Lectra (LSS) Q2 2026 earnings summary

Executive summary

• Q2 2026 saw improved business momentum and activity, especially in equipment, consumables, and parts, despite ongoing customer caution and macroeconomic uncertainty.

• Recurring revenues and SaaS subscriptions continued to grow, supporting performance and offsetting a weak investment cycle.

• The business model transformation accelerated, fueled by recurring revenue growth, SaaS focus, operational discipline, and new opportunities linked to agentic AI.

• Q2 2026 revenues were €126.5 million, stable year-over-year, with improved profitability driven by recurring business and equipment orders.

• Net income for Q2 2026 was €9.2 million, up 73% year-over-year.

Financial highlights

• EBITDA before non-recurring items in Q2 2026 was €21.6 million (17.1% margin), up 15% like-for-like.

• Annual Recurring Revenues (ARR) grew 5% in H1 2026, reaching €102.6 million at closing rates.

• Gross margin improved to 74.6% in H1 2026, up 2 points year-over-year.

• Free cash flow before non-recurring items was €24.5 million for H1 2026.

• H1 2026 revenues were €239.6 million, down 6% year-over-year, with recurring revenues up 2% and non-recurring revenues down 26%.

Outlook and guidance

• 2026-2028 roadmap targets EBITDA margin growth of 120–180 basis points per year, SaaS ARR growth of ~15% annually, and recurring contract revenues up 5–8% per year.

• Security ratio is targeted to increase by 2–3 points annually, aiming for over 100% by 2028.

• Any rebound in equipment orders could provide additional upside to revenue and EBITDA.