Good morning. I'm Pedro Sigüenza, Chief Executive Officer of Sacyr.

Joining me today is Carlos Mijangos, the company's Chief Financial Officer. Thank you all for attending Sacyr's earnings call for the first quarter of fiscal year 2026.

I will begin my presentation by addressing the key financials for the quarter. Revenue increased by 5% compared with the first quarter of 2025, reaching €1.116 billion.

EBITDA rose by 9% to €327 million, representing a margin of 29.3%, 90 basis points higher than in Q1 2025. Operating cash flow amounted to €223 million, up 12% year-on-year, excluding the impact of the sale of the Colombian assets.

These financial results demonstrate that the new awards now entering operation are replacing the contribution of the assets divested in Colombia that are no longer in the company's perimeter. Net profit attributable to the parent recorded a strong increase of 40%, reaching €38 million.

Net recourse debt remained below 1 times, maintaining a solid financial structure and delivering on our financial commitments. Amongst the most significant milestones of the quarter, I would like to highlight the award of the Ontario Science Centre in Toronto, our first concession in Canada.

This 30-year concession will deliver what is set to become one of the country's most iconic buildings and will undoubtedly transform Toronto's skyline. It will be one of the most advanced science outreach centers in the world.

With this award, for which a €645 million contract is already underway, we are taking another important step in delivering our 2024-2027 Strategic Plan by expanding our portfolio, as timely committed, in English-speaking countries, where we are currently bidding for major opportunities and expect to secure further awards. Sacyr's Board of Directors has resolved to submit for approval at the Annual General Shareholders' Meeting to be held on June the 4th a shareholder remuneration proposal consisting of two cash dividends totaling €0.15 per share, €0.10 payable in July and €0.05 payable in January 2027.

Given that a scrip dividend of €0.049 per share was already paid in January this year, the total shareholder remuneration to be distributed in 2026 will amount to €0.149 per share, 21% higher than in 2025. If approved by the Shareholders' Meeting, total cash dividends distributed in 2026 will reach €81 million, more than double the cash dividend paid in the previous year, in line with the commitment set out in the Strategic Plan to distribute at least €225 million in cash during the 2025-2027 period.

At Sacyr, we pursue a clear purpose: to develop transport, healthcare, and water infrastructure that contributes to building a globally sustainable future. Our strong positioning in the leading international sustainability ratings recognized by independent agencies such as S&P Global, Sustainalytics, and EthiFinance as a sector leader, number one in Spain and among the top 10 companies worldwide, reflects an integrated ESG management approach that drives sustainable growth and creates value for our shareholders.

I will now hand over to Carlos Mijangos, who will provide you with a more detailed review of our operating and financial performance.

Thank you, Pedro. We will now review the company's operating and financial performance.

In Q1 2026, Sacyr delivered clearly positive operating and financial performance in line with the priorities set out in the Strategic Plan and supported by the strong performance of its concession assets. Revenue reached €1.116 billion, accounting for a 5% increase compared with the same period last year.

This growth was accompanied by an improvement in EBITDA, which stood at €327 million, up 9%, thus maintaining an EBITDA margin of 29.3%, almost 1 percentage point higher than in the first quarter of 2025, reflecting greater operating efficiency. Net profit attributable to the parent increased significantly by 40%, reaching €38 million.

This positive performance was mainly driven by stronger operating results and an improvement in the financial result, with no material extraordinary impacts from asset rotations having been reported over the period. In terms of cash generation, operating cash flow reached €223 million, accounting for a 12% increase against the first quarter of the prior year on a like-for-like basis, after excluding the contribution from the assets sold in Colombia last year.

This level of stable and recurring cash generation once again highlights the company's ability to create sustained value in a demanding market environment. Finally, net recourse debt remains below the limit set out in our Strategic Plan.

From a financial standpoint, during Q1, the refinancing of the corporate syndicated loan was completed, increasing available liquidity to €600 million, improving the cost of debt, and extending maturities to 2031. This transaction was backed up by 25 financial institutions and was nearly 2 times oversubscribed, reinforcing market confidence in the group's financial profile.

