Ersteinschätzung LEM EN

Swiss Number Cruncher LEM Holding - Result

LEM Holding (LEHN) Sec. no.: R: 2 242 762 Price: CHF 387.50 LEM now also benefits from the data centre boom – orders 30% and EBIT 520 bps above consensus

Sector: Electronic Components Analyst: Florian Sager

In CHF 2025/26 2026/27E 2027/28E EPS P/E 44.8x 23.7x 20.2x P/B 3.3x 3.1x 2.9x Dividend Sources: Zürcher Kantonalbank, LSEG Datastream

(in CHF mn) Q1-FY26 Q1-FY27 ZKB-E Consensus Order intake Well above expectations (+30% vs consensus). Book-to-bill ratio at 1.23x for Q1 26/27, up from the high 1.16x recorded in the prev. quarter. Orders appear to be benefiting from current trends in data – Change YoY 36.9% 17.4% -10.2% -9.5% centres (cooling and high voltage), with orders growing by 30% q/q at group level. Sales Well above expectations for Q1 (18% vs consensus). Automation grew by +30%, whilst Automotive (-8%) and Track (-9%) were the only sub-sectors that failed to increase their order intake YoY. En- – Change YoY -6.5% 12.4% -3.6% -4.7% ergy Distribution was the standout performer (+56% YoY). The divi- sion benefited from data centres and demand for uninterruptible power supplies. EBIT Well above expectations (+82% vs consensus). The EBIT margin rose once again from just under 10% to 14%, putting it a substan- - Margin 5.5% 14.6% 10.1% 9.4% tial 520 bps above consensus expectations. The gross margin also improved, with cost reductions from the Fit for Growth programme - YoY change -44.4% 197.5% 76.9% 63.1% and new pricing strategies taking effect. Net profit 2.0 9.1 4.9 4.1 Well above expectations (+121% vs consensus) and, naturally, ben- - Margin 2.6% 10.7% 6.7% 106.3% efiting from the high EBIT margin and higher sales. Operational leverage is coming into play here. - Change YoY -58.4% 357.0% 146.1% 5.7% Source: Zürcher Kantonalbank

Outlook: LEM sees encouraging signs of a gradual improvement in order intake, driven by rising demand from data centre customers in the Automation and Energy Distribution sectors, which is expected to further support the positive momentum. At the same time, LEM remains cautious in view of the uncertain global macroeconomic en- vironment. LEM confirms its medium-term financial targets (revenue CAGR: 5% on cc, EBIT margin: 10–15%). Whilst we had taken a negative view of these ambitions last December, these targets now appear within reach. Nevertheless, we believe it makes sense for there to be no change here for the time being, as the company has disappointed in the past and will gain confidence by meeting its own targets. Conclusion: Overall, LEM’s Q1 report was a strong performance. Consensus expectations were significantly exceeded across the board. In our view, the most important factor is the order intake (CHF 104.6 mn), which grew by a remarkable 17% year-on-year, continuing the positive trend from Q4. Here, the company benefited from data centres. Furthermore, the EBIT margin of 14.6% was sig- nificantly higher than the previous quarter’s figure of just under 10% and above the consensus estimate (9%). The main reason for this was higher revenue and the resulting operating leverage. Geographi- cally, China surprised us, growing by 14.5% YoY – driven by export- oriented data centre customers. LEM appears to be able to free itself, at least in part, from the negative price competition in China, which is a positive development. Due to medium-term uncertainties, we re- main at our “Market Perform” rating.

ANALYST CERTIFICATIONS AND REQUIRED DISCLOSURES ARE IN THE DISCLOSURE APPENDIX. Swiss Number Cruncher LEM Holding Zürcher Kantonalbank 28. July 2026 1

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