Landis+Gyr Group AG (0RTL.L): BCG Matrix [Dec-2025 Updated]

Landis+Gyr's portfolio is being reshaped into a high‑margin growth engine-led by Americas Grid Edge Intelligence, fast‑expanding software & services, and buoyant Asia‑Pacific wins-while dependable North American smart‑metering cash flows (and niche thermal solutions) bankroll heavy R&D, cloud partnerships and a $175m buyback; meanwhile question marks in smart‑city IoT and the India JV demand capital to scale, and the company has decisively cut losses by exiting EV charging and divesting underperforming EMEA legacy assets to concentrate investment where market share and margins can expand.

Landis+Gyr Group AG (0RTL.L) - BCG Matrix Analysis: Stars

Stars

The Americas Grid Edge Intelligence business functions as a clear 'Star' for Landis+Gyr, driven by record backlog growth, high market share in key utility markets and a shift toward software-rich contracts. As of October 2025 the group reported a committed backlog of USD 4.0 billion, with the Americas region accounting for approximately 56% of total group revenue and contributing materially to growth via high-margin software and services, which comprise 43% of the total backlog.

• Primary growth engine with a software-heavy backlog increasing recurring revenue potential
• Strong installed base and contracted pipeline (6.8M deployed; 16.5M contracted)
• Resilient book-to-bill (1.1) despite near-term revenue comparatives
• Management has raised Adjusted EBITDA margin guidance to 13.0%-14.5% for FY2025

The Software and Services segment is positioned as a high-growth Star driven by utility modernization, AI-enabled grid management and recurring revenue economics. As of H1 FY2025 this segment represented roughly 27% of total net revenue and accounted for 43% of the USD 4.0 billion committed backlog, underscoring its strategic importance to margin expansion and long-term customer relationships.

• High recurring revenue mix from software & services increases predictability and gross margins
• 7.9% of net revenue allocated to R&D sustains product leadership in edge-to-cloud solutions
• Partnerships (e.g., Google Cloud) enable scalable deployments and global reach

Asia Pacific Grid Edge solutions demonstrate Star characteristics through rapid contract wins and strong margin expansion in high-growth markets. H1 FY2025 revenue for the region was USD 66.7 million, while committed backlog surged 92% YoY to USD 171.8 million. A landmark September 2025 contract in Australia with PLUS ES is the region's largest to date and contributed to a normalized Adjusted EBITDA margin of 15.4% in late 2025. Regulatory reform and the clean energy transition underpin sustained market growth, with the region posting a book-to-bill ratio of 1.6.

• Significant backlog growth (+92% YoY) and strong book-to-bill (1.6) indicate accelerating market share gains
• Normalized Adjusted EBITDA margin of 15.4% demonstrates operational leverage from recent project wins
• Large Australia contract validates product-market fit and scalability in APAC utilities

Landis+Gyr Group AG (0RTL.L) - BCG Matrix Analysis: Cash Cows

Cash Cows - North American Smart Metering

North American Smart Metering maintains a dominant market share and steady cash flow, constituting the company's primary cash cow. H1 FY2025 revenue for the segment was USD 469.3 million, a temporary decline of 16.4% year-over-year, yet the unit produced an Adjusted EBITDA margin of 17.5%. The business benefits from a massive installed base measured in tens of millions of meters under long-term utility contracts that provide stable, predictable income in a mature market environment. Low CAPEX intensity (approximately 1.6% of net revenue) reflects an efficient, asset-light manufacturing and fulfillment model, enabling high free cash flow conversion. The segment's robust cash generation is being used to fund corporate capital allocation, including the USD 175 million share buyback program announced in late 2025.

Key cash characteristics for North American Smart Metering:

• High margin profile: Adjusted EBITDA margin 17.5%
• Predictable revenue: long-term contracts and installed-base replacement cycles
• Low reinvestment needs: CAPEX ≈ 1.6% of net revenue
• Strong free cash flow supporting corporate actions (share buybacks, investments)

Cash Cows - Thermal Solutions (Germany & Belgium)

Thermal Solutions in Germany and Belgium is a niche cash-generating unit within EMEA, delivering consistent high-margin performance and acting as a stabilizer during regional softness. In FY2024 and early FY2025 the segment provided steady revenue streams and helped sustain the EMEA Adjusted EBITDA margin, which stood at 6.0% prior to the segment's divestment transition. The business operates in a mature, capital-intensive market with high barriers to entry, predictable replacement demand from established utility and industrial customers, and limited pricing pressure relative to commodity-exposed segments. Cash generated by Thermal Solutions historically supported R&D investments for next-generation smart infrastructure and cross-segment technology development.

Key cash characteristics for Thermal Solutions:

• Reliable, high-margin cash generation in a mature EMEA niche
• Buffer against broader regional restructuring and demand softness
• Supports corporate R&D and product development funding
• Contributes to predictable cash flow even during portfolio transitions

Landis+Gyr Group AG (0RTL.L) - BCG Matrix Analysis: Question Marks

Question Marks: This chapter profiles two emerging business units-Smart Infrastructure and IoT expansion (Gridstream Connect & cloud solutions) and the India Joint Venture (Esyasoft)-that exhibit high market growth potential but currently hold smaller relative market share and require substantial capital to scale.

