Süss MicroTec Hits New Peak as Order Book Swells, Despite Soft First-Quarter Sales

Süss MicroTec posts record Q1 orders of EUR 149M driven by AI chip demand, but revenue and earnings slide as expected. Full-year guidance maintained.

The German semiconductor equipment maker has delivered a classic tale of two quarters: a record-breaking influx of new orders that propelled its shares to an all-time high, even as revenue and earnings took a predictable tumble.

Süss MicroTec booked incoming orders worth EUR 149.3 million in the first three months of 2026, a jump of nearly 70% compared with the same period last year. That figure comfortably beat analyst expectations of around EUR 110 million. The company’s order backlog swelled to EUR 330.1 million by the end of March, up more than 23% from the start of the year.

The surge was driven by sustained demand for AI chip modules, with both of the group’s core segments — Advanced Backend Solutions and Photomask Solutions — contributing. In the photomask business, Süss noted particularly strong appetite from Chinese customers.

Revenue and Earnings Slide as Expected

On the flip side, revenue fell 31% to EUR 86.5 million, a decline management had flagged well in advance. It reflects the weaker order intake recorded during the summer of 2025, which is now flowing through the income statement.

Earnings before interest and taxes (EBIT) slumped roughly 84% to EUR 3.7 million, dragging the EBIT margin from 18% down to 4.3%. Net income dropped to EUR 2.5 million from EUR 16.6 million a year earlier. One bright spot: the gross profit margin held steady at 36.1%, within the company’s full-year target range of 35% to 37%. Free cash flow came in positive at EUR 23.2 million, softening the blow from the weaker profit figures.

Management Holds Firm on Full-Year Targets

Despite the weak start on the top line, Süss MicroTec’s board is sticking to its 2026 guidance. The company still expects revenue between EUR 425 million and EUR 485 million, with an EBIT margin of 8% to 10%. The record order backlog suggests that the operational recovery should materialize as the year progresses.

To clear that backlog, Süss is expanding capacity. A new, larger production site in Taiwan is set to come online in the coming months, aimed at ensuring delivery capability for global customers and easing the production bottleneck.

Shares Hit Fresh High, Then Settle

The market’s reaction was swift. The stock touched an all-time high of EUR 90.95 on Wednesday before settling at EUR 88.30, still roughly 10% above the previous day’s close. That represents a gain of more than 111% since the start of the year.

Analyst opinions remain divided on valuation. Jefferies reiterated its “Buy” rating, arguing that the order flow signals a strong 2027 ahead. Warburg Research also kept a “Buy” recommendation. But mwb research downgraded the stock to “Hold,” even as it raised its price target to EUR 90. The move captures the central tension: the fundamentals are compelling, but much of the good news may already be priced into the shares. Jefferies, by contrast, is betting that Süss MicroTec is only at the beginning of a longer cycle, with the order book providing a powerful leading indicator.