Good afternoon. This is the Chorus Call conference operator. Welcome, and thank you for joining the SeSa Group full year 2026 consolidated 9-month results conference call. As a reminder, all participants are on 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 Jacopo Laschetti, Head of Stakeholder Relations and Sustainability. Please go ahead.
Good morning, and thank you for joining the SeSa Group presentation. Representing the group today are Alessandro Fabbroni, Group CEO, Caterina Gori, Head of Investor Relations and Corporate Finance and M&A, and myself, Stakeholder Relations and Head of Sustainability. Earlier today, the board of directors approved the consolidated financial results for the nine months of fiscal year 2026, ending January 31, 2026. 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 our key business developments and achievements.
Good morning, everybody, and thank you for joining our group presentation. In a challenging market that presents great growth opportunities driven by enterprise digitalization, widespread adoption of cloud and data protection, and integration of AI and automation, SeSa is strengthening its market share by leveraging the role of leading digital integrator in Italy across the key areas driving digital transformation as cloud data management, cybersecurity, digital platforms and AI. The Italian digital market is expected to grow by approximately 4% in 2026-2027 period, sustained both by demand for technologies and solutions enabling AI and increasing need to integrate and manage environments that combine AI with data governance and data protection, fully compliant with national security and regulatory requirements.
In that scenario, SeSa accelerates its growth in line with the industrial plan guidance by combining technology platforms and vertical applications to drive value creation and innovation for enterprises and organizations with a growth path of 2x the Italian digital market trend. In the nine months ended January 31, 2026, SeSa reported consolidated revenue equal to EUR 2.7 billion, up 11.2% compared to reported figures and 7.5% compared to pro forma figures, with an EBITDA equal to EUR 191 million, up 11.5% year-over-year compared to reported and 8.2% compared to pro forma 2025.
With an EBITDA margin increasing to 7.1% and the group EBT adjusted equal to EUR 82.1 million, up 12% year-on-year compared to reported figures and 8.8% against pro forma 2025 figures. The Q3 2026 alone shows a strong acceleration in growth with consolidated revenue achieving EUR 1.1 billion, up 10.5% year-on-year, and EBITDA rising to EUR 77 million, up around 12% year-on-year, and the group EBT adjusted achieving EUR 37 million, up 10.4%, driven by both higher operating profitability and the 20% rate reduction in quarterly net financial expenses. Consolidated results show positive contribution from all group sectors in comparison with the nine months 2025 pro forma figures.
ICT VAS due to EUR 1.7 billion, up 7.2% year-on-year, fully organic with strong acceleration in Q3 2026 alone, up 14.4% year-on-year, thanks to the increasing demand for technology and digital integration driven by growing data management and protection linked to AI and automation adoption. Green VAS achieved EUR 307 million, up 21% year-on-year, expanding its double-digit organic growth experience in first half 2026 and driven by rising energy demand impacted by digitalization, AI, and automation adoption. System integration delivered EUR 663 million, up around 2.5% year-on-year, showing a resilient performance despite lower demand in some made in Italy districts and the ongoing organizational reengineering process.
Finally, business services reached EUR 120 million, up 9% year-on-year, fully organic, supported by the development of digital platforms and vertical application for the financial services industry with a progressive focus on security compliance, capital markets and finance segments. In the Q3 alone, revenues accelerated by 12.6% year-on-year, thanks to the start of some multi-year contracts with major Italian banks. Consolidated EBITDA increased by 11.5%, 8.2% compared to pro forma figures. Achieving EUR 191 million, with an EBITDA margin of 7.1% compared to 7.0 year-on-year, driven by the strong growth achieved by VAS, both Green and ICT, and business services sectors, and the progressive improvement of software and system integration sector quarter by quarter.
Segments contribution to EBITDA were as follows: ICT VAS reported EUR 76 million, up 13% year-on-year, with an EBITDA margin of 4.5%, up compared to 4.3% year-on-year. Green VAS delivered EUR 21 million EBITDA, up 22% year-on-year, with a stable EBITDA margin at 6.8%. System integration and software recorded EUR 71.6 million, up slightly by 0.2%, with an EBITDA margin of 10.8% compared to 11.1% year-on-year, with a great return to growth in the Q3 alone, up 3.5%, with strong quarterly EBITDA margin equal to 11.6% compared to 11.3% in Q3 2025 alone and 9.9% in Q2 2026 alone.
Finally, business services reported EUR 19.6 million EBITDA, up around 9% year-on-year, with a stable EBITDA margin at 16%. In the Q3 2026 alone, EBITDA grew by around 12% year-on-year, supported by new multi-year contracts with leading clients with a quarterly EBITDA margin of 17% compared to around 12% in Q2 2026 alone. Consolidated adjusted EBIT reached EUR 145 million, up around 9% year-on-year, after depreciation and amortization of tangible and intangible assets for EUR 40 million, up 13.5% year-on-year, and provision for EUR 6.2 million. The reported EBIT was equal to EUR 112 million, up 7% year-on-year, after goodwill amortization for around EUR 30 million, up 15% year-on-year.
