Lectra (LSS) AGM 2026 summary

Opening remarks and agenda

• Meeting held on April 29, 2026, at Hôtel InterContinental Paris Champs Elysées, Paris, broadcast live with major shareholders and statutory auditors present; agenda included speaker introductions, financial highlights, Q&A, auditor reports, voting on resolutions, and meeting closure.

• All legal formalities and documentation were completed and made available to shareholders.

• Quorum exceeded 90%, enabling valid deliberations and decisions.

Financial performance review

• 2025 marked by persistent economic and geopolitical uncertainty, including tariffs and the war in Iran, impacting key markets, but recurring revenues and SaaS transformation limited revenue decrease.

• Annual Recurring Revenue (ARR) grew 14% to €101M; recurring contracts up 5%, driven by SaaS subscriptions.

• Recurring revenues made up 75% of total revenue, up 2% year-over-year; non-recurring orders fell 17%, with Asia Pacific hardest hit.

• EBITDA before non-recurring items was nearly €80M, with strict cost control and increased gross margin rates; EBITDA decreased from €91.4M to €84.4M due to lower non-recurring activity and increased overheads.

• Net debt stood at €21M, with cash at €65M and financial debt under €100M; €57M free cash flow before non-recurring items, and negative working capital of €39.7M at year-end.

Strategic initiatives and plans

• Continued execution of Industry 4.0 and Lectra 4.0 strategies, focusing on SaaS growth, cost synergies from acquisitions, and external growth.

• Integration of Gerber and Launchmetrics doubled company size and enhanced global footprint.

• Heavy investment in AI, IoT, cloud, and big data, with accelerated adoption of agentic AI for software development.

• Emphasis on traceability platforms, flexible software solutions, and sustainability to meet evolving industry needs.

• Three-year objectives include scaling SaaS, operational excellence, consolidating acquisitions, and ARR expected to grow 15% annually through 2028, with recurring contracts targeted to grow 5–8% and EBITDA margin improvement of 120–180bps annually.