LEM (LEHN) Q1 2026 earnings summary

Executive summary

• Q1 2025/26 sales declined 6.5% to CHF 75.7 million, but only 0.1% at constant exchange rates, with Automotive and Track segments growing 9.0% and 10.6% year-over-year.

• Bookings rose 19.0% to CHF 89.1 million, with strong growth in EMEA and China; book-to-bill ratio remained healthy at 1.18.

• Gross margin fell to 38.2% from 44.4% due to price pressure in China, negative mix, and under-absorption of fixed costs.

• EBIT dropped 44.4% to CHF 4.2 million; net profit decreased to CHF 2.0 million, with a net margin of 2.6%.

• Transformation program "Fit for Growth" reduced SG&A by 12.8%, outpacing the sales decline.

Financial highlights

• Sales: CHF 75.7 million, down 6.5% year-over-year; at constant FX, down 0.1%.

• Gross profit: CHF 29.0 million, down 19.5%; gross margin 38.2%.

• EBIT: CHF 4.2 million, margin 5.5%; net profit: CHF 2.0 million, margin 2.6%.

• Bookings: CHF 89.1 million, up 19.0% year-over-year; book-to-bill ratio 1.18.

• Financial expenses increased to CHF 1.2 million due to higher debt.

Outlook and guidance

• No general change in business development expected in the near term due to short-term visibility.

• Uncertainties persist regarding US tariff policy and currency fluctuations.

• Positive booking trends in all segments except Renewable Energy.