LEM (LEHN) Q1 2025 earnings summary

Executive summary

• Sales declined 27.9% year-over-year to CHF 81.0 million in Q1 2024/25, with all regions and business segments affected by weak demand and high inventories.

• China saw a 20.3% sales drop but showed early signs of stabilization, especially in Automotive and Renewable Energy.

• Bookings decreased to CHF 65.1 million, with a book-to-bill ratio of 0.80, but sequential order growth was noted over the last three quarters.

• EBIT fell 71.4% to CHF 7.5 million, and net profit dropped 76.8% to CHF 4.8 million, reflecting margin pressure and lower volumes.

Financial highlights

• Gross profit decreased 30.5% to CHF 36.0 million, with gross margin down to 44.4% from 46.1% year-over-year.

• EBIT margin declined to 9.3% from 23.3%; net profit margin fell to 5.9% from 18.3%.

• SG&A costs rose 7.6% to CHF 18.6 million due to digitalization and new facility investments; R&D costs increased 19.2% to CHF 9.9 million.

Outlook and guidance

• Q2 2024/25 is expected to be similar to Q1, with sales anticipated to pick up in the second half of the year based on customer feedback and project wins.