Landis+Gyr Announces FY 2024 Financial Results

Cham, Switzerland – May 2, 2025 – Landis+Gyr Group AG (SIX: LAND), a leading global provider of integrated energy management solutions, today announced unaudited financial results for financial year 2024 (April 1, 2024 – March 31, 2025).  

• Exceptional order intake of USD 2.6 billion (up 33.3% YoY) driven by contract wins in all regions, corresponding to a book-to-bill ratio of 1.5  

• Record committed backlog of USD 4.6 billion (up 22.9% YoY) 

• FY 2024 net revenue of USD 1,729.3 million (down 10.5% in constant currency) due to non-recurrence of 2023 pent-up demand realization, tariffs impacting timing of shipments in March and softness in EMEA in the first half  

• Adjusted EBITDA ¹ of USD 170.9 million, down 25.7% YoY, due to lower operating leverage and inventory write-off of USD 20 million; strong expense management resulted in a margin of 9.9%; Adjusted EBITDA margin of 10.4% when excluding one-off effects 

• Net loss from continuing operations of USD (84.7) million or USD (2.97) per share (diluted) due to a non-cash goodwill impairment of USD 111.0 million  

• Cash flow from operating activities of USD 78.9 million, down 34.9% on lower profitability and higher working capital 

• To preserve balance sheet strength, a reduced distribution of CHF 1.15 per share is proposed to the Annual General Meeting 

• Guidance for FY 2025 with net revenue growth of between 5% and 8% and Adjusted EBITDA margin in the range between 10.5% and 12.0% 

• Strategic transformation with review of EMEA and U.S. listing progressing according to plan   

“Financial year 2024 has underscored the strength and resilience of Landis+Gyr’s business model and technology, demonstrated by our record order intake of USD 2.6 billion and an unprecedented backlog of USD 4.6 billion. This success was driven by our team delivering key wins in the Americas and Asia Pacific, alongside a notably solid performance in EMEA. We remain confident in our long-term growth trajectory supported by the record-high backlog and pipeline, both propelled by the adoption of our innovative grid-edge solutions. With the new management team fully in place, we are continuing to make progress with our strategic transformation, marked by our completed exit from EV charging. We are encouraged to see customers beyond North America embracing grid edge technology to address the challenge of increasing energy demand,” said Peter Mainz, Chief Executive Officer of Landis+Gyr. 

Davinder Athwal, Chief Financial Officer of Landis+Gyr, commented: “FY 2024 was a transition year for Landis+Gyr. We are excited about our future and expect 5% to 8% growth in revenue and an improvement in our margins in FY 2025. We are confident in our ability to manage tariff-related costs and at present expect them to have a minimal impact in 2025. Our solid balance sheet positions Landis+Gyr robustly for sustained investment and long-term profitable growth.” 

Order Intake and Committed Backlog 
Group order intake for FY 2024 centered around grid edge solutions was exceptionally strong at USD 2,613.8 million, an increase of 33.6% in constant currency compared to FY 2023, and corresponding to a book-to-bill ratio of 1.5. The sustained strong order intake was driven by positive momentum and contract awards in all three regions. In the second half of FY 2024, order intake amounted to USD 1,808.2 million, making it the strongest semester since the Company’s IPO in 2017. Committed backlog was up by 22.9% YoY, reaching a new record level of USD 4,630.4 million as of March 31, 2025. 

The Americas region recorded an order intake of USD 1,745.6 million (book-to-bill of 1.8), driven by wins in North America and Japan, and the committed backlog rose by 26.2% to USD 3,761.9 million. In the EMEA region, supported by contract wins in the UK and France, orders of USD 620.7 million (book-to-bill of 1.0) were booked, resulting in a stable, committed backlog of USD 696.8 million. In Asia Pacific, order intake amounted to USD 247.4 million (book-to-bill of 1.6), leading to a 92.0% higher committed backlog of USD 171.8 million, driven by strong order performance in Australia. 

Exit from the EV charging Business and Discontinued Operations
In February 2025, Landis+Gyr announced its decision to exit the EV charging business. As of March 13, 2025, the business was sold to KD Group, securing a sustainable path forward for employees, customers and partners. The business is being treated as Discontinued Operations in FY 2024, and FY 2023 financials have been restated accordingly. Please see "Discontinued Operations" in the appendix for more information. 

Net Revenue
In FY 2024, net revenue declined by 10.5% in constant currency to USD 1,729.3 million from the record USD 1,944.2 million in FY 2023. The decline in net revenue was mainly driven by the non-recurrence of pent-up demand realization of approximately USD 120 million in FY 2023, tariff-related temporary delays of shipments in March prior to the April 2 tariff announcement which led to approximately USD 30 million of revenues shifting into FY 2025, combined with softness in EMEA in H1 partially offset by the strong H2 performance. The share of net revenue from software and services was approximately 23% in FY 2024 driven by the Americas region at 34%. 

