Teleste (TLT1V) Q1 2026 earnings summary

Executive summary

• Profitability improved in Q1 2026, with stable net sales at €32.2 million year-over-year, driven by gross margin protection, product mix, and cost control.

• Orders received declined 15.8% due to seasonality and a major North American customer limiting CapEx ahead of a merger, but long-term demand and market drivers remain intact.

• Net result for the period rose 141.7% year-over-year, and earnings per share increased 114%.

• Operating cash flow turned negative due to inventory buffering and delayed customer payments, expected to normalize later in the year.

• Outlook for 2026 unchanged; profit expected to be weighted toward the second half.

Financial highlights

• Net sales were €32.2 million, flat year-over-year; Networks segment grew 4.3% to €20.2 million, while PSM was impacted by project timing.

• Adjusted EBITDA increased 12.8% to €3.1 million; adjusted EBIT rose 29% to €1.9 million, with margin improving to 5.8%.

• EBIT margin improved to 5.5% from 4.5% year-over-year.

• Cash flow from operations was -€1.5 million, compared to €1.5 million in Q1 2025.

• Order backlog at quarter-end was €113.6 million, down 5.3% year-over-year.

Outlook and guidance

• Full-year 2026 net sales expected between €140–160 million, with adjusted operating profit of €7–10 million, both representing year-over-year improvements.

• Profitability is expected to be weighted toward the second half of the year.

• Long-term targets reiterated: average 10% annual growth and 7–12% adjusted EBIT margin by 2030.

• Geopolitical tensions, trade policy, and USD exchange rate pose uncertainties.