Good afternoon everyone, and thank you very much for joining us today for our quarterly earnings call. As usual, our CEO Max will share with you a detailed update on our strategy, as well as some trends on our business.

Before that, Lorenzo, our CFO, will cover the key items of our financial results. First, let me start with the usual snapshot of our first quarter numbers.

We're kicking off the year with a 3% year-on-year top-line progression, in line with the guidance we had given to the market. In what remains a complex market environment for memories, our P&L has shown strong resilience both at gross and EBITDA margin level.

The quarter was also punctuated by good momentum for our hardware business, with our new modular vision product line receiving strong early interest, as well as for our Clea division, which is seeing a high level of conversion to long-term recurring contracts, as illustrated by the Hitachi win and the 20% year-on-year revenue progression. All of this continues to support a positive outlook for the year, and keeps unchanged our 2026 management objectives.

Now let me hand over to Lorenzo to go through our full-year results in more details.

Thank you Clarence, and good afternoon to all. I want to start by pointing out that this first quarter was marked by further and significant increase of memory costs, with an impact on the availability of those components.

In that context, the group was able to react promptly, securing the critical materials and negotiating with the customer the measure to protect its profitability. Therefore, a 3% growth in net sales versus Q1 2025 is for us an important result, given the two very different market contexts.

Regards gross margin, we recorded in the quarter a level of 52%, 1% less than Q1 2025. We are really happy about this result, considering the spike in the memory prices we were properly able to manage from a purchasing point of view.

In the quarter, we registered also a positive sales mix in profitability terms. Passing to EBITDA, we recorded a minus 1% of profitability, primarily explained by gross margin and by lower other revenues, these including mainly grants over R&D development, which will be partially recovered in the next quarters.

Having a look to the sales breakdown, by geography, I want to highlight the good performance of EMEA, Germany in particularly, driven by the important growth quarter-on-quarter of customers like Schuler and System, Coesia Group entity. By industry, I want to point out that the industrial vertical is growing pretty well, while vending decrease as expected due to the completed rollout of our edge payment module over the tobacco sector.

Most important is the 20% growth quarter-on-quarter of Clea recurring revenues, achieved thanks to the progressive penetration of the platform among customers. Analysing our Q1 2026 EBITDA performance, we were able, still considering the cost things I was mentioning before, to preserve a profitability close to Q1 2025 level.

We recorded a stable OPEX and similar operating leverage. The 1% EBITDA margin reduction follows mainly the impact of components cost increase over gross margin.

I want to point out that from the second quarter our price increase actions should start to take effect. Adjusted net financial position grows by about €7 million respect to year end due to inventory expansion.

We reacted immediately to the memories cost spike through strategic purchasing of stocks at acceptable prices. Besides, we had to take in consideration the increase in procurement lead times, and so enlarge our inventory level.

Despite this growth in net debt, our leverage position remain pretty solid. Thank you for your kind attention, and I hand over to Max for the business update section.

Thank you.

Many thanks, Lorenzo, for this clear presentation as always. Let me start with a bigger picture what underpins our strategy.

We are witnessing a fundamental shift in the way how the artificial intelligence is begin rolled out for industrial application. The direction of travel is clear: from the cloud to the edge, as an increasing begin deployed directly where decision need to be made on field device close to the action.

This shift is begin driven by three core factor. One, faster, real-time decision-making in mission-critical environments.

Two, improved cost efficiencies at scale. Third, and greater resilience and data protection.

As a result, we are seeing the emergence of a new class of AI-driven application, and this is plays directly into our core capability. This is exactly where SECO is strategically positioned, and this is where the interception between the edge AI and all our end-to-end technology capability really play a crucial role for the customers.

Let me now show you how we translate this positioning into concrete solution. Here in SECO our approach is end-to-end vertical integration.

We addressed a broad set of application where edge AI can create tangible value. This include industrial automation through HMI, scalable embedded modules, and advanced robotic, including autonomous and humanoid system.

This sector, I can tell you, is starting to give us very good results, especially considering the business in the '27, because we are getting traction with a couple of very good and very large robot maker. We are also active in high performance vision application, intelligent retail, and automated vending, where edge analytics improve customer experience and operational efficiencies.

In addition, we support critical infrastructure, such as smart energy grid, security system, and medical devices, all of which require reliable real-time data processing. Of course, we are more than ever a key partner in more specialized domain like defense, aerospace, and drone.

