#financial results #Energy Management #Switzerland #Landis+Gyr #Cham

Landis+Gyr Unveils Financial Results for FY 2024

Landis+Gyr Group AG (SIX: LAND), a renowned leader in integrated energy management solutions, announced its unaudited financial results for the fiscal year ending March 31, 2025. The results indicate a significant increase in orders along with a robust pipeline, reflecting the company's strength in a competitive market.

Strong Order Intake

The company reported an extraordinary order intake of USD 2.6 billion for FY 2024, marking a substantial 33.3% increase compared to the previous year. This impressive growth was driven by significant contracts across all regions, resulting in a book-to-bill ratio of 1.5, which highlights the company's strong demand in the market.

Record Backlog

In addition, Landis+Gyr attained a record high order backlog of USD 4.6 billion, a remarkable 22.9% increase year-on-year. This backlog positions Landis+Gyr well for future revenue growth as it reflects a strong pipeline of future projects.

Revenue Overview

The net revenue for FY 2024 was reported at USD 1,729.3 million. However, this figure represents a 10.5% decrease year-on-year on a currency-adjusted basis, attributed primarily to one-off sales in 2023 and delays in shipments caused by tariffs during March, as well as economic slowdowns in the EMEA region during the first half of the fiscal year.

Adjusted EBITDA and Operational Challenges

The adjusted EBITDA stood at USD 170.9 million, experiencing a decline of 25.7% from the previous year, resulting in a margin of 9.9%. This drop is largely due to lower operational leverage and the need to write down inventory, which accounted for USD 20 million. Without these one-time effects, the adjusted EBITDA margin would have been 10.4%.

Financial Loss and Cash Flow

The net loss from continuing operations amounted to USD (84.7) million, translating to USD (2.97) per diluted share, primarily influenced by a non-cash goodwill impairment of USD 111.0 million. The cash flow from operations also saw a decline, recording USD 78.9 million, a decrease of 34.9% from the previous year due to lower profitability and increased operational working capital needs.

Dividend Proposal

To maintain financial strength, the board proposed a reduced distribution from capital reserve at CHF 1.15 per share to be voted on at the annual general meeting, reflecting a cautious approach towards shareholder returns in light of operational challenges.

Outlook for FY 2025

Looking ahead, Landis+Gyr anticipates revenue growth between 5% and 8% for FY 2025, alongside an anticipated adjusted EBITDA margin improvement ranging from 10.5% to 12.0%. The company is optimistic about managing tariff-related costs with minimal expected impact in the upcoming fiscal year.

Strategic Transformation

The company is undergoing a strategic transformation that includes a thorough evaluation of its EMEA operations and considerations for listing on the US stock exchange. According to CEO Peter Mainz, the fiscal year 2024 has validated the resilience of Landis+Gyr’s business model and technology, demonstrated by the record order intake and robust backlog.

Leadership and Future Prospects

The newly completed management team continues to drive the strategic changes, marked by the exit from the EV charging station business. Mainz expressed confidence in the company’s long-term growth trajectory, supported by the extensive acceptance of Grid-Edge solutions that address rising energy demand.

CFO Davinder Athwal echoed this sentiment, emphasizing that FY 2024 was a transitional year but expressed excitement for the upcoming fiscal year. With a strong balance sheet, Landis+Gyr is poised for sustainable investment and profitable long-term growth.

For more insights about Landis+Gyr and its market initiatives, visit their official website.