Landis+Gyr Group AG

Welcome to the Landis and Gyr Half Year 2026 results presentation. Please note that the call will be recorded. During today's call, webcast participants will be in a listen-only mode until we conduct the session. If you wish to ask a question, we ask that you please use the raised hand function at the bottom of your Zoom screen. Further instructions will follow at the time of the Q&A. I would now like to turn the call over to Christian Waelti, Head of Investor Relations. Please go ahead.

Thank you, operator, and good afternoon, good evening, everyone. I'm Christian Waelti, head of investor relations, and I'm joined today by Peter Mainz, our CEO, and by Davinder Athwal, our CFO. Today, we will review Lens and Gears results for the second quarter and first half of fiscal year 2026. We will follow the structure of the presentation and conclude with Q&A. Before I hand it over, please take a moment to review the disclaimer on slide 2. Peter, over to you.

Thank you, Christian. Good afternoon and good evening, everyone. I'm here with Davinder, our chief financial officer, and we are pleased to provide you with an update on our first half performance. With that said, let's now start with a review of the strategic developments over the past months. Move to slide three. We made important strategic progress during the first half. We closed the EMEA divestiture in April and hosted our Capital Markets Day in New York in June. Introducing our new segment structure around connected platforms and grid intelligence and our midterm targets through fiscal 2028. We also strengthened the leadership team with seasoned executives, Rocky Martin for connected platform segment and Eugene Masso for grid intelligence. And our teams continued the preparations toward a potential US listing while retaining the Swiss listing as we aim to better align our capital markets presence with the majority of our operational business activity. In the first half, We also returned $162 million to shareholders through buyback and dividends. Just this week, we concluded the share buyback ahead of schedule, repurchasing 10% of our share capital over the last 12 months, as promised with the announcement of the EMEA divestment in October 2025. Move on to slide 4. Let's start with the highlight of the week. On Monday, we announced a $509 million contract with a major U.S. investor-owned utility. The timing of large project awards like this is inherently difficult to predict. And while we would, of course, have welcomed the award in the first half, what matters most is that we are winning significant business, demonstrating customers' confidence in Landes & Gyr and, in particular, in our leading grid edge technology. Our order backlog stood at $3.7 billion on September 30th and as of now surpassed $4.2 billion, reaching another record level. This validates the record pipeline we previously discussed and shows its continued conversion through order intake into backlog. Turning to our first half performance, net revenue of $501.4 million was in line with our expectations and driven by project transitioning timing as guided earlier in the year in May. Adjusted gross profit was $189.2 million and the trusted gross margin reached a record 37.7% driven by operating Adjusted EBITDA also grew and was $73.9 million, representing a margin of 14.7%, a significant improvement over previous year. Operating cash flow was $74 million, up 220% year-over-year, while diluted EPS from continued operations was $1.84, up 263%. With our first half performance progressing exactly in line with the anticipated revenue profile, we're confirming our midterm revenue guidance for the year while also narrowing fiscal year 2026 guidance range. In light of our first half performance and the strength of our order backlog, We are also raising our adjusted EBITDA margin guidance. With that, I'll hand it over to Davinder for the financial details. Let's move to slide five. Thanks, Peter.