LEM Holding SA ( (LMHDF) ) has released its Q3 earnings. Here is a breakdown of the information LEM Holding SA presented to its investors.
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LEM Holding SA, a leader in electrical measurement solutions, operates in the energy and mobility sectors, focusing on optimizing and ensuring the safety of systems for its global customer base. The company has recently reported a challenging financial performance for the first nine months of the fiscal year 2024/25, with a notable decline in sales by 27.1% to CHF 230.9 million. Despite this, the Chinese market showed signs of stabilization, particularly in the automotive sector, which saw a sequential growth of 23%.
Key financial metrics revealed a significant drop in gross profit by 32.3% to CHF 100.7 million, and a sharp decrease in EBIT by 71% to CHF 20.1 million, with net profit plummeting by 78.2% to CHF 12.1 million. The gross profit margin fell to 43.6% from 47.0%, attributed mainly to lower production volumes and provisions for slow-moving stock. LEM has initiated the ‘Fit for Growth’ program aimed at restructuring its operations to focus more heavily on the Asian market, which is expected to enhance EBIT by CHF 18 to 22 million in the next fiscal year.
To bolster its competitive stance, LEM is streamlining its organizational structure, with significant changes including a reduction of approximately 150 positions in Europe and an adjustment in its executive committee. The company anticipates these actions will yield full savings of around CHF 35 million by the fiscal year 2026/27. Despite the restructuring costs, LEM maintains its sales guidance for the full year 2024/25 in the range of CHF 290 to 310 million.
Looking ahead, LEM’s management is confident that the strategic realignment and increased focus on the Asia region will better position the company to capitalize on emerging trends in electrification and renewable energies. This realignment underscores LEM’s commitment to supporting the transition to a more sustainable future and achieving its medium-term EBIT targets.
