Tecnotree (TEM1V) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was EUR 16.8 million, down 0.2% YoY, but up 1% in constant currency.

• EBIT reached EUR 4.6 million (+1.8% YoY), with margin at 27.4%, a four-year high.

• Net income rose 36.5% YoY to EUR 2.1 million, supported by favorable FX gains.

• Order backlog surged 50% YoY to EUR 105.4 million, driven by new orders in Africa and Latin America.

• Free cash flow dropped to EUR 0.2 million from EUR 1 million YoY, impacted by weaker collections in the Middle East.

Financial highlights

• Revenue: EUR 16.8 million (-0.2% YoY), constant currency revenue: EUR 17.1 million (+1.0% YoY).

• EBIT: EUR 4.6 million (+1.8% YoY), EBIT margin: 27.4% (+50 bps YoY).

• Net income: EUR 2.1 million (+36.5% YoY), highest Q1 in four years.

• Free cash flow: EUR 0.2 million, down from EUR 1.0 million YoY.

• CapEx to sales ratio reduced to 9.5% from 15% YoY.

Outlook and guidance

• 2026 guidance maintained: low to mid-single digit % revenue growth in constant currency and free cash flow above EUR 5 million.

• Guidance assumes stabilization in the Middle East, favorable exchange rates, and current market outlook.

• Two-thirds of order backlog is ARR, supporting future revenue stability.