Landis+Gyr Group (LAND) H1 2027 earnings summary

Executive summary

• H1 FY2026 revenue declined 6.3% YoY to $501.4M as major customer deployments transitioned; adjusted gross margin reached a record 37.7%.

• Adjusted EBITDA rose 3.5% to $73.9M, margin increased 140 bps to 14.7%, and operating cash flow rose 220% to $74.0M.

• A $509M post-period utility award for more than 3 million metering endpoints lifted backlog to ~$4.2B.

Financial highlights

• H1 adjusted gross profit rose 4.0% to $189.2M; adjusted gross margin increased 370 bps YoY to 37.7%.

• Q2 revenue was $269.2M, down 5.9% YoY; adjusted gross margin rose 460 bps to 38.0%, and adjusted gross profit increased 6.8%.

• H1 operating income was $89.6M; income from continuing operations was $51.1M and diluted EPS was $1.84, versus $0.48 YoY.

• Operating cash flow was $74.0M versus $23.1M; PP&E capital expenditures were $13.7M.

Outlook and guidance

• FY2026 net revenue guidance narrowed to $1.085B–$1.115B from $1.075B–$1.125B, retaining a $1.1B midpoint.

• FY2026 adjusted EBITDA margin guidance rose to 15.0%–16.0% from 14.5%–15.5%.

• A strong H2 is expected, with major customer deployments ramping and the Canada contract transition beginning in Q3 and reaching full deployment scale in Q4.

• FY2025–FY2028 targets include mid-single-digit revenue CAGR, gross margin of ~35% or higher, adjusted EBITDA CAGR at 2x revenue CAGR and adjusted EPS CAGR above 5x revenue CAGR.