Stratec (SBS) Q2 2026 earnings summary

Executive summary

• Business performance improved significantly in Q2 2026, narrowing the year-on-year gap in sales and earnings by the end of H1 2026, with strong momentum in the system business and robust free cash flow.

• Profitability for H1 2026 nearly matched the prior year, supported by cost discipline and strong demand for lifecycle management projects.

• FY 2026 guidance confirmed, with growth expected from strong year-end business volumes and a backend-loaded year.

• High customer demand for lifecycle management projects and successful transfer of new developments to series production.

• Cost discipline and structural adjustments are in place to maintain profitability.

Financial highlights

• H1 2026 revenues were €112.5 million, a nominal decline of 5.1% (3.3% constant currency).

• Adjusted EBITDA was €15.7 million (margin 13.9%), and adjusted EBIT was €7.7 million (margin 6.9%), both nearly matching prior year levels.

• Free cash flow improved to €23.5 million from negative €14.7 million last year.

• Adjusted net income was €4.1 million (EPS €0.34); reported IFRS net income was €2.4 million (EPS €0.20).

• Operating cash flow was €29.7 million, up from negative €5.8 million in the prior year.

Outlook and guidance

• Full-year 2026 sales guidance confirmed: medium to high single-digit percentage growth at constant currency.

• Adjusted EBIT margin for the year expected around 10%, with investments at the lower edge of the 6.5%-8.5% of sales range.

• Growth is expected to be heavily backend-loaded, with Q4 contributing up to 35% of annual sales.

• 2025-2028 CAGR expected at 6%-8%; 2028-2030 CAGR expected at 10%-12%. Adjusted EBIT margin targets: at least 13% by 2028, 15% by 2030.

• Workforce expected to remain stable or expand slightly.