Landis+Gyr Group AG

Landis+Gyr reported first-half net revenue of $535.9 million, down year over year, mainly because of early milestone completions in the Americas, the wrap-up of a major APAC project in the prior year, and lower sales in certain legacy meters. Management said lower sales volume hurt gross margin and adjusted EBITDA year over year, but both improved by more than 200 basis points versus the second half of fiscal 2024. In the Americas, revenue fell 16% year over year and adjusted EBITDA margin was 17.5%, despite a temporary 100 bps tariff hit and nearly $14 million of lower operating expenses. Net debt at half year-end was $209.3 million, and leverage was 1.4x adjusted EBITDA. For fiscal 2025, the company reaffirmed 5% to 8% revenue growth for the continuing business and raised adjusted EBITDA margin guidance from 10.5% to 12% to 13% to 14.5%. Management also said it expects $10 million to $15 million of dis-synergies in fiscal 2025 related mainly to corporate costs that will stay with EMEA after closing.

Peter Mainz framed the quarter as a transition to a more focused, higher-quality business after the EMEA divestment. He emphasized strong commercial momentum, a record backlog, and the view that structural demand is being driven by electrification, grid modernization, AI, data centers, reshoring, and utility capex growth. His tone was upbeat and confident, especially around the Americas platform and the company’s ability to convert backlog into second-half growth.

Davinder Athwal highlighted that the first half was softer on revenue, but sequential momentum improved versus the second half of fiscal 2024. He cited $535.9 million of net revenue, $37.7 million of cash generated from operations, $12.9 million of capex, $10.1 million of transformation expenses, and $41.1 million of dividends paid in July; net debt was $209.3 million with leverage at 1.4x. He also noted that tariffs had a temporary 100 bps impact in the half and that operating expenses in the Americas were reduced by nearly $14 million year over year, supporting margin resilience.

Analysts focused on how the company can deliver the implied second-half growth in North America, tariff exposure, the mix of recurring revenue, and whether legacy customers are moving to the new Revelo platform. Management said the second-half growth is supported by backlog and that tariff costs were about $5 million net and should be behind them, while recurring revenue was not broken out between software and services. On Revelo, management said the current pipeline and order intake are now more or less exclusively Revelo and grid-edge technology, though customers signed years ago are still deploying older-generation technology. When asked about buybacks versus M&A, management said returning EMEA proceeds to shareholders is the priority and that M&A is not the focus over the next 12 months given the workload of closing EMEA and pursuing a U.S. listing.