Earnings release
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Page 1/5 LEM Holding SA Ad hoc announcement pursuant to Art. 53 LR 28 July 2026 LEM reports double-digit sales growth in Q1 2026/27 driven by strong data center-related demand • Bookings: Bookings reached CHF 104.6 million, up 17.4% from Q1 2025/26. The book-to-bill ratio climbed to 1.23. Momentum was particularly evident in Automation, supported by increasing demand in data center cooling and high-voltage infrastructure, in Energy Distribution & High Precision, driven by positive trends in data center power supply as well as in Renewable Energy due to rising demand for energy storage systems. In sequential terms, Q1 2026/27 orders grew by 30.1% compared to Q4 2025/26. • Sales: LEM achieved robust sales growth of 12. 4% to CHF 85.1 million in Q1 2026/27. At constant exchange rates, sales increased by 14.3%. Key growth drivers were Automation and Energy Distribution & High Precision with sales increases of 3 2.0% and 59.0%, respectively. In sequential terms, Q1 2026/27 sales went up by 22.9% compared to Q4 2025/26. • Gross margin stabiliz ation: LEM successfully implemented strategic pricing initiatives and continued to generate supply productivity gains despite inflationary headwinds for certain commodities. LEM was therefore able to maintain the gross margin at the level achieved for the full year 2025/26, despite the continued price pressure environment. • Strong EBIT expansion: The continued focus on operational excellence translated into a significant improvement in profitability. Supported by the stable gross margin and strong operating leverage, EBIT increased to CHF 12.4 million from CHF 4.2 million, with the EBIT margin expanding to 14.6% from 5.5% in the prior-year period. • Outlook: LEM sees encouraging signs of a sequential improvement in bookings, driven by increasing demand from data center-related customers in Automation and Energy Distribution & High Precision, which is expected to further support the positive momentum. At the same time, LEM remains cautious about the general business development due to the uncertain global macro -economic environment. LEM reconfirms its mid-term financial ambitions. Frank Rehfeld, Chief Executive Officer , said: "LEM achieved an excellent start to the new financial year, delivering strong bookings and sales growth. Structural demand related to data center infrastructure continued to accelerate, particularly in Automation and Energy Distribution & High Precision, while the norm alization of inventory levels increasingly translated into underlying customer demand. At the same time, our continued focus on operational excellence resulted in strong operating leverage, driving the EBIT margin to 14.6%, the highest quarterly level in more than two years. This performance confirms the strength of our business model and positions LEM well to capture long-term opportunities driven by structural megatrends such as data center infrastructure, electrification, energy transition and e-mobility."
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Page 2/5 LEM Holding SA Sales by business in CHF millions Business Q1 2026/27 Q1 2025/26 Change Change at constant exchange rates Automation 27.4 21.2 +29.6% +32.0% Automotive 19.9 21.7 -8.4% -6.6% Renewable Energy 11.5 10.9 +5.9% +7.4% Energy Distribution & High Precision 15.1 9.7 +56.4% +59.0% Track 11.2 12.3 -9.2% -8.5% Total 85.1 75.7 +12.4% +14.3% Automation The automation business posted significant growth. The strongest impulse across all regions came from drives for pumps used in cooling and ventilation systems for data centers, supported by lower inventory levels and catch-up orders from the industrial automation sector. Customer demand at times exceeded available operational capacity. LEM is increasing production volumes in Bulgaria, while production in Malaysia offers an advantage for deliveries to Western markets. The Group also maintained a disciplined pricing approach in response to market conditions. Automotive The automotive business developed unevenly: Europe delivered a solid performance , based on ongoing battery management and motor control projects for electric and hybrid vehicles. Development initiatives were launched with German manufacturers for new product generation s based on TMR sensor technology. In contrast, China reported lower sales due to the expiration of a battery management contract with a Chinese manufacturer and an overall stagnant market. The rest of Asia performed well, driven by the ramp -up of leakage current detection sensors (CDT) for onboard chargers at Japanese and Korean manufacturers. Business in the Americas region remained relatively stable. Renewable Energy Renewable Energy has seen a strong rebound with a 40.5% increase in bookings . Demand for battery energy storage for residential and commercial applications continued to increase, supported by low battery prices and the aim for greater energy self -sufficiency, more than offsetting the decline in China's domestic traditional solar industry. Business has also grown significantly in Europe, primarily due to commercial solar installations – where European manufacturers are prioritized because of stricter regulatory and compliance requirements – as well as energy storage systems for infrastructure. Energy Distribution & High Precision Energy Distribution & High Precision benefited from strong demand across all markets for data center -related applications, including power measurement solutions for uninterruptible power supply (UPS) applications, current sensing solutions and smart infrastructure. LEM is also working with several customers on solid state transformer solutions. In the Americas, applications for on-site power generation offer additional potential. The new DC Meter generation (DCES) has been well received by customers due to its product performance and competiti ve pricing, resulting in the start of volume production. The High Precision segment’s performance was muted due to cautious investment behavior by automotive customers. The Medical segment remained resilient. Track The Track business recorded a slight decline. In China, performance remained strong, driven by dynamic local business, including several orders for the new high -speed platform, as well as solid export business for Western train manufacturers. Sales in Europe were lower due to the phasing-out of a major retrofit project, although follow- up orders are expected over the course of the year . In addition, various smaller retrofit projects on regional rail lines were contributing to business.
