Landis+Gyr's Grid Overhaul: A Bet on Intelligence Over Infrastructure

NEW YORK, NY – June 1, 2026 – At the Nasdaq MarketSite today, amidst the familiar flurry of market activity, energy technology leader Landis+Gyr laid out a strategy that looks far beyond the next fiscal quarter. It presented a blueprint for the next generation of the world's energy grid. In a comprehensive Capital Markets Day, the company didn't just confirm ambitious growth targets; it unveiled a fundamental restructuring designed to capitalize on a generational industry transformation. By splitting its business into two new segments, 'Connected Platforms' and 'Grid Intelligence,' Landis+Gyr is making a clear and decisive wager: the future of energy management lies not just in connecting devices, but in making them profoundly intelligent.

A Strategic Split: Connected Platforms and Grid Intelligence

At the heart of the announcement is a strategic reorganization that cleaves the company's offerings into two distinct, yet symbiotic, segments. This is more than a simple relabeling. It’s the culmination of a strategic transformation, underscored by the company’s recent divestiture of its EMEA business to focus on the higher-growth Americas and APAC regions.

'Connected Platforms' will form the foundational layer, encompassing the physical devices, communication networks, and services that have long been Landis+Gyr's bread and butter. This segment, which accounted for 76% of revenue in fiscal year 2025, remains the bedrock of the business, projected to deliver steady low- to mid-single-digit growth with a solid gross margin around 30%.

But the undeniable star of the new strategy is 'Grid Intelligence.' This segment houses the high-margin software, advanced analytics, AI-enabled applications, and advisory services that represent the brain of the modern grid. Though it currently represents a smaller portion of revenue (24%), its financial profile is compelling, with a gross margin already exceeding 45% and a projected annual growth rate of over 10%. This is where Landis+Gyr is placing its chips for exponential value creation, aiming to solve the complex challenges of integrating renewables, managing electric vehicle charging, and ensuring grid stability.

“With the introduction of our new business segments, we are well positioned to capitalize on significant growth opportunities across the evolving energy landscape,” said Peter Mainz, Chief Executive Officer of Landis+Gyr. His statement points to a deliberate pivot from being primarily a hardware provider to becoming an end-to-end solutions partner, embedding intelligence at every point of the energy value chain.

The Financial Blueprint: Backlog, Margins, and Growth

Behind this strategic shift is a financial framework designed to reassure investors and signal potent future returns. The company arrived in New York armed with a massive $3.9 billion contracted backlog. For a company in this sector, a backlog is more than a number—it's a promise of future work, providing what Mainz called “exceptional revenue visibility and underpinning a durable, predictable growth model.”

This stability allows Landis+Gyr to make bold projections through fiscal year 2028. The company forecasts its adjusted EBITDA will grow at twice the rate of its revenue, and its adjusted earnings per share (EPS) will grow more than five times the rate of revenue. This financial alchemy is a direct result of the two-segment strategy. While the Connected Platforms segment provides a stable revenue base, the high-margin, scalable Grid Intelligence segment is engineered to drive profitability at a much faster clip. As software and analytics become a larger part of the sales mix, overall margins are set to expand past 35%.

“Our market leadership, strong backlog, and disciplined operating model provide a solid foundation for long-term value creation,” added Davinder Athwal, the company’s Chief Financial Officer. Athwal emphasized a focus on driving profitable growth and generating strong cash flow, with a target of converting approximately 80% of adjusted EBITDA into free cash flow. This, combined with an asset-light business model that generates a return on invested capital (ROIC) exceeding 30%, paints a picture of a highly efficient and financially disciplined organization poised for its next phase of growth.

Beyond the Meter: Technology for a Modern Grid

For the utilities and consumers who depend on the grid, these financial metrics and strategic realignments find their meaning in tangible technological advancements. Landis+Gyr's momentum is powered by platforms like Revelo®, which is far more than a simple smart meter. It’s a sophisticated IoT sensor for the grid's edge, capable of capturing high-resolution waveform data—essentially an EKG for the power lines. This granular data allows utility operators to use AI and machine learning to detect anomalies, predict equipment failure before it happens, and pinpoint the cause of an outage in real-time, dramatically improving reliability.

This intelligence extends all the way to the consumer. Through partnerships, the data from a Revelo meter can be translated into a simple smartphone app, allowing homeowners to see precisely which appliances are consuming the most energy and when. This is the kind of actionable insight that moves the needle on energy efficiency, empowering consumers to manage their usage and lower their bills.

The shift toward an intelligent grid is a direct response to a global energy system under increasing strain. Utilities are grappling with the intermittent nature of solar and wind power, the surge in demand from electric vehicle charging, and the growing threat of extreme weather events. Landis+Gyr’s strategy is to provide the digital tools necessary to manage this complexity, turning the one-way power grid of the 20th century into a dynamic, two-way, responsive network.

Powering a Sustainable Future

Ultimately, Landis+Gyr’s strategic pivot is inextricably linked to the global imperative of sustainability. The company’s technology is a critical enabler of the energy transition. By optimizing grid operations, facilitating the integration of renewable energy, and empowering consumers to be more efficient, these intelligent systems have a direct impact on carbon emissions. The company estimates its installed base of solutions already enabled approximately 8 million tons of CO2e savings in the last fiscal year alone.

Landis+Gyr is also applying these principles to its own house, achieving 100% renewable electricity sourcing in its global operations and cutting its own Scope 1 and 2 emissions by 74% since 2021. This commitment reinforces the authenticity of its mission.

As utilities navigate a market projected to grow into the hundreds of billions of dollars over the next decade, the demand for this kind of intelligence is only set to increase. Landis+Gyr's Capital Markets Day was a declaration that the company is not just participating in this transformation but is actively shaping it, betting that the path to a more reliable, resilient, and sustainable energy system is paved with data and intelligence.