Good morning. This is the conference call operator. Welcome, and thank you for joining the full year 2026 consolidated first half results conference call of SeSa. As a reminder, all participants are in listen-only mode. After the presentation, there will be an opportunity to ask questions. Should anyone need assistance during the conference call, they may signal an operator by pressing star and zero on their telephone. At this time, I would like to turn the conference over to Mr. Jacopo Laschetti, Stakeholder and Corporate Sustainability Manager of SeSa. Please go ahead, sir.
Good morning, and thank you for joining the SeSa group presentation. Representing the group today are Alessandro Fabbroni, Group CEO, Caterina Gori, Investor Relations and Corporate Finance and M&A Manager, and myself, Stakeholder Relations and Head of Sustainability.
Earlier today, the Board of Directors approved the consolidated financial results for the first half of the fiscal year 2026, ending October 31, 2025. The corporate presentation is available on the SeSa website and will serve as a reference throughout today's conference call. Alessandro will begin by providing an overview of the key business developments and achievements.
Good morning, everybody, and thank you for joining our group presentation. In the first half of 2026, SeSa started the implementation of the new 2026-2027 Industrial Plan by evolving our data-driven digital market oriented and people-inspired platform for enabling the sustainable growth of corporates and organizations, with a specific focus on organic growth and skills development.
In a challenging market scenario confirming growing demand for digitalization, SeSa has achieved its goal of consistent organic growth in revenue and profitability by strengthening our position in the key areas catalyzing digital transformations such as cybersecurity, cloud, AI, and automation, vertical, and digital platform by enabling the value creation for our stakeholders. The group's transformation from technology to a leading digital integrator has improved with investment focus on skills development and the adoption of the so-called digital enablers.
In the first half of 2026, on a consolidated basis, SeSa achieved revenues and other income for EUR 1.6 billion, up by 12% year on year, an EBITDA for EUR 114 million, up 11.4% year on year, and the net profit adjusted for around EUR 50 million, up by 17% year on year. On an organic basis, compared to the half-year pro forma, including the first half 2025 data of Greensun, consolidated revenues grew by 5.5% year on year, EBITDA by 6.0% year on year, and group net profit after taxes adjusted by 7.6% year on year.
The second quarter 2026 alone showed a great acceleration in consolidated revenues, which achieved EUR 755 million, up 16% year on year compared to reported figures and 9.4% like for like compared to pro forma, and an increase of operating EBITDA by 16.6% compared to reported figures and 8.4% compared to pro forma, with a group EAT adjusted increase by 30% compared to reported figures and 17% compared to pro forma.
Consolidated revenues show a positive contribution from all group sectors, ICT VAS recording EUR 939 million, up 2.1% fully organic, with a great recovery compared to the decline in first quarter 2025, with a down of 2.7%, driven by the single-digit growth achieved the second quarter, up by 8.1%. The positive November backlog trend, up by 25%, will support a positive trend for next quarters.
Digital Green VAS reported EUR 210 million, up by 26% compared to the first half 2025 pro forma, driven by the extension of the double-digit growth achieved in the first quarter 2026, and thanks to a strong performance in the corporate market, driven by the increasing energy demand associated with digitalization and AI adoption.
System Integration and Software sector reported EUR 420 million, up by 4% year on year, showing resilient performance despite the slowdown of demand in some Made in Italy districts and the re-engineering process affecting some business units. Finally, Business Services achieved EUR 74 million, up around 7% year on year, extending its entire organic growth driven by the development of applications for the financial services industry.
Consolidated EBITDA increased by 11.4% year on year, up 6% in comparison with the pro forma, reaching EUR 114.4 million compared to EUR 102.7 million as of October 2024, with an EBITDA margin of 7.1%, broadly stable year on year, thanks to the growth trend in the VAS sectors, both green and ICT, and the Business Services one. ICT VAS reported EUR 42.7 million, up 6.6%, with an EBITDA margin equal to 4.5%, up from 4.4% year on year.
Digital Green VAS recorded EUR 14 million EBITDA, up 30% compared to the first half 25 pro forma, with a 6.7% EBITDA margin compared to 6.5% year on year. System integration achieved EUR 43.4 million, down 1.9%, with an EBITDA margin equal to 10.3%, reflecting the re-engineering operations in some business units of the sectors, with an expectation of EBITDA margin stabilization FY26 at similar level to FY25.
Business Services reported EUR 11.6 million, up 6.6% year on year, and a 15.8% EBITDA margin, stable compared to the previous year. In the second quarter 2026 alone, Business Services revenues accelerated with an 11% growth driven by the start of some multi-year contracts not yet translated into a positive impact on profitability.
