SCHMID Group NV (SHMD) AI Stock Analysis

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SCHMID Group NV

(NASDAQ:SHMD)

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Rating:46Neutral

Price Target:$2.00▼(-22.78% Downside)

Action:reiterated

Date:10/23/26

The score is held down primarily by weak financial performance (large recent losses, contracting revenue, negative equity and negative free cash flow) and bearish technical signals (price below all major moving averages with negative MACD). Offsetting these, the earnings call indicated improving trajectory via stronger order intake/backlog, reiterated/raised guidance metrics, and meaningful deleveraging actions, but near-term cash conversion and margins remain key risks.

Positive Factors

Balance-Sheet RepairThe large debt reduction and fresh capital materially improve financial stability compared with the prior structure. Lower debt should reduce refinancing pressure and interest burden, while remaining financing access provides greater flexibility to support operations and planned investment.

Negative Factors

Severe Profitability DeteriorationThe sharp revenue contraction and very large recent net losses indicate that the business has not yet restored sustainable operating scale. Even with improved gross margin, negative EBIT and EBITDA leave limited evidence that earnings can support investment without further recovery.

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

Market Cap: $172.59M
Dividend Yield: ―
Average Volume (3M): 1.05M
Price to Earnings (P/E): -1.1
Beta (1Y): 1.20
Revenue Growth: 114.81%
EPS Growth: -404.13%
Country: US
Employees: 800
Sector: Industrials
Sector Strength: 63
Industry: Industrial - Machinery

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 Germany...

SCHMID Group NV Earnings Call Summary

Earnings Call Date:Aug 25, 2026(Q2-2026)|% Change Since:-46.60%|Next Earnings Date:May 24, 2027

Earnings Call SentimentPositive

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.

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 pressured: sharp shift from strong profitability to very large losses in 2024–2025 alongside steep revenue contraction. The balance sheet is stressed with negative equity and rising debt levels versus 2024, elevating solvency/refinancing risk. Cash flow offers only limited relief with small positive operating cash flow in 2025 but negative free cash flow in 2024–2025.

Income Statement

18Very Negative

Balance Sheet

12Very Negative

Cash Flow

20Very Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	46.91M	64.30M	60.84M	90.25M	95.06M	39.48M
Gross Profit	11.82M	14.14M	12.04M	26.40M	33.34M	8.97M
EBITDA	-2.32M	-5.78M	-71.96M	57.73M	25.70M	-3.26M
Net Income	-48.76M	-68.24M	-84.11M	36.87M	1.55M	-24.45M
Balance Sheet
Total Assets	127.15M	106.27M	93.10M	106.58M	180.25M	160.69M
Cash, Cash Equivalents and Short-Term Investments	2.29M	1.57M	3.79M	5.71M	8.33M	18.38M
Total Debt	90.94M	131.61M	87.13M	59.13M	164.19M	150.79M
Total Liabilities	157.93M	238.38M	153.54M	124.42M	234.56M	219.71M
Stockholders Equity	-31.40M	-132.69M	-61.11M	-25.20M	221.74M	-63.85M
Cash Flow
Free Cash Flow	-32.96M	-5.76M	-7.69M	2.99M	-4.34M	-6.40M
Operating Cash Flow	-30.39M	343.87K	-2.58M	9.90M	280.00K	-1.36M
Investing Cash Flow	-2.57M	-5.99M	-4.05M	72.02M	-7.17M	-7.54M
Financing Cash Flow	33.70M	3.67M	3.96M	-83.71M	-3.17M	35.67M

SCHMID Group NV Technical Analysis

Technical Analysis SentimentNegative

Last Price2.59

Price Trends

50DMA3.37Negative

100DMA4.02Negative

200DMA5.38Negative

Market Momentum

MACD-0.32Negative

RSI41.87Neutral

STOCH47.83Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SHMD, the sentiment is Negative. The current price of 2.59 is below the 20-day moving average (MA) of 2.73, below the 50-day MA of 3.37, and below the 200-day MA of 5.38, indicating a bearish trend. The MACD of -0.32 indicates Negative momentum. The RSI at 41.87 is Neutral, neither overbought nor oversold. The STOCH value of 47.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SHMD.

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

SHMD against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TWIN	75Outperform	$351.70M	11.37	15.33%	0.68%	12.13%	10463.04%
TAYD	66Neutral	$188.82M	26.84	9.64%	―	-12.47%	-24.49%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HURC	51Neutral	$136.20M	-20.32	-3.37%	―	-1.90%	50.99%
SHMD	46Neutral	$171.08M	-1.08	132.61%	―	114.81%	-404.13%
HUHU	40Underperform	$10.66M	-2.23	-85.36%	―	20.24%	-110.62%
LASE	39Underperform	$34.93M	-0.63	2279.46%	―	-11.00%	-445.02%

* Industrials Sector Average

Performance Comparison

SHMD and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
SHMD	Schmid Group N.V. Class A	2.59	-2.33	-47.36%
HURC	Hurco	20.73	4.15	25.03%
TAYD	Taylor Devices	58.25	13.13	29.10%
TWIN	Twin Disc Inc	25.02	9.65	62.81%
LASE	Laser Photonics Corp.	0.60	-2.44	-80.13%
HUHU	HUHUTECH International Group Inc.	0.33	-9.19	-96.52%

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: Oct 23, 2026

SCHMID Group NV AI Stock Analysis