Seco (IOT) Q2 2026 earnings summary

Executive summary

• Achieved sixth consecutive quarter of top-line and gross margin results ahead of guidance, despite supply chain challenges.

• Revenues for H1 2026 were stable year-over-year, increasing by 0.32% to €98.7 million, with strong demand in edge computing and IoT solutions across key verticals.

• Strategic investments in working capital, especially in memory and PCB inventory, ensured supply continuity.

• Announced a major partnership with Neura Robotics, expected to generate new revenue streams from 2027.

• Fully operational new PCBA plants in Italy and China, increasing capacity and customer proximity.

Financial highlights

• Edge computing business grew 6% year-over-year, overcoming procurement difficulties.

• Software recurring revenues increased 13% year-over-year, driven by Clea software adoption.

• EBITDA for H1 2026 was €15.6 million, down 2.06% from H1 2025; Adjusted EBITDA was €18.5 million, down 8.18% year-over-year.

• Gross profit margin improved despite higher bill of materials costs, aided by positive sales mix.

• EBITDA margin declined by 1.5 percentage points, mainly due to increased personnel and logistics costs.

Outlook and guidance

• Q3 revenue guidance set at an all-time high of EUR 60 million, up 25% year-over-year.

• Order intake at record levels, up 55% year-over-year, providing strong visibility for future quarters.

• 2027 revenue target raised to at least EUR 270 million, factoring in Neura partnership.

• The Group expects continued strong demand for edge computing and AI-enabled solutions, but faces uncertainty from memory price and supply volatility.

• Book-to-bill ratio at 1.4, indicating sustained demand.