Weak Q2 amid restructuring expenses and weak demand; PT down

Q2 EBIT came in at € -1.1m (H1: € -2.0m), compared with € 2.6m in Q2 2024 (H1 2024: €4.2m). This deterioration was driven by lower revenues, reduced production utilization, an unfavorable product mix and restructuring expenses of roughly €1.5m recognized in H1 under the NyFIT2025 program.

FY25 forecast adjusted. Management reduced it FY25 guidance from € 105-110m revenue and €8.5-10.0m EBIT to € 100-105m revenue (eNuW old: € 108m) and € 2.0-4.0m EBIT (eNuW old: € 9.1m). The downgrade reflects slower-than-expected order normalization, delayed project awards, and the temporary EBIT drag from restructuring. Despite this, management anticipates a sequential improvement in H2, with Q4 expected to be the strongest quarter of the year, similar to recent years.

Efficiency program “NyFIT2025” formally introduced. Internally launched in late 2024, NyFIT2025 targets € 5-6m in annual cost savings from 2026 onwards (eNuW: € 5m). Measures include workforce adjustments (number of employees was down 5% at the end of H1), optimization of internal processes, and structural consolidation; notably, merging Spectral Engines GmbH into m-u-t GmbH to simplify operations. The majority of the related upfront costs were already booked during H1 (~ € 1.5m). Going forward, management expects enhanced productivity, improved flexibility, and a leaner fixed cost base, better aligning the company to a volatile demand environment.

We are reducing our price target to € 24.5 (old: € 34.5) accounting for the temporary subdued demand situation across key end markets but reiterate our BUY recommendation as the prospects during the mid-term remain bright. Once notable sales volumes return, one should expect an overproportionate impact on margins supported by the current right-sizing of operations.