LACROIX Sets Revised Financial Targets for 2026

On September 30, 2026, LACROIX, a French mid-cap technology and industrial group, reported significant financial performance for the first half of 2026. The company's revenue for the period rose by 3.2% to €235.2 million, marking a continuation of the stability seen in the Electronics activity, with a notable increase in the Environment activity driven by a temporary peak in activity in the first quarter of 2026.

LACROIX's EBITDA margin for the first half of 2026 stood at 10.1%, a significant improvement from the 7.5% recorded in the same period last year. This improvement is attributed to the Electronics activity, which saw a positive contribution, and the Environment activity, which benefited from a cyclical peak in activity.

The Electronics activity, which generated revenue of €156.1 million in the first half of 2026, down slightly from the same period in 2025, saw its profitability improve to €2.3 million, up from €1.4 million in the previous year. This improvement is attributed to a more favorable mix of business segments served and stronger operational performance.

The Environment activity, which recorded revenue of €79.1 million at mid-year, up 12.8% from the first half of 2025, saw its EBITDA rise to €22.7 million, reflecting a non-normative level of 28.7%, up from 23.4% in the same period last year. The increase is attributed to the remarkable momentum of the Water segment, driven by two factors: in Spain, orders surged in the first quarter ahead of the 30 June 2026 deadline for the PERTE programme funding infrastructure network digitalization projects; and in France, the equipment replacement cycle reached a peak in connection with the planned shutdown of 2G and 3G networks.

LACROIX's current operating profit for the first half of 2026 stood at €17.3 million, up 62.4% year on year, after depreciation, amortisation, and IFRS 2 expenses remained stable. The company's net income from continuing operations was €9.0 million, up from €8.4 million in the first half of 2025, with financial expenses decreasing to €3.6 million from a positive balance of €0.15 million in the previous year, and income tax expenses increasing to €4.6 million from €1.2 million.

Despite the cash impact of discontinued operations, LACROIX's free cash flow remained strongly positive at €11.1 million at mid-year, compared to €12.0 million in the first half of 2025. This free cash flow generation, combined with limited loan repayments following the debt refinancing, enabled the company to achieve a solid improvement in its cash position, with net debt down 28.6% year on year to €72 million at 30 June 2026, and gearing falling significantly to 77% from 88% at 30 June 2025.

LACROIX has revised its financial targets for the 2026 financial year, expecting revenue of more than €455 million and an EBITDA margin of more than 9%, compared to previous forecasts of more than €445 million and 7.6%. The net debt/EBITDA ratio is now expected to be below 2.0x, compared to below 2.5x previously. The company has also confirmed its financial targets for 2027, expecting revenue of between €475 million and €500 million, an EBITDA margin of more than 8%, and a net debt/EBITDA ratio below 2.0x.