Landis+Gyr Reports Impressive FY 2024 Financial Performance Amid Market Challenges
Landis+Gyr Delivers Strong Financial Results for FY 2024
Landis+Gyr Group AG, a significant player in the integrated energy management sector, has announced its financial outcomes for the fiscal year 2024, which ran from April 1, 2024, to March 31, 2025. The results reflect both the resilience and strength of the company’s business model, particularly in light of recent global market challenges.
Key Financial Highlights
One of the standout features from the fiscal year was an exceptional order intake that reached $2.6 billion, marking a significant 33.3% increase compared to the previous year. This robust growth can be attributed to successful contract acquisitions across all regions, culminating in a book-to-bill ratio of 1.5. Furthermore, the company attained a record committed backlog of $4.6 billion, up 22.9% year-on-year, which underlines strong demand for Landis+Gyr’s offerings.
Despite these gains, the annual net revenue totaled $1,729.3 million, representing a 10.5% decrease in constant currency. This decline stems from various factors including an absence of pent-up demand realization observed in 2023, recent tariffs affecting shipment timings in March, and a softer market in the Europe, Middle East, and Africa (EMEA) region during the first half of the fiscal year.
Adjusted EBITDA for the year was reported at $170.9 million, a 25.7% drop, largely due to decreased operating leverage and a $20 million inventory write-off. Nonetheless, effective expense management allowed for a margin of 9.9%, which improved to 10.4% when one-off effects were excluded.
The company also faced a net loss of $84.7 million, or $2.97 per share (diluted), primarily due to a non-cash goodwill impairment of $111.0 million. This resulted in an operating cash flow of $78.9 million, a 34.9% fall compared to the previous year.
To strengthen its balance sheet, Landis+Gyr has proposed a reduced distribution of CHF 1.15 per share to its shareholders at the Annual General Meeting.
Looking Ahead to FY 2025
Looking forward, Landis+Gyr provides a positive outlook for FY 2025, with expectations of net revenue growth between 5% and 8% and an adjusted EBITDA margin ranging from 10.5% to 12.0%. This optimism comes amid ongoing strategic transformations, which include a thorough review of operations in EMEA and the United States.
Peter Mainz, CEO of Landis+Gyr, discussed the fiscal year's performance, emphasizing that it demonstrated the enduring strength and agility of the company’s business model. He pointed out the record order intake and the substantial backlog as indicators of confidence in their long-term growth trajectory. Mainz also highlighted the team's efforts that led to significant wins across the Americas and Asia Pacific, alongside a notably solid performance in EMEA.
Strategic Transformation
The strategic transformation underway within Landis+Gyr is designed to enhance its operational capabilities for the future. It includes a planned exit from the electric vehicle (EV) charging sector, allowing the company to refocus its energies on core areas that address the increasing demand for energy solutions globally.
CFO Davinder Athwal remarked on the transition year for Landis+Gyr, expressing enthusiasm about future revenue growth and margin improvements in the upcoming fiscal year. He reassured stakeholders of the company’s ability to manage tariff-related costs, which are expected to have a minimal impact on the company’s operations moving forward.
Conclusion
In conclusion, FY 2024 was a pivotal year for Landis+Gyr, illustrating both the challenges and opportunities that lie ahead in the energy management sector. With proactive strategic planning and a commitment to innovation, the company is positioning itself for sustainable growth while addressing the evolving energy landscape and increasing consumer demands. The forthcoming fiscal year is anticipated to be one of recovery and expansion, solidifying Landis+Gyr's role as a leader in the energy management solutions domain.