France's Lectra Q3 EBITDA net income rises on SaaS subscription growth

Overview

• France industrial tech firm's Q3 revenue stable yr/yr, adjusted EBITDA up 10%

• Net income for Q3 rose 45% yr/yr, aided by lower tax expense

• Company expects 2026 SaaS and recurring revenue growth below roadmap targets

Outlook

• Lectra expects 2026 SaaS ARR and recurring contract revenue growth below roadmap targets

• Lectra reiterates objective of improving its security ratio

Result Drivers

• RECURRING REVENUE RESILIENCE - Co said stable recurring revenues, including sustained SaaS subscription growth, helped offset declines in other segments

• LOW EQUIPMENT ORDERS - Co said equipment orders remained low as customers maintained a wait-and-see approach to investment

• COST BASE ADJUSTMENTS - Co attributed improved EBITDA margin to cost base adjustments and margin mix improvements

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the it services & consulting peer group is "buy"

• Wall Street's median 12-month price target for Lectra SA is €25.00, about 8.9% above its October 27 closing price of €22.95

• The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 20 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)