LEM (LEHN) Q2 2025 earnings summary

Executive summary

• Sales declined 29.9% year-over-year to CHF 156.5 million, mainly due to weak demand, high inventories, and a weak global electronics market; all business segments and regions were impacted, with Asia and the electronics sector most affected.

• EBIT margin dropped to 9.1% from 23.1% year-over-year, mainly from under-absorption of fixed costs and unfavorable mix.

• Net profit fell 80.2% year-over-year to CHF 8.6 million, with net profit margin at 5.5%.

• Bookings decreased 9.7%, but showed stabilization at a low level in Q2.

• The 'Fit for Growth' program was launched to address cost structure and competitiveness.

Financial highlights

• Revenue: CHF 156.5 million, down 29.9% year-over-year; EBIT: CHF 14.2 million, down 72.6% year-over-year; EBIT margin 9.1%.

• Net profit: CHF 8.6 million, down from CHF 43.4 million; net profit margin 5.5%.

• Gross margin: 44.1%, down 2.8 percentage points year-over-year due to mix and under-absorption.

• Equity ratio decreased to 35.4% after dividend payout and negative free cash flow.

• Net debt increased to CHF 113.1 million, reflecting negative free cash flow and dividend payout.

Outlook and guidance

• Full-year revenue expected between CHF 290–310 million, with EBIT margin in the high single-digit range.

• No improvement anticipated in key Western markets for the remainder of the year; Q3 and Q4 expected to remain weak.

• The CHF 600 million revenue ambition is postponed to 2029/2030 due to slower recovery and increased competition.