Prodways: Revenue Down 9%, but a €20M Share Buyback in Sight for Shareholders
Prodways Group reported revenues of €10.6 million in the first quarter of 2026, a 9% decrease year-over-year on a like-for-like basis. Despite this downturn, the group maintains strict financial discipline and confirms its outlook for 2026, while accelerating its strategic refocus with the planned divestiture of its Software business.
Revenue Decline in Q1
The quarterly revenue decline primarily stemmed from the Systems division, which decreased by 20% to €3.4 million, down from €4.3 million a year earlier. This drop is mainly due to a structural decrease in material consumption by one of the group's major clients in Germany, according to the press release. The Products division, however, saw a limited decline of 3%, dropping from €7.4 million to €7.2 million. Despite these setbacks, Prodways emphasizes that it maintains a high margin level in the Systems division due to effective cost control. In the Products division, order intake increased by 12% compared to the first quarter of 2025, a sign the group views as an indicator of future improvement.
Ongoing Transformation and Asset Sale
The group is actively pursuing its transformation. A sale agreement for the Software activity, carried by its subsidiary AvenAo, was signed on March 6, 2026, for a price of €35 million. The press release states that the main suspensive conditions have been lifted, including the agreement of the strategic partner. However, this transaction remains conditional upon approval at the General Meeting scheduled for April 24, 2026. Furthermore, the group announces that, should the sale be approved, it will redistribute a significant portion of the proceeds, amounting to €20 million, through a public share buyback offer (OPRA), the details of which will be communicated later.
Steadfast in Meeting 2026 Goals
Prodways confirms that its operational performance in the first quarter, although diminished, does not compromise the objectives set for the fiscal year 2026. The group maintains its target of stable or slightly increasing revenue for the year and an improvement in the current EBITDA margin rate. This strategic stance appears to reflect the management's belief that the current difficulties, particularly in France and Germany, are temporary. It also relies on the initial signs of improvement observed in France within the Products division and on ongoing commercial renegotiations with clients and distributors, whose effects are expected for the remainder of the year.
