Lectra: Stable Revenue in Third Quarter, EBITDA Up 10%
Lectra published its third-quarter results on October 28, 2026. EBITDA before non-recurring items increased by 10% while revenue remained stable at actual exchange rates.
This gap between activity and profitability is attributable to the weight of recurring revenue, which represents 78% of quarterly revenue, and the growth of SaaS subscriptions. Equipment orders, at €18.9 million, declined by 10% on a comparable basis, a level the company describes as low.
Third Quarter: EBITDA Margin at 19.3%, Revenue Stable
Third-quarter revenue stood at €121.6 million, compared with €121.8 million a year earlier. It is stable at actual exchange rates and down 2% on a comparable basis. Analysts had expected an average of €125 million prior to publication.
Recurring revenue remained stable: the 12% increase in SaaS subscriptions on a comparable basis offset the decline in consumables and spare parts as well as a more mixed performance in maintenance contracts. Non-recurring revenue (22% of the total) declined by 7%.
EBITDA before non-recurring items reached €23.4 million, up 10%. Its margin stood at 19.3% compared with 17.4% a year earlier, an increase of 200 basis points on a comparable basis. Operating profit increased by 23%, to €13.5 million.
Net income increased by 45%, to €10.4 million compared with €7.2 million. According to the company, this increase reflects a significantly lower tax charge, notably related to the use of tax loss carryforwards.
Over Nine Months, Structural Levers Offset Most of Cyclical Effect
Over the first nine months, revenue declined by 4% on a comparable basis, to €361.3 million. Recurring revenue (€285.0 million, 79% of the total) increased by 1%, including €73.7 million in SaaS subscriptions up 13%. Non-recurring revenue declined by 21%, to €76.2 million.
This mix drove gross margin to 74.5%, up 190 basis points. EBITDA before non-recurring items declined by 3% on a comparable basis, to €57.1 million. Its margin stood at 15.8% compared with 16.1%, or 0.3 percentage point lower at actual rates but 0.3 percentage point higher on a comparable basis.
The group estimates the structural effect of its transformation on EBITDA at €9.1 million: €5.5 million stems from the growth of recurring contracts and €3.6 million from the decline in fixed costs. This contribution offset most of the negative impact related to lower cyclical activity contribution.
Net income increased by 10%, to €20.1 million, and free cash flow before non-recurring items reached €36.4 million. Net debt stood at €62.4 million at the end of September, compared with €21.3 million at the end of 2025, mainly due to the buyout of minority interests in TextileGenesis and Launchmetrics, dividends and share buybacks.
2026 Recurring Growth Below Roadmap, Margin Target Exceeded
At end-September, ARR stood at €106.5 million, up 8% on a comparable basis since end-2025 (11% at annualized rate). For 2026, Lectra anticipates SaaS ARR growth and recurring contract revenue growth below the trajectories of its 2026-2028 roadmap (+15% and +5% to +8% on a comparable basis).
The group reiterates its objective to improve the safety ratio, which measures the coverage of fixed costs by gross margin from recurring activities. This ratio reached 99% at end-September, for a target of above 100% in 2028. Annual results will be published on February 10, 2027.
On profitability, the company anticipates that the contribution of structural improvement in its EBITDA margin before non-recurring items will exceed in 2026 the target of 120 to 180 basis points announced in February, on a comparable basis. According to the group, this lever enabled it to offset equipment orders below their 2025 level.
