SECO reported a 3% increase in net sales for the first quarter, taking revenues to €48.5 million year-on-year as customer orders began to recover. Management attributed the revenue improvement to firmer demand in industrial verticals and stronger contributions from the Asia-Pacific and Europe, Middle East and Africa regions.
While top-line figures improved, the company experienced deterioration in profitability during the quarter. Adjusted EBITDA and net income both declined, with SECO pointing to higher operating expenses and sustained elevated memory pricing as the primary drivers of the margin compression.
The company's Clea business showed mixed dynamics. Recurring Clea revenues rose by 20% compared with the same period last year, underscoring growing subscription or repeat-service flows within the software offering. At the same time, total Clea revenues contracted overall because portions of previously counted non-recurring revenues were moved into the deployment phase, reducing one-off revenue recognition in the quarter.
Looking ahead, SECO expects second-quarter 2026 revenues to top €50 million. The company cited continued momentum from demand for edge AI solutions and uptake of Clea software as contributing factors to its guidance. SECO also signaled confidence in the underlying business, saying its fundamentals and innovation pipeline underpin the company outlook for 2026.
The quarter thus presents a dual picture: modest sales expansion supported by geographic and vertical demand recovery, offset by rising costs that pressured profitability. SECO's forecast for the next quarter rests on continued strength in edge AI and software adoption and on the company's ability to manage operating expenditures and component cost headwinds.
Summary
SECO posted a modest revenue increase to €48.5 million in Q1, driven by recovering customer orders and stronger industrial, Asia-Pacific and EMEA demand. Profitability fell as operating expenses rose and memory prices stayed high. Clea recurring revenues rose while total Clea revenues declined due to non-recurring items moving into deployment. Management expects Q2 revenues above €50 million, supported by demand for edge AI and Clea software.