Net financial expenses decreased significantly, down 20% in the Q3 alone, thanks to lower interest rates and group financial efficiency initiatives. The consolidated EAT adjusted amounted to EUR 88.2 million, up 15% year-on-year compared to reported figures, and around 10% compared to pro forma, reflecting the growth in operating profitability and the lower financial expenses, while group EAT adjusted achieved EUR 82.2 million, up 12% year-on-year compared to reported, and around 9% compared to pro forma. In the nine months 2026, the group also deliver a strong cash flow generation, sustained by organic profitability growth and a more efficient working capital management. The consolidated reported net financial position was equal to EUR 58 million, a significant improvement of EUR 33.7 million compared to EUR 92 million as of January 25.
This performance reflects a great last twelve months operating cash flow, net of EUR 150 million of investments last twelve months, of which EUR 90 million in the first nine months of 2026, with EUR 90 million related to M&A, of which EUR 55 million in the first nine months 2026, and after EUR 41 million in dividends and buybacks last twelve months. The consolidated net financial position, excluding IFRS liabilities, was active for EUR 147 million of net cash, up around EUR 40 million compared to EUR 108 million of net cash as of January 2025. Now, after presenting the so positive set of financial results, I give the floor to Caterina to explain our M&A and shareholder value creation strategy.
Thank you, Alessandro. After years of significant M&A activity, our new FY 2026/2027 industrial plan represent 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 and automation and skill development to enhance efficiency, scalability, and market penetration. Investments in the last 12 months amounted to approximately EUR 150 million, of which EUR 90 million were allocated to M&A. Specifically, in the first 9 months of FY 2026, total investments reached EUR 90 million, with EUR 55 million attributable to M&A, reflecting a more selective and value-driven investment strategy.
In the last 12 months, investments level remain elevated, largely reflecting the full quarter of FY 2025, when the group completed approximately EUR 60 million of investments in that quarter alone. On the contrary, no significant M&A activity is expected in the Q4 of FY 2026, in line with the strategy outlined in the 2026-2027 Industrial Plan. In addition, in the Q4 of FY 2026, SeSa will complete the sales of its 6.6% stake in Digital Value for a price of approximately EUR 11 million. This investment is fully consistent with the Industrial Plan, which focuses on strengthening core activities and contemplates the potential disposal of non-strategic assets in line with the discipline and optimized capital allocation approach, while maintaining flexibility to evaluate selective non-core disposals during the FY 2026.
In the nine months of FY 2026, we further strengthened 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 revenues. Delta Tecnologías de Información in Spain, an AI-driven player in digital identity with EUR 2 million in revenues. Both companies deliver EBITDA margin above 10%. Two additional M&As with total investments of approximately EUR 15 million. Albasoft, a EUR 2.2 million revenue software company specializing in treasury and finance management solutions. 4IT SAGL, a Swiss cloud and managed service company with EUR 9 million in revenues. Both companies have been consolidated from November 2025, delivering a combined EBITDA margin above 10%.
The deal structure is designed to ensure the long-term commitment of key people in the target companies, with an entry valuation of around 5x EBITDA, adjusted for net financial position consistent with our standard approach. These acquisitions confirm our strategy, a selective approach of high-value M&A in Europe, together with continued strong investment 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 by our latest shareholder distribution with a total 40% payout ratio, consisting of a dividend of EUR 1 per share, totaling EUR 15.5 million distributed last September.
A share buyback program increased to EUR 25 million for the FY 2026 compared to EUR 10 million in the previous year, completed last January 2026, with the cancellation of treasury shares representing approximately 2% of SeSa share capital. Considering the results achieved in the first nine months of FY 2026 and the confirmation of the guidance at the upper end of the range of the FY 2026, the conditions are in place to renew distribution plan for our shareholders also for the FY 2027. I invite Jacopo to present our ESG results for the nine months of FY 2026.
Thank you, Caterina, and good afternoon, everyone. I will focus my remarks on how sustainability and people management are supporting the execution and financial performance. Over the nine-month period of fiscal year 2026, sustainability has been increasingly integrated into the way SeSa manage growth, execution, and risk, in line with the targets of the 2026, 2027 Industrial Plan. This integration improves revenues visibility, operational efficiency, and long-term value creation. From a business standpoint, Sesa's role as a digital integrator is structurally aligned with long-term market drivers such as digitalization, cloud adoption, data management, cybersecurity, automation, and energy efficiency. In this context, sustainability is not a separate dimension, but part of the framework that strengthens the relevance and resilience of our business model. On the environmental side, our approach remains focused on control, accountability, and compliance.
