Investing.com — Swiss electrical measurement company LEM Holding SA on Tuesday reported a 6.3% decline in full-year sales to CHF 287.7 million for the financial year ended March 31, while operating profit rose 29.2% to CHF 24.4 million.
Sales at constant exchange rates declined 0.2%, with the reported decline reflecting depreciation in the Chinese yuan and U.S. dollar, LEM said.
The operating profit margin rose to 8.5% from 6.1% a year earlier. Operating profit before restructuring costs reached CHF 26.2 million, yielding a margin of 9.1%.
Profit before tax rose 77.4% to CHF 17.9 million. However, income taxes rose to CHF 8 million from CHF 2.1 million, reflecting higher global profitability and the temporary non-recognition of certain local operating losses for tax purposes, the company said. Net profit rose 17.5% to CHF 9.9 million, with a net profit margin of 3.4%, up from 2.7%.
Chief executive Frank Rehfeld said,”LEM delivered a solid performance in the 2025/26 financial year marked by an improvement in profitability, while market conditions remained mixed and currency headwinds persisted.”
Bookings reached CHF 295.9 million, with a book-to-bill ratio of 1.16 in the fourth quarter. LEM said the majority of data center-related sales are expected to materialize in 2026/27.
Among business segments, Automation sales rose 3.2% to CHF 89.1 million in reported terms, or 10.2% at constant exchange rates.
Automotive fell 8.9% to CHF 78.6 million, Renewable Energy dropped 12.6% to CHF 39 million, Energy Distribution & High Precision declined 13.5% to CHF 38.8 million, and Track fell 6% to CHF 42.2 million.
By region, Americas sales rose 1.7% to CHF 35.2 million, or 11.3% at constant exchange rates. EMEA fell 3.7% to CHF 100.2 million, or 1.4% at constant rates.
China declined 12.6% to CHF 102.7 million, or 4.8% at constant rates. Rest of Asia fell 2.4% to CHF 49.6 million, rising 4.9% at constant exchange rates.
Gross profit fell to CHF 115.1 million from CHF 132.6 million, with the gross profit margin declining to 40% from 43.2%. Selling, general and administrative expenses fell 12%, with SG&A as a percentage of sales reduced to 21.6%. Research and development expenses declined 23.6% to CHF 27 million, or 9.4% of sales.
Results included restructuring charges of CHF 1.9 million under the company’s “Fit for Growth” program, with total program costs reaching CHF 9.8 million.
Financial expenses rose to CHF 4.981 million from CHF 4.745 million. The negative foreign currency exchange effect narrowed to CHF 1.6 million from CHF 3.9 million.
Free cash flow rose to CHF 31.7 million from CHF 14 million. Free cash flow before restructuring cash disbursements reached CHF 40.1 million. Net financial debt fell to CHF 59.8 million.
The board proposed no dividend for 2025/26, citing uncertainty in the economic environment, and said it remains committed to resuming its dividend policy in the future.
The board said it is conducting a review of potential strategic options after the company drew interest from certain parties.
“The process is at an early stage, and no decision has been made,” LEM said, adding there can be no assurances the review will result in any transaction.
LEM, which employs 1,626 people across 16 countries and has been listed on the SIX Swiss Exchange since 1986, targets medium-term average annual sales growth of 4% to 7% at constant exchange rates and an EBIT margin of 10% to 15%.