Seco (IOT) Q1 2026 earnings summary

Executive summary

• Net sales grew 2.91% year-over-year to €48.5m in Q1 2026, in line with guidance, driven by strong EMEA and APAC performance and recovery in order levels despite memory market and supply chain challenges.

• Clea recurring revenues increased 20% year-over-year to €2.7m, now representing 60–66% of Clea business, reflecting growing adoption of the software platform.

• Gross margin was 52.3%, down slightly from the prior year, reflecting higher memory costs but strong purchasing management.

• Adjusted EBITDA margin declined to 18.7% due to margin compression from memory price spikes, but profitability remained resilient.

• Order intake reached record highs, supporting a robust backlog and improved revenue visibility for H2 2026.

Financial highlights

• Net sales increased to €48.5m (+2.91% YoY); gross margin at €25.4m (52.3%).

• Adjusted EBITDA was €9.1m (18.7% margin), down from €9.4m (20.0%) in Q1 2025.

• Adjusted net income was €2.2m (4.6% of net sales), stable compared to €2.3m (4.9%) in Q1 2025.

• Net profit for the period was €0.5m, reversing a €1.3m loss in the prior year.

• Adjusted net financial debt increased to €44.1m, mainly due to higher inventory for strategic memory stock purchases.

Outlook and guidance

• Revenue for Q2 2026 is expected to exceed €50m, supported by record order intake and robust demand for Edge AI-driven solutions.

• Margin improvement anticipated as price increases take effect and supply chain normalizes in H2.

• Management objectives for 2026 remain unchanged, with continued strong pipeline conversion and customer diversification.