Internally, we continue to monitor energy consumption, resource efficiency, and environmental KPIs in a structured way, aligned with the CSRD requirements. Externally, the digital green sector represent a growth area supported by increasing demand from enterprises facing higher energy needs linked to digital technologies and AI adoption, with over EUR 300 million revenues in the nine-month period. This combination of internal governance and external market opportunity contributes to reducing transition and regulatory risk while supporting organic growth. With regard to people and organization, the nine-month period of January 31, 2026 confirmed a shift to a more selective and efficiency-oriented approach. Consistent with the industrial plan of the group. Headcount reached 6,749 with moderate growth, 3.3% compared to fiscal year 2025, focused on priority areas such as AI, data science, cybersecurity, and digital platforms.
As in the past, our target is to create a sustainable long-term value for our stakeholders. Investments in skill developments, training, and digital tools are aimed at sustaining productivity and delivery capacity as the group scales and manages more complex projects. In this phase, people management is a key element in supporting execution, reducing operational risk, and ensuring consistency between growth and profitability. From a governance and capital market perspective, sustainability contributes to transparency, comparability, and credibility. The confirmation of ESG ratings, including EcoVadis Platinum, MSCI with triple B, and CDP with B, reflects a governance framework that supports risk oversight, consistent reporting, and alignment with long-term shareholders. These ratings are increasingly relevant for institutional investors as an indicator of governance quality and risk management.
In summary, sustainability increasingly embedded in the execution of the group industrial plan supports organic growth, operating discipline, and risk management, and contributes to strengthening the group's positioning as a long-term value creator. As we move into the final part of the fiscal year 2026, this integrated approach remains fully aligned with the group's financial targets and strategic priorities. Now, I give the floor back to Alessandro for the final conclusions.
Thank you, Caterina and Jacopo. I will now share the final remarks and conclude our session. In a scenario where the need of technology and solution enabling AI meets the growing request for control, governance, and protection of data in critical infrastructures, digital demand is strongly increasing. In that environment, SeSa transformation path as digital integrator is accelerating, implementing the industrial plan, and evolving its platform that enables sustainable global companies that is data-driven, digitally market-oriented, and inspired by people. In the coming months, we will stay committed to the disciplined execution of our industrial plan, expanding skills and market share with a primary focus on organic growth and digital enablers adoption.
In the first nine months of 2026, we have achieved the target of 10% organic growth in profitability, thanks to the strengthening of our role as leading digital integrator, enabling AI automation and digital transformation by combining technology platform and vertical application. The growth acceleration we achieved in the Q3 with revenues and profitability increase over 10% is the result of a clear strategic path to build a unique digital integrator in Italy, capable of bringing advanced digital innovation directly into the real processes of companies and organizations. Today, SeSa is ideally positioned to drive digital transformation and to support the adoption of AI across its customer set of over 40,000 clients. In particular, in the first nine months of 2026, we underlined the achievement of the following main strategic goals.
First of all, the return to growth of ICT VAS with 7.2% organic growth in revenues and double-digit growth in profitability, driven by the great acceleration in the Q3 alone, with revenues up 14%, EBITDA increased by 22%, and group EBT adjusted up by 41%, thanks to our market position as leading digital integrator in Italy. On the other hand, the 9.0% organic growth of business services sector, supported by multi-year contracts with major customers. The 20% organic growth in revenues and profit of Digital Green VAS is another goal, fueled by strong business demand resulting from digitalization and the creation of a market leader, thanks to the business combination, the acquisition of Greensand last November 2024.
One of the main quarterly achievement is the software system integration return to EBITDA growth, progressively improved quarter by quarter, up 3.5% in Q3 only, with a quarterly EBITDA margin equal to 11.6% compared to 11.3% of Q3 2025. Finally, we deliver a 40% payout ratio by executing the EUR 25 million buyback program approved by the last shareholders meeting and the 2% share capital cancellation, achieving at the same time a strong improvement of our net financial position, up around EUR 40 million compared to January 2025.
In light of the so positive nine-month 2026 trend, the progressive acceleration quarter by quarter, as well as the solid order intake, in the beginning of Q4 2026, today we confirm our guidance for the fiscal year ending April 30, 2026, at the upper end of the previously communicated target range. That means revenues up by 5%–7.5%, EBITDA up by 5%–10%. Group EAT adjusted up by 10%–12.5% organic growth compared to pro forma figures. That means for 2026 fiscal year, around EUR 3.6 billion revenues, EUR 260 million–EUR 265 million EBITDA, and EUR 106 million–EUR 108 million of EAT adjusted.
We will continue to execute with great discipline the 2026 and 2027 industrial plan by focusing on organic growth and the group transformation as digital integrator, promoting the adoption of the digital enablers and inspired by a corporate vision oriented towards sustainable growth and digital innovation, as we always lead in our history. Thank you for your kind attention. Now, as usual, we open the Q&A final session.
