Lectra (LSS) Q1 2026 earnings summary

Executive summary

• Q1 2026 occurred in an unstable geopolitical and macroeconomic environment, with the Iran conflict causing a temporary freeze in customer investments and postponement of equipment orders.

• Revenues for Q1 2026 were €113.2 million, down 16% at actual rates and 11% like-for-like year-over-year, reflecting an economic slowdown and short-term cyclical impacts.

• Recurring revenues showed resilience, driven by SaaS momentum and strict cost control, allowing the company to reiterate its 2026-2028 objectives.

Financial highlights

• Equipment orders reached €22.1m, up 11% from Q4 2025, but down 21-25% year-over-year.

• ARR stood at €100.6m as of March 31, 2026, up 3% from December 31, 2025, reflecting 12% annualized growth.

• Total revenues fell 16% year-over-year to €113.2m, mainly due to lower equipment sales and adverse currency effects.

• EBITDA before non-recurring items was €12.1m, down 31% like-for-like, with a margin of 10.6%.

• Net income dropped to €0.5m, compared to €5.8m in Q1 2025.

Outlook and guidance

• 2026-2028 objectives include 15% annual SaaS ARR growth and 5-8% yearly growth in recurring contract revenues.

• EBITDA margin before non-recurring items targeted to improve by 120-180bps per year like-for-like.

• Any rebound in equipment sales would provide additional upside to revenues and EBITDA.