Business
LEM : Half Year Results 2025/26
LEM : Half Year Results
About this update from Lem Holding Sa
Half Year Results 2025/26 1 April 2025 to 30 September 2025 Agenda Opening Remarks Frank Rehfeld Business Performance Frank Rehfeld Financial Results Antoine Chulia Outlook & Mid-Term Ambitions Frank Rehfeld LEM with stable sales in the first half 2025/26 Moderate performance with margin recovery over the half-year period LEM reported a 5.3% decline in sales to CHF 148.3 million (2024/25: CHF 156.5 million) due to currency headwinds; at constant exchange rates up 0.5%, with growth in Automation, Automotive and Track confirming the resilience of its diversified portfolio China confirmed stabilization trends with solid volume growth offset by high price pressure; LEM gained market share in Automation and Track and benefited from domestic EV market growth EMEA recorded slightly lower sales as weakness in Renewable Energy and EDHP weighed on performance; Americas with strong sales at constant exchange rates, supported by the tariff impact Driven by the Fit for Growth program, EBIT margin recovered to 7.7% in the first half, rising from 5.5% to 9.9% quarter-on-quarter despite lower sales from currency effects Free Cash Flow improved to CHF 5.6 million, up from CHF -11.6 million a year earlier, driven by tighter working capital management; Free Cash Flow before restructuring costs reached CHF 11.1 million. LEM expects no major change in business development and forecasts sales of CHF 265 to 290 million with a high single-digit EBIT margin for 2025/26, reflecting improved profitability Updated mid-term financial ambitions: Following a phase of market adjustment expected to last through FY2026/27, LEM targets sustainable average annual sales growth of 4 to 7% at constant exchange rates and a gradual improvement of the EBIT margin towards a 10 to 15% range Agenda Opening Remarks Frank Rehfeld Business Performance Frank Rehfeld Financial Results Antoine Chulia Outlook Frank Rehfeld A leading company in electrical measurement Five Businesses Automation Automotive Renewable Energy Energy Distribution & High Precision Track HY 2025/26 Sales CHF m 43.7 40.6 20.3 19.0 24.6 Δ CHF -3.2% +2.0% -20.3% -19.7% +9.9% Δ constant exchange rates +2.8% +8.9% -15.1% -15.2% +14.9% Sales distribution by business 17% 29% 13% 14% 27% Growth Automation recovered as inventories normalized and Automotive grew in China and Europe on strong EV and battery management demand Sales CHF m HY 25/26 vs 24/25 Q2 25/26 vs 24/25 Automation 43.7 -3.2% +4.3% Automotive 40.6 +2.0% -4.8% Renewable Energy 20.3 -20.3% -17.0% Energy Distribution & High Precision 19.0 -19.7% -18.5% Track 24.6 +9.9% +9.1% TOTAL 148.3 -5.3%* -4.0% Renewable Energy and Energy Distribution & High Precision remained weak, with lower solar and EV charging investments partly offset by growth in data center power supply Track business performed well across all regions *+0.5% at constant exchange rates Automation Drives, robots, tooling machines, elevators, and HVAC CHF m 140 CHF m HY HY Q2 Q2 2025/26 2024/25 2025/26 2024/25 Sales 43.7 45.2 22.5 21.6 120 100 80 60 40 20 0 21/22 22/23 23/24 24/25 25/26 The market recovered as customer inventories normalized, driven by mid-power applications such as power measurement and data center cooling, while low-power drives remained weak High-voltage applications in China performed well, with Chinese suppliers expanding into Europe and increasing price pressure FY sales HY sales Automotive Battery (EV & CE), motor control, and onboard charging CHF m HY HY Q2 Q2 CHF m 2025/26 2024/25 2025/26 2024/25 Sales 40.6 39.8 19.0 19.9 120 100 80 60 40 20 0 21/22 22/23 23/24 24/25 25/26 FY sales HY sales Automotive performance significantly varied by region China and Europe grew on strong EV and battery management demand, supported by LEM's strong local positioning and cost discipline In the Rest of Asia and Americas, weak demand persisted, but price pressure was mitigated by a shift toward higher-value battery management products, where LEM leads technologically and is expanding capacity Renewable energy Solar and wind CHF m HY HY Q2 Q2 CHF m 2025/26 2024/25 2025/26 2024/25 Sales 20.3 25.5 9.4 11.4 70 60 50 40 30 20 10 0 21/22 22/23 23/24 24/25 25/26 FY sales HY sales Market in China declined after the cancellation of solar feed-in tariffs in June 2025, slowing new project investments In Europe, demand remained weak as domestic solar systems are mostly sourced from China, while large commercial projects performed better In the Rest of Asia, growth was supported by government spending in Japan, an upturn in India, and stable wind energy demand Energy distribution and high precision Charging stations, smart grid, energy storage, and high precision CHF m 70 CHF m HY 2024/25 Q2 2024/25 Sales 11.5 9.3 23.7 19.0 Q2 2025/26 HY 2025/26 60 50 40 30 20 10 0 21/22 22/23 23/24 24/25 25/26 FY sales HY sales DC meter business remained challenging in Europe and the US as low EV sales and rising competition led to postponed investments Market in China stayed relatively stable High-precision segment weakened due to lower demand in automotive battery testing Business with uninterruptible power supply for data centers grew across all regions, supported by a dedicated US initiative