Landis+Gyr Group AG

For the first half of 2025, net revenue from continuing operations was $535.9 million, down year over year, mainly due to early milestone completions in the Americas and the wrap-up of a major APAC project. Management said lower sales volume weighed on gross margin and adjusted EBITDA year over year, partly offset by discipline and efficiencies, and both metrics 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%, while APAC revenue declined 17.4% year over year. Net debt ended at $209.3 million and net debt to adjusted EBITDA leverage was 1.4x. For fiscal 2025, Landis+Gyr confirmed net revenue growth guidance of 5% to 8% for the continuing business and raised adjusted EBITDA margin guidance to 13% to 14.5% of revenue, versus prior guidance of 10.5% to 12%. Management also expects $10 million to $15 million of dis-synergies in FY25, mainly corporate costs tied to EMEA after closing.

Peter Mainz framed the quarter as a step-change in the company’s strategic reset, highlighting a record backlog, strong commercial momentum, and a more focused portfolio after the EMEA divestment. He emphasized that demand is being supported by electricity load growth, AI/data centers, manufacturing reshoring, and grid resilience needs, especially in the Americas. His tone was upbeat and confident, with repeated references to a “fresh start,” higher-quality business mix, and improved financial profile.

Davinder Athwal said first-half revenue was $535.9 million and explained that the year-over-year decline reflected project timing and lower volume rather than a broad demand issue. He pointed to margin pressure from reduced operating leverage and the absence of a one-time India real estate gain in the prior year, but noted both gross margin and adjusted EBITDA improved by more than 200 basis points versus 2H24. He also detailed liquidity: $37.7 million in cash generated from operations, $12.9 million of capex, $10.1 million of transformation expenses, $41.1 million of dividends paid, net debt of $209.3 million, and 1.4x leverage.

Analysts focused on the implied second-half growth ramp in North America, tariffs, the role of data centers in utility demand, the mix of recurring revenue, and whether new Revelo/grid-edge orders are replacing legacy business. Management said second-half growth is backed by backlog and execution, that tariff impact was about $5 million and should be behind them, and that data centers still drive utility capex even if some power is generated off-grid. On recurring revenue, Peter Mainz said it is not broken out between software and services, but it is accretive to Americas margins; he also said the pipeline and order intake are now “more or less exclusively Revelo and grid edge technology.”