Half Year 2026 Sensirion Holding AG Earnings Call

August 19, 2026

Speaker #1: And listen-only mode.

Lars Dünnhaupt: In listen only mode.

Speaker #2: Going back to the strategy, we had our Capital Market Day in April this year. I just selected some of the slides—they are the same as we presented there—in order to give you a short recap of the strategy.

Marc von Waldkirch: Going back to the strategy, we had our capital market day in April this year. I just selected some of the slides. They are the same as we have presented there in order to give you a short recap of the strategy. We have presented our ambitious growth strategy under the banner of we measure gases precisely, reliably, and at scale. Sensirion today is, to my knowledge at least, the company with the probably most comprehensive portfolio of technologies to measure small amounts of gases in any kinds of application. That is the unique edge our growth strategy looking forward is actually based on. On top of that, of the technology portfolio, we do have deep relationships, long-term relationships with important leading customers in all the fields we are in. Secondly, we have also a deep application expertise in-house to combine technology with the problems of our customers.

Speaker #2: We have presented our ambitious growth strategy under the banner of "We measure gases." Precisely, reliably, and at scale. Sensirion today is, to my knowledge at least, the company with probably the most comprehensive portfolio of technologies to measure small amounts of gases in any kind of application.

Speaker #2: And that's the unique edge our growth strategy is looking for, which it is actually based on. On top of that, in the technology portfolio, we do have deep, deep relationships—long-term relationships—with important leading customers in all the fields we are in. And secondly, we also have deep application expertise in-house.

Speaker #2: To combine technology with the problems of our customers—that's the basis of our growth strategy. The market we are in, and that we are looking for, is smart gas sensing—a fast-growing, multi-billion market driven by so-called megatrends, such as the health issue, demographic changes, and an aging society on the one hand.

Marc von Waldkirch: That is the base of our growth strategy. The market we are in and we are looking for is smart gas sensing, a fast-growing, multi-billion market driven by several megatrends, such as the health issue, the demographic changes, aging society, on the one-hand side. We do have the climate and environmental protection. We have energy efficiency as a megatrend, and last but not least, also the regulations and norms in order to increase safety for people. All these megatrends translate into mission-critical applications. They are coming up in this field of smart gas sensing from breath analysis about patient monitoring, about the emission of hazardous gases, or the leakage of critical gases in any kind of application. This is exactly the market we are fully targeting at the moment. In this market, it is not just about components.

Speaker #2: We do have the climate and environmental protection. We have energy efficiency as a megatrend, and last but not least, also the regulations and norms in order to increase safety for people.

Speaker #2: All these megatrends translate into mission-critical applications; they are coming up in this field of smart gas sensing. From breath analysis about patient monitoring, to the emission of hazardous gases, or the leakage of critical gases in any kind of application.

Speaker #2: And this is exactly the market we are fully targeting at the moment. In this market, it's not just about components; it's also about delivering full solutions to solve the entire problem of our customers' sensor challenges.

Marc von Waldkirch: It is also all the way up to full solutions to solve the full problem of our customers' central challenges. Our vision in this market is clear. Our ambition is to become market leader in this high-value smart gas sensing markets by 2030. Solving and focusing fully on these mission-critical challenges as a trusted partner of our customers in regions. To do so, we have defined four strategic pillars. On the one-hand side, it is about dominating the core of flow applications, but also environmental sensing application, and to even expand our dominant position in this field. Additionally, the second pillar is about building up leadership, market leadership in a leakage market, a market which is growing fast, which is coming up at the moment. H2 is just a starting point to do so. It is about A3, but also battery management is, at the end of the day, a leakage detection application.

Speaker #2: Our vision in this market is clear: our ambition is to become market leaders in this high-value smart gas sensing market by 2030. We are solving and focusing fully on these mission-critical challenges as a trusted partner of our customers in all regions.

Speaker #2: To do so, we have defined four strategic pillars. On the one hand, it's about the dominating decor, the core of flow applications, but also environmental sensing applications.

Speaker #2: And to even expand our dominant position in this field. Additionally, the second pillar is about building up leadership—market leadership—in the leakage market, a market which is growing fast, which is coming up at the moment. A12 is just a starting point to do so.

Marc von Waldkirch: Additionally, the second pillar is about building up leadership, market leadership in a leakage market, a market which is growing fast, which is coming up at the moment. H2 is just a starting point to do so. It is about A3, but also battery management is, at the end of the day, a leakage detection application.

Speaker #2: It's about A3, but also battery management is, at the end of the day, a leakage detection application. The third pillar is about expanding to medical and industrial solutions, always focused on mission-critical applications, as we have presented in the Capital Market Day.