Consolidated EBIT adjusted amount to EUR 86 million, up 9.2% year on year, up 2.5% compared to the pro forma, after depreciation and amortization for EUR 26 million, up around 14% year on year, and provision for EUR 2.7 million.
Consolidated EBIT reached EUR 65 million, up 8.8% year on year, after amortization of intangible assets relating to customer list and know-how for EUR 17.5 million i n line with the 2026-2027 Industrial Plan, net financial expenses show a significant decrease, equaling 11% compared to first half 2025, improving by 15.5% in the second quarter 2026 alone compared to the second quarter 2025, thanks to lower interest rates and the actions to enhance the group's financial management efficiency.
Consolidated EAT adjusted amounted to EUR 50 million, up 17.1% year on year and 7.1% compared to the pro forma, reflecting the growth in operating profitability and the reduction in financial expenses. Group net profit adjusted reached EUR 45 million, up 13% year on year from EUR 40 million in the first half 2025, up 7.6% year on year compared to the pro forma 2025, while consolidated reporting net profit reached EUR 34 million, increasing by 19.4% compared to around EUR 29 million in the first half 2025, up by 5.6% year on year compared to the pro forma figures.
In the period under review, SeSa Group scaled its M&A investment and improved its payout ratio in accordance with the new Industrial Plan. Group reported net financial position as of October 25, including EUR 208 million of IFRS debt, was negative.
That means net debt for EUR 119 million, improving compared to EUR 122 million compared to the pro forma figures, following last 12 months' investment for EUR 140 million, of which EUR 37 million in the first half alone, including EUR 80 million of M&A investments, of which EUR 23 million in the first half, and after last 12 months' buyback and dividend distribution of around EUR 35 million, of which EUR 30 million in the first half 2026. Now I give the floor to Caterina for presenting our M&A strategy and the main resolution of the last shareholders' meeting and board of directors of today.
Thank you, Alessandro. After years of significant M&A activities, our new FY 2026-2027 Industrial Plan represents a strategic shift with a clear focus on simplifying the group and accelerating organic growth. We will capitalize on the capabilities and business model we have developed over the years to drive sustainable growth, supported by target CapEx in AI, automation, and skill development to enhance efficiency, scalability, and market penetration.
As a result, annual M&A investments are expected to decline to around EUR 30 million, following a selective, value-driven strategy, while CapEx is expected to be roughly EUR 50 million per year. In the first half of FY 2026, we further strengthen our international presence through four strategic acquisitions, all within the SSI sector. Two M&As consolidated in the first half of FY 2026, with total investments of approximately EUR 7 million.
The first, Visicon GmbH in Germany, an SAP consulting specialist with EUR 5.3 million in revenue, and the second, Delta Tecnologías de la Información in Spain, an AI-driven player in digital identity with EUR 2 million in revenue. Both companies deliver an EBITDA margin of both 10%. Two additional M&As with total investment of approximately EUR 7 million. Albasoft, a EUR 2.2 million software company specializing in treasury and finance management solutions, and 4IT, a Swiss cloud and managed service company with EUR 9 million in revenues.
Both companies will be consolidated from November 2025, delivering an EBITDA margin above 10%. The deal structure is designed to ensure the long-term commitment of key people in target companies, with an entry valuation of around five times EBITDA, adjusted for net financial position, and consistent with our standard approach.
These acquisitions confirm our strategy, a selective approach to high-value M&A in Europe, together with continued strong investments in digital transformation areas such as AI, automation, and digital platforms. As outlined in the 2026-2027 Industrial Plan, we are fully committed to generating strong cash flow and delivering solid returns to our shareholders, as demonstrated at our latest shareholder meeting on August 27 of 2025, where we approved a dividend of EUR 1 per share, in line with the previous year, with EUR 15.5 million distribution completed last September.
A significant increase in the share buyback program from EUR 10 million in FY 2025 to EUR 25 million for the FY 2026, to further strengthen shareholder value by raising the payout ratio from 30% last year to 40% this year. The shareholder meeting on August 27 of 2025 approved the new EUR 25 million buyback program, structured in two phases.
The first EUR 15 million phase completed on October 9, and the second EUR 10 million phase beginning on November 6 of 2025. SeSa held 142,706 treasury shares as of October 21 of 2025 and 246,868 as of December 12 of 2025, equal to 1.609% of share capital. Today, the board of directors approved the cancellation of an additional 157,522 shares, representing 1.03% of share capital, which is part of the 1.609% treasury share mentioned above, and finally, the cancellation of treasury shares up to a maximum of 2% of SeSa share capital over the next 18 months.
