STOCKS | Data Center Demand Doubles LEM Holding's First-Half Operating Profit as Full-Year Guidance Points to Slower Growth

Swiss sensor maker LEM Holding reported that operating profit for the first half of fiscal 2026/27 more than doubled to CHF 25.7 million from CHF 11.4 million a year earlier, driven by data center-related demand. According to Sina Finance, revenue for the six months ended September rose 17.7% year over year to CHF 174.6 million, while net profit increased to CHF 19.2 million from CHF 6.8 million. New orders rose 34.4% to CHF 201.7 million, with an order-to-billing ratio of 1.16. Automation revenue grew 25.8% at constant exchange rates, supported by demand for drive equipment used in data center cooling and ventilation systems. Revenue from energy distribution and high-precision businesses increased 70.2%, mainly on broader demand for data center applications. Gross margin improved to 40.4% from 39.6%, reflecting better pricing management and operating efficiency. LEM expects full-year fiscal 2026/27 revenue of CHF 310 million to CHF 330 million, implying second-half revenue of about CHF 135.4 million to CHF 155.4 million, below the first half's CHF 174.6 million. It expects a full-year operating margin of 10% to 15% and cited supply-chain constraints, raw material availability, and geopolitical conditions as key uncertainties. Free cash flow rose to CHF 19.9 million from CHF 5.6 million a year earlier. Net financial debt fell to CHF 44.6 million from CHF 59.8 million at the end of March. LEM maintained its medium-term targets of annual revenue growth of 4% to 7% at constant exchange rates and an operating margin of 10% to 15%.