Likewise, progress was made in the selective rotation of assets, with the sale in April of our parking assets in Spain for €9 million, at a multiple of 2 times invested capital, that is 26% above the internal valuation presented at the 2024 Investor Day. A key milestone during the period was Sacyr's inclusion in the STOXX Europe 600.

As one of Europe's leading benchmark indices, it brings together the most representative companies from 17 countries, selected not only for their size, but also for their liquidity, transparency, and financial soundness. This development further enhances Sacyr's visibility and strengthens its positioning within the European investment community.

Regarding the company's debt structure, consolidated net debt stood at €6.721 billion as of March 2026, mainly reflecting a solid operating cash generation of €223 million, the effect of net investment during the period amounted to €270 million, and the transfer onto Sacyr's balance sheet of the debt previously held at GUBC, with no impact on valuation or cash, while benefiting from significantly more favorable financing conditions at the parent company level. As for net recourse debt, the most significant factors were the seasonal effect of the negative working capital of €90 million, which will reverse throughout the year, the purchase of €10 million of shares through the settlement of the related forward derivative, and the transfer onto Sacyr's balance sheet of the debt previously mentioned for an amount of €289 million.

This figure remains below the committed threshold, with a ratio of net recourse debt to recourse EBITDA plus distributions from concessions below 1 times, which once again confirms the group's financial discipline. Now, we will move on to explain the performance of the different business lines.

Thank you very much, Carlos. I will now provide further detail on the performance of our three business areas.

The Concessions division reported revenue of €463 million, accounting for a 23% increase compared to Q1 2025. Operating revenue rose by 10%, mainly driven by the contribution from our Chilean assets such as Ruta de la Fruta, Ruta 68, and Ruta del Itata, which more than offset the exit from the perimeter of the Colombian assets.

Construction revenue grew by 58%, pushed by progress on contracts such as Ruta del Elqui and Hospital de Buin-Paine in Chile, and the Velindre Hospital in Cardiff and the Buga-Buenaventura Highway in Colombia. EBITDA for the division posted a 7% increase, reaching €184 million.

During the quarter, where concessions distributed €23 million while we invested €60 million, bringing the total equity invested in our infrastructure concession assets to €1.726 billion. On March the 1st, operations began at Antofagasta Airport in Chile.

I would also remind you that in the United States, we have been shortlisted for three managed lanes projects: the I-285 managed lanes in Atlanta, the I-24 managed lanes in Nashville, and the I-77 managed lanes in Charlotte, with bidding proposals for the first two set to be submitted this summer. In the Engineering and Infrastructure division, revenue increased by 3% to €712 million, driven by progress on projects in the United Kingdom, Chile, and Spain, which offset the completion of works in Peru and Portugal.

EBITDA rose by 8% to €127 million. Construction margin remained stable at 5%.

The division's backlog increased by 4% compared with December last year, reaching €12.996 billion, of which more than 73% corresponds to our own Concessions division, thereby limiting, as we have repeatedly stated, our exposure to the inherent risks of construction activity. Among the main milestones of the quarter, we would like to highlight the following: a strategic alliance with local company Built to promote projects in Australia, where we are developing the design of Peel Hospital awarded in January, and where we have also been selected as one of the two finalists to design and build the new Brisbane 2032 Olympic Stadium.

The selection of Sacyr as one of the companies to develop the ambitious program of the National Health Service with a budget of £37 billion over 12 years, with the first contracts expected to be awarded shortly in the UK. Finally, in Louisiana, we began the construction of the I-10 Highway, which is our first infrastructure project in the United States, €2.3 billion in investment.

Finally, our Water division continued to deliver double-digit growth in the first quarter, both in revenue and EBITDA. Revenue totaled €76 million, up 19%, while EBITDA increased by 21% to €16 million, posting a margin of 22.4%.

The quarter's milestones include the following: the acquisition of Aguas de Esparreguera in Barcelona, which serves 23 [inhabitants?] and reinforces Sacyr's strategy to grow across the integrated water cycle, in this case in Catalonia; the award of new contracts in Spain for a total amount of €84 million in Huelva, Tenerife, and Madrid.

In April, the concession contract for the Coquimbo desalination plant was formalized. Let me remind you that this is the first desalination plant under a public concession model tendered in Chile, with an investment of €305 million and a duration of 21 years.