The Smart Infrastructure and IoT expansion targets urban energy systems and large-scale energy users through the Gridstream Connect platform and cloud-based offerings. The global smart meter market is forecasted to grow at a 9.8% CAGR through 2030, but the Gridstream/IoT segment currently represents a modest share versus traditional metering. Landis+Gyr reports annual R&D spending of USD 170.7 million directed in part toward smart city infrastructure, platform development, and interoperability initiatives. Key performance indicators remain preliminary, with market penetration constrained by incumbent diversified industrial competitors and the pace of municipal IoT standards adoption.

The India Joint Venture (Esyasoft) offers large addressable volume potential but has shown volatile financial results. A one-time USD 8.8 million real estate gain influenced H1 FY 2024 margins, obscuring underlying performance. Revenue in the Asia Pacific region (including the India JV) declined by 16.2% in H1 FY 2025, primarily due to project timing and execution variability. The Indian market's long-term meter rollout scale is attractive, but intense price competition, complex regulation, and project timing risk mean conversion of pipeline into steady, high-margin revenue demands further investment and operational stabilization.

Common success factors and constraints for these Question Marks:

• Success factors: rapid adoption of open IoT standards, scalable cloud economics, strong local project execution, strategic pricing and financing models.
• Constraints: heavy capital intensity (R&D and deployment), entrenched competitors with broader portfolios, regulatory and procurement complexity, volatile project timing.
• Financial thresholds: positive cash conversion requires scaling recurring SaaS/managed services revenue above deployment cost amortization and achieving >20% gross margins on solutions.

Quantitative sensitivities to monitor:

• R&D leverage: incremental revenue required to justify USD 170.7M R&D - projection break-even depends on achieving multi-year ARR growth in double digits.
• India JV margin normalization: removal of one-time USD 8.8M gain would reduce reported H1 FY 2024 margins; target is stable margin band consistent with corporate blended operating margins.
• Revenue timing impact: Asia Pacific reported -16.2% H1 FY 2025; converting pipeline within the next 12-24 months is critical to re-baseline growth.

Strategic options for Landis+Gyr in these Question Marks include continued heavy R&D and selective capital deployment to capture IoT platform scale, partnership alliances to accelerate municipal adoption, targeted investments and governance improvements in the India JV to stabilize execution, or divest/partner routes if market share gains remain elusive versus cost of capital constraints.

Landis+Gyr Group AG (0RTL.L) - BCG Matrix Analysis: Dogs

EV Charging business unit - discontinued operation following sustained poor financial performance and strategic failure. In FY 2023 the unit generated USD 20.0 million in revenue against a USD 10.0 million operating loss. Management announced a complete exit in February 2025 and sold the unit to KD Group in March 2025 to stop ongoing cash drains. The exit produced impairment and restructuring charges estimated between USD 35.0 million and USD 45.0 million in the 2024/2025 period. The unit is now classified as a discontinued operation with zero future revenue contribution to Landis+Gyr's core portfolio.

EMEA Legacy Metering - divestment to focus the corporate portfolio on higher-margin regions. In September 2025 Landis+Gyr signed an agreement to divest its EMEA metering business to AURELIUS after a period of underperformance and structurally low margins. H1 FY 2025 reported an Adjusted EBITDA margin of 6.0% in EMEA versus 17.5% in the Americas, highlighting a meaningful margin gap that impaired group profitability. The divestment triggered a non-cash impairment charge of USD 193.6 million related to goodwill and intangible assets, reflecting the asset write-down required to align carrying values with recoverable amounts.

UK and Turkey project segments - persistent softness and project timing delays. Specific geographies within the legacy EMEA portfolio faced dampened demand and project execution delays through 2024 and 2025. Revenues in these markets did not offset the prior build-up of backlog, and low operating leverage amplified earnings pressure. Collectively these issues contributed to a 10.5% decline in group revenue in FY 2024, and were a material drag on return on invested capital (ROIC) and enterprise valuation prior to the EMEA exit decision.

Key quantitative summary of Dog-class units (EV Charging, EMEA Legacy Metering, UK & Turkey projects):

Operational and financial impacts observed:

• Group revenue decline: FY 2024 reported a 10.5% year-over-year decrease, materially influenced by weakness in EMEA and project delays in UK/Turkey.
• Margin compression: EMEA Adjusted EBITDA margin at 6.0% versus Americas at 17.5%, creating a cross-regional margin drag.
• Significant non-cash write-downs: USD 193.6 million goodwill/intangible impairment related to EMEA divestment; additional USD 35-45 million cash and non-cash impacts tied to EV Charging exit.
• Cash flow and capital allocation: Sale of EV Charging to KD Group (Mar 2025) and EMEA divestment to AURELIUS (Sep 2025 agreement) intended to stem cash outflows and free capital for higher-growth, higher-margin segments.
• ROIC and valuation effects: Prior to exits, low-return EMEA units and project underperformance depressed consolidated ROIC and enterprise valuation multiples; divestments aim to remove these negative contributors.

Management actions and timeline (selected):

• FY 2023: EV Charging produced USD 20.0 million revenue and USD 10.0 million loss; utility-led rollout failed to materialize.
• 2024-2025: Impairments and restructuring recognized relating to underperforming units; EV Charging impairment/reserve activity aggregated to USD 35-45 million.
• Feb 2025: Public announcement of complete exit from EV Charging segment.
• Mar 2025: Sale of EV Charging business to KD Group; classified as discontinued operation thereafter.
• H1 FY 2025: EMEA Adjusted EBITDA margin reported at 6.0%; Americas at 17.5% (comparison basis for portfolio rationalization).
• Sep 2025: Agreement signed to divest EMEA Legacy Metering business to AURELIUS; USD 193.6 million non-cash impairment recorded related to the transaction.