Lectra (LSS) Q1 2026 earnings summary

Executive summary

• Q1 2026 was marked by geopolitical and macroeconomic instability, with the Iran conflict causing a temporary freeze in investments and postponement of equipment orders.

• Customers are resuming investments after a year of tariff negotiations, and SaaS-driven innovation is supporting strategic ambitions.

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

Financial highlights

• Revenues for Q1 2026 were €113.2m, down 16% year-over-year (11% like-for-like), mainly due to lower equipment sales and adverse currency effects.

• 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.

• EBITDA before non-recurring items was €12.1m, down 43% year-over-year (31% like-for-like), with a margin of 10.6%.

• Net income dropped 92% year-over-year to €0.5m.

• Free cash flow was €8.9m, down from €17.7m 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 targeted to improve by 120-180bps per year, with further upside if equipment orders rebound.