As of August 27 of 2025, approximately 1% of shares has already been canceled, and today we completed the plan of the cancellation of an additional 157,522 shares. Additionally, last October, we signed a banking agreement for the sale of the control stake held by DV Holding in Digital Value S.p.A., subject to the fulfillment of certain conditions precedent, including Golden Power and antitrust approvals.
Upon completion of the transaction, SeSa plans to disinvest a 6.6% stake in DV Holding for an expected gross amount of around EUR 11 million compared to an initial investment of around EUR 4 million. This transaction is expected to generate a positive impact of around EUR 7 million on SeSa S.p.A.'s consolidated net profit.
The disinvestment is fully consistent with the 2026-2027 Industrial Plan, which focuses on strengthening core activities and provides for the possible disposal of non-strategic assets, in line with a disciplined and optimized approach to capital allocation, while leaving us room to evaluate selective non-strategic disposal in FY 2026. I invite Jacopo to present our ESG results for the first half of FY 2026.
Good morning again, and thank you, Caterina. During the first half of the fiscal year 2026, we continue to focus on integrating sustainability in our strategy, monitoring at the same time key ESG KPIs to measure progress and the achievement of the targets set out in our Sustainability Plan. This approach allows us to keep a constant view on our environmental, social, and governance performance, and to guide our operational and strategic choices.
Our Sustainability Plan for 2026-2027, approved by SeSa Board of Directors last July, defines priorities, targets, and specific actions to integrate sustainability in our business model, contributing to the creation of long-term value for our stakeholders. Digital innovation, long-term value creation, sustainability, and digitalization continue to be the core pillars of our strategy, defining the group's purpose.
In this context, we are also delighted to announce that we have obtained the EcoVadis Platinum rating, the highest level in the assessment model, which recognizes the group's commitment and achievements in the ESG field. This milestone further confirms the strength of our approach and reinforces SeSa S.p.A.'s position as a reliable and responsible partner for customers, investors, and stakeholders.
In terms of HR management, we are facing a phase of consolidation with an increased focus on work and collaboration, and the progressive integration of Digital Enablers in our organization, in the way we work. After a great improvement of our human capital over the last four years, in the first half of fiscal year 2026, we increased the headcount by 1.7% compared to April 30, 2025, in line with our strategic Industrial Plan.
We continue to work to further improve our loyalty rate, reinforcing at the same time our education, hiring, and welfare programs, with wider and specific measures to support parenting, diversity, well-being, and work-life balancing, thanks to dedicated programs in favor of diversity and inclusion. Now, I give the floor again to Alessandro for the final conclusions.
Many thanks, Caterina and Jacopo. I will now share the final remarks and conclude our session. Six months ago, we presented our new Industrial Plan, aiming at group transformation by focusing on organic growth of core businesses, organizations streamlined, growing operating efficiency and market penetration, by reinforcing our role as leading digital integrator and partner of the customer's digital transformation.
In the first half of 2026, we worked strongly to deliver the main strategic targets of the Industrial Plan, driving organic growth across our group sectors, streamlining legal entities, and in particular, adopting AI automation and digital enablers to boost operating efficiency and group transformation both internally and towards our customers. Thanks to our strategy, we strengthened our position as a leading digital integrator with a strong focus on cybersecurity, AI, automation, vertical application, and digital platforms for the business segment.
In particular, in the first half of 2026, we achieved a mid-single-digit growth in revenues and profitability, driven by the great acceleration of the second quarter 2026, with revenues improving by 9.4% year on year, EBITDA by 8.4%, and group EAT by 17% like-for-like. A 20% organic growth in both revenues and profit of Digital Green VAS fueled by strong business demand, rising energy needs resulting from digitalization and AI adoption.
The back-to-growth of ICT VAS, up by 2.1% in revenue, 6.6% in EBITDA, and by 16% in group EAT, of which in the second quarter only, a growth by 8.1% in revenue, 16% in EBITDA, and around 13% at group EAT level.
The 6.8% organic growth in revenues and 15% growth in profitability of the Business Services sector, with a decrease in marginality during the second quarter only due to the start of several multi-year new orders with major customers. A significant reduction in net financial expenses has been achieved, with down by 11.6% in the first quarter 2026 and by 15.5% in the second quarter 2026, reflecting the ongoing recovery trend driven by lower market interest rates and the efficiency measures implemented in full year 2025.
In light of our second quarter 2026 strategic achievements and the disciplined way we have been executing the new Industrial Plan, today we confirm our commitment to deliver all growth targets we have outlined last July for the new fiscal year 2026. That means a 5%-7.5% organic growth in revenues, a 5%-10% organic increase in EBITDA, and around 10% organic increase in net consolidated profit, confirming that we are on track to achieve our key value generation targets for our stakeholders.
