Seco (IOT) Q2 2025 earnings summary

Executive summary

• Net sales for H1 2025 reached €98.4 million, up 3.2% year-over-year, with Q2 revenues of €51.2 million, a 9% sequential increase, driven by strong performance in the USA and APAC, despite EMEA declines.

• Gross profit margin improved to 53.4%, exceeding guidance, with adjusted EBITDA at €20.1 million (20.5% margin), and adjusted net income nearly doubling to €7.3 million.

• Clea software revenues contributed €12 million (12% of total), with recurring software revenue rising to 36% of Clea sales.

• Innovation highlights include the launch of Clea 2.0, Application Hub, and Developer Center to accelerate AI edge adoption and software monetization.

• Strong order intake and backlog growth, with book-to-bill ratio at or above 1 year-to-date, and strategic partnerships supporting future growth.

Financial highlights

• Edge computing revenue grew 4% year-over-year to €86.4 million, with US and APAC growth outpacing other regions.

• Adjusted EBITDA margin for H1 2025 was 20.5%, up from 16.6% in H1 2024; adjusted net income margin rose to 7.4%.

• OpEx reduced by €2.5 million year-over-year, mainly from lower outsourcing and increased in-house production.

• Net financial position improved to €50.3 million as of June 30, 2025, with net financial debt rising mainly due to higher trade receivables.

• Financial income decreased by €1 million due to a one-off dividend in H1 2024.

Outlook and guidance

• Full-year revenue expected to exceed €200 million at constant FX, with gross margins above 50%.

• Acceleration in growth anticipated in H2 2025, with Q4 expected to be the strongest quarter.

• Order backlog strengthened by new design wins, supporting a gradual recovery in revenue trajectory.

• Over €20 million in additional revenue for 2026 already secured from new and existing clients.

• Profitable growth anticipated, supported by strong design wins and expanding project pipeline.