Marc von Waldkirch: Third pillar is about expanding to medical and industrial solutions, always focused on mission-critical applications as we have presented in the capital market day. Last but not least, all these solution-oriented innovations-driven application is not of value if we cannot strengthen our resilience in this volatile environment. Therefore, also the strategic pillar number 4 is about the increase of resilience in our supply chain in the way we operate our business model. This is the ambitious growth strategy we have. It is not just a dream. It is built on concrete growth fields we have presented you in details during the capital market day. All of them have a significant growth potential for the next couple of years. It is important, it is not just about the far-out future.

Speaker #2: And last but not least, all these solution-oriented, innovation-driven applications are not of value if we cannot strengthen our resilience in this volatile environment. Therefore, strategic pillar number four is also about increasing resilience in our supply chain and in the way we operate our business model.

Speaker #2: This is the ambitious growth strategy we have. It's not just a dream; it's built on concrete growth fields, which we presented to you in detail during the Capital Market Day.

Speaker #2: All of them have significant growth potential for the next couple of years, and it’s important—it’s not just about the far-out future.

Speaker #2: Some of these growth fields have already contributed to the first half of 2026 financial results, in particular, in battery management but also in gas chromatography, with our company in the Netherlands, Accu Micro.

Marc von Waldkirch: Some of these growth fields have already contributed to the H1 2026 financial results, in particular about battery management, but also about gas chromatography with our company in the Netherlands, Qmicro. So it is not about future, it is also about reality today. The first contributions are already recorded from our growth strategy. Saying that, I like to hand over to Martin to dive into all the details of our financial results. Thank you, Marc. Also from my side, a very warm welcome to the audience. Over the next few minutes, I will take you through our financial performance for the H1 2026. The top line and the development by market and region, our margins and profitability, and how this translates into cash and future strengthening of our balance sheet.

Speaker #2: So it's not just about the future; it's also about reality today. The first contribution is already recorded from our growth strategy. With that, I'd like to hand over to Martin to dive into all the details of our financial results.

Speaker #3: Thank you, Mark. And also from my side, a very warm welcome to the audience. Over the next few minutes, I will take you through our financial performance.

Speaker #3: For the first half year of 2026, the top line and the development by market and region, our margins and profitability, and how this translates into cash and future strengthening of our balance sheet.

Speaker #3: Mark will then come back to walk you through our raised outlook for the full year. Now, let me start with the headline numbers. We delivered revenue of 179 million Swiss francs, up 7% in local currencies.

Martin Wirz: Marc will then come back to walk you through our raised outlook for the full year. Now let me start with the headline numbers. We delivered revenue of CHF 179 million, up 7% in local currencies. In Swiss francs, that is a reduction of 3% as the strong franc continues to wait on reporting figures compared to H1 2025. A theme you will see running through the presentation today. Importantly, the underlying momentum of the business is clearly one of growth. Profitability remained healthy. Our gross margin improved to 52.6% from 51.5% a year ago. The EBITDA margin held at 19.5%, essentially stable versus 19.8% in the prior year period.

Speaker #3: In Swiss francs, that's a reduction of 3%, as the strong franc continued to weigh on reported figures compared to half-year 1, 2025—a theme you will see running through the presentation today.

Speaker #3: But importantly, the underlying momentum of the business is clearly one of growth. Profitability remained healthy. Our gross margin improved to 52.6% from 51.5% a year ago.

Speaker #3: And the EBITDA margin held at 19.5%, essentially stable versus 19.8% in the prior-year period. Cash generation was a real highlight: operating cash flow rose 20% to CHF 34 million, leaving us with a cash position of CHF 83.5 million at the end of June.

Martin Wirz: Cash generation was a real highlight. Operating cash flow rose 20% to CHF 34 million, leaving us with a cash position of CHF 83.8 million at the end of June. So growth in local currency, margins held, and strong cash conversion. To briefly recap, market development growth was genuinely broad-based, all four end markets grew in local currencies. You heard it from Marc, automotive was up almost 11% in local currency, despite the well-known structural headwind in the Western auto industry, thanks to growth with new applications. Medical grew close to 10%, driven by strong CPAP and ventilation demand. Consumer as a standout was up 45%, carried by the strong distribution demand across all three regions. Our largest market, industrial, at 54% of revenue, held its prior year level in local currency, up around 1%.

Speaker #3: So, growth in local currency, margins held, and strong cash conversion. To briefly recap, market development and growth were genuinely broad-based; all four markets grew in local currencies.

Speaker #3: You heard it from Mark: Automotive was up almost 11% in local currency, despite the well-known structural headwind in the Western auto industry, thanks to growth with new applications.

Speaker #3: Medical grew close to 10%, driven by strong CPAP and ventilation demand. Consumer, as a standout, was up 45%, carried by the strong distribution demand.

