Seco (IOT) Q1 2026 earnings summary

Executive summary

• Net sales reached €48.5m in Q1 2026, up 3% year-on-year, aligning with guidance and reflecting positive market momentum, with strong sales in APAC and EMEA despite German market weakness.

• Clea recurring revenues grew 20% year-on-year to €2.7m, now representing 66% of Clea business and 60% of total revenue.

• Gross margin was 52.3%, down slightly from the prior year, reflecting higher memory costs but effective supply chain and sales mix management.

• Adjusted EBITDA margin was 18.7%, down from 20% in Q1 2025, due to margin compression from memory cost spikes and lower other revenues.

• Order intake reached record highs, increasing 60% year-on-year (Jan–Apr), supporting a strong backlog and positive outlook.

Financial highlights

• Net sales increased to €48.5m (+3% YoY); gross margin at €25.4m (52.3%).

• Adjusted EBITDA was €9.1m (18.7% margin), slightly down from €9.4m (20.0%) in Q1 2025.

• Adjusted net income was €2.2m (4.6% of net sales), stable compared to €2.3m (4.9%) in Q1 2025.

• Adjusted net financial debt increased to €44.1m, mainly due to higher inventory for strategic memory stock purchases.

• Net profit for the period was €0.5m, a turnaround from a €1.3m loss in the prior year.

Outlook and guidance

• Revenue for Q2 2026 is expected to exceed €50m, supported by robust order intake and backlog.

• Margin improvement anticipated from Q2 onward as price increases take effect and supply chain issues are managed.

• Full-year recurring revenue growth is expected to continue, driven by Clea platform deployments.

• Q2 guidance factors in shipping delays, with some revenue shifting to later quarters.

• Management remains optimistic for strong growth in 2026, citing robust fundamentals and expanding customer relationships.