Its €1.3 billion backlog is not included in these figures as it was signed after the quarter end. Total equity invested in this division reached €137 million.

In closing this presentation, I would like to leave you with four key messages. First, the increase in the cash dividend for 2026 to €0.10 per share from €0.045 last year, subject to approval by the Annual General Shareholders' Meeting, in line with the shareholder remuneration commitment set out in our Strategic Plan.

Second, our operating growth, resulting from improved performance across our key financial metrics, confirms that our concession-based business model is becoming increasingly stronger, more scalable, and more profitable. In this regard, I would note that we are already working on the updated valuation of our assets, which we will present with our half-year results in July.

As announced in February during our previous earnings call presentation, by the end of this year and depending on the outcome of the major tenders in which we are currently bidding, we expect to be in a position to present a new Strategic Plan for the company as the current 2024-2027 plan will have been delivered one year ahead of schedule. Third message: a new concession award in an English-speaking market, the Ontario Science Centre in Canada, in line with our commitment to ramp up the weight of our portfolio in these countries, where we are competing for major ongoing tenders.

Finally, proven financial strength supported by the refinancing of the syndicated loan and a net recourse debt ratio that gives us significant strength to meet the challenges ahead. We are now available to answer your questions.

Good morning everybody and thank you very much for attending this quarterly earnings call of Sacyr. We are going to start with the Q&A session now.

We are going to start with the questions over the telephone and afterwards we will allow questions through the webcast chat. Luis Prieto has the first question from Kepler Cheuvreux.

Please go ahead, Luis.

Good morning or good afternoon rather. Thank you very much for taking my question.

I have two questions. The first question is the following: what happens with the current inflationary context?

How does this affect the tenders you will be presenting? Are there any measures in order to mitigate the current risks?

Could you give us some color as to the awards of the projects where you have been shortlisted? The second question, could you please give us an update on the Pedemontana valuation?

We will get back to you in a minute. Thank you.

Good morning, Luis. As for Pedemontana and its rebalancing, this is a clear-cut contractual right.

As we mentioned in the past, the economic-financial balance on this award was conducted twice, and this timeline is quite normal in Italy. As for increased inflation, and in connection with the managed lanes contracts in the case of Georgia and in Tennessee, we will be submitting proposals in July should no delays take place, that is to say before the summer break.

There are already some mechanisms in place in order to mitigate any inflationary fallout. The contracts, in terms of concession and construction, we have some models whereby such risks have been mitigated.

The next question is from JB, Miguel González. Please go ahead.

Good morning. Thank you very much for taking my question.

I have three questions. The first question is concerned dividend.

You mentioned the 15 cents, euros per share. You said that you were going to pay €225 million until 2026.

Are dividends going to be paid out in cash as of now, or will there be any changes going forward? Could you give us some color as to provisions allocated over the quarter, which are a bit higher compared to 2025, especially in terms of the holding, because I believe that this accounts for about 40 million?

Then, as for the asset valuation that you're going to be reporting in July, inflation and exchange rate performed better than initially expected in 2024 and that would be beneficial. However, the traffic of some intangible assets, such as in Italy, was quite positive.

Therefore, could you please give us some color as to whether the performance of these concessions proved to be better than initially expected back in 2024?

Thank you very much, Miguel. We will get back to you in a minute.

Miguel, let me address your question concerning the dividend. The Board has resolved to submit to the AGM the approval of the payment of two dividends in cash.

The scrip dividend is a tool that the Board of Directors can resort to, and it can decide afterwards whether it will be using that tool or not. As for the allocation of provisions in the current uncertain context, the company has decided to take a prudent approach, and that's why we have €40 million in provisions at a holding level.

This is something that we have done in being prudent and conservative in our approach. As for, of course, traffic and increase that increases the valuation of assets in Italy, of course performance was better and therefore our valuation of the assets in Italy will also rise.

Thank you very much. There are no further questions over the phone.

We now give way to questions from the webcast. From Bernstein, Víctor Acítores.

He's asking whether we can give some color as to the timing of the water-related projects in Australia. The second question is concerned with managed lanes: what about Sacyr's competitive positioning in our concession compared to our competitors or peers?

