Landis+gyr Group (SIX Swiss: LAND) Q1 2027 Earnings Call

5:31 Welcome to the Landis' Gear Q1 '20 twenty '6 Trading Update. Please note the call will be recorded. Today's call webcast participants will be in a listen only mode until complete the

5:50 Please go ahead. Thank you, operator, and good afternoon. Good evening, everyone. I'm Christian Welty, head of investor relations. I'm joined today by Peter Mainz, our CEO, and Pat Davyr Group AG, our CFO.

6:28 This session will follow the structure of the presentation, so we encourage you to follow along. We'll conclude with Q and A, where you will be provide further instructions and where you will be able able to ask questions. Please take moment to review the usual disclaimer on Slide two of the presentation. After a short discussion, I'd like to hand floor over to our CEO, Peter Meinz. You, Thank Good afternoon and good evening everyone. I'm here at our US headquarters in Alveta with Davinder, our CFO and we are pleased to provide you with enough update on our first quarter performance. That said, let's start with a review of the key strategic developments over the past three months. Move to Slide three.

7:18 As you know, we held our Capital Markets Day in New York on June 1 where we presented our growth strategy and mid term value creation plan for the next phase of Landis near here. Following the successful investment of our EMEA business, we are now operating with a strategic focus and structure that is better aligned with our core growth opportunities. Part of this, we introduced our new segment structure around connected platforms grid intelligence. We believe this new structure enhances transparency for investors and improves operational focus across the business. Connect platform brings together our intelligent endpoints secure grid communications and deployments and life services, while building intelligence, including our grid operation software, data analytics and managed and advisory services.

8:19 We have also put dedicated segment leadership in place with announcements forthcoming. This is an important step as we continue to sharpen accountability, execution and commercial focus across the organization. In parallel, preparations for U. S. Listings are progressing well internal readiness is essentially complete. As we have said before, we remain committed to maintaining our Swiss listing while also advancing our preparations for U. Listing to better align our capital market presence with majority of our operations business activity. Finally, the acceleration of our share buyback program through a fixed price offer underscores our commitment to returning value to shareholders following the successful closing of the mutual transaction.

9:14 Will come back to this in more detail later in the presentation. With that, let's move to slide four and look at the highlights of first quarter.

9:25 Overall, business performance in Q1 twenty six was in line with our expectations. Our first fiscal quarter, net revenue was down 6.8% year over year, due to the timing of project deployments. The same time, we continue to pipeline connectivity at the correct levels and our backlog remains very solid at US3.8 billion dollars. Importantly, intelligence now represents around 47% of our backlog And backlog in this segment increased by 5.4% compared to June fiscal year twenty twenty five. This underlines the continuous momentum we see around grid edge solutions and the increased relevance of software and services in our business mix.

10:18 Our trailing twelve month to bill ratio remained one time, which reflects continued demand across our core markets and supports our confidence in the business outlook. Key highlight of the quarter was our profitability performance. We achieved a record adjusted gross margin of 37.4%, up a staggering two eighty basis points year over year. Improvement reflects operational efficiencies as well as a favorable shift to a true recurring software and services.

10:54 Adjusted gross profit increased to $87,000,000 to the prior year quarter despite lower revenue base. Taken together, the quarter demonstrates that while revenue timing can vary from period to period, the underlying business remains resilient, margin profile continues to improve and our pipeline remains exceptionally strong. Based on our Q1 performance, back visibility and current business momentum, are reiterating our fiscal year 2026 guidance. I will now move into Davinder, who will take you through financial performance

12:16 Especially encouraging is the continued evolution of that backlog mix. Grid intelligence backlog increased 5.4% compared to June 2025, and now represents approximately 47% of total backlog. This reflects growing customer investment in grid organizations, software, analytics, and grid solutions. Areas that support higher quality and more profitable revenue mix over time. Turning now to revenue margins on slide six.

13:02 Revenue for the quarter was $232,300,000, a decline of 6.8 compared to the prior year. The decrease was primarily driven by the timing of code deployments with ConnectConnect platforms and was consistent with our expectations in the year. More importantly, profitability improved significantly. Adjusted gross margin was a record 37.4%, continued to operate solutions across our portfolio and supply chain, disciplined execution across customer programs.

13:48 As a result, adjusted gross profit increased to $87,000,000 up 1% year over year despite lower revenue.

16:44 Peter, over to you. You, David. Before we move on to Q and A, I'd like to provide a few more details on the acceleration of our share buyback program. The successful closing of the EMEA transaction, we remain committed to returning our total US175 million dollars of the proceeds to our shareholders. This is an important element of capital allocation approach and reflects our confidence in the company's strategy, financial profile and long term value creation potential. Under the current share buyback program, we have repurchased approximately 200,000 of our RM shares over the past nine months, representing approximately 44.2%

17:36 made We we intend to launch a fixed price offer for a total amount of CHF 50,000,000. The offer is expected to run around a ten day off period and the details of the offer, including buyback notice, are expected to be published on 08/03/2026. Following the completion of the fixed price offer, we intend to resume daily share repurchases complete the remaining portion of the $175,000,000 share buyback program. This accelerated buyback is fully aligned with priorities we outlined at Capital Markets Day.

18:25 Focusing the business, improving the financial profile, maintaining disciplined capital allocation and returning value to shareholders. Concludes my remarks. You again And for joining us we are happy to take your questions. Would there be a prospect of returning back growth in Q4?

19:43 That's question number one. You. Akash, you prefer us to respond to them one by one? Can take the first one. Think if you recall, at year end results 2025, we gave guidance for this year, we articulated in the fourth quarter. The ramp up one contract in Canada will be at pace into quarters in the course of 2026?

21:28 Thank you. Thank you for taking my question.

23:49 My first question is on the retail business. You give us more details on the reason for this line line in gross margin year on year? So given that one quarter not represented all year, it's just a mix of what's in that revenue for the quarter. So we don't expect that to continue if you look at what you guys are reiterating, That's great to hear.

27:22 Okay. I don't have the exact numbers available here. Maybe there's a different way to sort of supply them. I don't to give you and margin in Q1 and should we expect backpacks see similar level in Q1 for the rest of the year?

28:45 Thank you. So again, if think the big driver on platform is really, really the Veloa with edge devices, customized twenty years. Are very early on the cost curve and we continue to have success with the volume to shift in the cost curve. In Q4 of last year, we also Looks like there are no questions. This concludes the Q and A session. I'll now hand the management for closing remarks.

29:50 Thank you. Yeah. Yeah. Thank you again for joining us today. Appreciate your time and interest for Landis here. And I look forward to meeting you all soon. You'll joining in person and definitely looking forward to the next quarterly update call for us at the office office call. Thank you so This concludes much. Today's call. Thank you everyone You for may now disconnect.