Net revenue per segment was as follows (in USD million, except where indicated):  

In FY 2024, net revenue in the Americas region decreased by 13.9% YoY in constant currency to USD 964.6 million. The main drivers of the decrease were the wind-down of approximately USD 120 million in pent-up demand recognized in FY 2023 and a revenue push-out of approximately USD 30 million due to tariff-related temporary delays of shipments in March.

In the EMEA region, net revenue performance was strong in the second half of FY 2024 at USD 326.7 million (up 16.7% over H1), albeit not fully compensating for the weaker H1. Owing to project timing and softening in the UK and Turkey, net revenue in the EMEA region in FY 2024 declined by 6.5% in constant currency to USD 606.6 million. The decline was partially offset by a solid performance in Belgium and Germany (Thermal solutions). The EMEA segment no longer includes the EV charging business, which had net revenues of USD 18.8 million in FY 2023 and was sold in FY 2024.  

Net revenue in the Asia Pacific region declined by 2.9% in constant currency to USD 158.1 million, driven by project timing, and was partially offset by growth in India (Esyasoft JV).  

Adjusted Gross Profit, Adjusted and Reported EBITDA*
Adjusted gross profit decreased by 13.2% to USD 540.2 million on the lower operating leverage and the corresponding margin came in 80 basis points lower at 31.2%. 

Strong cost management resulted in adjusted operating expenses in FY 2024 decreasing by USD 23.4 million or 6.0% year-over-year to USD 369.4 million. Adjusted R&D expenses remained flat at USD 167.8 million and correspond to 9.7% of net revenue in the financial year 2024 with continued investments in strategic initiatives, including grid edge intelligence and software solutions as well as smart ultrasonic gas and water technology. Adjusted Sales, General and Administrative (SG&A) expenses declined by 10.0% to USD 201.6 million, driven by tight cost management, and were equivalent to 11.7% of net revenue. 

The Adjusted EBITDA by segment was as follows (in USD million, except where indicated): 

Overall, the Adjusted EBITDA in FY 2024 was USD 170.9 million, a decrease of USD 59.0 million or 25.7% compared to FY 2023. The Adjusted EBITDA margin decreased by 190 basis points from 11.8% in FY 2023 to 9.9% in FY 2024. The compression in Adjusted EBITDA was mainly attributable to reduced operating leverage and a one-time inventory obsolescence of USD 20 million (120 basis points negative margin impact) due to the streamlining of the Americas product portfolio driven by the fast adoption of the next generation offering. Adjusted EBITDA included a USD 11.0 million gain from a real estate transaction in India (60 basis points positive margin impact). Excluding the two one-off impacts, the Adjusted EBITDA margin was 10.4%. 

In FY 2024, an operating loss of USD (34.7) million was recorded, compared to an operating income of USD 152.8 million in FY 2023. This was mainly driven by goodwill impairment in the EMEA region of USD 111.0 million. Reported EBITDA in the period under review was USD 148.8 million versus USD 222.8 million in the same period in FY 2023, a decrease of 33.2%. 

The adjustments to reconcile between Reported EBITDA in the Group’s financial statements and Adjusted EBITDA were as follows (in USD million): 

In FY 2024, Adjusted EBITDA excluded three distinct expense categories consistent with the prior year and added one new category for the business transformation announced in October 2024. The Company believes that excluding these expenses will make it easier for management and investors to compare the financial results over multiple periods and analyze trends in the Company’s operations. First, restructuring charges were USD 8.1 million, which was related predominantly to OPEX efficiency initiatives in the Americas and EMEA regions. Secondly, the warranty normalization adjustments of USD (4.3) million represent the difference between the warranty provision made in the period and the average actual warranty utilization for the last three years. Warranty provisions in both FY 2024 and FY 2023 were below historical levels. Thirdly, the timing difference on FX derivatives adjustment was USD (0.1) million in FY 2024, which relates to mark-to-market differences on hedges. A fourth adjustment (“Transformation expenses”) was added in FY 2024 to reflect USD 18.3 million in expenses related to the transformation initiatives announced in October 2024. Those expenses are primarily related to the strategic review of the EMEA region, the preparation of a U.S. listing and the focus on the Americas region. 

Net Income and Earnings per Share (EPS)
The net loss from continuing operations for FY 2024 was USD (84.7) million or USD (2.97) per share, including a goodwill impairment of USD 111.0 million. Factoring in the loss on discontinued operations of USD (64.7) million or USD (2.24) per share, the net loss attributable to Landis+Gyr Group shareholders for FY 2024 was USD (150.5) million or USD (5.21) per share (diluted EPS). Net income in the prior year was USD 110.0 million or USD 3.78 per share (diluted EPS).  

Cash Flow and Net Debt
Cash flow from operating activities was USD 78.9 million in FY 2024, driven by lower profitability and higher operating working capital, compared to USD 121.2 million in the previous year. In the period under review, capital expenditure (PP&E) was USD 28.1 million, equivalent to 1.6% of net revenue, consistent with the Company’s asset-light business model.
As of March 31, 2025, the ratio of net debt to Adjusted EBITDA was 1.07 times, with net debt of USD 182.9 million.  

