Seco (IOT) Q4 2025 earnings summary

Executive summary

• Net sales reached €197.6 million in FY25, up 8% year-over-year, with Q4 sales up 16% versus Q4 2024, exceeding guidance and reflecting strong revenue momentum.

• Clea software revenues contributed €21.0 million (11% of total), with 39% recurring, and gross profit margin improved to 53.6% year-over-year.

• Adjusted EBITDA rose 43% to €40.2 million (20.3% margin), and adjusted net income increased to €13.1 million, up €11.8 million from FY24.

• Strategic business wins and expanded partnerships in Edge Computing and AI, including collaborations with Boeing, Qualcomm, and Raspberry Pi.

• Significant investments in production capacity and digital innovation, including new facilities in Arezzo and Hangzhou, and the launch of Clea OS 2.0 and Application Hub.

Financial highlights

• Net sales: €197.6 million (+8% YoY); Clea revenues: €21.0 million (11% of mix, 39% recurring).

• Adjusted gross margin: €105.9 million (53.6%, +9% YoY); margin improvement driven by sales mix and software revenue.

• Adjusted EBITDA: €40.2 million (20.3% margin, +43% YoY); adjusted net income: €13.1 million (6.6% of sales).

• Q4 2025 cash generation of €13.6 million, with adjusted net financial position at €37.6 million.

• Edge computing revenue grew 9% YoY to €176.6 million.

Outlook and guidance

• Q1 2026 revenue guidance above €49 million, supported by robust demand for Edge AI-driven solutions and a strong order backlog.

• Gross profit margin expected to remain strong (56% in Q1 2026 guidance).

• Expectation of progressive acceleration in growth throughout 2026, with margin recovery from Q2 onward as memory cost impacts are neutralized.

• Clea software business expected to grow at a higher rate than edge computing, with significant multi-year agreements in progress.

• Ongoing geopolitical tensions seen as a competitive advantage.