Lectra (LSS) AGM 2026 summary

Opening remarks and agenda

• Meeting held on April 29, 2026, at Hôtel InterContinental Paris Champs Elysées, Paris, broadcast live with major shareholders and statutory auditors present; agenda included speaker introductions, financial highlights, Q&A, auditor reports, voting on resolutions, and meeting closure.

• All legal formalities and documentation were completed and made available to shareholders.

• Quorum exceeded 90%, enabling valid decision-making.

Financial performance review

• 2025 marked by economic and geopolitical uncertainty, with tariffs and the war in Iran impacting key markets, but recurring revenues and SaaS transformation limited revenue decrease.

• Annual Recurring Revenue (ARR) grew 14% to €101M, with SaaS subscription revenue up 14% and recurring contracts up 5%.

• Recurring revenues accounted for 75% of total revenue, up 2% year-over-year.

• Non-recurring orders fell 17%, with Asia Pacific hardest hit (-26%), Americas down 14%, and Europe more resilient; non-recurring revenues fell 12%, with new system orders down 17% and equipment revenues down 11%.

• EBITDA before non-recurring items was nearly €80M, with strict cost control and increased gross margin rates; EBITDA decreased from €91.4M to €84.4M, mainly due to lower non-recurring activity and increased overheads.

• Net debt stood at €21M, with €65M in cash and low leverage; €57M free cash flow before non-recurring items, with negative working capital of €39.7M at year-end.

Strategic initiatives and plans

• Continued execution of Industry 4.0 and Lectra 4.0 strategies, focusing on SaaS growth, operational excellence, and integration of acquisitions.

• 2026-2028 priorities: position Valia at the forefront of manufacturing, scale SaaS, and boost operational excellence.

• Financial objectives for 2026-2028: 15% ARR growth per year, 5-8% recurring contract revenue growth, and EBITDA margin improvement of 120-180bps annually.

• Significant investments in AI, IoT, cloud, and big data, with accelerated integration due to advances in agentic AI.

• Launchmetrics, TextileGenesis, and Kubix Link reached profitability and critical mass, with SaaS consolidation a key objective; Valia platform automates production planning, leveraging AI for optimization.