Lectra (LSS) investor relations material

Executive summary

• 2025 results showed resilience amid persistent macroeconomic and geopolitical uncertainty, with strong free cash flow, negative working capital, and a robust balance sheet maintained.

• Strategic focus on Industry 4.0, scaling SaaS, operational excellence, and positioning Valia as a flagship platform compatible with both Lectra and non-Lectra equipment.

• The three-year roadmap prioritizes SaaS adoption, operational excellence, and ongoing R&D, supported by integration of recent acquisitions.

Financial highlights

• Total revenue for 2025 was €506.7 million, down 2% year-over-year.

• Recurring revenues grew 2% to €242.3 million and now represent 75% of total revenue; SaaS subscriptions rose 14%.

• ARR reached €101 million at constant exchange rates and €97.2 million like-for-like, up 14%.

• Gross margin improved to 72.9% from 71.7% in 2024.

• EBITDA before non-recurring items was €79.7 million (15.7% margin), down from €91.4 million, impacted by lower activity and forex.

• Net income was €25.6 million, impacted by one-off items including deferred tax asset activation and rent depreciation.

• Free cash flow before non-recurring items was €57 million, with net financial debt reduced to €21.3 million and working capital at negative €39.7 million.

Outlook and guidance

• 2026-2028 targets: 15% annual ARR growth, 5–8% yearly recurring contract revenue growth, and EBITDA margin improvement of 120–180 basis points per year.

• Security ratio expected to exceed 100% within three years.

• Dividend payout policy maintained at 50% of net income.

• Equipment revenue visibility remains low; rebound timing uncertain but expected as market stabilizes.