Mikron reported H126 results that confirmed a slowdown in revenue after a record H125 performance. Despite the lower revenue, the operating margin remained within the range expected for FY26. While the Automation business saw slower revenue and order intake as pharma customers digested recent purchases, the Tool business saw strong growth and the Machining business appears to be approaching the bottom for order intake. The company reiterated its outlook for FY26 and we maintain our forecasts.

Mikron generated record results in FY25 despite difficult market conditions. Economic uncertainty has suppressed order intake during the year, which is likely to result in lower revenue and profitability in FY26. Operational improvements, cost-cutting and manufacturing capacity expansion should position the company well for profitable growth when the cycle turns, and management has raised its operating margin targets from FY27 from a mid-point of 8.5% to 9.5%.