Considering the positive trend of our net financial position and cash flow generation, we have been delivering the planned 40% payout ratio by executing the new 25 million buyback program approved by the last year's meeting and the 2% share capital cancellation.
The goal for the remainder of the fiscal year is to execute with great commitment the new 2026 and 2027 Industrial Plan in line with the targets and guidance already communicated by focusing on organic growth, operating efficiency, the adoption of digital enablers, and in particular, inspired by a corporate vision oriented towards sustainable growth and digital innovation. Thank you very much for your attention. Now we open, as usual, the Q&A session.
Thank you, sir. This is the conference call operator. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. To remove yourself from the question queue, please press star and two. Please pick up the receiver when asking questions. The first question comes from Aleksandra Arsova of Equita.
Hi, good morning. Thank you for your presentations. One question on my end, maybe some color on the guidance. So you seem confident to confirm the guidance, but maybe can you clarify which could be the elements that could potentially drive the guidance and the actual numbers, let's say, in the upper end or in the lower end?
And then maybe again on the guidance in terms of EPS or net income adjusted, as I said, approximately plus 10% organic, if I remember correctly. In the original guidance, it was between 10 and 12%. So maybe just to clarify, where do you see this slightly lower expectation coming from? Thank you.
Good morning. Thank you, Alessandro. So the full set of results that we achieved in the first half and in particular in the second quarter show that we are absolutely on track to achieve the guidance. So that means considering the second quarter trends and the positive outlook of the backlog and the beginning of the Q3, we may consider the upper end of the guidance, the right target today.
So that means not only for revenues and EBITDA, but also for net profitability. In terms of outlook, in comparison with the start of our fiscal year, we are absolutely overperforming in the ICT distribution on one end and in the Digital Green. We are more or less in line with the Business Services. So that means that for 60%-70% of our group perimeter, we are overperforming.
We are slightly lower on the guidance in the first half for software system integration, but the improvement that we achieved in the second quarter and the outlook and the trend of the backlog seems positive, so that means we are on track to recover a positive trend in the second half of the year, so that means we may consider the average to upper end of the guidance, the reliable target for our fiscal year 2026.
Thank you .
Thank you.
The next question, sir, is from Andrea Randone, Intermonte.
Thank you and good morning. Thanks also for the indications just provided. I wonder if you can comment on the ICT VAS trend in the current quarter that is seasonally important. You mentioned the backlog up 25% in November. If you can comment on the trends you see if they are sustainable, consistent, also for the remainder of the year. This is the first question. The second question is about CapEx, if you can confirm the about EUR 80 million guidance, including M&A for the full year. And okay, I think these two questions. Thank you.
Thank you, Andrea. So first of all, about the trend of ICT VAS, we may confirm we enter very well in the Q3. We closed a very positive Q2 with growing revenues by 8.1%, an increase of EBITDA by 16%, and around 15% in net profitability. We enter with a 25% growth in the backlog for Q3. So that means the beginning of December and in particular the month of November. So that is a very positive indication to be able to work with the guidance of mid-single-digit growth for the full year.
In terms of CapEx, we confirm our guidance of EUR 80 million investment overall, including 35 M&As and 50-55 CapEx. In the first half of 2026, we invested around 40 million, of which more or less 20 in M&A. So that means we are on track for this kind of trend.
Thank you. If I may, just a quick follow-up on SSI. It's a normal question, but can you comment once again on the implications from AI on this business line? Thank you.
Thank you, Andrea. So yes, the AI automation represents a driver that we are embedding in each of our deliveries and also inside software system integration. That is a sector mainly focused on technology, digital business integration with a mix of consulting software and digital services. So what we are doing is to increase our efficiency to introduce AI in some deliveries, for example, the cybersecurity services, and to, as a result, increase our efficiency to make available this efficiency for our customers.
Obviously, our exposure to AI erosion is not high, considering that we are operating with proprietary software and technology and consulting services. And from our point of view, that is an opportunity more than risk to increase our EBITDA margin. And some of our investment will be focused on skill development and digital enablers adoption in that direction.
Thank you. Thank you very much.
Thank you.
As a reminder, if you wish to register for a question, please press star and one on your touch-tone telephone. Once again, for any questions, please press star and one on your telephone. Mr. Laschetti, at this time, sir, there are no questions registered.
Okay. Thank you very much, everybody, for participating at this conference call. And we wish you a Merry Christmas. And we stay available as usual for any additional information about our results. Thank you very much. Thank you very much. Bye-bye.
Thank you. Ladies and gentlemen, thank you for joining. The conference is now over, and you may disconnect your telephones.