Full Year 2025 Lem Holding SA Earnings Call Transcript
Key Points
- LEM Holding SA (XSWX:LEHN) saw encouraging signs of recovery in the fourth quarter, particularly in China where the Automotive business achieved growth and regained market share.
- The company is strategically positioned to benefit from global mega trends such as electrification, renewable energy, and immobility, with investments in innovation and customer proximity.
- Despite a challenging year, LEM managed to adjust costs quickly, particularly on the gross margin side, and made efforts on the OpEx side, which are expected to become visible in the financial year '25-'26.
- The Fit for Growth initiative aims to reduce OpEx by CHF18 million to CHF22 million in '25-'26 and an additional CHF15 million in '26-'27, aligning the organization with increasing business share from Asia.
- LEM continues to invest in future technologies, developing next-generation sensor technology, AI-enhanced, and energy harvesting solutions with customers.
- LEM Holding SA (XSWX:LEHN) experienced a top-line drop of about 24% against the previous year, with significant declines in Renewable Energy and Energy Distribution sectors.
- The company faced geopolitical and economic uncertainties, with demand in EMEA, the rest of Asia, and Americas remaining subdued due to cautious capital investments and elevated stock levels.
- The financial year '24-'25 was marked by a net reduction of 150 positions across major sites, as part of the Fit for Growth program, impacting employees despite social plans in place.
- The company's net result for '24-'25 was CHF8.4 million, impacted by significant financial costs and an unusual amount of income tax.
- The Board of Directors proposed not to pay a dividend for the '24-'25 financial year due to profitability concerns and economic uncertainty, despite a long-standing dividend policy.
Ladies and gentlemen, thanks for coming here today for the full-year results '24-'25 conference of LEM Holding and a warm welcome from my side also to the participants who join us via phone conference. I'm Andreas Huerlimann, Chairman of the Board, and I'm here, too, with our CEO Frank Rehfeld and with Thomas Mellano, VP Finance.
'24-'25 was an exceptional year. It was shaped by geopolitical and economic uncertainties and persistent market headwinds. While LEM was under pressure in the first half due to cautious customer spending and high inventory levels, we saw encouraging signs of recovery in the fourth quarter. China, in particular, showed stabilization, especially in the Automotive business, where we achieved growth and regained market share.
Demand in EMEA, the rest of Asia, and Americas remains subdued due to cautious capital investments and still elevated stock levels. Nevertheless, we observed early signs of normalization across our businesses, primarily also in Automotive, both Europe and
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