Speaker #3: Across all three regions, our largest market, Industrial, at 54% of revenue, held its prior-year level in local currency, up around 1%. That is a strong result when you recall the first half-year 2025 was benefiting from a significant A2L front-loading effect as per before.

Martin Wirz: That is a strong result when you recall the H1 2025 was benefiting from a significant A2L front-loading effect as heard before, and driven by growth in other industrial applications, smart gas metering, and gas chromatography was mentioned, and also the strong distribution business, offset this expected normalization of A2L. By regions, APAC and EMEA both grew double digits in local currency, while Americas declined, also reflecting the strong prior year A2L base. The picture is one of underlying momentum, with FX and A2L comparison masking the true strength of the H1 2026. Turning to the next slide. This slide shows the margin profile. Gross margin was up 110 basis points to 52.6% on the back of operating leverage, favorable product mix, and our continuous efficiency programs. That improvement absorbed both currency and elevated raw material costs.

Speaker #3: And driven by growth in other industrial applications, smart gas metering, and gas chromatography, as mentioned, and also the strong distribution business, offset this expected normalization of A2L.

Speaker #3: By regions, APAC and EMEA both grew double digits in local currency, while Americas declined, also reflecting the strong prior-year A2L base. So the picture is one of underlying momentum, with FX and A2L comparison masking the true strength of the first half year 2026.

Speaker #3: Turning to the next slide, this slide shows the margin profile. Gross margin was up 110 basis points to 52.6%, on the back of operating leverage, favorable product mix, and our continued efficiency programs.

Speaker #3: That improvement absorbed both currency and innovated raw material costs. The margin strength is what allows us to keep investing. R&D intensity was 18.4% of revenue, and this is fully in line with our mid-term innovation strategy.

Martin Wirz: The margin strength is what allows us to keep investing. R&D intensity was 18.4% of the revenue, and this is fully in line with our midterm innovation strategy. SG&A was 20.9%, reflecting targeted investment in our customer-facing functions. In short, strong gross margin is comfortably funding innovation that drives our future growth fields. On profitability, EBITDA came in at CHF 34.9 million, a margin of 19.5%. That resilience reflects the gross margin expansion just before elaborated and OpEx discipline, while we continued to absorb FX and higher material costs and keep investing in growth. Below EBITDA, the net profit rose 81% year-on-year to CHF 18.9 million. A minor driver there is a normalized financial result. The prior year period was heavily impacted by foreign exchange losses from the strengthened Swiss francs.

Speaker #3: SG&A was 20.9%, reflecting targeted investment in our customer-facing functions. In short, strong gross margin is comfortably funding the innovation that drives our future growth fields.

Speaker #3: On profitability, EBITDA came in at 34.9 million Swiss francs, a margin of 19.5%. That resilience reflects the gross margin expansion just elaborated on, and OPEX discipline, while we continued to absorb FX and higher material costs and keep investing in growth.

Speaker #3: Below EBITDA, the net profit rose 81% year-on-year to 18.9 million Swiss francs. A main driver there is a normalized financial result. The prior year period was heavily impacted by foreign exchange losses from the strengthened Swiss franc.

Speaker #3: The equity-accounted contribution from LUMIFACE came in in line with our expected run rate, at a comparable number to last year. Net working capital was stable at 33.5% of last 12 months' revenue.

Martin Wirz: The equity accounted contribution from LumiPhase came in in line with our expected run rate at the comparable number than last year. Net working capital was stable at 33.5% of last 12 months revenue. Inventories came down as A2L stock level normalized, supported by active inventory management while we preserve the flexibility to serve the demand of our own customers. CapEx was elevated, and in line with our communicated plan. It reflects the continuous investment in manufacturing capacity here in Switzerland, including CHF 8.2 million of growth CapEx for our second clean room in Stäfa, which is progressing on schedule and within budget. Depreciation and amortization are rising in line with our investment cycle. Turning to the balance sheet and the highlight of the balance sheet. Our balance sheet remains a real source of strength.

Speaker #3: Inventories came down as A12 stock levels normalized, supported by active inventory management, while we preserved the flexibility to serve the demand of our customers.

Speaker #3: CAPEX was elevated and in line with our communicated plan. It reflects the continued investment in manufacturing capacity here in Switzerland, including CHF 8.2 million of gross CAPEX for our second clean room in Stefa, which is progressing on schedule and within budget.

Speaker #3: Depreciation and amortization are arising in line with our investment cycle. Turning to the balance sheet, the highlight is that our balance sheet remains a real source of strength.

Speaker #3: Net cash increased 14% to CHF 81.7 million compared to the end of 2025, funded entirely by operating cash generation. Our equity ratio stands at a very solid 80.8%.