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Page 3/5 LEM Holding SA Sales by region in CHF millions Region Q1 2026/27 Q1 2025/26 Change Change at constant exchange rates China 33.3 29.1 +14.5% +12.8% Rest of Asia 15.2 12.2 +24.4% +32.2% EMEA 27.7 26.1 +6.0% +8.2% Americas 9.0 8.3 +7.8% +12.3% Total 85.1 75.7 +12.4% +14.3% China China saw solid sales growth, particularly in the Automation, Energy Distribution & High Precision and Track businesses. Data center infrastructure and energy storage solution were the key drivers. Demand was primarily driven by export-oriented customers, while local demand remained low. Track benefited from investments in high- speed platforms, with a significant contribution fro m local business. Automotive recorded a decline due to the expiration of a major contract. The business in China benefited from a better product mix and active price initiatives. Capacity utilization reached its highest level in two years. Rest of Asia Sales in Rest of Asia grew significantly. The important Automation business in Japan performed well thanks to rising investments in the traditional machine tool industry as well as in AI infrastructure and humanoid robotics. The Automotive business in Japan and Corea benefited from the ramp -up of various projects at leading manufacturers. In India, demand for data center applications and energy storage systems for export to the U S developed positively. LEM also received a major order for energy storage systems from New Zealand. EMEA Europe recorded sales growth in all businesses apart from Track. Automation benefited from stronger demand for drives for data center applications, supported by normalized inventory levels. The main growth driver for Energy Distribution & High Precision was data center solutions , while the recent introduction of the new DC meter generation has started to spark demand. The Renewable Energy business recorded a significantly higher volume due to investments in commercial solar installations and energy storage systems as well as export activity to the US. Automotive remained relatively solid, supported by ongoing projects for electric and hybrid vehicles as well as battery management. Americas Sales in Americas increased during the reporting period. Automation and Energy Distribution & High Precision posted growth driven by demand for data center applications. Additional opportunities will open for LEM, as many data centers in the US need on-site power generation, requiring additional measures to stabilize power consumption and the grid. The DC meter business suffered from limited investment in charging infrastructure. The Automotive business remained weak due to lower demand for electric vehicle s and a lack of new projects. The increased strategic focus on distributors is yielding results, as all four partners performed well and exceeded their sales targets. Operating leverage supports margin expansion LEM successfully implemented strategic pricing initiatives and continued to generate supply productivity gains despite inflationary headwinds for certain commodities. LEM was therefore able to maintain the gross margin at the level achieved for the full year 2025/26, despite the continued price pressure environment. SG&A expenses decreased by 6.0% despite robust business growth, reducing the SG&A ratio to 17.9% of sales from 21.4% in the prior-year period. Research and development expenses amounted to CHF 6.4 million.
