Stratec (SBS) Q2 2026 earnings summary

Executive summary

• Q2 2026 performance improved significantly, narrowing the year-on-year gap in sales and earnings by the end of H1 2026, with strong momentum in the system business and robust free cash flow.

• Profitability nearly matched the prior year, supported by cost discipline and strong demand for lifecycle management projects.

• FY 2026 guidance confirmed, with growth expected from strong year-end business volumes and backend-loaded sales.

• High customer demand for lifecycle management projects and successful transfer of new developments to series production.

Financial highlights

• H1 2026 revenues were €112.5 million, down 5.1% nominally and 3.3% at constant currency year-over-year.

• Adjusted EBIT was €7.7 million (margin 6.9%), slightly below the prior year; Q2 adjusted EBIT up 125.3% year-over-year.

• Free cash flow improved to €23.5 million from negative €14.7 million last year; operating cash flow rose to €29.7 million from negative €5.8 million.

• Adjusted net income was €4.1 million (EPS €0.34); reported IFRS net income was €2.4 million (EPS €0.20).

• Equity ratio increased to 58.1% as of June 30, 2026.

Outlook and guidance

• Full-year 2026 sales guidance confirmed: medium to high single-digit percentage growth at constant currency.

• Adjusted EBIT margin for 2026 expected around 10%, with investment ratio targeted at 6.5–8.5% of sales.

• Growth is expected to be heavily backend-loaded, with Q4 contributing up to 35% of annual sales.

• 2025–2028 CAGR expected at 6–8%, accelerating to 10–12% for 2028–2030; adjusted EBIT margin targets: at least 13% by 2028, 15% by 2030.

• Workforce expected to remain stable or expand slightly.