SUSS MicroTec Shares Fall 10% After Cutting 2026 Sales, Profit Forecast

Shares in SUSS MicroTec (SMHNn) plunged as much as 10% on Tuesday after the German chip equipment manufacturer lowered its sales and profitability targets for 2026. The company attributed the revised outlook to expenses tied to a significant production overhaul and persistent supply chain issues.

Revised 2026 Guidance

SUSS MicroTec announced a downward revision of its key financial forecasts for the 2026 fiscal year. The company cited one-off expenses of approximately €6.2 million related to the restructuring, with about €4.5 million of that total expected to be incurred in 2026.

• Sales: Now projected to be between €405 million and €425 million, down from a previous range of €425 million to €485 million.
• EBIT Margin: Expected to be in the range of 5% to 7%, a reduction from the prior forecast of 8% to 10%.
• Gross Profit Margin: The forecast remains unchanged at 35% to 37%.

The company also noted that supply constraints for certain components are expected to shift some sales from 2026 into 2027, impacting revenue recognition timing.

Production Consolidation

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The forecast adjustment is driven by a strategic decision to consolidate manufacturing operations. The Management and Supervisory Boards approved a plan to concentrate production at the company's two largest facilities in Zhubei, Taiwan, and Sternenfels, Germany.

Under the plan, production of mask aligners will gradually move to the Zhubei site, while module manufacturing will be centered in Sternenfels. Consequently, the Garching, Germany, facility will cease production of systems and modules. The company stated the move affects approximately 70 employees and will be handled in consultation with employee representatives.

Chief Operating Officer Thomas Rohe said the restructuring aims to reduce "internal interfaces and bringing key production capacities closer to customer markets in Asia."

Market Context

Despite the lowered forecast and subsequent share price decline, SUSS MicroTec reported that its business fundamentals show signs of strength. The company stated that order intake remained high during the third quarter and its order book has reached a record level, indicating robust underlying demand for its products.