Distributions to Shareholders
To preserve balance sheet strength and maximize operational flexibility, the Board of Directors decided to temporarily pause the dividend policy and is proposing a reduced distribution of CHF 1.15 per share to the Annual General Meeting on June 25, 2025. If approved, the distribution will be paid out entirely from statutory capital reserves and is exempt from Swiss withholding tax. 

Outlook for FY 2025
Landis+Gyr expects net revenue growth of between 5% and 8% in FY 2025. As a result of the expected revenue growth and operational efficiency initiatives, the Adjusted EBITDA margin is expected to be between 10.5% and 12.0% of net revenue for FY 2025. Landis+Gyr aims to return to its progressive dividend policy in FY 2025. The guidance is subject in particular to external factors including tariffs and elevated market uncertainties that could impact the results. 

Update on Strategic Transformation 
The strategic review of the EMEA business and the focus on the Americas business that were announced last October are progressing according to plan. The Board of Directors continues to review all options for best value creation from the EMEA business with the support of an investment bank, including a potential sale. There is no certainty that this will result in a transaction. 

Landis+Gyr continues to work towards a listing in the U.S. in 2026 with the support of external advisors and intends to hold a Capital Markets Day event in New York to provide an update at the appropriate time.  

Significant Progress on Commitments to Sustainability  
In FY 2024, Landis+Gyr reinforced its deep commitment to sustainability, achieving significant milestones across environmental, social, and governance initiatives. The company’s installed smart meters enabled the avoidance of 9 million tons of CO₂ emissions, further strengthening its positive environmental impact. Renewable electricity consumption reached 96%, a substantial increase from 79% in the previous year, putting Landis+Gyr on track to achieve 100% renewable electricity consumption by FY 2025.

Aligned with the rigorous criteria of the Science Based Targets initiative (SBTi), Landis+Gyr made significant progress towards its ambitious goal of reducing Scope 1 and 2 greenhouse gas emissions by 42% by 2030 (compared to the 2021 baseline). In FY 2024, Landis+Gyr successfully reduced Scope 1+2 emissions by 67% compared to the FY 2021 base year, driven by improved energy efficiency, increased renewable energy use, and ongoing electrification of its vehicle fleet. 

Landis+Gyr’s sustainability efforts received significant external recognition, notably the EcoVadis Platinum rating, placing the Company among the top 1% of rated organizations. In addition, Landis+Gyr strengthened its commitment to sustainable practices across its supply chain by joining the Responsible Business Alliance, enabling effective responses to global challenges and contributing to meaningful, positive change for a sustainable future. 

Documents
The FY 2024 earnings presentation, which forms part of this ad hoc announcement, is available on the Company’s website at www.landisgyr.com/investors/results-center/. 

Investor Webcast and Telephone Conference 
Landis+Gyr’s management will host an investor/analyst call and webcast to discuss the Company’s FY 2024 results.  

Key Dates

Disclaimer
This ad hoc announcement and information referred to herein contain (a) preliminary, unaudited numbers that may be subject to change and (b) information regarding alternative performance measures or non-USGAAP measures, such as “Reported EBITDA”, “Adjusted EBITDA”, “Adjusted Gross Profit”, “Adjusted Research and Development”, “Adjusted Sales, General and Administrative”, and “Adjusted Operating Expenses”. Definitions of these measures and reconciliations between such measures and their USGAAP counterparts, if not defined in this announcement, may be found on pages 28 to 30 of the Landis+Gyr Half Year Financial Report Fiscal Year 2024 on our website at www.landisgyr.com/investors. 

Forward-looking Information
This presentation ad hoc announcement includes forward-looking information and statements, including statements concerning the outlook for Landis+Gyr Group AG and its affiliates, together referred to as Landis+Gyr Group, and hereinafter as “Landis+Gyr”. These statements are based on current expectations, estimates and projections about the factors that may affect the Companyʼs future performance, including global economic conditions, and the economic conditions of the regions and industries that are major markets for Landis+Gyr. These expectations, estimates and projections are generally identifiable by statements containing words such as “expects”, “believes”, “estimates”, “targets”, “plans”, “outlook”, “guidance” or similar expressions. There are numerous risks, uncertainties and other factors, many of which are beyond Landis+Gyrʼs control, that could cause the Companyʼs actual results to differ materially from the forward-looking information and statements made in this announcement and which could affect the Companyʼs ability to achieve its stated targets. The important factors that could cause such differences include, among others: possible effects of pandemics, global shortage of energy or supplied components as well as increased freight rates, duties, taxes or tariffs, business risks associated with the volatile global economic environment and changing political conditions, including wars or military actions; market acceptance of new products and services; changes in governmental regulations, applicable laws or jurisprudence and currency exchange rates; estimates of future warranty claims and expenses and sufficiency of accruals; and other such factors as may be discussed from time to time in Landis+Gyr Group AG filings with the SIX Swiss Exchange. Although Landis+Gyr Group AG believes that its expectations reflected in any such forward-looking statement are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved.