LECTRA: 2024: improved financial results in what remains a degraded environment

2024: improved financial results in what remains a degraded environment

• Revenues: 526.7 million euros (+10%)*
• EBITDA before non-recurring items: 91.1 million euros (+15%)*
• Net income: 29.6 million euros (-9%)*
• Free cash flow before non-recurring items: 72.1 million euros (+59%)*
• Dividend^**: €0.40 per share (+11%)

* Change at actual exchange rates (%)
** Proposed to the Annual Shareholders’ Meeting on April 25, 2025

In millions of euros	October 1 – December 31		January 1 – December 31
	2024(1)	2023	2024(1)	2023
Revenues	132.5	119.3	526.7	477.6
Change at actual exchange rates (%)	11%		10%
EBITDA before non-recurring items(2)	22.6	19.8	91.1	79.0
Change at actual exchange rates (%)	14%		15%
EBITDA margin before non-recurring items (in % of revenues)	17.1%	16.6%	17.3%	16.5%
Income from operations before non-recurring items(2)	11.9	12.3	49.3	49.1
Change at actual exchange rates (%)	-3%		0%
Net income	8.4	7.7	29.6	32.6
Free cash flow before non-recurring items(2)	22.2	13.2	72.1	45.3

(1)   2024 figures include Launchmetrics since January 23,2024
(2)   The definition for performance indicators appears in the Management Discussion of December 31, 2024

Paris, February 12, 2025. Today, Lectra’s Board of Directors, chaired by Daniel Harari, reviewed the consolidated financial statements for the fiscal year 2024. Audit procedures have been performed by the Statutory Auditors. The certification report will be issued at the end of the Board of Director’s meeting of February 27, 2025.

To facilitate analysis of the Group's results, the accounts of Lectra excluding Launchmetrics (the "Lectra 2023 scope") are analyzed separately from the Launchmetrics accounts. The detailed 2024 vs 2023 comparisons for the Lectra 2024 scope and for Launchmetrics are based on actual exchange rates, whereas the comparisons for the Lectra 2023 scope are stated on a like-for-like basis.

1.    SUMMARY OF THE YEAR 2024

The year 2024 was marked by a severely degraded macroeconomic and geopolitical environment, prompting the Group's customers to exercise prudence in their investment decisions, though situations varied across geographies and market sectors.

Under these conditions, for the Lectra 2023 scope, orders for new systems were stable, and new SaaS subscriptions grew by 8%, confirming their success and increasing adoption by the Group’s customers.

2024 earnings in line with recent estimates

On October 30, the Group reported that revenues and EBITDA before non-recurring items were expected to be near the lower end of the ranges indicated on February 14, i.e., revenues of 480 million euros and EBITDA before non-recurring items of 85 million euros for the Lectra 2023 scope; and 42 million euros in revenues and EBITDA margin before non-recurring items of over 15% for Launchmetrics, i.e., revenues of 522 million and 91.3 million euros of EBITDA margin before non-recurring items for the Lectra 2024 scope.

In total, full-year 2024 revenues grew 10% to 526.7 million euros and EBITDA before non-recurring items increased 15% to 91.1 million euros.

Successful integration of Launchmetrics

Launchmetrics achieved revenues of 41.2 million euros and an EBITDA before recurring items of 7.0 million euros, and exceeded the Group’s profitability expectations with an EBITDA margin before non-recurring items of 16.9%.

What’s more, this acquisition has considerably expanded Lectra's SaaS activity, providing the basis for a twofold increase in SaaS revenues to 77.4 million euros at end-2024 and strengthening SaaS’s future potential.

The integration -- in terms of processes, teams and products -- is already a proven success and enables Lectra to form a coherent set of SaaS activities. Launchmetrics has also contributed its top-level practices in the area of SaaS, thus enriching the customer experience across the Group.

Continuing improvement in the fundamentals of the Group's business model

The fundamentals of the Group's business model were substantially improved, notably on the basis of the strict cost control policy implemented since May 2023, and the contribution of Launchmetrics. Recurring revenues increased by 18%, with margins covering nearly all fixed costs. The EBITDA margin before non-recurring items rose 0.8 percentage point, to 17.3%. Free cash flow before non-recurring items generated in 2024 came to 72.1 million euros (+59%) and the Group's net debt was brought down to 20.6 million euros at December 31, 2024.

2.    Q4 2024

Q4 2024 revenues were up 11% compared to Q4 2023, at 132.5 million euros, with Launchmetrics contributing 11.0 million euros.

EBITDA before non-recurring items (22.6 million euros) was up 14% and the EBITDA margin before non-recurring items came to 17.1% (+0.5 percentage points).

Free cash flow before non-recurring items rose sharply to 22.2 million euros (+68%).

Lectra 2023 scope

Currency changes had only a limited impact on revenues and results.

Orders for new systems were stable compared to Q4, 2023, at 38.6 million euros, and new SaaS subscriptions came up to 3.6 million euros (+17%).

Revenues came to 121.5 million euros, up 1%: revenues for new systems were down 6%, while recurring revenues were 5% higher.

EBITDA before non-recurring items was 21.0 million euros and the EBITDA margin before non-recurring items came to 17.3%, up 0.3 percentage point.

3.    2024

Full-year 2024 revenues came to 526.7 million euros, up 10% with the following breakdown: 28% of total revenues for new systems, down 5%, 72% of total revenues in recurring revenues, up 18%, including Saas revenues of 77.4 million euros (x2.5).

Launchmetrics, which has been consolidated since January 23, 2024, contributed 41.2 million euros to 2024 revenues.

Gross profit came to 376.9 million euros, up 13%, and the gross profit margin was 71.6%, up 1.8 percentage points over 2023.

EBITDA before non-recurring items came to 91.1 million euros, up 15%, and the EBITDA margin before non-recurring items rose 0.8 point to 17.3%.

Income from operations before non-recurring items amounted to 49.3 million euros, stable compared to 2023. This included a 22.7-million-euro charge for amortization of intangible assets arising from the acquisitions carried out since 2021.

Research and development costs, which were fully expensed in the period and included in fixed overhead costs, represented 12.8% of revenues (11.7% in 2023).

Financial income and expenses represented a net charge of 6.0 million euros (2.8 million euros in 2023) due to higher interest rates and the financing of the Launchmetrics acquisition.

Foreign exchange gains and losses generated a net loss of 2.2 million euros.

Taking into account the amortization of intangible assets, the increase in financial expenses, and an income tax expense of 10.9 million euros, net income amounted to 29.6 million euros, down 9% compared to 2023.

Free cash flow before non-recurring items was significantly higher, at 72.1 million euros (+59%).

A particularly robust balance sheet

At December 31, 2024, the Group had a particularly robust balance sheet with a consolidated shareholders’ equity of 374.4 million euros, a negative working capital requirement of 25.2 million euros and net debt of 20.6 million euros. The net debt consisted of financial debt of 102.5 million euros and cash of 81.9 million euros.

Lectra 2023 scope

Currency changes had only a limited impact on revenues and results.

Orders for new systems (144,9 million euros) were stable compared to 2023.

Orders for perpetual software licenses (11.4 million euros) fell by 18% — as most new software is now sold in SaaS mode— while orders for equipment and accompanying software (113.0 million euros), and for training and consulting (17.3 million euros) rose by 2% and 9%, respectively.

Revenues were up 2% at 485.5 million euros, and recurring EBITDA was up 7% at 84.2 million Euros.

4.    DIVIDEND

The Company maintained its attractive shareholder compensation policy with dividends representing a payout ratio of about 40% of net income in 2023 and, as a result of the strong increase in free cash flow, the company has decided on a payout ratio of 50% of net income for the year 2024.

The Board of Directors will propose to the Shareholders’ Meeting of April 25, 2025 the payment of a dividend at €0.40 per share in respect of fiscal year 2024.

5.    CHANGES IN GOVERNANCE

Following a disagreement with the Chairman and Chief Executive Officer regarding the role of the Lead Director, Ross McInnes has decided to resign from his position as Director, effective April 24, 2025. The Board of Directors thanks him for his contribution over the past three years. 

As of April 25, 2025, the Board of Directors of Lectra will consist of 7 members: Daniel Harari (Chairman and Chief Executive Officer), Nathalie Rossiensky (Lead Director, Independent Director), Céline Abecassis-Moedas (Independent Director), Karine Calvet (Independent Director), Pierre-Yves Roussel (Independent Director), Jérôme Viala (non-Independent Director) and Hélène Viot-Poirier (Independent Director). 

6.    ASSESSMENT OF THE 2023-2025 STRATEGIC ROADMAP – SECOND PROGRESS REPORT

Launched in 2017, the Lectra 4.0 strategy aims to position the Group as a key Industry 4.0 player in its three strategic market sectors: fashion, automotive and furniture, before 2030. The strategy has been implemented up to now through three strategic roadmaps.

The first strategic roadmap, which covered the 2017-2019 period, established the key fundamentals for the future of the Group.

The second roadmap, which ran from 2020 through 2022, achieved a new dimension for the Group – primarily through the acquisition of Gerber in June 2021 – and opened new perspectives, with a financial position stronger than ever before, an extended worldwide presence, a broader customer base, a powerful product portfolio, a growing number of customers using its new offers for Industry 4.0, and a new brand image.

The Group's ambition over the 2023-2025 period is to take full advantage of its change in dimension to accelerate growth, to significantly increase the volume of SaaS in revenues, and to seize acquisition opportunities.

Despite the unstable economic and geopolitical climate, Lectra successfully maintained its long-term strategic orientations. Further, all the fundamentals of the Group's business model improved significantly and customer adoption of the SaaS model accelerated. The Group acquired Launchmetrics and strategic partnerships were concluded with Six Atomic and AQC.

With the commitment of employees and recognition by customers, Lectra stands at the forefront in building a more sustainable future. The Group has taken numerous steps to enhance its offering to reduce environmental impact for its customers, notably through material traceability for fashion, thanks to the acquisition of a majority stake in TextileGenesis in early 2023.

Details of the second progress report on this 2023-2025 strategic roadmap can be found in the December 31, 2024 "Management Discussion and Analysis” document, available on Lectra.com.

7.    OUTLOOK

In the challenging environment of 2024, Lectra proved to be highly resilient, confirming the relevance of its strategy and the quality of its fundamentals—crucial assets for the Group's continued development.

Outlook for 2025

While initial positive signs can be detected, the lack of visibility in what remains an uncertain economic and geopolitical context, could continue to weigh on investment decisions by the Group’s customers going forward.

In this context, the Group has begun the year 2025 with confidence and will pursue its strategy by meeting the needs of its customers as closely as possible via the quality of its offers for Industry 4.0 and by developing its SaaS activity.

As in the previous two years, visibility regarding orders for new systems remains low, with no way of anticipating the timing or magnitude of a possible rebound, which could nevertheless occur during the course of the year.

Recurring revenues, which accounted for 72% of total revenues in 2024, are expected to grow further in 2025, largely on the strength of expanding SaaS activity.

Furthermore, the Group will maintain strict cost controls and anticipates a mix of orders that will favorably impact the gross margin.           

In light of the above, Lectra has set the 2025 objective of achieving recurring revenues of over 400 million euros, including 90 million euros of SaaS revenues.

Overall, revenues are expected to be between 550 and 600 million euros, with an EBITDA margin before non-recurring items close to 20%, based on exchange rates at December 31^st, 2024, particularly of $1.04/€1.

The Management Discussion and Analysis of Financial Conditions and Results of Operations and the financial statements for Q4 and the fiscal year 2024 are available on lectra.com. First quarter earnings for 2025 will be published on April 24. The Annual Shareholders' Meeting will take place on April 25, 2025.

About Lectra

As a major player in the fashion, automotive and furniture markets, Lectra contributes to the Industry 4.0 revolution with boldness and passion by providing best-in-class technologies.The Group offers industrial intelligence solutions - software, equipment, data and services - that facilitate the digital transformation of the companies it serves. In doing so, Lectra helps its customers push boundaries and unlock their potential. The Group is proud to state that its 3,000 employees are driven by three core values: being open-minded thinkers, trusted partners and passionate innovators.Founded in 1973, Lectra reported revenues of 527 million euros in 2024. The company is listed on Euronext, where it is included in the following indices: CAC All Shares, CAC Technology, EN Tech Leaders and ENT PEA-PME 150.

For more information, visit lectra.com.

Lectra – World Headquarters: 16–18, rue Chalgrin • 75016 Paris • France
Tel. +33 (0)1 53 64 42 00 – www.lectra.com
A French Société Anonyme with capital of €37,966,274 • RCS Paris B 300 702 305

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• Lectra_PressRelease_Q4FY2024