PRESS RELEASE 30/09/2025 First half of 2025:On continued operations (excluding Electronics North America), revenue reached €227.9 million with a current EBITDA margin of 7.5% New 2027 Roadmap: Strategic repositioning of Electronics and driving growth for EnvironmentRevenue target between €475 million and €500 millionEBITDA margin above 8% Refocusing consolidated scope on continued operations (excluding Electronics NA) On May 15, LACROIX announced its plan to permanently exit Electronics North America. T ...

Industry Overview - The intensification of global geopolitical tensions is leading to a rapid re-prioritization of defense sector priorities in France and across Europe [2][20] - The Readiness 2030 Plan (ReArm Europe) aims to mobilize €800 billion by 2030, raising defense spending to 3% of the European Union's GDP, while the SAFE Program allocates €150 billion in loans for joint military procurement [3][20] - France plans a budgetary effort of €3.5 billion in 2026 and €3 billion in 2027, and Germany intends to nearly triple its defense budget from 2024 to 2029 [3][21] Company Positioning - LACROIX has recorded a 15% annual growth rate in electronic equipment production since 2021, with forecasts indicating a potential doubling of revenue in this segment by 2028 [6][24] - The company has over 50 years of experience in electronics manufacturing, providing a wide range of services to support design needs and secure production of electronic boards [7][25] - LACROIX has established a strong industrial network across Europe, with production sites in France, Germany, and Poland, already supplying the defense sector [9][27] Technological and Industrial Expertise - The modern hybrid warfare format is leading to a diversification of weapon types and a broader range of connected technologies, which LACROIX is well-positioned to address [5][23] - The company has developed expertise in mass production and rapid ramp-ups, essential for meeting the diverse needs of the defense market [8][26] - LACROIX's plants are equipped with rapid prototyping lines and additional production capacity to support the growth of the defense sector [10][28] Commitment to Security and Defense - As a family-owned mid-sized company, LACROIX benefits from a long-term commitment to its mission, which aligns with the development of security and defense sectors [12][30] - The company emphasizes its role in contributing to the security and defense of France and Europe, viewing this as a duty as citizens [14][31] - LACROIX's revenue for 2024 is projected at €636 million, reflecting its agile innovation and industrialization capacity [34]

Core Insights - LACROIX's first-half revenue for 2025 was €291.5 million, reflecting a 12.3% decline on a like-for-like basis, primarily due to challenging conditions in the Electronics sector, although the Environment segment showed positive momentum [1][3][10] Revenue Performance - In Q2 2025, consolidated revenue was €140.4 million, down from €169.4 million in Q2 2024, marking a 17.2% decrease overall and a 14.2% decline on a like-for-like basis [2][4] - Electronics revenue in Q2 2025 was €105 million, down 19% from €129.7 million in Q2 2024, while Environment revenue grew by 4.1% to €35.4 million [4][5] - For the first half of 2025, Electronics revenue fell by 17.4% to €221.4 million, while Environment sales totaled €70.1 million, reflecting a 9.0% increase [4][9] Sector Analysis - The Electronics sector faced significant challenges, with declines across most segments, particularly in Automotive and Industry, while the Avionics & Defense segment experienced a temporary decline due to external factors [5][6] - The Environment segment continued to show strong growth, driven by Smart Grids and Water, despite a temporary decline in the Street Lighting segment [8][9] Future Outlook - A gradual improvement in Electronics performance is expected in the second half of 2025, particularly in EMEA, while North America will focus on finalizing the divestment of its subsidiary [7][10] - The full-year revenue target of €600 million is likely to be missed, but the EBITDA margin target of 4% remains achievable [11] - LACROIX plans to complete its exit from the North American market by the end of 2025 and will present its 2027 roadmap to investors on September 30 [12][13]

Group 1: Strategic Collaboration - Qualcomm Technologies, Inc. has partnered with e& to enhance digital infrastructure in the UAE, focusing on industrial and enterprise 5G edge AI gateways [1] - The collaboration aims to develop advanced edge AI devices and support generative AI capabilities by integrating large language models [1] - Qualcomm will also work on smart mobility and safety solutions to improve the UAE's transportation infrastructure and support industrial IoT solution development across various sectors [1] Group 2: Engineering Center and Innovation - A global Engineering Center will be established in Abu Dhabi, collaborating with local and international companies to support regional strategic initiatives [2] - The center will align with national priorities and development goals, facilitating transformative technologies in critical sectors such as energy, manufacturing, logistics, retail, and smart mobility [2] Group 3: Market Position and Stock Performance - Qualcomm's establishment of the engineering center positions the company at the center of a region becoming a global hub for future-defining industries, enhancing its R&D capacity and market position [3] - Shares of Qualcomm have decreased by 22.9% over the past year, contrasting with the industry's growth of 18.1% [6] - Qualcomm currently holds a Zacks Rank of 3 (Hold), while other companies in the industry, such as Juniper Networks and InterDigital, have higher rankings [7][9]

Core Viewpoint - LACROIX has announced its strategic decision to exit the North American electronics market by the end of 2025, aiming to eliminate losses and refocus on its core activities in Electronics EMEA and Environment [1][5][6] Group 1: Financial Performance - In Q1 2025, LACROIX's consolidated revenue was €151.1 million, a decline of 16.4% compared to €180.9 million in Q1 2024 [6][7] - The Electronics activity generated revenue of €116.4 million, down 15.9% year-on-year, while the Environment activity grew by 14.5% to €34.7 million [7][11] - The North American subsidiary employed 1,251 people and generated annual revenue of €141 million, which decreased by 15% [3] Group 2: Strategic Decisions - The decision to exit North America follows a deterioration in business outlook due to lost customer contracts and geopolitical tensions affecting demand [2][4] - The disengagement plan will be implemented immediately, with discussions with clients and suppliers to determine the best exit strategy, including potential sale or liquidation [4][5] - The exit is expected to reduce exposure to the automotive sector, which accounted for less than one-third of Group revenue in 2025, down from 44% in 2024 [5] Group 3: Future Outlook - LACROIX maintains its financial targets for 2025, expecting revenue around €600 million and a current EBITDA margin above 4% [13] - A presentation of the 2027 strategic roadmap is scheduled for September 30, 2025 [14]