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SCHMID Group NV (SHMD)
NASDAQ:SHMD
US Market
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SCHMID Group NV (SHMD) AI Stock Analysis

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SHMD

SCHMID Group NV

(NASDAQ:SHMD)

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Neutral 46 (OpenAI - Gpt-5.6Sol)
Rating:46Neutral
Price Target:
$3.50
▼(-18.41% Downside)
Action:Reiterated
Date:08/26/26
The score is held down primarily by very weak recent financial performance (large losses, falling revenue) and a stressed balance sheet with negative equity, reinforced by bearish technicals with the stock trading well below key moving averages. Offsetting these risks, the latest earnings call indicated improving momentum via stronger order intake, record backlog, and deleveraging actions, but working-capital-driven cash outflows and near-term margin pressure remain key constraints.
Positive Factors
Strong order momentum and backlog
Accelerating orders, a record backlog and higher intake guidance improve medium-term revenue visibility. If converted into shipments, this demand can support factory utilization, operating leverage and a return toward management’s revenue targets.
Negative Factors
Negative equity and elevated solvency risk
A negative equity position signals limited balance-sheet resilience and reduces financial flexibility. Even after recent deleveraging, SCHMID remains exposed to refinancing and solvency risk if losses continue or working-capital needs remain elevated.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong order momentum and backlog
Accelerating orders, a record backlog and higher intake guidance improve medium-term revenue visibility. If converted into shipments, this demand can support factory utilization, operating leverage and a return toward management’s revenue targets.
Read all positive factors

SCHMID Group NV (SHMD) vs. SPDR S&P 500 ETF (SPY)

SCHMID Group NV Business Overview & Revenue Model

Company Description
SCHMID Group N.V. designs and manufactures specialized equipment and comprehensive process solutions for critical sectors such as electronics, solar energy, glass production, and power systems. The company operates globally, with its roots in Germ...

SCHMID Group NV Earnings Call Summary

Earnings Call Date:Aug 25, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:May 24, 2027
Earnings Call Sentiment Positive
The call conveyed an overall positive trajectory driven by strong deleveraging, a sharp acceleration in order intake and clear operational initiatives (Sprint cost savings, China campus consolidation, and purchasing targets). Management maintained revenue and margin targets for the year while providing visibility that a large portion of incremental orders is already in negotiation. Offsetting the positives are near-term margin pressure, a sizeable operating cash outflow driven by increased working capital (14% of LTM sales vs target ≤10%), one-off restructuring and listing costs, FX losses compared with the prior year, and labor/capacity ramp constraints that stretch into H2/2027. Taken together, the company appears to be in a transitional, but improving, position with stronger financial stability and order momentum that should support a stronger second half and 2027, while short-term profitability and cash conversion remain areas of focus.
Positive Updates
Successful balance sheet repair and financing
Raised €33.0M of net capital via convertible and SEPA financings; completed a ~€30.8M debt-to-equity swap that reduced total debt from €53M to ~€23M (≈56.6% reduction). Additional $20M convertible raised in July and €21M of standby equity remaining unused.
Negative Updates
Lower-than-expected gross margin in H1
Reported gross profit margin of 21.2% in H1, below management expectations; margin pressure attributed to lower scale and a shift toward lower-margin China production that management expects to reverse in H2.
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Q2-2026 Updates
Negative
Successful balance sheet repair and financing
Raised €33.0M of net capital via convertible and SEPA financings; completed a ~€30.8M debt-to-equity swap that reduced total debt from €53M to ~€23M (≈56.6% reduction). Additional $20M convertible raised in July and €21M of standby equity remaining unused.
Read all positive updates
Company Guidance
The company reiterated full‑year guidance of at least €100.0m revenue with a >12% gross margin and a 6–9% adjusted EBITDA margin, and raised order‑intake guidance to €125–150m (now expected in the upper half) after reporting €96.6m YTD and €52.3m in Q3 (≈€52m in eight weeks) with a record backlog of ~€89m; H1 comps showed Q1 revenues €18.2m, Q2 €27.8m and a 21.2% gross profit margin, operating cash outflow of €29.3m (driven by ~€26m working capital build), working capital at 14% of LTM sales with a medium‑term target ≤10%, and CapEx spend of ~€0.8m in H1 (typical annualized CapEx ~€1.5m) plus an €11m land/building investment for the new China campus (expected operational by Q4 2027). Cost actions include Sprint run‑rate fixed cost savings of ~€4.0m, total sprint restructuring costs ~€700k (≈€400–420k expensed in H1), and a purchasing‑savings target of ≥5% on >50% of expenses; financing metrics: €33m net capital raised, a ~€30.8m debt‑to‑equity swap cutting total debt from €53m to ~€23m, a €2.5m PACFOR convertible maturing in March, $11m remaining of a $30m January convertible and $20m raised in July, ~€20m additional bank debt capacity, $21m standby equity undrawn, and expected China project debt at ~2.7% average funding cost.