Here is where we are facing a very strong demand from the market. Having given this such of positioning, let me now to continue with some feedback that we are getting from the market by the launch of our modular vision, which is offering a very good beginning phase of market adoption.

The core idea is simple, but powerful: a standardized modular HMI platform that can be configured across different chip set and application needed. This approach brings multiple benefits.

For SECO, it reduce R&D complexity and enable a more scalable business model. For customer, it shorten their time to market and simplify the integration thanks to a ready-to-use customizable solution.

We are seeing this translating into a growth pipeline across many verticals, like industrial automation, medical, smart building, energy, and professional appliances. We are expanding our go-to-market through distributor and strategic partnership with leading silicon vendors.

This all together are very good early signals, and the sales data that we are receiving are very positive. I think that talking about the traction that we are seeing in the modular vision is almost the same also with Clea, and the customer engagement is really growing also in this specific business.

We recently secured a multi-year, multi-million agreement with a Tier 1 global leader in electrification. This is a strong validation of our end-to-end approach.

Hitachi was looking for a secure and scalable way to digitalize distributed energy asset, including data collection, real-time processing, and device management across a global fleet. They also needed a unified platform capable of handling different kind of hardware, both new and installed base.

Our Clea platform was selected because it's a very complete product with strong differentiation factors. It enables secure data transfer, fleet management, and edge solution for AI models, and for immediate deploy of this model into the hardware.

All of this with a very agnostic approach on the hardware side, meaning that our platform is capable to run SECO as well as no SECO hardware, and therefore can be used successfully also for the retrofitting program that Hitachi have in place. I think that this is a very good example of how our technology stack can address complex, large-scale industrial needs, and this project moving into deployment, they also start to impact our revenue mix, which bring to me the next point.

One of our strategic goal is to increase the recurring component of our revenue on the software side. As project progress into deployment, more device get connected to Clea platform, and this drive recurring revenue growth.

In the first quarter of this year, the recurring revenue presented the 60% of the total mix and showed a 20% year-on-year growth. This is an important trend, and confirms that our platform-based model is gradually getting traction.

Of course, you will see this growth part continue growing over the next forthcoming quarters, because as much as our strategy of deployment go into revenue, as much as this progression will be even better. Let's now look at the order intake, which provide a good visibility on the future performance.

We are seeking a continue momentum in order intake. The pipeline is converting into confirmed orders at a healthy rate, contributing at a growing backlog and improved visibility.

As you can see, we have very good data point, like the 60% of the order intake year-on-year, counted from January to April, and this is encouraging, particularly in a market environment that remain somewhat volatile. At the same time, our order book-to-bill performance remain consistent, which suggest a balance flow between demand and delivery.

Again, we view this cautious optimism as a positive trend, but one that we want to continue to monitor, because it's a tough year, supply chain, macroeconomic tension, geopolitical tension, a lot of things are happening as we speak, and therefore we need to continue to monitor it very closely. I can tell you that data are growing and moving definitely in a positive direction.

Looking ahead at the second quarter of the '26, the environment remain, as I told you, complex. However, the year started with a solid pace supported by continued demand for our product and our solution.

We expect the revenue for Q2 to continue along this trajectory at €50 million plus revenue. We think that this growth part will accelerate further significantly in the second half of the year, and this is based on an already taken orders, and therefore we remain positive for the rest of the year.

Overall, our priorities remain clear: executing on our pipeline, scaling our recurring revenue base, and maintaining discipline in a still uncertain environment, especially on the cost control. In the summary, we see encouraging signals across multiple dimension: technology adoption, commercial traction, and order momentum, while remain focus on a consistent execution.

I think that's all. I hope that this presentation has addressed all the key points, and I want to thank you again for your attention.

We can now open the line-up for questions. Thanks again.

Good afternoon, and thank you for taking my question. Two from my side.

The first one is on the, say, 2026 outlook. On one hand, we noticed that you provided very encouraging comments on the order backlog year-to-date and also on the, say, positive interaction you're having with your clients.

