LEM (LEHN) H2 2025 earnings summary

Executive summary

• FY 2024/25 saw a 24.4% revenue decline amid significant geopolitical and economic headwinds, with China as the only region showing stabilization and growth, particularly in automotive.

• The "Fit for Growth" program was launched to reduce OPEX by CHF 18-22 million in 2025-2026 and an additional CHF 15 million in 2026-2027, with a net reduction of 150 positions and a shift of R&D and transactional activities to Asia.

• Investments continued in next-generation sensor technology, AI-enhanced, and energy harvesting solutions, with over 20 new products and 15+ customized versions launched.

• H2 showed encouraging recovery, especially in Automotive, with sequential Q4 sales up 2.3% from Q3.

Financial highlights

• Sales were CHF 306.9 million, down 24.4% year-over-year; gross margin at 43.2%.

• EBIT was CHF 18.9 million (CHF 26.8 million before CHF 7.9-8 million in restructuring costs), representing 8.7% of sales.

• Net profit was CHF 8.4 million, down 87.2%, impacted by high financial costs and a 19.9% effective tax rate.

• Free cash flow improved to CHF 14 million for the year, with net financial debt at CHF 90.1 million.

• Bookings increased 7.8% year-over-year, with a Q4 book-to-bill ratio of 0.97.

Outlook and guidance

• No clear rebound expected in Europe or Americas; positive signals in China, especially automotive, but overall outlook remains cautious due to market volatility and tariff uncertainties.

• The "Fit for Growth" program is expected to deliver CHF 18-22 million EBIT improvement in 2025-2026, with further gains in 2026-2027.

• No dividend proposed for 2024-2025 due to profitability and economic uncertainty, but commitment to attractive dividend policy remains.