Full Year 2026 Lem Holding SA Earnings Call Transcript
Key Points
- LEM Holding SA (XSWX:LEHN) reported stable sales in constant currencies, achieving CHF 287.7 million despite a 6.3% decline in CHF.
- The company successfully implemented its Fit for Growth program, achieving $20 million in cost savings and improving free cash flow to $31.7 million.
- Order intake showed improvement towards the end of the financial year, indicating potential growth momentum.
- The automation business experienced significant growth, driven by demand from data centers and depleted inventory levels.
- LEM Holding SA expanded R&D activities in Asia and strengthened production capabilities in Malaysia and Bulgaria, aligning with market shifts towards Asia.
- The company faced market uncertainty and currency headwinds, with ongoing pricing pressure in China impacting gross margins.
- Sales declined by 6.3% in CHF, and the automotive and traction businesses experienced a slowdown in the second half of the year.
- The renewable energy segment declined by 6.7% in constant currencies, with competitive pressure from Chinese manufacturers affecting margins.
- The energy distribution and high precision business continued to shrink by 8.4% year-on-year in constant currencies.
- The Board of Directors proposed not to declare a dividend for the '25-'26 financial year due to economic uncertainty, impacting shareholder returns.
For questions following the presentation. Let me now turn the floor over to your host, Andreas Herleman, Board of Directors.
Ladies and gentlemen, thank you for coming here today for the full year results 25-26 conference of LEM Holding and a warm welcome from my side. Also to the participants who joined us via telephone conference or webcast.
I'm Andreas Herleman, Chairman of the Board of Directors. I'm here with our CEO, Frank Krefeld, and our CFO, Antoine Julia.
'25, '26, once again characterized by market uncertainty, currency headwinds. While conditions remain challenging, including ongoing pricing pressure in China, we saw signs of stabilization supported by mostly normalizing inventory levels and some positive signals in Western markets.
Momentum was particularly evident in automation and energy distribution and high precision, supported by data center related demand.
Order intake improved towards the end of the financial year.
Frank and Antoine will provide more
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