Italy's SECO Q1 sales rise 3% on order recovery

Seco SpA

11/05/2026 10:56

Overview

Italy embedded computing firm's Q1 net sales rose 3% yr/yr to EUR 48.5 mln

Q1 adjusted EBITDA and net income declined, impacted by higher operating expenses and memory pricing

Company cites resilient demand and Clea software adoption, but notes ongoing cost headwinds

Outlook

SECO expects Q2 2026 revenues in excess of €50 mln

Company sees strong momentum driven by demand for edge AI and Clea software

SECO says robust fundamentals and innovation pipeline support outlook for 2026

Result Drivers

ORDER RECOVERY - Revenue growth driven by gradual recovery in customer order levels, especially in industrial verticals and APAC/EMEA regions

COST PRESSURE - Higher operating expenses and elevated memory pricing weighed on profitability

CLEA REVENUE MIX - Clea recurring revenues rose 20% yr/yr, but overall Clea revenues contracted due to shift of some non-recurrent portion into deployment stage

Company press release: ID:nBIAbSwTXJ

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Adjusted Net Income
EUR 2.20 mln
Q1 Adjusted EBITDA
EUR 9.10 mln
Q1 Adjusted EBIT
EUR 4.50 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the semiconductors peer group is "buy"

Wall Street's median 12-month price target for Seco SpA is €3.75, about 31.3% above its May 8 closing price of €2.86

The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 26 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)