LEM Holding SA ( (LMHDF) ) has released its Q2 earnings. Here is a breakdown of the information LEM Holding SA presented to its investors.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
LEM Holding SA, a leader in electrical measurement solutions, operates across sectors such as energy, mobility, and automation, leveraging technology to drive sustainability. In its latest earnings report for the first half of 2025/26, LEM reported stable sales at constant exchange rates, despite a reported decline of 5.3% to CHF 148.3 million due to currency fluctuations. The company saw growth in its Automotive and Track segments, with increases of 8.9% and 14.9% respectively, at constant exchange rates.
Key financial metrics highlighted include a rebound in gross profit margin to 41.1% in the second quarter, driven by pricing strategies and productivity gains. The EBIT margin improved to 7.7%, supported by the ‘Fit for Growth’ program, which also led to a 13.4% reduction in SG&A expenses. Despite these improvements, net profit decreased to CHF 6.8 million, with a net profit margin of 4.6%. Free cash flow saw a significant improvement, reaching CHF 5.6 million, attributed to better working capital management.
LEM’s strategic focus remains on operational excellence and expanding capacity in high-value segments. The company anticipates full-year sales between CHF 265 to 290 million and aims for a high single-digit EBIT margin, while navigating uncertainties related to US tariff policies and geopolitical factors.
Looking forward, LEM has updated its mid-term financial ambitions, targeting sustainable annual sales growth of 4 to 7% and an EBIT margin of 10 to 15%, reflecting the evolving market landscape. The company is poised to capitalize on global trends in electrification and energy transition, maintaining a focus on cost management and innovation.