Lacroix: Revenue Up 5.9% in Q1, But Some Growth Drivers Weakening
Lacroix reported a first-quarter 2026 revenue of 122.8 million euros, marking a 5.9% year-over-year increase. However, this performance largely depends on the Environment segment, boosted by exceptional elements that the group anticipates will slow down for the rest of the fiscal year. Electronics, the company's historical core, remained nearly stable at -0.9%, reflecting the strategic rebalancing announced in its exposure to the automotive markets.
Environment Drives Growth Through Anticipated Funding Program Orders
The Environment segment recorded a revenue of 42.4 million euros, up 22.0% compared to the first quarter of 2025. This increase was fueled by a sharp acceleration of orders in Spain in the Water segment, driven by anticipation of the PERTE program deadline on June 30, 2026, a scheme that supports the financing of infrastructure network modernization projects. Lacroix explicitly states that it does not expect such a level of orders in Spain to continue throughout the rest of the fiscal year. Public Lighting benefited from a one-time delivery of a significant order internationally, offsetting an unfavorable trend in France, which is expected to continue into 2026 due to caution in a municipal election year.
Electronics Consolidates Its Strategic Refocus Away from Automotive
Electronics revenue came in at 80.4 million euros, down 0.9%, confirming the stabilization expected by management. The Home & Building Automation Systems (HBAS) and Industry segments showed positive dynamics, while the Aerospace and Defense segment marked a return to growth after a temporary decline in 2025. The Automotive sector recorded a moderate decline, reflecting the announced rebalancing of Electronics' exposure to this market. Its contribution has been reduced to 40% of Electronics' activity, down from nearly 60% three years ago. Concurrently, Lacroix finalized a syndicated loan of 77 million euros at the end of April, consisting of a partial refinancing of 44 million, a confirmed line for investments of 30 million, and a revolving credit facility of 3 million.
2026 Goals Reaffirmed, 2027 Targets Higher EBITDA Margin Over 8%
Lacroix reiterates its moderate revenue growth target for the full fiscal year 2026, supported by a gradual recovery in Electronics through the Aerospace and Defense segment and a stabilization in Environment, incorporating the slowdown in the French Public Lighting market. On profitability, the group confirms its aim to maintain its EBITDA margin rate in 2026 at 7.6%. For 2027, Lacroix targets a revenue between 475 and 500 million euros, with an EBITDA margin rate above 8% and a net debt/EBITDA ratio below 2.0 times. These goals reflect confidence in the strategic trajectory despite increasing supply tensions in electronic components.