We will get back to you in a minute, Víctor.

Víctor, as for the water-related projects in Australia, as you may know, we have been shortlisted for one water plant in Brisbane. We have already submitted our proposal for this tender.

We believe that this project will be awarded this year. Then we will be submitting another proposal for another desalination plant, and we believe that a final decision will be made before year-end.

As for managed lanes tenders, Sacyr has been developing concessions for more than 30 years regarding highways. We have been working in the United States for the past 10 years with a hit ratio which is quite high in terms of tender awards.

Therefore, we are competing on the same footing as other peers. In Atlanta, there are two groups, in Charlotte, and Atlanta, three.

Thank you very much, Pedro. Álvaro Navarro from Bestinver has another question.

He's asking about the Pedemontana rebalancing status, and in this connection he says whether after this rebalancing takes place, the project might be refinanced. If so, whether we are working on it.

Another question is concerned with some guidance concerning distribution for concessions going forward in 2026 and equity to be invested. The third question is connected to managed lanes.

Should a managed lane be awarded after the summer break, when are we going to be injecting the first equity? Should we be awarded two or three managed lanes, which financing lines are being factored in by the company?

Álvaro, we'll get back to you in a minute.

Álvaro, as for Pedemontana-Veneto, the refinancing of the Pedemontana project is something we're working on regardless of the contractual entitlement we have. We're now working to get refinancing of this asset.

As for equity redistribution, Carlos...

That last year we reported more than €200 million for both. It's going to be about €180, €200 million.

We will be able to pay for these obligations according to the money we get from assets. We're still tendering other projects, this is a very important strategy, how we manage funds and how we allocate them.

For the time being, we cannot provide you with a final answer. However, for I-10, we are going to be doing this, and the first equity is being paid 4 years after the contract was formalized.

Thank you very much. The next question is by Tom Fallows from Barclays, and he's asking about cash flow conversion or EBITDA conversion.

It was reduced over the first quarter. He believes that this is due to working capital to begin with, and to the sale of the Colombian assets which no longer make a contribution.

He's asking how we expect this conversion ratio to perform over the year. Second, the impact this could have on our cash flow.

He's talking about the sale of assets in Colombia. We will get back to you in a minute, Tom.

As we repeatedly mentioned, Sacyr has financial assets and operational cash flows are above EBITDA. We have already sold three operational assets, therefore the ratio is above 100%, and the opposite happens when you carry out any deductions.

This conversion ratio depends on seasonality. As you are saying, this affects working capital, but not only that, there are certain projects that are paid quarterly or half-yearly, showing some seasonality.

This ratio will therefore be improving over the year, and usually the last quarter is the best one in terms of cash flow performance. All the same, the figures are expected to remain as usual.

As for the impact of the sale of assets in Colombia, last year we mentioned that we will no longer receive €180 or €200 million in EBITDA and cash flow. This quarter we didn't receive €40 million as a result of that.

Nonetheless, we continue to generate more cash flows as a result of the operation of other assets that have become operational and have replaced the sale of assets in Colombia.

There are no further questions over the webcast, however we have one more question over the phone from Miguel. You have the floor, Miguel.

Thank you very much for taking my question. I would like to know about the debt concerning Panama.

I believe that it was supposed to fall due this year. Could you give us an update in this respect?

Do you think that you could still recover something from this project? When should we expect any updates?

We have managed debt effectively. All consortium members have done so.

Right now this debt was supposed to fall due in March. Rather than extending the debt under project terms and conditions, we decided to transfer this over to the holding that can negotiate better financing conditions.

Therefore that is financial efficiency in other terms. As for the arbitration procedures, Pedro will give you an answer on this.

Some public hearings were held in January, February, and March, and we expect some final decisions to be issued by the end of this year. We believe that we will be able to report on this in early 2028.

Any result, however, will have a neutral or positive effect, because we have allocated provisions for this all.

There are no further questions either over the phone or the webcast, now let me give the floor back to Mr. Pedro Sigüenza.

Thank you, Alberto. If there are no further questions, we thank you for your attendance and interest, and we look forward to welcoming you again at our next results presentation.

Thank you very much and have a nice day.