Landis+Gyr Group AG has been busy installing its FOCUS electric meters for both residential and commercial buildings, marking a significant step in its ongoing mission to innovate within the energy management sector.
Company Spotlight: Landis+Gyr Group AG (LAND-CH)
Landis+Gyr Group AG, based in Switzerland, is at the forefront of manufacturing electrical components, with a particular focus on metering solutions for measuring electricity, gas, heat/cold, and water. Their extensive product lineup includes advanced metering systems and intelligent energy management devices, such as smart electricity meters, heating and cooling meters, and grid management solutions. Additionally, they offer a range of services including software, managed and cloud services, smart grid solutions, and comprehensive training and support.
On the stock market, Landis+Gyr’s value is pegged at roughly 1.49 billion Swiss francs, translating to approximately CHF 51.60 per share.
Activist Investor: Spectrum Entrepreneurial Ownership
Spectrum Entrepreneurial Ownership (SEO) holds a 5.01% stake in Landis+Gyr. This investment comes as part of SEO’s focused strategy, which involves maintaining a portfolio of large minority stakes in listed European companies, primarily in the DACH region—Germany, Austria, and Switzerland. SEO aims to unlock the full potential of its portfolio companies by engaging positively and strategically. Co-founders Fabian Rauch and Dr. Ilias Läber, both seasoned veterans with over 40 years of collective board experience, established SEO in 2022. Their capital is drawn from family offices, endowments, pension funds, and other long-term institutional investors, providing a robust financial backing.
Current Developments
Landis+Gyr, known for its integrated energy management solutions and smart grid technologies, plays a pivotal role in helping utilities enhance infrastructure efficiency. With roots dating back to 1896, the company was notably acquired by Toshiba in 2011, which led to a public offering of its Swiss unit six years later on the SIX Swiss Exchange at CHF 78 per share.
As it stands, Landis has seen a dip to prices over 35% lower than its initial public offering, traded at about 7.5 times its enterprise value compared with its competitor, Itron. In July 2024, SEO took a 5% share from Kirkbi, positioning itself as the second-largest shareholder. Shortly after, the company called an extraordinary meeting, adding SEO co-founder Fabian Rauch to the board, signaling a strategic shift. By October 30, 2024, Landis announced a review of its business portfolio, highlighting a concentrated effort on the Americas, reconsidering its EMEA strategies, and contemplating a shift in listing to a U.S. stock exchange.
Unfortunately, several factors have negatively impacted Landis’ stock value; these include a reduction in the FY24 revenue forecast by 8% and an exit from its EMEA electric vehicle charging business, resulting in substantial impairment charges. Despite attempts to adjust expectations for post-COVID growth deceleration, these warnings were largely overlooked, causing a significant 22% drop in shares on February 11, 2025.
Focusing attention on the Americas appears wise, as this region alone accounts for 58% of its $1.963 billion revenue, with far greater EBITDA than the EMEA or even the smaller Asia-Pacific segments. A move to pivot from EMEA operations could unlock substantial value for shareholders, especially if accompanied by a listing on a U.S. exchange, where the company’s primary profits originate.
The narrative of Landis has been one rife with challenges, yet recent changes show promise. Adding Fabian Rauch to the board was a clear call for transformation, and subsequent strategic plans underscore commitment to revitalizing its market position. Leadership also saw a shake-up, with Peter Mainz replacing CEO Werner Lieberherr in November 2024, and soon-to-be new chair, Audrey Zibelman, set to take over from Andreas Umbach by January 2025.
Ken Squire, the author of this analysis, helms 13D Monitor, providing insights into shareholder activism, and manages the 13D Activist Fund, which invests in activist-driven opportunities.
