LEM (LEHN) Q3 2025 earnings summary

Executive summary

• Sales declined 27.1% year-over-year to CHF 230.9 million for the first nine months of 2024/25, with stabilization in China and sequential growth in the automotive sector there.

• EBIT dropped 71.0% to CHF 20.1 million and net profit fell 78.2% to CHF 12.1 million, reflecting lower volumes and under-absorption of fixed costs.

• The "Fit for Growth" program aims to streamline operations, shift focus to Asia, and deliver significant EBIT improvement from 2025/26.

• Organizational restructuring will reduce about 150 positions, mainly in Europe, and shrink the Executive Committee from seven to five members.

Financial highlights

• Gross profit fell 32.3% to CHF 100.7 million; gross margin decreased to 43.6% from 47.0% year-over-year.

• SG&A costs were reduced by 0.6% to CHF 53.8 million, while R&D costs rose 5.4% to CHF 26.8 million.

• Bookings reached CHF 188.5 million, slightly above the prior year, with a book-to-bill ratio of 0.82.

• Sequential Q3 sales declined 1.7% from Q2 2024/25.

Outlook and guidance

• Full-year 2024/25 sales are expected in the range of CHF 290–310 million, with a single-digit EBIT margin before restructuring costs.

• The "Fit for Growth" program is projected to improve EBIT by CHF 18–22 million in 2025/26 and deliver CHF 35 million in annual savings from 2026/27.

• One-off restructuring charges of CHF 10 million in EBIT, with two-thirds booked in 2024/25 and the rest in 2025/26.