SCHMID Group NV Financial Statement Overview

Summary
Financials are highly stressed: sharp deterioration from strong profitability (2023) to very large losses in 2024–2025 alongside steep multi-year revenue contraction. The balance sheet shows negative equity (worsening into 2025) and elevated solvency/refinancing risk, while cash flow offers limited support with negative free cash flow in 2024–2025 despite slightly positive operating cash flow in 2025.
Income Statement
18
Very Negative
Balance Sheet
12
Very Negative
Cash Flow
20
Very Negative
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue64.64M64.30M60.84M90.25M95.06M39.48M
Gross Profit16.64M14.14M12.04M26.40M33.34M8.97M
EBITDA-30.43M-5.78M-71.96M57.73M25.70M-3.26M
Net Income-35.94M-68.24M-84.11M36.87M1.55M-24.45M
Balance Sheet
Total Assets113.77M106.27M93.10M106.58M180.25M160.69M
Cash, Cash Equivalents and Short-Term Investments3.01M1.57M3.79M5.71M8.33M18.38M
Total Debt62.33M131.61M87.13M59.13M164.19M150.79M
Total Liabilities167.94M238.38M153.54M124.42M234.56M219.71M
Stockholders Equity-54.83M-132.69M-61.11M-25.20M221.74M-63.85M
Cash Flow
Free Cash Flow466.93K-5.76M-7.69M2.99M-3.59M-6.40M
Operating Cash Flow466.93K343.87K-2.58M9.90M280.00K-1.36M
Investing Cash Flow21.08M-5.99M-4.05M72.02M-7.17M-7.54M
Financing Cash Flow-21.63M3.67M3.96M-83.71M-3.17M35.67M

SCHMID Group NV Risk Analysis

SCHMID Group NV disclosed 94 risk factors in its most recent earnings report. SCHMID Group NV reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
Our officers and directors may not have significant experience or knowledge regarding the jurisdiction or industry of the target business we may seek to acquire. Q4, 2023
2.
In connection with any vote to approve a business combination, we will offer each public shareholder the option to vote in favor of a proposed business combination and still seek redemption of his, her or its shares. We may also require shareholders who wish to redeem their shares in connection with a proposed business combination to comply with specific requirements for redemption that may make it more difficult for them to exercise their redemption rights prior to the deadline for exercising their rights. Q4, 2023
3.
The exercise by our board of directors of discretion in agreeing to changes or waivers in the terms of the business combination may result in a conflict of interest when determining whether such changes to the terms of the business combination or waivers of conditions are appropriate and in the best interests of our shareholders. Q4, 2023

SCHMID Group NV Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$326.24M11.7614.44%0.69%11.90%
73
Outperform
$187.02M21.3212.49%-10.03%-10.02%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
63
Neutral
$146.62M-11.64-6.37%-1.02%34.72%
46
Neutral
$345.81M-1.8374.31%114.81%-404.13%
46
Neutral
$65.73M-1.362279.46%-11.00%-445.02%
44
Neutral
$116.00M-10.58-33.61%18.30%-706.30%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SHMD
SCHMID Group NV
3.42
0.78
29.55%
HURC
Hurco Companies
22.69
4.73
26.34%
TAYD
Taylor Devices
59.66
11.64
24.24%
TWIN
Twin Disc
23.49
10.95
87.26%
LASE
Laser Photonics Corp.
1.40
-3.14
-69.21%
HUHU
HUHUTECH International Group Inc.
4.52
-1.76
-28.03%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 26, 2026