Thank you. This is the Chorus Call conference operator. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and One on their telephone. To remove yourself from the question queue, please press Star and two. Please pick up the receiver when asking questions. Anyone who has a question may press Star and one at this time. We will pause for a moment as callers join the queue. The first question is from Andrea Randone of Intermonte.
Thank you and good afternoon and congratulations for the results. I have a couple of questions. You already provided a positive comment on the guidance. Therefore, I think current trading, I mean, February and March performance, has remained positive. I wonder if you can detail us the main ongoing trends you are observing, business by business. This is the first question. The second one is a similar comment on the sector you operate. I mean, there are some market worries in some areas that the technology can create a disruption. I wonder if you can provide us your comment on the main sector you operate, if you are observing something more promising or that is taking you a bit more cautious looking forward. Thank you.
Good afternoon, Andrea. Thank you for your questions. First of all, we enter with a very strong backlog in the Q4 . That means double-digit growth backlog for the VAS, both ICT and green, and the same for business services. In terms of trend of the single sector, we may observe a positive trend of VAS for the ICT, driven by the growing role as digital integrator that combines technology with platform and application that is so crucial and critical for the AI adoption. That means a growing request of data governance and protection that is boosting our demand for technology and in general, data governance and protection.
At the same time, it is very positive the trend of the green sector because of the transition. The energy transition is growing with a stable trend of the prices of the market. That's very competitive to build the environment and to establish a plant for producing energy from renewable sources. It is in particular important in a scenario like the scenario we are observing today. At the same time, it is positive. It is improving the process of reengineering of software system integration that is reinforcing its path in cloud, cybersecurity, and in general, digital integration to serve in the best way possible the AI adoption and integration.
We observe in the Q3 an increase of EBITDA. We grew by 3.5% in EBITDA. We reported an 11.6% EBITDA margin. That is a positive sign that we expect to confirm in the Q4 . Finally, business services trend is driven by the great award of new and several multi-year contracts with major Italian banks with the several vertical applications in the field of compliance, capital market, finance. It is very positive not only for the trend of the Q4 , but also for the new fiscal year 2027. Our view for the Q4 and also the new fiscal year is really positive with a very strong confidence in achieving our targets for our industrial plan.
Thank you. Thank you very much.
Thank you, Andrea.
The next question is from Gabriele Berti of Intesa Sanpaolo.
Hi. Good afternoon, everyone, and thanks for the presentation. AI is increasingly mentioned as a demand driver across several business areas. I was wondering, could you help us quantify how relevant AI-related revenues are today, and how do you see its weight to change in the next few years? More broadly, how is AI changing customer spending patterns? Are you mainly seeing incremental budgets or some reallocation from traditional IT spending towards AI-enabled projects?
Thank you, Gabriele, for your question. When we presented one year ago our industrial plan, we underlined that the Italian digital market is going to grow by around 3.5%–4% in coming three-year period, and we underlined the trend sectors. AI is growing around 30%. It represents just EUR half a billion on a total market of EUR 80 billion, but is crucial because the integration of AI obviously is a stimulus for the other relevant sector. There's a great and increased demand for data management and cybersecurity, and the cybersecurity is a segment that is growing 15% in the three-year period, 2026 to 2028, every year.
At the same time, the data management is another crucial sector, so that means around 10% every year. AI, but also the growing request of local data center power and digital sovereignty may represent, I mean, the two crucial drivers of growth. In terms of turnover, the demand of AI may target EUR 1 billion, just EUR 1 billion. That is typical of every disruption. One dollar of investment in the new technology wave may represent ten dollars of investment in technology enabling the wave of innovation.
That is the same for AI that is stimulating the total demand of IT, more or less in line with what we expect, at the same time, in terms of demand of customers, a growing demand absolutely in terms of data management and protection compliant with the national security rules. That is a new and, I mean, very relevant trend for a player like us that is operating as a digital integrator. What we expect is to face a trend of the market like this in the coming 2-3-year period.
There's a very dynamic market that we may serve in the best way as possible, thanks to our strategy of becoming the leading digital integrator in Italy. It is not, let me say, the performance of the Q4 , the Q3 , and what we expect in the Q4, will be the result of our strategy and market position to serve our customers in that particular phase of market evolution.
Thank you, Alessandro.
Thank you.
As a reminder, if you wish to register for a question, please press * and one on your telephone. Once again, if you wish to ask a question, please press * and one on your telephone. Mr. Laschetti, gentlemen, there are no more questions registered at this time.
Okay. Thank you very much, everybody, and thank you for your participation at the conference call. As usual, we stay available for any additional information via mail. Thank you very much. Thank you. Bye-bye.
Ladies and gentlemen, thank you for joining. The conference is now over. You may disconnect your telephones.