Stratec (SBS) Q1 2026 earnings summary

Executive summary

• Q1 2026 saw a significant rise in free cash flow to €18.6 million from €-8.3 million in Q1 2025, despite declines in sales and profitability, which remained within planned expectations.

• Systems business maintained strong double-digit growth, while Service Parts and Consumables, and Development and Services segments saw declines due to customer logistics optimization and challenging comparables.

• Efficiency and cost management measures were advanced, and the development pipeline remains robust with projects moving toward serial production and ongoing negotiations for new collaborations.

• Revenue and profitability trends mirror broader market softness, with a significant back-end loaded year expected and full-year 2026 guidance reaffirmed.

Financial highlights

• Q1 2026 revenue was €53.4 million, down 11.5% year-over-year (8.8% at constant currency).

• Adjusted EBIT was €0.7 million, margin 1.3%, reflecting an 87.1% year-over-year decline.

• Adjusted EBITDA dropped 49.6% to €4.7 million; margin fell to 8.8%.

• Adjusted net income was €-1.1 million, with adjusted EPS at €-0.09.

• Free cash flow improved to €18.6 million, driven by reduced trade receivables and working capital management.

Outlook and guidance

• 2026 guidance confirmed: constant-currency sales growth expected in the mid- to high single-digit percentage range.

• Adjusted EBIT margin for 2026 projected to remain around the 2025 level (10.0%), with scale benefits offset by rising input costs.

• Year expected to be heavily weighted to H2, with Q4 as the strongest quarter.

• Investments in tangible and intangible assets projected at 6.5%–8.5% of revenue.

• Long-term targets: sales CAGR of 6–8% (2025–2028), 10–12% (2028–2030); EBIT margin ≥13% by 2028, ≥15% by 2030.