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Page 4/5 LEM Holding SA The continued focus on operational excellence translated into a significant improvement in profitability. Supported by the stable gross margin and strong operating leverage, EBIT increased to CHF 12.4 million from CHF 4.2 million, with the EBIT margin expanding to 14.6% from 5.5% in the prior-year period. Net financial expenses decreased to CHF 1.1 million, reflecting lower average financial debt and smaller negative foreign exchange effects. Income taxes amounted to CHF 2.2 million, reflecting the higher profitability. Reflecting the strong improvement in profitability, net income increased to CHF 9. 1 million, with the net profit margin improving to 10.7% from 2.6% in the prior-year period. Outlook LEM sees encouraging signs of a sequential improvement in bookings, driven by increasing demand from data center-related customers in Automation and Energy Distribution & High Precision, which is expected to further support the positive momentum. At the same time, LEM remains cautious about the general business development due to the uncertain global macro-economic environment. LEM reconfirms its mid-term financial ambitions. Financial calendar The financial year runs from 1 April to 31 March 10 November 2026 Half year results 2026/27 05 February 2027 9 months results 2026/27 27 May 2027 Full year results 2026/27 24 June 2027 Annual General Meeting for the financial year 2026/27 25 June 2027 Dividend ex-date 2 July 2027 Dividend payment date LEM – Life Energy Motion A leading company in electrical measurement, LEM engineers the best solutions for energy and mobility, ensuring that our customers’ systems are optimized, reliable and safe. Our 1,730 people in 16 countries transform technology potential into powerful answers. We develop and recruit the best global talent, working at the forefront of megatrends such as renewable energy, mobility, automation and digitization. With innovative electrical solutions, we are helping our customers and society accelerate the transition to a more sustainable future. Listed on the SIX Swiss Exchange since 1986 (LEHN). www.lem.com Investor contact Antoine Chulia, CFO +41 22 706 12 50 investor@lem.com Media contact Dynamics Group Thomas Balmer, +41 79 703 87 28, tba@dynamicsgroup.ch Christian Wolf, +41 79 457 72 05, cwo@dynamicsgroup.ch Disclaimer This communication does not constitute an offer or solicitation to buy or sell securities of the Company. This quarterly upda te may contain statements regarding expected or projected earnings, results of operations or financial performance for the current or future periods. Such statements may constitute forward-looking statements and are based on management’s current views, assumptions and expectations at the time of publication. Actual results or earnings may differ materially from such expectations or guidance due to a variety of risks, uncertainties and other factors. Any earnings guidance referred to in this quarterly update reflects the information available to the Company as of the date of publication and should not be interpreted as a guarantee of future performance. The Company undertakes no obligation to update or revise forward-looking statements or guidance, except as required by applicable law. The financial information contained in this quarterly update is unaudited and may be preliminary in nature.
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Page 5/5 LEM Holding SA Appendix Consolidated income statement April to June In CHF thousands 2026/27 2025/26 Change Sales 85’128 75’731 +12.4% Cost of goods sold (51’115) (46’772) Gross profit 34’013 28’960 +17.4% Gross profit margin (in %) 40.0% 38.2% Sales expenses (6’605) (7’140) Administration expenses (8’623) (9’058) Research & development expenses (6’359) (8’308) Restructuring (30) (316) Other expenses (70) 0 Other income 96 31 Operating profit 12’422 4’169 +198.0% Operating profit margin (in %) 14.6% 5.5% Financial expenses (1’068) (1’247) Financial income 5 38 Foreign currency exchange effect (35) (589) Profit before tax 11’325 2’371 +377.7% Income taxes (2’241) (383) Net profit 9’083 1’988 +356.9% Net profit margin (in %) 10.7% 2.6% Key figures on quarterly basis in CHF millions Orders received Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 - Q1 Q1 - Q4 Total LEM 104.6 89.1 61.0 65.4 80.4 295.9 +17.4% +30.1% Book-to-bill ratio Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 - Q1 Q1 - Q4 Total LEM 1.23 1.18 0.84 0.93 1.16 1.03 +4.4% +5.9% Sales Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 - Q1 Q1 - Q4 Automation 27.4 21.2 22.5 21.9 23.5 89.0 +29.6% +16.8% Automotive 19.9 21.7 19.0 20.8 17.2 78.6 -8.4% +15.6% Renewable Energy 11.5 10.9 9.4 9.7 9.0 39.0 +5.9% +28.4% Energy Distribution & High Precision 15.1 9.7 9.3 8.9 10.9 38.8 +56.4% +39.2% Track 11.2 12.3 12.3 8.9 8.8 42.2 -9.2% +27.6% Total LEM 85.1 75.7 72.5 70.1 69.3 287.7 +12.4% +22.9% EBIT Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 - Q1 Q1 - Q4 Total LEM 12.4 4.2 7.2 7.1 5.9 24.4 +198.0% +112.3% Net profit of the period Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 - Q1 Q1 - Q4 Total LEM 9.1 2.0 4.8 5.3 -2.2 9.9 +356.9% n.a. 2026/27 2025/26 Change