On the other, we see still growth, say, in the low single digit, you are guiding for a flattish revenue trend basically in the second part of the year, while looking at consensus numbers, top line is seen increasing at, say, high single digit to low double digit, requiring an acceleration in the second part of the year. The first question is if you could comment on these, say, different trends and which are the key factors that should underpin, say, a very strong acceleration in the second part of the year, whether second-quarter guidance is just driven by, say, temporary factors or slow backlog execution.

The second one is if you could provide us an update on the ongoing, say, supply chain tensions. You mentioned that the gross profit margin is just a temporary effect and you planning to increase, in, say, prices from the second quarter of this year.

If you could share with us that if you still see this as a very temporary factors, as you should be, say, able to overcome these supply chains over the next quarters, and also if you could provide us a rough indication of the magnitude of your share price increase. Thank you.

Let me start with revenue. As you said, and I can confirm, based on the trend of the order intake and the book-to-bill that we are observing in this slide, I can confirm that we are expecting a significant growth part in the second half of the year.

This is confirmed based on the order as well as on forecast that we have from client, but I would say this is something that will happen based on data, and I have no doubt about it. On the margin side, I guided personally the market over all the interaction that I had both in a public speech like this one as well as during all my meetings in the road show that the memory, we cannot think that having a so big and event like this one with a magnitude of 700% of price increase on the memory side, we cannot think that we can come out with having no impact on it, clearly.

As well as, I confirmed that we already secured with all the customers negotiation about the price increase, therefore we will see our margin improving over the next quarter. I would say the normal situation will be achieved in the second half of the year, but we will see a sort of progression as we go.

As Lorenzo said, first quarter was affected negatively by the memory for over 3% in gross profit margin, which was also positively affected by the recurring revenue increase on Clea in one hand and a positive sales mix by margin in the second hand, that was able basically to neutralize a large portion of this impact and we was able to see just a 1%. That was good, and I think is a concrete prove how the SECO business model is resilient also in a very tough market condition.

On the supply chain in general, we are seeing and facing delay into shipping, especially with the boats, and therefore also the guidance of the second quarter take it in account, because we have components that will arrive later in the quarter, and therefore are not included into this guidance. We was able also to did a very good job increasing our level of inventories, stocking a lot of memories to cover the entire 100% of the demand of our budget '26, as well as I would say a portion of the 2027 demand.

Thank you very much for your question.

Thank you.

Thank you for taking my question. Just a quick clarification on the previous answer, Max, if I may.

Did you say that the delays in receiving some of the components, etc., has been taken into consideration for your Q2 guidance? Can you clarify that?

I kind of misheard it, please.

Yes, I can. As I said, there was an unexpected delay into all the shipping basically over the boats because the Iran war.

That's not a secret. Therefore, when we did our own calculation about the second-quarter guidance, we had carefully review our shipment dates, arrival of the components, and therefore production dates available, and we took everything carefully in consideration.

It will shift in some way some revenue from Q2 and Q3, and we will see a very good effect later in the year.

Understood. Thank you.

My questions include, the first one would be around the Hitachi revenue, the contract that you won. Has that already started contributing in Q1 to your revenue, and should we start expecting it to ramp up during the course of the year, from Q2 onwards?

Then related question on Clea, given the decline in the non-recurring engineering revenue, obviously because the customer has moved to recurring revenue contract, should we be expecting decline in Clea revenue for the full year given this mix effect?

Yes. On the non-recurring revenue, absolutely yes, because as I already guided the market many times, we changed our business model into Clea, shifting from a big NRE in the very beginning and the time to revenue between one year and two year, into something that is more ready to use with a very low barrier in terms of non-recurring fee.

Therefore, I would see the decline into the non-recurring portion of the business consistent for the entire year, as well as a strong growth of the recurring revenue, just because the multi-year and multi-million agreement we just signed with Hitachi, the good news, it will be already making a positive effect on the recurring revenue side starting from the second quarter this year, but will continue to give more and more positive effect as we go. We have a good line of additional customers that are entering into Clea as a very short time-to-revenue now thanks to the new business model.

I think it will contribute to a further acceleration into the recurring revenue in the second part of the year. That's important not only because is proving that the strategy and the business model that we designed is working well, but it's important because it contributes even better to our profitability, as well as to our capability to generate a free cash flow.

Super, that's very helpful. Thank you.

The last question for me is just a question around your peer, Advantech, who I know are more into standardized manufacturing, they have a lower gross margins than SECO, etc. In the context of them growing much quicker, I just wanted to understand if there's anything to call out with regards to the demand profile from SECO's customers, versus Advantech.

