Landis+Gyr, a leading global provider of integrated energy management solutions, posted H1 2022 net revenue of $728.7 million, a 4% rise from the year-ago period.

H1 2022 Highlights:

• The company’s H1 2022 bill-to-book ratio was strong, reflecting the continuation of smart metering rollouts across major regions, conversion of backlogs, project deployments, contract wins and strong demand. Landis+Gyr’s revenue and financial performance improved with the help of growth in its residential load management software and services, and meter data management system solutions.
• The company had a solid order intake of $773.2 million in H1 2022 across its three main regions of operation. However, total backlog for the period rose 7.5% YoY to a record-high of $3,480 million, driven by component shortages and supply chain constraints.
• Landis+Gyr is set firmly on the innovation track with new technological advances, such as the E360 IoT grid-edge meter, E660 next-generation industrial grid-edge meter, cloud-native data hub connector application, GridFlex control SaaS demand-side management solution, NB-IoT-supported T550 heat and cold meter, and the water portfolio development which is on track for launch in 2023.
• The company is rapidly growing in the Latin America region with the release of new solutions such as the Magno cabinet meter, Wi-SUN in collaboration with Cisco, Revelo residential meter, G480 NB-IoT ultrasonic gas meter and the Edge intelligence ecosystem.
• Acquisitions and investments with a strong focus on high-growth opportunities, such as new EV charging infrastructure and flexibility management, will give Landis+Gyr over-proportional growth and make it resilient to recession.
• Landis+Gyr’s smart infrastructure investments in Australia and New Zealand continue to pioneer smart water solutions to detect customer-side and network leaks and reduce non-revenue water losses. The company is set to roll out its smart water meter in New Zealand in partnership with Watercare as it embarks on its first wave of digital transformation in the country.

Regional Key Developments in H1 2022

Americas:

• The Americas region delivered net revenue of $391.7 million in H1 2022, up 20.4% YoY, driven by higher contract wins including APS, United Illuminating, Peoples Gas, Tri-County and Meriwether Lewis Electric.
• The strong revenue growth was also driven by large advanced metering infrastructure rollouts during the period, namely PSE&G NJ, LG&E and AES Ohio.
• Major wins in Latin America with Equatorial, ENEL and EDP for cabinet meters and Iberdrola for C&I meters also helped boost revenue.

Europe, Middle East & Africa (EMEA):

• Net revenue from the EMEA region fell 6% YoY in H1 2022 to $248 million driven by the unavailability of critical components. The French and UK markets were hurt by delayed projects and weak currencies during the period.
• However, smart meter shipments are expected to increase to 4 million units by 2023 due to the SMET2 implementation program, which will replace the SMET1 smart meter.
• The Fluvius project in Belgium along with the metering rollout in Switzerland will drive high order intake for smart meters through continued public tender activities. Landis+Gyr’s partnership with Enedis in France will be a growth driver for the region.

Asia-Pacific (APAC):

• Net revenue from the APAC region jumped 23.8% YoY in H1 2022 to $89 million, with the New Zealand and Australian markets being the main drivers. The backlog from this region continues to grow due to strong order intake in Hong Kong, Australia, New Zealand and Southeast Asia (SEA).
• The company’s initial deployment of the E360 smart meter in Australia as part of the long-term partnership with Yurika, a unit of Energy Queensland, is proving to be beneficial.
• The advanced metering infrastructure in the SEA region is expected to grow as markets such as Indonesia, Thailand, Malaysia and the Philippines are transitioning away from non-AMI setups. The extended partnership with HK Electric to supply smart meters in Hong Kong is also helping Landis+Gyr increase its footprint in the SEA region.

Key Takeaways:

• Improvements in computing power are driving digital transformation in the utility sector and Edge intelligence for localized decision-making is becoming more critical as the penetration of distributed energy resources is increasing.
• Like the rest of the smart meter market, the ongoing supply chain constraints are weighing on Landis+Gyr’s ability to fulfil customer orders. However, we expect the situation to ease in H2 2022. Landis+Gyr has been building up its inventory in anticipation of strong shipments in H2 2022.
• The inventory build-up will result in negative free cash flow but we expect Landis+Gyr to be well positioned to support utilities and end customers.
• Landis+Gyr is set to benefit going forward as the strong order intake indicates a favourable market environment and an increased need for more intelligent power grids. This will drive energy efficiency and ensure critical infrastructure stability which will be further amplified by the energy crisis.

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