Sesa (AO) | Buy | IIC: Q4 to extend 9M outperformance, eyes on FY 2027

Research evidence excerpt

Sesa (AO) | Buy | IIC: Q4 to extend 9M outperformance, eyes on FY 2027

s and public-sector clients have accelerated investment plans in digital infrastructure,

cybersecurity and AI integration, adding a further leg to demand. Italy remains the core market, with strong relationships across

banks, public administration and large industrials, while Spain, Germany and France are increasingly contributing as growth

markets where Sesa is still under-penetrated.

What’s new?

Management qualitatively indicated a solid closing of FY 2026 (April y-e) on all the lines (and in line with what has been seen so

far). A good visibility on FY 2027 should drive ambition after the current year.

Underlying demand for VAS remains strong, driven by AI-related infrastructure spending. Management flagged that large

enterprises with strategic digital integration projects continue to invest, while SMEs remain more selective on the back of price

increases on certain hardware. Servers are up in price, networking is more stable, and large strategic projects confirm the

appetite for end-to-end integrated solutions.

The Digital Green segment continues to grow, with prices now stabilised after the Chinese dumping episode of prior years.

Management flagged emerging tailwinds from data-centre-related demand and broader European industrial electrification.

After a transition year in FY 2026, SSI should start to grow again in 2027. The re-engineering plan has yet to show the outcomes,

but it is starting to show cost savings.

The BS remains the most dynamic organic segment, with double-digit revenue growth driven by multi-year platform contracts

with Italian banks and progressive opening to non-financial clients (industrials, large corporates)

IMPORTANT.