Jenoptik (ETR:JEN) reported record first-quarter order intake for 2026, driven by a sharp rebound in semiconductor-related demand and stronger biophotonics activity, while revenue was slightly lower year over year and profitability improved.
President and CEO Stefan Traeger told analysts that order intake was “very strong” in the company’s OEM businesses, particularly as the semiconductor equipment ramp-up “seems to be in full swing now.” Group order intake reached nearly EUR 357 million in the quarter, which Traeger described as a record for the company. The book-to-bill ratio rose to almost 1.5, and the order backlog increased to EUR 719 million.
Semiconductor Demand Drives Orders
In semiconductor and advanced manufacturing, Jenoptik recorded order intake of around EUR 180 million. Traeger said the company saw “a clear acceleration of demand” in lithography after a weak first quarter in 2025, while customer activity in semiconductor inspection remained strong.
Revenue in the semiconductor business rose by around 7% year over year from a low prior-year base. Traeger said the main driver was the semiconductor inspection business, while digital data communications also contributed, though from a lower level.
The semiconductor unit posted an EBITDA margin of 30.6% in the quarter. Traeger attributed the improvement partly to product mix, especially in the semiconductor business, as well as the absence of one-time relocation costs tied to Jenoptik’s move into its new Dresden fab in the prior-year quarter.
Asked by Berenberg analyst Lars Duden about semiconductor mix, Traeger said the company saw a strong inspection business in the first quarter and had not yet seen the full impact of renewed lithography demand. He also noted that the year-earlier comparison was affected by the Dresden move and different loading levels.
Biophotonics Orders Rise, Revenue Falls Against Tough Comparison
Jenoptik’s biophotonics business also reported strong order growth, with intake up almost 66% year over year. Traeger said momentum was positive across MedTech, life science and defense. He added that the quarter may have benefited from early orders linked to rising geopolitical uncertainties.
However, biophotonics revenue declined by around 11%, reflecting a difficult comparison with the prior year, when the dental business was strong. Traeger said life science and defense both grew in the quarter. Despite the revenue decline, the segment maintained an EBITDA margin of almost 22%.
Traeger said order intake in biophotonics is likely to remain volatile, particularly because defense customers tend to place fewer but sometimes sizable orders.
Revenue Slightly Lower, Margins Improve
Group revenue was approximately EUR 241 million, down 1% year over year. Excluding foreign-exchange effects, particularly related to the euro-U.S. dollar exchange rate, revenue would have risen by close to 2%, Traeger said.
Jenoptik’s Metrology & Production Solutions revenue continued to reflect a difficult market environment in the European automotive industry. Smart Mobility Solutions revenue rose almost 11%, with growth across all regions.
Group EBITDA reached about EUR 44 million, up a little more than 22% from the prior-year quarter. The EBITDA margin improved by around 350 basis points. Traeger cited three main factors: the absence of Dresden relocation costs incurred in the first quarter of 2025, a better product mix, and a lower cost base following last year’s cost-reduction program.
Gross margin was considerably higher year over year, supported by the lower cost base and the semiconductor contribution. Functional expenses rose 2% year over year, which Traeger described as disciplined given normal cost inflation. EBIT margin increased to 10.7%, and earnings per share rose to EUR 0.29 from EUR 0.16 a year earlier.
The “other” line, which includes Jenoptik’s corporate center and Prodomax, saw an approximately EUR 6 million negative EBITDA swing year over year. Traeger said this was largely related to corporate projects and, to a lesser extent, lower profits from Prodomax.
Cash Flow Weighed Down by Working Capital
Free cash flow declined year over year, which Traeger attributed to higher working capital needs tied to the accelerating order intake. He said Jenoptik’s priority has shifted toward optimizing its ability to serve customers as demand rises.
The working capital ratio increased at the end of the first quarter, but Traeger said the company considers the level temporarily elevated because it is supporting the semiconductor ramp. He said Jenoptik’s overall financial position remained robust.
2026 Outlook Confirmed
Jenoptik confirmed its 2026 outlook. The company continues to expect revenue to grow at a single-digit percentage rate versus the prior year, with a full-year EBITDA margin of 19% to 21%. Capital expenditure is expected to be slightly below last year’s level.
Traeger said the company’s main capacity expansion project is at its classical optics site in Jena, where Jenoptik is expanding high-precision clean room production mainly related to the semiconductor business. That expansion is expected to come online in 2027.
During the Q&A session, ODDO analyst Maïssa Kesse asked whether the strong order momentum suggested growth could come in toward the upper end of the single-digit range. Traeger said the outlook had not changed and that “all the ranges are in play as of today.” He said execution and the mix of incoming orders will help determine where revenue lands within the guidance range.
Traeger also addressed emerging opportunities in augmented reality and virtual reality, saying Jenoptik is seeing more momentum and customer inquiries in augmented reality than in virtual reality. He said order intake in the area remains modest and that Jenoptik is not anticipating any major VR orders in the near future.
On Prodomax, Traeger said first-quarter order intake was encouraging after several difficult quarters in 2025, but he said it was too early to call the improvement a trend. He cited continued muted investment by U.S. OEMs and reluctance related to cross-border supplier relationships with Canada.
“We had a very good start to the year,” Traeger said in closing, pointing to dynamic demand in the OEM businesses. He added that while the first-quarter order momentum is unlikely to continue at the same pace, it gives Jenoptik “a very strong foundation” for fiscal 2026.
About Jenoptik (ETR:JEN)
Jenoptik AG provides advanced photonic solutions and smart mobility solutions in Germany and internationally. The company provides imaging solutions and cameras, including microscope and thermographic camera, imaging modules, polymer-based camera modules, and miniaturized digital microscope subsystem; and laser and laser technology, such as laser ablation, scoring, cutting, and rangefinder, as well as laser OEM solutions comprising diode laser and disk laser technology, diode pumped disk lasers, laser systems, and LK heat sink.
