Glass Manufacturer Schott in Transition - 'No Easy Year' - Schott bets on smart glasses and semiconductors to revive slumping profits
Specialty glass manufacturer Schott is facing a tough economic climate, with profits falling sharply in the latest fiscal year. The company reported revenue of €2.83 billion for 2024/25—almost unchanged from the previous year—but operating profit dropped by over 40% to €230 million. To counter these challenges, Schott is shifting its focus toward high-growth sectors like smart glasses and semiconductor components.
Schott’s financial performance has weakened due to several factors. Net profit for 2024/25 fell by 46% to €165 million, reflecting broader struggles. The pharmaceutical glass division, once boosted by pandemic demand for vaccines, has slowed as global health campaigns wind down. Meanwhile, traditional segments like glass cooktops are suffering from weak demand tied to a stagnant construction sector, with fewer new homes meaning fewer kitchen installations.
High energy costs in Germany and US tariffs have added pressure to Schott’s traditional export model. Instead of relying on older markets, the company is now investing in future-oriented areas. One major move is doubling production capacity for advanced specialty glass used in smart glasses at its Malaysian plant. This glass is essential for augmented reality (AR) devices, which many analysts believe could partially replace smartphones within a decade when combined with AI.
Another promising area is glass circuit boards for computer chips. These could drastically cut energy use in data centres, offering both environmental and cost benefits. By prioritising these innovations, Schott aims to offset declines in its legacy businesses and secure long-term growth.
Schott’s strategy centres on expanding into high-tech glass applications rather than reviving older product lines. The company’s push into smart glasses and semiconductor materials reflects a broader industry shift toward energy-efficient, AI-driven technologies. While traditional markets remain under pressure, these investments could redefine its position in the global glass manufacturing sector.
