Sesa S.p.A. ((IT:SES)) has held its Q1 earnings call. Read on for the main highlights of the call.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
The recent earnings call of Sesa S.p.A. painted a generally positive picture, highlighting significant revenue and profit growth, particularly in the Digital Green VAS and Business Services sectors. Despite facing some hurdles in the ICT VAS and Software and System Integration sectors, the company showcased robust financial management and a strong commitment to sustainability, aiming to enhance shareholder value.
Revenue and Profit Growth
SeSa reported impressive financial results with revenues reaching EUR 846 million, marking an 8% increase year-on-year. The adjusted net profit rose by 6.4% to EUR 29.8 million, while EBITDA saw a 7.2% increase to EUR 61 million. This growth underscores the company’s effective strategies in navigating market challenges.
Strong Performance in Digital Green VAS
The Digital Green VAS sector emerged as a standout performer, with revenues soaring by 24.7% year-on-year. This growth was fueled by a 20% organic increase and rising energy demands, leading to an 18% growth in EBITDA. This sector’s success highlights SeSa’s strategic focus on sustainable and digital solutions.
Business Services Sector Profitability
The Business Services sector demonstrated remarkable profitability, with a 25% year-on-year increase in EBITDA. This was driven by a strategic emphasis on digital platforms and vertical applications, showcasing SeSa’s adaptability and innovation in service delivery.
Significant Reduction in Financial Expenses
SeSa achieved a notable improvement in its net financial position, which improved by 12% compared to the first quarter of ’25 and by 36% compared to the fourth quarter of ’25. This was supported by lower interest rates and efficiency measures, reflecting the company’s prudent financial management.
Shareholder Value Enhancement
In a move to enhance shareholder value, SeSa approved a dividend of EUR 1 per share and increased its share buyback program from EUR 10 million to EUR 25 million. This resulted in a payout ratio increase from 30% to 40%, demonstrating the company’s commitment to returning value to its shareholders.
Sustainability Commitment and ESG Improvements
SeSa continued to invest in sustainability and digital green initiatives, achieving significant improvements in ESG performance. The company remains dedicated to its sustainable development goals, reinforcing its long-term commitment to environmental and social governance.
ICT VAS Revenue Decline
The ICT VAS sector faced challenges, with revenues declining by 2.7% year-on-year. However, this marks a recovery from an 8.2% decline in the previous quarter, indicating potential stabilization in the sector.
Software and System Integration Sector Challenges
The Software and System Integration sector reported a 2.7% year-on-year decrease in EBITDA, attributed to slower demand and ongoing re-engineering activities. This highlights the sector’s current challenges and the need for strategic adjustments.
Forward-Looking Guidance
SeSa provided optimistic forward-looking guidance, projecting a 5% to 7.5% growth in revenues and a 5% to 10% increase in EBITDA for fiscal year 2026. The company remains committed to achieving these targets, supported by its strong financial performance and strategic initiatives.
In summary, SeSa S.p.A.’s earnings call reflected a positive sentiment, with significant growth in key sectors and a strong commitment to sustainability. Despite some challenges, the company’s strategic focus and financial management have positioned it well for future growth, enhancing shareholder value and maintaining its competitive edge.