Martin Wirz: Net cash increased 14% to CHF 81.7 million compared to the end of 2025, funded entirely by operating cash generation. Our equity ratio stands at a very solid 80.8%. This gives us substantial financial flexibility. Our capital allocation priorities are clear. Organic growth first, then capacity expansion and selective M&A, while maintaining a conservative leverage profile over the cycle. In other words, we can fund our ambitious growth from a position of strength. Finally, the cash flow statement puts this all together. Operating cash flow was up 20% to CHF 34 million as a result of the improved profitability and disciplined capital management. The investment outflow of CHF 23.4 million reflects the capacity expansion on one side and capitalized development expenditure. That leaves a free cash flow of CHF 10.6 million after the elevated clean room investment.

Speaker #3: This gives us substantial financial flexibility. Our capital allocation priorities are clear: organic growth first, then capacity expansion and selective M&A, while maintaining a conservative leverage profile over the cycle.

Speaker #3: Now, these words mean we can found our ambitious growth from a position of strength. Finally, the cash flow statement puts this all together. Operating cash flow was up 20% to 34 million Swiss francs, as a result of improved profitability and disciplined capital management.

Speaker #3: The investment outflow of 23.4 million Swiss francs reflects the capacity expansion on one side and capitalized development expenditure. That leaves free cash flow of 10.6 million Swiss francs after the elevated clean room investment.

Speaker #3: And crucially, our gross investments remain fully funded from operating cash flow, with the net cash position still increasing. Free cash flow conversion of around 30% will normalize once the clean room program completes.

Martin Wirz: And crucially, our growth investments remain fully funded from operating cash flow, with the net cash position still increasing. Free cash flow conversion of around 30% will normalize once the clean room program completes. To summarize, with a broad-based growth of 7% in local currencies across markets, margin held at a high level. Net profit up substantially and a further strengthening the balance sheet with 20% higher operating cash flow concluded a strong H1 2026. With that note, I would like to hand over to you, Marc, for the remaining year and the increased guidance for 2026.

Speaker #3: To summarize, with a broad-based growth of 7% in local currencies across markets, margin held at a high level, net profit up substantially, and a further strengthening of the balance sheet with 20% higher operating cash flow, concluded a strong half-year 2026.

Speaker #3: And with that note, I would like to hand over to you, Mark, for the outlook for the remainder of the year and the increased guidance for 2026.

Speaker #1: Thank you, Martin. And before giving you the chance to ask questions, a short comment on the raised revenue guidance for 2026. Based on the strong results of the first half of the year, and also looking forward at the continued momentum we see in the market for this year, we have decided to increase our revenue, as well as profitability guidance, for the full year 2026.

Marc von Waldkirch: Thank you, Martin. Before giving you the chance to ask questions, a short comment on the raised revenue guidance for 2026. Based on the strong results of H1, but also looking forward based on the continued momentum we see in the market for this year, we decided actually to increase our revenue, but also profitability guidance for the full year 2026. We are fully aware that the environment is still and will remain volatile and challenging. On the other hand, our broad-based end market approach, but also the market diversification supports and continues to support the resilience we have in these volatile markets, despite all these macroeconomic and FX headwinds.

Speaker #1: We are fully aware that the environment still is, and will remain, volatile and challenging. On the other hand, our broad-based end market approach, as well as our market diversification, supports and continues to support our resilience.

Speaker #1: We have, in these volatile markets, despite all these macroeconomic and FX headwinds, continued to perform. At the same time, we see that our growth initiatives, broadly distributed across all the markets and regions, are gaining traction at the moment and are more and more contributing to the results.

Marc von Waldkirch: At the same time, we see that our growth initiatives, broadly distributed across all the markets, across all the regions, will gain attraction or are gaining attraction at the moment already and are more and more contributing to the results. On the back of this analysis and assessments, we came to the conclusion to increase our revenue guidance from CHF 335 to CHF 360 million, which was the range in March, to CHF 345 up to CHF 365 million. This reflects a growth of 8% to 14% in local currency compared to last year's full year results. As a consequence of that, also to expect the EBITDA level to be at the upper half of our range of mid to high teens. This underlines both the resilience of our business, but also our confidence in continued growth for this year, but also looking forward to the next years to come.

Speaker #1: And on the back of this analysis and assessments, we came to the conclusion to increase our revenue guidance from 335 to 360 million—which was the range in March—to 345 up to 365 million.

Speaker #1: This reflects a growth of 8 to 14% in local currency compared to last year's full-year results. And as a consequence of that, we also expect the EBITDA level to be at the upper half of our range, of mid to high teens.

Speaker #1: This underlines both the resilience of our business and our confidence in continued growth for this year, as well as looking forward to the years to come.