Thank you.

I think what we are seeing into the growth of Advantech, we will see it, historically speaking, and this will be true also this time, six, nine month later. This is simple, because the different kind of product we are selling.

Basically they are more based on a standard solution, and therefore they have a time to revenue which is faster than SECO, and so the positive effect of the demand, they capture it earlier. We are more focus on system, HMI, customized.

This such of product have a longer time to revenue, and therefore we are able to capture the same kind of trend in terms of growth, which is confirmed by the way by our book-to-bill as well as by our order intake, and it will come into the results in the second half of the year.

Got it. Thank you very much, very clear.

Also in 2027. We will see a very positive trend into revenue, and thanks to our capability to have operative leverage profitability starting from the second half of the year, but moving into the '27 in a very consistent way.

Very helpful. Thank you very much.

Thank you to you, Bharat.

[unclear] Aleksandra?

Can

I think we have some problem in connection over there. I would suggest to skip this one and to go ahead if we have any other questions.

Hello, good afternoon. Do you hear me?

Yes, very well.

Okay. Thank you for the presentation, for taking my questions.

The first one is on the organic growth. We have seen a 3% grow in the first quarter.

I would like to understand what could be the organic growth at constant exchange rate, since more or less 20% of your revenues are outside the EMEA. I would like to understand what is the impact from the FX.

I guess it would be negative since you are exposed to the US dollar, I think the organic growth at constant exchange rate could be higher than the 3% we have seen. The second question is on the OPEX side.

We have seen OPEX almost stable year-on-year. I would like to understand better if this trend could be, let's say, a proxy also for the coming quarters, just to have an idea on the path of operating expenses.

Many thanks.

Okay. On the exchange rate, I think you should consider between 1% and 1.5% in terms of better growth path as a constant FX.

Into the OPEX, I think we are working with the entire team, especially with Lorenzo, to well control the OPEX. I think this is a good proxy.

However, keep in mind that as we are expecting, as I said already many times, an important growth into the second half of the year, I would suggest also to take it in account in terms of OPEX, because maybe we can have some temporary workers just to execute production in addition during the second half. As a company structure, I think we are controlling carefully the level every quarter, because that is the level where Lorenzo and I, we want to keep the company also to scale in terms of profitability as soon as we will see the growth of the revenue accelerating.

Great, thank you.

Hello?

Hello.

Can you hear me?

Yes, now yes.

Can you provide more color on Germany in the first quarter, including its current weight on group revenues versus the historical level of 30%, and clarify whether the weakness remain purely macro-driven or if you are seeing early signs of stabilization in customer orders, even with the last all-time high order intake? Thank you.

All right, Germany is counting, roughly speaking, about 30% of our total revenue and is growing. In the first quarter was above 10% year-on-year, showing a very good growth path, not only because the revenue we recorded into the quarter, but more important, looking the order intake as well as the pipeline, which is growing every week in the region.

I can confirm that the positive sign of a recovery for the German economy are really happening right now, meaning that we will see positive impact as we go and especially in the second half of the year as well as for the '27. Looking to the situation of the order intake as well as the pipeline, despite, let me say, the environment condition which is really tough, Iran war, war in Ukraine that is never stopping, I think a lot of problems on the supply chain, not only for memory, but shipping, longer time to market, all this such of things.

Despite all of that, I think what is really exciting in this moment is looking how many large project we are facing right now with new logo, new customers that we are winning also a lot of them actually with a very strong conversion rate into design win. It looks very promising also ahead the '26, but in general the level of discussion that we are having both with existing and new customer is very good.

Client are asking for more in terms of innovation, in terms of new generation of project, and all this such of things are mainly driven by the first slide trend that I showed to you during the today presentation, which is basically the physical edge AI. Physical edge AI is happening, is something that agentic AI, LLMs, are starting to be used into the HMI, into the machine, into all the product that we are selling.

This is driving basically the adoption and the demand of the market at a very high level, very, very high level, and this is really good for the next future.

Thank you.

Thank you to you.

Thank you very much to all for attending. Clarence and I, we will be always available, and we will be on the street already later this week and then next week having meeting with many of you, we will see soon.

Thank you again, and have a nice day. Bye-bye.