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Lectra (LSS) investor relations material

Lectra Q2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2025 earnings summary24 Jul, 2025

Executive summary

  • H1 2025 revenues were €261.3M, stable year-over-year, with recurring revenues up 2% and non-recurring revenues down 7%.

  • SaaS subscriptions grew 13% year-over-year, with ARR reaching €90.9M as of June 30, 2025.

  • Net income for H1 2025 was €11.1M, unchanged from H1 2024; Q2 net income rose 20% year-over-year due to lower tax expense.

  • The business faced significant headwinds from global economic uncertainty and US tariff announcements, leading to a 27% drop in new systems orders in Q2.

  • Strong balance sheet with €343.8M in equity and net debt of €34.1M after dividend and acquisition payments.

Financial highlights

  • Q2 2025 revenues: €126.8M (-4% actual, -2% like-for-like); H1 2025: €261.3M (0% actual, -1% like-for-like).

  • Q2 EBITDA before non-recurring items: €19.2M (-9% actual, -3% like-for-like); margin 15.2%. H1 EBITDA: €40.4M (-4%), margin 15.4%.

  • Gross margin rate improved to 72.8% in Q2 and 72.7% in H1, up 1pt year-over-year.

  • Free cash flow before non-recurring items for H1: €33.0M, supported by strong working capital management.

  • Share price at June 30, 2025: €23.90, down 8.1% from December 2024; market cap €0.91B.

Outlook and guidance

  • Annual objectives set in February 2025 are no longer relevant due to ongoing economic and political uncertainty.

  • The company remains focused on SaaS growth and strategic flexibility, maintaining a cautious approach.

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Frequently asked questions

Lectra SA is a French technology company specializing in the development of industrial intelligence solutions encompassing software, automated cutting equipment, and associated services. The company's offerings are designed to support the digitization and optimization of product design, development, and manufacturing processes in various sectors, including fashion, automotive, and furniture. Lectra's solutions cater to a wide range of needs from garment manufacturing to car seat and interior production, airbags, and furniture. The company was founded in 1973 and maintains its research and development activities in Bordeaux-Cestas, France, while its corporate headquarters are located in Paris, Ile de France, France. Its shares are listed on the Euronext Paris stock exchange.

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