SUSS MicroTec Stock Tumbles After Slashing 2026 Guidance, Announcing Production Halt

SUSS MicroTec (SMHNn) shares fell more than 10% on Tuesday after the company announced plans to permanently close production at its Garching headquarters and issued a significant downgrade to its financial outlook for fiscal year 2026.

Restructuring and Guidance Cut

In an ad-hoc disclosure, SUSS MicroTec said its management and supervisory boards approved a plan to consolidate manufacturing at its facilities in Zhubei, Taiwan, and Sternenfels, Germany. The decision will end equipment and module production in Garching, a move affecting approximately 70 employees.

The company also cited a "tightening supply situation for certain components" that will defer a portion of anticipated revenues into the next fiscal year. As a result, it sharply lowered its 2026 guidance:

• Revenue: Now forecast at €405–425 million, down from a prior range of €425–485 million.
• EBIT Margin: Target cut to 5–7%, from a previous forecast of 8–10%.

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SUSS MicroTec estimates the restructuring will incur one-off charges of approximately €6.2 million, with about €4.5 million of that total expected to be booked in the current fiscal year.

Market Impact

Investor reaction to the dual announcements was sharp and negative. The stock dropped 10.4% to trade at €46.90, its lowest level since March, according to Investing.com data. The combination of an unexpected operational overhaul and a double-digit percentage cut to forward-looking guidance appeared to unnerve the market.

The broader market environment offered little support, with Germany's MDAX and TecDAX indices both trading lower. Despite the near-term headwinds, the company noted it maintains a record order book and has not changed its financial targets for 2027.