or. It's only the restructuring in Coburg but this has been also factored into our guidance so it's not something we would count into there.

Markus Groß: Yeah. As I said, I'm sorry, but we're currently still in negotiations here, so I can't go into much more detail. I can give you, it's not a structural problem. It's an old model, and it's a thing from the past. We don't expect these things to happen in the future here, and it's also a market we're not addressing in that fashion anymore.

Speaker #7: Okay. And then we had already the topic that there must be a significant move in the fourth quarter. I mean, what you're saying is if we strip out the 4 million of the second quarter then you would arrive as you have guided in the third quarter with roughly similar sales at a approximating double-digit margin.

Hartmut Moers: Did you have any extraordinaries, could you remind us, in Q1, similar to that do not reoccur in H2 of the year, or?

Speaker #7: So basically, you're saying if we strip out the extraordinaries, Q3 will be very similar to Q2. But then there must be a major jump, and you were saying that this comes—sorry?

Markus Groß: It's only the restructuring in Coburg, this has been also factored into our guidance, it's not something we would count into there. Yeah.

Hartmut Moers: Okay. We had already the topic that there must be a significant move in Q4. What you're saying is if we strip out the full million of Q2, you would arrive, as you have guided in Q3, with roughly similar sales at an approximating double-digit margin. Basically, you are saying if we strip out the extraordinaries, Q3 will be very similar to Q2. There must be a major jump, and you were saying that this comes. Sorry?

Speaker #7: Yeah. I think there are two effects you need to counter into your equation. The first one is we will see a continuous improvement in the product mix and in the gross profit margin.

Speaker #7: But it's not only the one-off you're seeing in the overheads. It's also that the gross profit margin is expected to improve in Q3, but also especially then in Q4 with the large orders coming into play. We're also expecting here that the revenue in Q4 will accelerate in comparison to Q3, and this will then give an additional jump here.

Speaker #7: Yeah. And with regards to the product mix, so what is this shift coming from? You're saying the large orders so you're basically talking about crystal silicon, right?

Markus Groß: Yeah, I think there are two effects you need to counter into your equation. The first one is we will see a continuous improvement in the product mix and the gross profit margin. It's not only the one-off you're seeing in the overheads, it's also that the gross profit margin is expected to improve in Q3, also especially then in Q4 with the large orders coming into play. Also, we're expecting that the revenue in Q4 will accelerate in comparison to Q3, this will then give an additional jump here.

Speaker #7: It's a mix of material solutions, so it's not just one technology.

Speaker #2: All right. So yeah.

Speaker #7: Sorry, I'm on this all the time. Unfortunately, we have to stop for today. If you have any further questions, we're happy to take them offline and set up another call.

Speaker #7: But thank you everyone very much for joining in and yeah, we wish you a great day. Thank you all.

Hartmut Moers: With regard to the product mix, what is this shift coming from? You're saying the large orders. You're basically talking about crystalline silicon, right?

Markus Groß: It's a mixed thing from Material Solutions, so it's not only one technology.

Hartmut Moers: All right.

Hartmut Moers: Yeah. Sorry, Hartmut, that is all the time, unfortunately, we have for today. If you have any further questions, we're happy to take it offline and set up another call. Thank you everyone very much for joining in, and yeah, we wish you a great day.

Sebastian Gonsior: Yeah. Sorry, Hartmut, that is all the time, unfortunately, we have for today. If you have any further questions, we're happy to take it offline and set up another call. Thank you everyone very much for joining in, and yeah, we wish you a great day.

Markus Groß: Thank you all.

Jalin Ketter: Thank you. Goodbye.

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Q2 2026 PVA TePla AG Earnings Call

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