LPKF Laser at a Pivotal AGM: Record Order Intake Can't Heal the Rift Over LIDE's Pace

At LPKF's AGM, dissident investors challenge slow LIDE rollout, demand capital increase; strong order book contrasts with no dividend, revenue slump, and volatile stock.

Investors gathering in Hannover on Thursday for LPKF Laser & Electronics’ annual general meeting will find themselves caught between a promising order pipeline and deepening strategic divisions. The laser-systems specialist posted a book-to-bill ratio of 1.4 in the first quarter — meaning €1.40 in orders came in for every euro of revenue — yet the mood is far from celebratory. A shareholder revolt led by a group of dissident investors, an expanded short position from hedge fund Voleon Capital Management, and a management team stubbornly committed to cost discipline have turned the AGM into a flashpoint.

The immediate source of friction is the pace at which LPKF is commercialising LIDE (Laser Induced Deep Etching), its proprietary technology for glass substrates used in advanced semiconductor packaging. Critics argue that CEO Klaus Fiedler is moving too slowly, and they have submitted formal countermotions to block the discharge of the board. Their demand: an immediate capital increase to ramp up production capacity aggressively. Management, sticking to its "North Star" transformation programme that targets a double-digit operating margin by 2028, has rejected the call, citing the need for financial independence in a volatile market.

The board itself is set to receive a new member who could help bridge the divide — or sharpen it. Dr. Arne Schneider, chief executive of Elmos Semiconductor SE, is proposed to replace the retiring Dr. Dirk Michael Rothweiler. His semiconductor expertise aligns neatly with LPKF’s ambitions in chip packaging, but whether his appointment will placate the opposition remains an open question.

Operationally, the first quarter of 2026 painted a mixed picture. Revenue slumped by roughly 32% year-on-year to €17.1 million, dragged down by a weak solar segment. The EBIT loss came in at €6.9 million, making it no surprise that the management and supervisory boards have proposed carrying forward the entire 2025 retained profit — meaning no dividend for shareholders. For the full year 2026, LPKF guided for revenue between €105 million and €120 million and an adjusted EBIT margin of minus 3.0% to plus 4.5%. Crucially, that guidance excludes any potential volume orders for LIDE, which the company views as a multi-year production ramp.

The order book offers some reprieve. Incoming orders reached €24.1 million, with particular strength in laser cutting systems for printed circuit boards and defence-sector contracts. That book-to-bill ratio of 1.4 is the kind of signal that, in normal times, would fuel optimism about a recovery. Yet the stock’s trajectory remains anything but stable. After a 28% correction the prior week, shares staged a double-digit rally on Tuesday to close at €23.90. Wednesday brought a reversal of nearly 9.6%, pushing the price back to €21.60. Despite that pullback, the stock has still gained roughly 259% since the start of the year — a surge that reflects enormous expectation and leaves little room for disappointment.

The heightened volatility has attracted short sellers. Voleon Capital Management has lifted its net short position to 2.13% of the share capital, and with annualised 30-day volatility at 147%, the stock is clearly a battleground. Investors will be watching Thursday’s AGM for concrete answers on how many LIDE customer projects are live and when they will translate into meaningful revenue. The management’s answers will either vindicate the rally or expose it as a house of cards built on hope.