Speaker #1: With that, we'd like to close our presentation of today's results and give you the chance to ask questions. I'd like to hand over to Lars to moderate this Q&A session.

Marc von Waldkirch: With that, we like to close our presentation of today's results and give you the chance to ask questions. I'd like to hand over to Lars to moderate this Q&A session.

Speaker #2: Yeah. As said before at the beginning of the call, please use the Q&A tool of the GoToWebinar app and submit your questions. We'll give you a little moment to submit questions.

Lars Dünnhaupt: Yeah. I said before at the beginning of the call, please use the Q&A tool of the GoToWebinar app and submit your questions. Give you a little moment to submit questions. Currently, I didn't receive any questions. We should probably I still see no questions. I'm looking here in the room. Okay. I think let's wait another minute, maybe then some questions come in. I think apparently Marc and Martin have done a very good job and does it work proper? I think it works now. There is the first question. We will update that. Three obviously. Then go over and list it. First question. Could you please remind us of the total amount of CapEx for the new building and its spread over the years?

Speaker #2: Currently, I can't—didn't receive any questions. We should probably— I still see no questions. I'm looking here in the room. Okay. I think let's wait another minute.

Speaker #2: Maybe then some questions come in. I think apparently Mark and Martin have done a very good job, and does it work properly?

Speaker #1: I think it works.

Speaker #2: Here is the first question. We'll update that. First question: Could you please remind us of the total amount of CapEx for the new building and its spread over the years?

Speaker #1: Yeah, I can comment on that. Total CapEx is around 40 million Swiss francs, spread over this year and predominantly next year, about in the same amount.

Martin Wirz: Yeah, I can comment on that. The total CapEx is around CHF 40 million spread over this year and predominantly next year, but in the same amount, so half.

Speaker #2: Next question is on sales. What are the swing factors between the lower and upper ends of the sales guidance?

Lars Dünnhaupt: Next question is on sales. What are the swing factors from the lower and upper end of the sales guides?

Speaker #1: Well, I think at the end of the day, we have to be realistic that we now have a range of, I think, 20 million only.

Marc von Waldkirch: Well, I think at the end of the day, we have to be realistic that we have now a range of, I think, 20 million only. So this can be influenced by one or two bigger orders from some customers and also their inventory management. At the end of the day, it's not modeled in a way that we say, "Okay, if this happens, then we are ending at the lower end. And if that happens, we end at the higher end." It's more about the pretty large amount of different customers coming in and the dynamics in the market at the end of the day. So there is not a strict scenario A and a scenario B.

Speaker #1: So, this can be influenced by one or two bigger orders from some customers and also their inventory management. So, at the end of the day, it's not modeled in a way that we say, okay, if this happens, then we are ending at the lower end.

Speaker #1: And if that happens, we end at the higher end. It's more about the pretty large amount of different customers coming in, and the dynamics in the markets at the end of the day.

Speaker #1: So, there is not a strict scenario A and a scenario B. I think this range of $20 million today, looking forward for the second half of the year, is more reflecting the volatility of the markets and the inventory management of customers—whether they will put the last orders in December again or whether they are going to push them out to next year's demand for January. And this is reflected by this $20 million range.

Marc von Waldkirch: I think this range of CHF 20 million today, looking forward for the H2 of the year, is more reflecting the volatility of the market and the inventory management of customers, whether they will put the last orders in December again, or whether they are going to push them out to next year's demand for January. This is reflected by this CHF 20 million range.

Speaker #2: Then there's a question on the moving phase. Could you please explain the results for the equity accounted in the fees?

Lars Dünnhaupt: Then there's a question on LumiPhase. Could you please explain the results for the equity counted in this piece?

Speaker #1: Yes, that's basically their run rate, since they are now heavily on the R&D side. That's basically the cost base, based on our share of the company.

Martin Wirz: Yes. That's basically their run rate since they are now heavily in the R&D side. That's basically the cost based on our share of the company.

Speaker #2: So, we hold almost 50% of the shares. Therefore, it's almost 50% of the loss of the run-rate loss of Lumi Phase we have to reflect in our financial results.

Marc von Waldkirch: We hold almost 50% of the shares. Therefore, it's almost 50% of the loss of the run rate loss of LumiPhase we have to reflect in our financial results.

Speaker #2: Then, another question related to Lumi Phase. Could you explain again the issues and the challenges around Lumi Phase?

Lars Dünnhaupt: Then another question related to LumiPhase. Could you explain again the issues, the challenges around LumiPhase?

Speaker #1: Well, I don't like to dive into very technical discussions because it's pretty challenging to understand the technology behind it. But at the end of the day, I think that's the normal way you have to go through with a new technology to pre-apply for one specific, demanding application.

