Seco (IOT) Q3 2025 earnings summary

Executive summary

• Net sales for the first nine months of 2025 reached €146.4M, up 5% year-over-year, driven by strong order recovery and growth in the US and APAC, offsetting EMEA weakness.

• Gross margin improved to 53.8% for 9M25, exceeding guidance, with Q3 2025 margin at 55%, driven by favorable sales mix and increased software revenue.

• Adjusted EBITDA rose 50.8% year-over-year to €30.8M (21% margin), with Q3 2025 margin at 22%, the highest in over two years.

• Adjusted net income increased to €11.4M, up €9.8M year-over-year, with net profit reaching €4.6M, reversing a prior loss.

• Key milestones include the launch of Pi Vision with Raspberry Pi, Clea Vend platform, and Clea OS v2.0.

Financial highlights

• Net sales grew 5% year-over-year to €146.4M for 9M25, with Q3 2025 up 9% versus Q3 2024.

• Gross profit margin reached 53.8% for 9M25 and 55% in Q3 2025.

• Adjusted EBITDA margin was 21% for 9M25 and 22% in Q3 2025.

• Adjusted net financial position was €51.2M as of September 30, 2025.

• Net profit reached €4.6M, compared to a €7.6M loss in the prior year.

Outlook and guidance

• Full-year revenue guidance of €200M+ is confirmed, with Q4 revenue expected well above €50M.

• Gross profit margin expected to remain above 50% for the full year.

• Profitability improvements are expected to continue, driven by business model changes and increased software revenue.

• New Arezzo plant to be fully operational by May 2026, expected to drive further cost efficiencies.

• Growth to be supported by new Edge products and increased adoption of Clea software modules.