SCHMID Group N.V. (NASDAQ: SHMD) has raised its full-year 2026 order intake guidance to a range of €125 to €150 million, up from approximately €114 million, following sustained improvement in order momentum and enhanced business visibility. The company reported second-quarter 2026 order intake of €30.7 million and revenues of €27.7 million, with an order backlog of €54.8 million at the end of the quarter. This update includes a repeat order exceeding €37 million announced on July 7, 2026, bringing cumulative order intake since January 1, 2026, to €81.6 million.

Management maintains its full-year 2026 revenue guidance of more than €100 million and an EBITDA margin of more than 12%, despite the EBITDA margin for the first half of the year expected to be significantly lower than 12% due to the revenue profile. The financial results for the second quarter are preliminary and unaudited, with final interim financial statements expected on or before August 25, 2026.

The company also closed the issuance of $20 million in senior convertible notes to an institutional investor. The net proceeds will fund working capital needs resulting from accelerated order intake and growth capital for expanding its manufacturing plant in China, which will nearly double capacity. The notes were issued pursuant to an indenture dated July 14, 2026.

Financial Metrics

Operational Context

Order intake and backlog figures relate exclusively to equipment orders and exclude services or spare parts. The repeat order supports a customer’s capacity expansion for next-generation AI server boards and optical module applications, utilizing SCHMID's InfinityLine H+ and InfinityLine V+ platforms. The company’s performance in precision applications has been validated by customer feedback indicating a production yield of 99%.

SCHMID Group N.V. has secured $20 million in financing through the issuance of senior convertible notes to an institutional investor, a move designed to bolster its working capital and fund manufacturing expansion. The notes, issued at 99% of the principal amount, carry a 5% per annum interest rate compounded quarterly and payable in kind, with the company retaining the right to elect cash payment upon notice. The financing matures on January 14, 2029, providing the company with a two-and-a-half-year tenor to execute its growth strategy.

The notes are convertible into ordinary shares at the investor's option, with the conversion price set at the lower of $10.50 or 97% of the applicable volume-weighted average price of the shares. This conversion mechanism is subject to a minimum price of $1.93 per share and specific daily conversion limits outlined in the Investment Agreement. In conjunction with the financing, SCHMID Group agreed to file a registration statement covering the resale of shares issuable upon conversion, ensuring compliance with U.S. securities regulations.

Key Terms of the Financing

The transaction includes customary covenants and protections, with the obligations guaranteed by the company's German operating subsidiary, Gebr. Schmid GmbH. The following table summarizes the primary financial terms of the notes:

Utilization of Proceeds

The net proceeds from the issuance will be directed toward immediate working capital needs driven by an acceleration in order intake. Additionally, the capital will support a strategic shift from rented to owned manufacturing facilities in China, a move intended to nearly double the company's production capacity. This expansion aligns with the company's focus on strengthening its balance sheet and positioning itself for future growth opportunities.

"Since the beginning of this year, we have replenished working capital, converted the majority of the shareholder-related debt to equity cleaning-up the balance sheet to an appropriate level," said Arthur Schuetz, Chief Financial Officer of SCHMID Group N.V. "As order intake is accelerating, we want to be in a position of strength and have the flexibility to take growth opportunities as they come."

William Blair acted as the sole placement agent for the transaction. The securities were offered pursuant to an exemption from registration under the Securities Act of 1933 and have not been registered under the Act or any state securities laws.