Landis+Gyr Group (LAND) H1 2025 earnings summary

Executive summary

• Net revenue for H1 2024 was USD 925.6 million, down 4.3% year-over-year in constant currency, mainly due to project timing in EMEA, with stable performance in Americas and APAC.

• Adjusted EBITDA reached USD 108.2 million (11.7% margin), up 60 bps year-over-year, supported by operational efficiencies and an $8.8 million gain from a real estate sale in India.

• Net income attributable to shareholders increased 17% year-over-year to USD 48.2 million, with diluted EPS of USD 1.67.

• Strategic review underway for EMEA, with a sharpened focus on the Americas and evaluation of a potential US listing.

• Leadership changes include the departure of the Group CFO, appointment of a new Head of EMEA, and enhanced sustainability efforts recognized by a Platinum EcoVadis rating.

Financial highlights

• Order intake was USD 812.1 million (down 15.2% year-over-year), with a book-to-bill ratio of 0.9 and a backlog of USD 3.65 billion.

• Adjusted gross profit margin improved to 32.2% (up 80 bps year-over-year); adjusted operating expenses fell to USD 189.8 million.

• Free cash flow (excluding M&A) was negative USD 13.5 million, impacted by working capital changes and timing of collections.

• Net debt stood at USD 226.3 million, with a net debt/adjusted EBITDA ratio of 1.01x and USD 170 million in undrawn facilities.

• Dividend of CHF 2.25 per share (USD 72.5 million) paid in July 2024.

Outlook and guidance

• FY24 guidance reconfirmed: low single-digit net revenue growth and adjusted EBITDA margin of 11–13%.

• FY25 guidance reconfirmed, with expectations of back-end loaded revenue and margin improvement, especially in EMEA.

• H2 expected to see significant revenue and margin uplift, particularly in EMEA, targeting a full-year EBITDA margin of 4.5–5% for the region.