LEM Operating Profit Doubles as Orders Rise 34.4% in First Half
Key Facts
LEM said on November 10, 2026, that operating profit doubled in the first half of fiscal 2026/27, as orders rose 34.4% to 201.7 million Swiss francs. The company said in its results announcement published via MarketScreener that its book-to-bill ratio was 1.16, meaning the value of new orders exceeded sales during the period. The results show improvements in both activity and profitability, with the EBIT margin rising to 14.7% from 7.7% in the first half of the previous fiscal year. LEM attributed the improvement to a combination of growth across segments, a higher gross margin, operational efficiency and a lower structural fixed-cost base. Together, these drivers help explain the jump in profit, while data-center-related demand supported some activities in particular.
Sales growth came from the automation and power distribution and high-precision segments, with a clear difference in their rates of expansion. Automation grew 25.8% at constant exchange rates in the first half of 2026/27, while sales in power distribution and high precision rose 70.2% on the same basis, according to the company announcement. LEM said demand for data-center cooling systems supported the automation segment; these applications serve the infrastructure needed to operate data centers. Growth in power distribution and high precision was linked, the company said, to data-center applications, particularly uninterruptible power supply systems and energy measurement. These details put data centers among the sources of demand for specific products in both segments, alongside broader operational factors that supported profitability. The results therefore reflect more than a single source of data-center-related growth: they also include improved margins, operational efficiency and lower fixed costs.
The company also reported improvements in cash flow and debt alongside higher operating profit. Free cash flow was 19.9 million Swiss francs in the first half of 2026/27, compared with 5.6 million in the corresponding period of 2025/26, according to the results announcement. At the end of September 2026, net financial debt had fallen to 44.6 million Swiss francs from 59.8 million at the end of March 2026. This combines stronger cash flow during the period with a decline in net debt between the two measurement dates specified by the company. The figures add a financial dimension to sales growth and the improved EBIT margin, showing cash and balance-sheet performance alongside operating results. The available information did not include a share price figure or a documented description of the stock's reaction to the results announcement.
For fiscal 2026/27, LEM said it was targeting sales of between 310 and 330 million Swiss francs and an EBIT margin in the low to mid double digits. The company said supply-chain constraints, materials availability and geopolitical developments were sources of uncertainty surrounding the outlook. These risks link delivery of the annual plan to supply and operational factors and developments outside the company, at a time when first-half results showed improvements in demand, profitability and cash flow. LEM is scheduled to report nine-month results for fiscal 2026/27 on February 5, 2027, followed by full-year results on May 27, 2027, according to its investor calendar. These are the next announced milestones for tracking sales and profitability over the fiscal year. The company is listed on the Swiss SIX exchange and trades as LEHN.S on Reuters and LEHN.SW on Bloomberg.