Landis+Gyr Raises FY2026 Margin Guidance as H1 Revenue Falls 6.3%

Landis+Gyr Group AG (LAND.SW ) on October 29, 2026, reported unaudited financial results for its second quarter and first half of fiscal year 2026, the six months ended September 30, 2026, narrowing its full-year net revenue guidance while raising its adjusted EBITDA margin outlook. The Cham, Switzerland-based energy technology company, listed on SIX Swiss Exchange, published the figures in an ad hoc announcement that includes extracts from its Half-Year Report 2026. Landis+Gyr reports in U.S. dollars.

In the second quarter, net revenue fell 5.9% to $269.2 million from $286.2 million a year earlier, while order intake declined 59.7% to $170.3 million from $422.5 million, equivalent to a book-to-bill ratio of 0.6x. Adjusted gross profit rose 6.8% to $102.2 million, and the adjusted gross margin improved 460 basis points to 38.0%, which the company described as a record, attributing the expansion to operating efficiencies and favorable mix.

For the first half, net revenue decreased 6.3% year over year to $501.4 million from $535.3 million, a decline the company attributed mainly to the timing of the transition between two major customer deployments.

Orders, Backlog and Segment Performance

First-half order intake was $337.3 million, corresponding to a book-to-bill ratio of 0.7x. Committed backlog decreased 6.5% year over year to $3,722.1 million, with 56% related to the Connected Platforms segment and 44% to the Grid Intelligence segment. After the reporting period closed, the company recorded a $509 million order in October 2026 resulting from a major contract award.

Connected Platforms net revenue fell 9.3% to $363.7 million, while Grid Intelligence net revenue rose 2.6% to $137.7 million. Adjusted gross profit for the group increased 4.0% to $189.2 million, lifting the adjusted gross margin 370 basis points to 37.7%, which Landis+Gyr said was a record for a half-year period. By segment, Connected Platforms posted an adjusted gross margin of 36.9% versus 28.8% a year earlier, while Grid Intelligence reported a margin of 40.0% versus 46.0%.

Adjusted operating expenses increased 4.2%, or $4.7 million, to $115.2 million, mainly on higher sales and marketing expenses. Adjusted research and development expenses decreased to $40.7 million, equivalent to 8.1% of net revenue.

Adjusted EBITDA grew $2.5 million, or 3.5%, to $73.9 million, corresponding to a margin of 14.7% versus 13.3% in the prior-year period. Reported EBITDA rose 76.8% to $114.5 million. The adjusted measure excluded $1.1 million of restructuring charges, $5.1 million of transformation expenses primarily related to the preparation of a potential U.S. listing, and $46.8 million of IEEPA tariff refunds.

Operating income was $89.6 million compared with $36.8 million in the first half of the prior fiscal year. Income from continuing operations reached $51.1 million, or $1.84 per diluted share, an increase of 268%. Including income from discontinued operations of $7.5 million, or $0.27 per share, net income attributable to Landis+Gyr Group shareholders was $58.6 million, or $2.11 per diluted share.

Cash flow from operating activities was $74.0 million versus $23.1 million in the prior-year period, a 220% improvement. Capital expenditure was $13.7 million, or 2.7% of net revenue. Net debt stood at $258.1 million as of September 30, 2026, following share buybacks and a dividend payment in July 2026, a ratio of 1.5 times net debt to trailing twelve-month adjusted EBITDA.

Guidance Update, Capital Return and U.S. Listing

Landis+Gyr narrowed its FY 2026 net revenue guidance to a range of $1,085 million to $1,115 million, from the previous range of $1,075 million to $1,125 million, while maintaining the same midpoint. The company raised its adjusted EBITDA margin guidance to between 15.0% and 16.0%, up from 14.5% to 15.5%, citing strong progress on operational efficiencies during the first half of the year.

The company also completed in October 2026 the return of $175 million in EMEA divestment proceeds announced in October 2025, executing the capital return through a combination of share buyback programs and a fixed-price offer. In total, Landis+Gyr repurchased 2,870,387 shares for an aggregate consideration of 142.4 million Swiss francs and, as of October 27, 2026, held 2,890,894 treasury shares representing 10.0% of its issued share capital.

Landis+Gyr said it made continued progress in its preparations for a potential U.S. listing and plans to maintain its listing on SIX Swiss Exchange, adding that it will provide an update at the appropriate time.

“Our first half FY2026 top-line performance was in line with expectations and reflected the timing of transition between two major customer deployments, while our continued focus on operational excellence resulted in a record adjusted gross margin in the second quarter,” said Chief Executive Officer Peter Mainz.

Chief Financial Officer Davinder Athwal said: “We expect a strong second half of FY 2026, supported by the ramp-up of new customer deployments and continued improvements in profitability, as reflected in our increased adjusted EBITDA margin guidance of 15% to 16%.”

The company’s H1 2026 results page shows the Half-Year Report 2026 was published October 29, 2026, and notes that prior-year first-half comparatives exclude EMEA operations, which are treated as discontinued operations following the completed divestment.

Management hosts an investor and media call and webcast on October 29, 2026, at 18:30 CET / 1:30 pm ET, according to the announcement. A trading update for the third quarter of FY 2026 is scheduled for January 26, 2027, and full FY 2026 results are scheduled for May 5, 2027.