This article first appeared on GuruFocus .
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Consolidated Revenue:EUR 3.6 billion, up 7.9% year-on-year compared to pro forma results, and up 10.6% against reported results.
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Consolidated EBITDA:EUR 260.4 million, increasing by 8.2% year-on-year compared to pro forma and by 10.6% against reported results, with an EBITDA margin stable at 7.2%.
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Q4 2026 Revenue:EUR 915 million, up 9% year-on-year.
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Q4 2026 EBITDA:EUR 69 million, up 8.2% with a quarterly EBITDA margin at 7.6% of revenues.
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ICT VAS Revenue:EUR 2.25 billion, growing 8.6% year-on-year.
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Green VAS Revenue:EUR 412 million, up about 20% year-on-year.
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Software and System Integration Revenue:EUR 909 million, growing by 3.8% year-on-year.
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Business Services Revenue:EUR 159 million, up 3.2% year-on-year.
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Group PAT Adjusted:EUR 160 million, up 10.7% year-on-year compared to pro forma results.
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Net Income After Taxes:EUR 80.6 million, up 13.2% compared with EUR 71 million as of April 30, '25 on a pro forma basis.
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Operating Cash Flow:EUR 205 million.
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Net Financial Position:Improved to EUR 17.5 million of net debt as of April 30, '26, from EUR 75 million as of April 30, '25.
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Dividend Distribution Proposal:EUR 1.33 per share, up 33% year-on-year, equal to approximately EUR 21 million.
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Warning! GuruFocus has detected 11 Warning Signs with SESPF.
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Release Date: July 16, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Sesa SpA ( SESPF ) achieved all financial targets at the upper end of their guidance, with strong organic growth and increased market share.
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Consolidated revenues for FY26 reached EUR3.6 billion, up 7.9% year-on-year, with a significant contribution from all group sectors.
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The company reported a strong cash flow generation with operating cash flow reaching EUR205 million, driven by profitability growth and efficient working capital management.
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Sesa SpA ( SESPF ) achieved a very positive set of ESG results, with 97% of electricity purchased from renewable sources and a 10% increase in value generation distributed to stakeholders.
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The new industrial plan targets high single-digit growth, with expected revenues over EUR4 billion and EBITDA above EUR300 million by FY28, leveraging their position as a leading digital integrator.
Negative Points
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Despite the positive financial performance, the EBITDA margin showed only a slight improvement from 7.2% to 7.5% by FY28, indicating limited operating leverage.
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The Business Services sector experienced a slowdown in Q4 due to the postponement of several contracts, although a recovery is expected in FY27.
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The company faces challenges in maintaining stable headcount while aiming for increased productivity and operational scalability.
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There is a potential risk of deceleration in growth after the strong start in Q1 FY27, as the guidance for the fiscal year remains mid- to high single-digit.
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The limited improvement in EBITDA margin may be attributed to cost inflation and business mix, which could impact future profitability.
Q & A Highlights
Q: Can you provide more details about the strong performance of your value-added solution business and the drivers behind sustaining this trend? A: Alessandro Fabbroni, CEO, explained that the value-added solutions business overperformed expectations with a 9% revenue growth and 12.6% EBITDA growth. The demand for data management and protection, driven by AI adoption, is a key driver. The company is confident in maintaining mid- to high single-digit growth due to its role as a digital integrator combining technology with AI.
Q: What factors contributed to the improvement in net working capital, and is it related to the revenue mix? A: The improvement in net working capital, approximately EUR40 million year-on-year, is attributed to efficiency across all sectors. The shift towards a service model in software system integration, although a smaller part of the business, also contributed to better working capital management.
Q: Why is the expected EBITDA margin improvement limited despite top-line growth and stable headcount? A: The CEO noted that the company plans to increase EBITDA margin from 7.2% to 7.5% by 2028, reflecting a prudent approach. The growth in revenues and EBITDA is expected to be between 5% and 10%, indicating an improvement in operating efficiency.
Q: What caused the softer top-line growth in Business Services during Q4? A: The CEO attributed the slowdown to the postponement of several contracts, which is expected to be offset by a strong start in FY27 with over 15% revenue growth in Q1. The company maintains a balanced growth mix across business units.
Q: Given the double-digit growth in Q1, why is the FY27 guidance only mid- to high single-digit growth? A: The CEO stated that the strong start provides an opportunity to exceed guidance, but they prefer to wait for Q1 results before adjusting expectations. The guidance aligns with previous forecasts and reflects a cautious approach.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
