France's Lacroix raises 2026 targets as H1 EBITDA margin rises

Overview

• France technology and industrial group's H1 2026 revenue rose 3.2% yr/yr

• H1 EBITDA margin improved to 10.1% from 7.5% a year earlier

• Company raised 2026 revenue and EBITDA margin targets after strong H1 performance

Outlook

• Lacroix raises 2026 revenue target to over EUR455 mln from over EUR445 mln

• Company now targets 2026 EBITDA margin above 9%, up from prior target above 7.6%

• Lacroix expects 2026 net debt/EBITDA ratio below 2.0x, improved from below 2.5x

Result Drivers

• ENVIRONMENT ACTIVITY - Double-digit growth in Environment activity, driven by a temporary peak in Water segment in Q1

• ELECTRONICS BUSINESS MIX - Improved segment mix and operational performance contributed to higher Electronics profitability

• WORKING CAPITAL & CAPEX - Improved working capital and controlled capital expenditure supported positive free cash flow

Company press release:

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "strong buy"

• The average consensus recommendation for the electrical components & equipment peer group is "buy."

• Wall Street's median 12-month price target for Lacroix Group SA is €24.00, about 42.4% above its September 29 closing price of €16.85

• The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 6 three months ago

Reuters Recommended Reads

• Sept 30 - French preliminary inflation up at 3.4% in September

• Sept 29 - France's LightOn H1 revenue jumps 51% on higher Paradigm license sales

• Sept 28 - TotalEnergies raises share buyback targets as fuel prices drive profits

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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.)