SESA Update post 2Q26 Earnings
Execution Improving, Valuation Still Matters
Introduction to Sesa
Sesa Spa is an Italian IT company providing value-added distribution, integration and engineering services and proprietary software.
Sesa is a tremendous growth history over the last 3 decades, with strong management and still a long runway for future growth as they pursue internationalization (currently expanding through Western Europe).
After the Digital Value scandal (Sesa possessed a minority stake of Digital Value (DGV)) and 3 Quarters in a row of EBITDA decrease (mainly due to cessation of the subsidies positively impacting their solar hardware distribution business), the market developed some skepticism around Sesa. Making it currently trade cheaply for the growth outlook it offers and the verticals it operates in.
Sesa has superior scale in the value-added distribution segment and its business mix is shifting to its higher margin business segments. After beating the streets forecasts in Q2 and supported by the AI tailwinds, Sesa is set to continue its sustained growth.
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