Lectra 2Q: The downturn may finally be ending

Research evidence excerpt

Lectra 2Q: The downturn may finally be ending

NSTEIN FLASHMAIL

30 July 2026

Aleksander Peterc

+33 1 57 29 45 25

European Technology/Software aleksander.peterc@bernsteinsg.com

Lectra

Rating

Outperform

Price Target

LSS.FP 27.50 EUR

MIDCAPS

A WELCOME BEAT - LECTRA’S PROTRACTED DOWNTURN MAY BE ENDING HERE

Lectra’s 2Q26 print was broadly in line on revenue but materially ahead on profitability, with non-recurring activity and cost

discipline driving a sharp beat at EBITDA and net income versus company-provided consensus and our numbers. Total revenue came

in at €126.5m, essentially flat year-on-year on a reported basis (-0.2%) and up 1% like-for-like, 1.0% above consensus and in line

with our estimate. Recurring revenues grew 3% like-for-like to €96.7m, modestly below expectations, while non-recurring revenues

declined 6% like-for-like to €29.8m, though 8% above consensus as the equipment backlog converted into sales.

Profitability was the clear upside surprise. Gross margin rose to 74.4% in 2Q (up 170bp year-on-year), supported by mix, higher

margins across product lines and continued cost control. EBITDA before non-recurring items reached €21.6m (17.1% margin),

23% above consensus and 13% above our estimate, with income from operations and net income similarly beating by wide margins.

Management highlighted that 97% of fixed overheads are now covered by the margin of recurring activity in 1H26, versus 93% in

1H25, underlining the resilience of the SaaS-led recurring model even at weak equipment volumes. Management described free cash

flow generation as returning to a 'satisfactory' level, with €24.5m generated in 1H26 despite a soft Q1, and working capital remaining

meaningfully negative at -€61.5m, a structural strength of the business.