Lectra (LSS) Q3 2026 earnings summary

Executive summary

• Recurring revenue and SaaS growth supported resilience as cautious customer investment and lower non-recurring revenue weighed on results.

• Structural cost actions lifted 9M EBITDA margin improvement to 237 bps; free cash flow before non-recurring items was €36.4m.

Financial highlights

• Q3 revenue was €121.6m, flat at actual exchange rates and down 2% like-for-like; 9M revenue was €361.3m, down 4% like-for-like.

• Q3 EBITDA before non-recurring items was €23.4m, up 10% like-for-like; 9M EBITDA was €57.1m, down 3% like-for-like.

• Q3 net income was €10.4m versus €7.2m; 9M net income rose 10% to €20.1m, supported by lower tax expense and tax loss carryforwards.

• 9M recurring revenue rose 1% to €285.0m, or 79% of revenue; non-recurring revenue fell 21% to €76.2m.

• 9M gross margin was 74.5%, up 190 bps; overhead costs declined 2% to €241.6m.

Outlook and guidance

• FY26 SaaS ARR and recurring contract revenue growth are expected below roadmap trajectories of 15% and 5%–8%, respectively.

• FY26 structural EBITDA margin improvement is expected to exceed the 120–180 bps target range; 237 bps was achieved in 9M.

• The security-ratio objective was reiterated, with a target above 100% in 2028; the ratio reached 99% in 9M.

• Equipment backlog was €21.4m at September-end, with 90% expected to convert to revenue in Q4 2026.