SeSa S.p.A.

SeSa reported consolidated revenue and other income of EUR 900 million in Q1 FY27, up 6.5% year on year and fully organic. Consolidated EBITDA was EUR 65 million, up 7.6% year on year, with EBITDA margin at 7.23% versus the prior year’s level. Adjusted consolidated EBIT reached EUR 50.2 million, up 6.2% year on year; reported EBIT was EUR 41.4 million, up 7.5%; and adjusted EAT was EUR 30.1 million, up 7.1%. By segment, ICT VAS revenue was EUR 540 million (+8.1%), Green VAS was EUR 127 million (+14.4%), Software and System Integration was about EUR 230 million (-3%), and Business Services was EUR 41 million (+11%). Reported net financial position was EUR 23.4 million of net debt, improving by around EUR 40 million versus July 2025; excluding IFRS liabilities, net cash was EUR 150 million. For FY27, management confirmed revenue growth of 5% to 7.5% to EUR 3.8 billion to EUR 3.9 billion, EBITDA growth of 5% to 10% to EUR 274 million to EUR 287 million, and adjusted group EAT growth of 7.5% to 12.5% to EUR 115 million to EUR 119 million.

Alessandro Fabbroni said the quarter confirmed execution of the new 2027-2028 industrial plan and SeSa’s ability to grow at around twice the market rate. He emphasized demand tied to data management, cybersecurity, data protection, AI, and automation, and said the group is strengthening its role as a digital integrator across technology, digital platforms, and vertical applications. His tone was constructive and confident, with repeated references to solid momentum, improving profitability, and a positive order trend.

Fabbroni highlighted that the quarter was fully organic and showed a combination of growth and profitability improvement: revenue EUR 900 million, EBITDA EUR 65 million, adjusted EBIT EUR 50.2 million, and adjusted EAT EUR 30.1 million. He noted net financial expenses of about EUR 7.5 million, improving 11% versus Q4 FY26 and slightly higher than Q1 FY26, and said the group remains in a strong cash-generating position. He pointed to reported net debt of EUR 23.4 million and EUR 150 million of net cash excluding IFRS liabilities, alongside roughly EUR 120 million of investment and EUR 40 million of dividends and share buybacks over the last 12 months. He also reiterated shareholder returns, including a payout ratio of about 40%, an increased dividend from EUR 1 to EUR 1.33 per share, and ongoing buybacks.

Analysts focused on why Software and System Integration should recover from Q2, whether Business Services and Green VAS margins can keep expanding, how a higher cost of capital might affect cash generation, and what is underpinning confidence in ICT VAS. Management said the software business is improving operationally, with better skills, competencies, and backlog, and expects low-single-digit growth to resume from Q2. On margins, management said Business Services should hold its Q1 profitability and potentially improve gradually, while Green VAS’s 6% EBITDA margin was described as sustainable after merger synergies. On financing, Fabbroni said SeSa is in a much stronger cash-flow position than three years ago, with about EUR 200 million of operating cash flow over the last 12 months and reduced legal-entity complexity, making the company better prepared for higher rates.