Landis+Gyr Revises FY 2024 Outlook and Exits EV Charging Business Following Strategic Review

Landis+Gyr Revises FY 2024 Outlook and Exits EV Charging Business Following Strategic Review

(IN BRIEF) Landis+Gyr Group AG has provided an update on its strategic initiatives and revised financial outlook for fiscal year 2024. The company has decided to exit the EV charging business in the EMEA region due to unfavorable market conditions, leading to impairment and restructuring charges of USD 35-45 million. This decision follows a review of the company’s EMEA portfolio and financial performance. As a result, Landis+Gyr has lowered its revenue expectations for FY 2024, anticipating an 8% decline, mainly driven by weaker performance in the Americas and EMEA regions. The company also expects a reduction in adjusted EBITDA margin for the year, with a focus on cost management and portfolio adjustments.

(PRESS RELEASE) CHAM, 11-Feb-2025 — /EuropaWire/ — Landis+Gyr Group AG (SIX: LAND), a global leader in integrated energy management solutions, has today shared additional details on the progress of its strategic initiatives and revised its financial outlook for the fiscal year 2024 (FY 2024).

As part of the ongoing strategic review, which began in October 2024, the company is focusing on its Americas business while reassessing its operations in the EMEA region. The newly formed executive management team has recently completed an in-depth evaluation of the business portfolio in EMEA and the company’s financial performance. This review has led to the decision to discontinue the EV charging business and take impairment and restructuring charges associated with this move.

Exit from the EV Charging Business Landis+Gyr initially envisioned a significant role for utility customers in the adoption and rollout of electric vehicle (EV) charging solutions. However, the regulatory and market dynamics in this sector have changed significantly, and the competitive pressure in the EV charging market has proven too challenging. As a result, the company believes it is unlikely that this non-core segment will meet its growth and profitability targets in the near future. After evaluating strategic options and considering market conditions, the decision was made to wind down the EV charging business in EMEA.

The company expects impairment and restructuring charges between USD 35 million and USD 45 million for FY 2024 related to this exit, with around USD 10-15 million in cash-effective restructuring costs. The EV charging business will be classified as discontinued operations in the FY 2024 financial results. For FY 2023, the EV charging segment generated revenues of approximately USD 20 million but incurred a loss of around USD 10 million.

Following this decision, Landis+Gyr conducted a review of the goodwill in the EMEA region. This process is expected to result in a one-off, non-cash impairment of goodwill, estimated at approximately USD 100 million, which will be recorded in the FY 2024 financial statements.

Revised Guidance for FY 2024 In light of the updated business outlook for the second half of FY 2024, Landis+Gyr has lowered its financial guidance for the year. The company now anticipates net revenues to decline by approximately 8% year-over-year, driven primarily by challenges in the Americas and EMEA regions.

In the Americas, net revenues are expected to decrease, largely due to the absence of the post-Covid demand surge seen in FY 2023, which generated an additional USD 120 million. Without this effect, the Americas business is forecast to grow at a modest, low single-digit rate for FY 2024 compared to the prior year.

In EMEA, while the company expects growth in the second half of the fiscal year compared to the first half, the rebound is expected to be less robust than initially projected. Delays in large projects, as well as soft market conditions in the UK and Turkey, will contribute to a decline in overall net revenues in the region for FY 2024.

The lower-than-expected net revenue will reduce operating leverage for the group. Additionally, due to the fast adoption of next-generation products by customers, the Americas region will face around USD 20 million in inventory obsolescence, which will decrease adjusted EBITDA by that amount. However, in EMEA, management expects a positive adjusted EBITDA margin for the full year, driven by a mid-single-digit adjusted EBITDA margin in the second half of the year. As a result, the group’s adjusted EBITDA margin for FY 2024 is now expected to be around 10%.

Landis+Gyr will announce its FY 2024 financial results and provide guidance for FY 2025 on May 8, 2025.

About Landis+Gyr

Landis+Gyr is a leading global provider of integrated energy management solutions. We measure and analyze energy utilization to generate empowering analytics for smart grid and infrastructure management, enabling utilities and consumers to reduce energy consumption. Our innovative and proven portfolio of software, services and intelligent sensor technology is a key driver to decarbonize the grid. Having avoided around 9 million tons of CO2 in FY 2023, Landis+Gyr manages energy better – since 1896. With sales of USD 2.0 billion in FY 2023, Landis+Gyr employs around 6,700 talented people across five continents. For more information, please visit our website www.landisgyr.com.

Media Contact:

Christian Waelti
Head of Investor Relations
Phone +41 41 935 6331
Christian.Waelti@landisgyr.com

SOURCE: Landis+Gyr