Marc von Waldkirch: Well, I do not like to dive into a very technical discussion because it is pretty challenging to understand the technology behind. But at the end of the day, I think that is the normal way we have to go through with a new technology to pre-apply for one specific demanding application. That means the technology, the so-called BTO layer, this barium titanate oxide layer, which can manipulate light. That works. That can manipulate light. It can also manipulate the light fast enough in order to reach this level of bandwidth. That is a good message. On the other hand, going forward, you have also to fix a lot of different issues, process-oriented issues, in order to scale it up to higher volumes, but also, on the other hand, stability issues in order to keep the performance of the material, even in very challenging environments, high temperature, long operational runtimes, and all this stuff.

Speaker #1: It means the technology is, so-called, BTO layer. It is a very tightened oxide layer, which can manipulate light. That works. That can manipulate work light. It can also manipulate the light fast enough in order to reach this level of bandwidth.

Marc von Waldkirch: That can manipulate light. It can also manipulate the light fast enough in order to reach this level of bandwidth. That is a good message. On the other hand, going forward, you have also to fix a lot of different issues, process-oriented issues, in order to scale it up to higher volumes, but also, on the other hand, stability issues in order to keep the performance of the material, even in very challenging environments, high temperature, long operational runtimes, and all this stuff.

Speaker #1: That's a good message. On the other hand, going forward, you also have to fix a lot of different issues—process-oriented issues—in order to scale up to higher volumes. But also, on the other hand, you have to address stability issues in order to maintain the performance of the material, even in very challenging environments: high temperatures, long operational run times, and all this stuff.

Speaker #1: This is exactly what happens now. We are pretty used to that. So each new sensor—you can take the CO₂ sensor, but also flow sensor, humidity sensor—all of them went through this kind of process. First of all, the sensor works; it can measure humidity.

Marc von Waldkirch: This is exactly what happens now. We are pretty used to that. Each new sensor, you can take the CO2 sensor, but also flow sensor, humidity sensor, all of them underwent through this kind of process that first of all, sensor works, it can measure humidity. In this case, with LumiPhase, it can manipulate light. But then you have to go through another phase. That means to fix all the issues that the performance can also be kept even over the whole time of operation and even in pretty challenging environments. This is exactly what happens now to fix all the stability issues, and there, not yet all issues are fixed. We have actually to go step by step to fix all these minor but also major parts. This is actually the job they are doing today.

Speaker #1: In this case with Lumi Phase, it can manipulate light, but then you have to go through another phase. That means fixing all the issues so that the performance can also be kept even over the whole time of operation, and even in pretty challenging environments.

Speaker #1: And this is exactly what happens now. To fix all the stability issues and there not yet all issues are fixed, they have we have actually to go step by step to fix all these minor but also major parts.

Speaker #1: And this is actually the job they are doing today. In parallel, the engagement is continuing to talk about and to design the applications to check and to validate the performance of these chips in the very application of customers' products.

Marc von Waldkirch: In parallel, the engagement is continuing to talk about and to design the applications to check and to validate the performance of these chips in the very application of customers' products. This is in parallel progressing well with customers.

Speaker #1: This is, in parallel, progressing well with customers.

Speaker #2: Next quick question is: two forward is A to L. Can you provide the rough run rate of the A to L phase in H1 and H2 in absolute terms?

Lars Dünnhaupt: Next question is twofold. Is A2L, can you provide a rough run rate of the A2L phase in H1 and H2 in absolute terms? What are the main developments you are expecting for H2 2026?

Speaker #2: And then, what are the main developments you are expecting for H2 2026?

Speaker #1: Well, as usual, we are not going to disclose any product-based revenue splits, in order not to give our competitors a good chance to analyze Sensirion.

Marc von Waldkirch: Well, as usual, we are not going to disclose any product-based revenue splits, also in order not to give our competitors a good chance to analyze Sensirion. It is also kind of a competition. The reason behind not to disclose this application or product-based revenue is the competition in the field. That means we cannot disclose this. What I can share with you is again, as illustrated on slide 9, I think it was slide 9. It doesn't make. You can refer to the slide in your own material that we had the first phase of ramp-up back in 2025, H1 2025, with the front-loading effect. That means all the customers, they have ordered more than they could consume at this moment in order to fill up the whole supply chain, in order also to mitigate risks, ramping up risks, but also supply chain disruption risks.

Speaker #1: So it's also kind of a competition. The reason behind them not disclosing this application- or product-based revenue is the competition in the field.

Speaker #1: That means we cannot disclose this. What I can share with you is, again, as illustrated on slide nine—I think it was slide nine, but it doesn't matter.

Speaker #1: You can refer to this slide in your own material. We had the first phase of ramp-up back in the first half of 2025, with the front-loading effect.

