Weekly (AO) | Transition & ESG weekly

Research evidence excerpt

Weekly (AO) | Transition & ESG weekly

ered resilient FY 2025/26 results despite FX headwinds and mixed end-market conditions, with

sales broadly stable organically at constant FX. Profitability improved materially, with EBIT rising 29.2% YOY and EBIT margin

increasing to 8.5%, supported by the successful execution of the “Fit for Growth” efficiency programme. Bookings recovered

strongly during the second half, driven by increasing demand from data centre-related applications across Automation and

Energy Distribution & High Precision. Free cash flow more than doubled, reducing net debt further. No dividend, as expected.

LEM also reaffirmed its mid-term ambitions following the expected market normalisation phase through FY2026/27. The company

continues to target sustainable annual sales growth of 4% to 7% at constant FX and a gradual EBIT margin improvement towards

10% to 15%.

The other major announcement was the initiation of a strategic options review. Following the recent operational improvement,

LEM confirmed that it has attracted interest from certain external parties. The Board has therefore started evaluating strategic

alternatives aimed at enhancing long-term shareholder value. Management stressed that the process remains at an early stage

and there is no certainty that it will result in a transaction or any specific outcome.

Alerion | Buy | Emanuele Oggioni - Up to 10% capital hike to increase the free float PDF

Alerion's board of directors resolved a capital increase of up to EUR135.6m, equal to 10% of its share capital, through the issuance

of up to 5,422,940 ordinary shares at a subscription price of EUR25.00 per share. The offer will run from 26 May to 8 June 2026,

with payment scheduled for 10 June 2026.

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