SeSa S.p.A.

In the first half of FY26, Sesa reported revenues and other income of EUR 1.6 billion, up 12% year on year; EBITDA of EUR 114 million, up 11.4%; adjusted net profit of around EUR 50 million, up 17%; adjusted EBIT of EUR 86 million, up 9.2%; and reported EBIT of EUR 65 million, up 8.8%. EBITDA margin was 7.1%, broadly stable year on year. On an organic basis versus pro forma first-half 2025 including Greensun, revenue rose 5.5%, EBITDA 6.0%, and adjusted group net profit after taxes 7.6%. In Q2 alone, revenue was EUR 755 million, up 16% reported and 9.4% like-for-like, with operating EBITDA up 16.6% reported and 8.4% versus pro forma. Management confirmed FY26 guidance remains intact and said the average to upper end of the range looks like the most reliable target: revenue growth of 5% to 7.5%, organic EBITDA growth of 5% to 10%, and around 10% organic growth in net consolidated profit. It also confirmed total FY26 investment of about EUR 80 million, including EUR 35 million of M&A and EUR 52 million to EUR 55 million of CapEx.

Alessandro Fabbroni said the company is executing a new industrial plan built around organic growth, operating efficiency, AI/automation, and digital enablers, while simplifying the group. He emphasized that Sesa is strengthening its position as a digital integrator across cybersecurity, cloud, AI, automation and vertical applications. His tone was confident, repeatedly saying the company is on track and that the average-to-upper end of guidance is the most reliable target for FY26.

Management highlighted improving profitability and cash generation alongside lower financial expenses. Net financial expenses fell 11% in the first half and 15.5% in Q2, helped by lower interest rates and efficiency measures. Net debt was EUR 119 million as of October 2025, improving versus EUR 122 million pro forma, after last-12-month investments of EUR 140 million, including EUR 80 million of M&A, and around EUR 35 million of buybacks and dividends. Caterina Gori also said annual M&A should decline to around EUR 30 million under the new plan, while CapEx is expected to be roughly EUR 50 million per year; she noted the buyback program was raised to EUR 25 million and the payout ratio to 40%.

Analysts focused on what could drive results toward the top or bottom of guidance, why the net profit guidance is now around 10% rather than 10% to 12%, the sustainability of ICT VAS momentum, and whether the EUR 80 million investment figure includes M&A. Management said the strong Q2, positive backlog entering Q3, and overperformance in ICT distribution and Digital Green support the upper end of guidance, while software/system integration is slightly below plan but improving. On ICT VAS, Sesa said it entered Q3 very well and cited a 25% backlog increase in November; on CapEx, it confirmed EUR 80 million overall including EUR 35 million of M&A and EUR 52 million to EUR 55 million of CapEx. On SSI and AI, management said AI is mainly an opportunity to improve efficiency and EBITDA margin rather than a major erosion risk, given exposure to proprietary software, technology and consulting.