Speaker #1: That means all the customers, they have ordered more than they could consume at this moment, in order to fill up the whole supply chain.

Speaker #1: In order to also mitigate risks, ramping up risks but also supply chain disruption risks. Afterwards, H2 of 2025 reflected you normalization kinds of destocking in order to stabilize and balance out this supply chain situation.

Marc von Waldkirch: Afterwards, H2 of 2025 reflected the normalization, kind of de-stocking in order to stabilize and balance out this supply chain situation. Now we are translating more and more in a stable business where at the end of the day, it is a kind of we are delivering what the customers are consuming in their business because there are no front-loading effects anymore, but also no de-stocking effects anymore. Looking forward, we have this kind of moderately growing business based on the general increasing demand of HVAC applications in US. This is the non-absolute, but at least relative development we anticipate for A2L. For development in second half of the year, I am not sure whether the word development is more referring to the market revenue development or more the R&D development, but some words about the R&D development.

Speaker #1: And now we are translating more and more in a stable slide up to a stable business where at the end of the day, it's a kind of we are delivering what the customers are consuming in their business because there are no front loading effects anymore, but also no destocking effects anymore.

Speaker #1: And looking forward, we have this kind of moderately growing business based on the general increasing demand for HVAC applications in the US. This is not absolute, but at least a relative development we anticipate for H1 2026.

Speaker #1: For development in the second half of the year, I'm not sure whether the word "development" is more referring to the market revenue development or more the R&D development, but some words about the R&D development: the R&D is now fully focusing on the second generation of H12 in order also to remain and defend our strong market position.

Marc von Waldkirch: The R&D is now fully focusing on the second generation of A2L in order also to remain our strong and defend our strong market position. In parallel, we are working heavily on these A3 solutions for the other markets in Asia and Europe to come in, hopefully in next couple of years.

Speaker #1: And in parallel, we are working heavily on these A3 solutions for the other markets in Asia and Europe to come in, hopefully, in the next couple of years.

Speaker #2: The next question is on auto. The EV battery management solution which was mentioned for the big German OEM – is that an exclusive solution for this OEM only, or can it also be designed in with others?

Lars Dünnhaupt: Next question is on auto, the EV battery management solution, which was mentioned for a big German OEM. Is that an exclusive solution for this OEM only, or can it also be designed in with others?

Speaker #1: Yeah, definitely. We also like to bring that to other OEMs. I'd like to refer to one slide we showed you during the Capital Market Day.

Marc von Waldkirch: Yeah, definitely. We like to also to bring that into other OEMs. I like to refer to one slide we have shown you during the capital market day. That's our go-to-market strategy. Whenever we are going into a new application, a mission-critical application, we like actually to look for a leading customer. We can go through this process. We can also learn about the application. Afterwards, we like to broaden up our field by approaching all the other typically top 5 Manufacturers in the world. We are coming back to the EV application. We are exactly in the second phase. That means we started up with a lead customer, and now we are building up the field by reaching out and getting engaged with other leading OEMs in this field.

Speaker #1: That's our go-to-market strategy. Whenever we are going into a new application—an emission-critical application—we actually like to look for a leading customer so we can go through this process.

Speaker #1: We can also learn about the application. Afterwards, we like to broaden our field by approaching all the other, typically top five, manufacturers in the world.

Speaker #1: And we are coming back to the EV application. We are exactly in the second phase. That means we started up with a lead customer, and now we are broadening the field by reaching out and getting engaged with other leading OEMs in this field.

Speaker #1: And we are already in discussions, and there are also some nominations on the table for these very same applications. But not yet launched, and we cannot disclose names of these OEMs due to some agreement—NDA agreements we have signed with them—and we also like to respect that.

Marc von Waldkirch: We are already in discussions, and there are also some nominations on the table for the very same applications, but not yet launched. We cannot disclose names of these OEMs due to some also agreements, NDA agreements we have signed with them we like also to respect. But it's definitely our focus strategic goal to bring that application into a broader market, and at the end of the day, also to position Sensirion once again as the market leader in this newly emerging application.

Speaker #1: But it's definitely our focused strategic goal to bring that application into a broader market and, at the end of the day, also to position Sensirion once again as the market leader in this newly emerging application.

Speaker #2: Next question is a consumer question. What drove, specifically, the growth in the consumer division? Is that related to the sales to IKEA?

Lars Dünnhaupt: Next question is a consumer question. What drove specifically the growth in the consumer division? Is that related to the sales to IKEA?

Speaker #1: Once again, we cannot comment on specific business fields or even customer developments. No, but in general, I think, once again, the consumer market is heavily driven by the distribution business and distributions at the moment.

