Süss Microtec Reports Strong Orders, But Revenue Declines

Süss Microtec AG is navigating a period of surging demand offset by persistent supply chain disruptions, as evidenced by its nine-month 2026 results released November 5th. While the company reported a record order intake of €633.5 million – a 52% increase over the same period last year – third-quarter revenue fell by almost 20% to €97 million, prompting a downward revision of its 2026 revenue forecast.

The dramatic increase in orders, reaching €223.5 million in Q3 alone, highlights strong customer confidence in Süss’s technology, particularly in advanced packaging solutions for AI chip modules. This surge in demand has resulted in a record order backlog of €600.6 million, providing significant visibility into future revenue, with the majority of orders scheduled for delivery in 2027 and 2028. However, the company's ability to capitalize on this backlog is currently constrained by component shortages, which are delaying the completion and delivery of tools.

The revenue decline in Q3 directly impacted profitability, with EBIT falling by 72% to approximately €4 million. Despite these challenges, the gross profit margin remained stable at 37.0% for the first nine months, indicating the company is maintaining pricing power even amidst supply chain pressures. Süss is actively addressing these disruptions through measures such as qualifying additional suppliers and proactively procuring critical components, but these efforts have not yet fully offset the negative impact on revenue. The company is also consolidating production, relocating manufacturing from Garching to Zhubei, Taiwan, and Sternenfels, Germany, a move announced in prior coverage, which will incur one-time costs of roughly €6.2 million.

Looking ahead, Süss anticipates that these supply chain issues will continue to impact revenue recognition, leading to a revised full-year 2026 revenue forecast of €405-425 million, with an EBIT margin of 5-7%. While the current challenges are impacting short-term performance, the record order backlog and strategic investments in production capacity suggest a strong foundation for future growth, contingent on resolving the ongoing supply chain constraints. The company's free cash flow remained positive at €65.3 million, increasing its cash reserves to €160.4 million, providing financial flexibility during this period of transition.