Lectra (LSS) Q1 2026 earnings summary

Executive summary

• Q1 2026 occurred in an unstable geopolitical and macroeconomic environment, with the Iran conflict causing a temporary freeze in customer investments and postponement of equipment orders.

• Recurring revenues showed resilience, driven by SaaS momentum and strict cost control, allowing the company to reiterate its 2026-2028 objectives.

Financial highlights

• Revenues for Q1 2026 were €113.2 million, down 16% year-over-year (11% like-for-like), mainly due to lower equipment sales and adverse currency effects.

• EBITDA before non-recurring items was €12.1 million, down 43% year-over-year (31% like-for-like), with a margin of 10.6%.

• Net income was €0.5 million, compared to €5.8 million in Q1 2025.

• Gross margin improved to 74.8%, up 2.4 points year-over-year, mainly due to recurring revenues.

• Free cash flow was €8.9 million, down from €17.7 million in Q1 2025.

• Equity stood at €365.6 million and net debt at €24.4 million as of March 31, 2026.

Outlook and guidance

• The company reiterates its 2026-2028 roadmap, targeting average annual SaaS ARR growth of ~15% and recurring contract revenue growth of 5–8% per year.

• EBITDA margin before non-recurring items is expected to increase by 120–180 basis points per year like-for-like.

• Any rebound in equipment sales would provide additional upside to revenues and EBITDA.