LEM Holding said third-quarter trading pointed to a stabilisation in demand, prompting the Swiss sensor maker to raise the lower end of its full-year sales guidance. Management reported a modest pickup in bookings versus Q2 and repeated its high single-digit EBIT margin ambition as cost and pricing measures took effect.
Bookings and sales trends
The group recorded a Q3 book-to-bill ratio of 0.93, reflecting bookings that were slightly higher sequentially than in Q2. Across the first nine months the company’s book-to-bill averaged 0.99, a level the company said signals a return toward normalized demand patterns.
On a sales basis, LEM reported broadly stable revenues in the first nine months when measured at constant currency, with sales up 0.2% year-over-year. Reported sales fell 5.4%, a decline the company attributed to weakness in the Chinese yuan and the U.S. dollar versus its reporting currency.
Margins, costs and productivity
Gross margin held steady through the period, reaching 39.8% after nine months and 40.0% in Q3. Management highlighted continued pricing discipline and gains in supply-chain productivity as key factors supporting margin stability despite persistent pricing pressure in China.
The company's Fit-for-Growth cost reduction programme is largely complete. LEM has incurred CHF 9.2 million of approximately CHF 10 million in total restructuring costs. The programme contributed to a 12.8% year-over-year reduction in selling, general and administrative (SG&A) expenses for the nine-month period, while research and development outlays declined 24.6% over the same span.
Guidance, segments and regions
LEM adjusted its fiscal 2025/26 sales guidance upward to a range of CHF 275-290 million from the prior CHF 265-290 million, while keeping unchanged its target for a high single-digit EBIT margin.
Segment-level strength was most evident in Automation and in the Energy Distribution & High Precision businesses. Management said momentum in these areas is being driven by data-centre related applications such as cooling systems, high-voltage infrastructure and power-supply needs.
Regionally, the Americas delivered robust growth on a constant-currency basis. China showed stable volumes but continued to be affected by price competition, exerting pressure on reported sales and mix.
Bottom line
LEM’s Q3 operating picture shows a company moving toward demand normalisation with margin stability and near-completed cost initiatives. The raised lower bound to the sales outlook reflects that improved visibility, even as currency impacts and Chinese pricing pressure remain constraints.