Marc von Waldkirch: Once again, we cannot comment specific business fields or even customer developments. In general, I think once again, the consumer market is heavily driven by distribution business, and distributions at the moment is extremely strong across all three regions. The main contributor to this strong consumer business is actually coming from the distribution markets from US, Europe, but also Asia. It is based on the environmental sensors, primarily, on the one hand, humidity, but also all these kinds of environmental nodes, particulate matter, and so on. Therefore, IKEA is a good example of this kind of application, but it is not directly related to IKEA only.

Speaker #1: It's extremely strong across all three regions. So the main contributor to this strong consumer business actually is coming from the distribution markets.

Speaker #1: From the US, Europe, but also Asia. It's based on the environmental sensors, primarily, on the one hand, humidity, but also all these kinds of environmental nodes, particularly matter, and so on.

Speaker #1: Therefore, IKEA is a good example of this kind of application, but it's not directly related to IKEA only.

Speaker #2: Next question is on ethics. Which currency explains the 18% FX impact on consumer sales, and how is this developing in the second half of 2026?

Lars Dünnhaupt: The next question is on FX. Which currency explains the 18% FX impact on the consumer sales, and how is this developing in H2 2026?

Speaker #1: I think a forward-looking statement, ethics is like rolling dice on the set. We definitely have most of our revenue in non-Swiss francs, predominantly US dollars.

Marc von Waldkirch: I think a forward-looking statement in FX is like rolling dice on the set. We definitely have most revenue in non-Swiss francs and they are predominantly US dollars. That is definitely, and if you compare the base compared to last year, that is where we also have the biggest changes in US dollar, Swiss francs, FX pairs.

Speaker #1: So that's definitely—if you compare the base compared to last year, that's where we also had the biggest changes in US dollars and Swiss francs.

Speaker #1: Ethics pairs.

Speaker #2: And the next question is on Medical. How much of the growth in Medical was related to inventory build-up? And is the revenue expected in Medical expected to be lower in the second half of the year?

Lars Dünnhaupt: Next question is on medical. How much of the growth in medical was related to inventory build-up? Is the revenue expected in medical expected to be lower in H2 of the year?

Speaker #1: Well, the first question is hard to assess and difficult to assess. It's not a significant portion. I mentioned it before that part of these dynamics might also be driven by inventory build-ups with our customers to secure their supply chain.

Marc von Waldkirch: Well, the first question, that is hard to assess and difficult to assess. It is not a significant portion. I mentioned it before that a part of this dynamics might also be driven by inventory ups with our customers to secure their supply chain. This cannot be boiled down into clear figures because it is more a gut feeling because medical market is not so volatile typically. It means if you have short-term increases of demands, it is a pretty high likelihood that it comes also from inventory management, but we do not have a clear picture on the inventory of our customers. I think a significant portion is definitely also consumed by the customers because medical is going forward pretty successfully. The second question was about, can you help me again? It was not just about how much comes from inventory management, but there was a, oh, about H2 of the year.

Speaker #1: This cannot be boiled down into clear figures because it's more a gut feeling, since the medical market is not typically so volatile. That means if you have short-term increases in demand, there is also a pretty high likelihood that it comes from inventory management.

Speaker #1: But we do not have a clear picture of the inventory of our customers. I think a significant portion is definitely also consumed by the customers, because medical is going forward pretty successfully.

Marc von Waldkirch: I think a significant portion is definitely also consumed by the customers because medical is going forward pretty successfully. The second question was about, can you help me again? It was not just about how much comes from inventory management, but there was a, oh, about H2 of the year.

Speaker #1: The second question was about, can you help me again? It was not just about how much comes from inventory management, but there was also a part about the second half of the year.

Lars Dünnhaupt: H2, yes, correct.

Speaker #1: All in all, I expect to be on more or less the same level as in the first half of the year.

Marc von Waldkirch: All in all, I expect to be on the more or less same level as in H1 of the year.

Speaker #2: Good. Thanks a lot for all the questions. Thanks for looking into our results and showing interest here in this call. I see no more questions right now online.

Lars Dünnhaupt: Good. Thanks a lot for all the questions. Thanks for looking into our results and showing interest here in this call. I think I see no more questions right now online. With that, I would like to thank a lot for your interest in our results call. I would like to close the call. Thank you very much.

Speaker #2: And with that, I would like to thank you very much for your interest in our results call. I would now like to close the call.

Speaker #2: Thank you very much. Thank you.

Speaker #1: Thank you for your attention. Have a good day. Bye-bye.

Marc von Waldkirch: Thank you for your attention.

Lars Dünnhaupt: Thank you.

Marc von Waldkirch: Thank you.

Lars Dünnhaupt: Have a good day. Bye bye.

Marc von Waldkirch: Have a good day. Bye bye.