Ladies and gentlemen, good morning and good afternoon depending where you are, and welcome to SBO's conference call for the results of the first half year of 2026. My name is Judit Helenyi, responsible for IR, and I would like to thank you for joining us today.

We appreciate your interest in SBO. Before we begin, let me briefly cover a few organizational topics.

This conference will be recorded and made available to the public. The presentation will be held in listen-only mode, followed by a Q&A session.

Please note our disclaimer, which you can find at the beginning of the presentation. Today's presentation will be given by SBO's Executive Board, this is Klaus Mader, CEO, and Campbell MacPherson, COO.

With that, we are ready to start. Klaus, please go ahead.

The floor is yours.

Thank you, Judit, for the kind and nice introduction. Ladies and gentlemen, welcome also in the name of the Executive Board.

I'm Klaus Mader, and as usual, I'm doing the call together with Campbell MacPherson, who is the Chief Operating Officer. Today, we will briefly talk about the business highlights of the second quarter, the financial performance on a group and a segment level for the first half of this year, followed by the outlook, and also this time, a deeper dive into additive manufacturing.

Today, I want to start with a slide that I ended with during the Q1 call, and this is the theme of this year, "Navigating Challenges, Shaping the Future." What you see on the left-hand side is the cyclicality of our business.

We experience upcycles, we experience downcycles, and during the Q1 earnings call, we informed you about the trend reversal in bookings. This trend reversal in bookings also continued in the second quarter of this year, even with three months of the second quarter impacted by the Middle East conflict.

We are beginning a new upcycle, and SBO is well positioned for that. After many quarters of sales reduction or sales stagnation, we delivered in the second quarter an almost 8% increase in sales, and also an increase in earnings.

We are prepared for the upcycle. This is what SBO knows.

SBO knows how to manage cycles. In parallel, we continue to invest and to execute on our growth strategy based on the four pillars: diversification, market expansion, technology leadership, and operational excellence.

This is the long-term strategy that is going to be implemented and executed over the next years. The promising news is that we see clear results quarter after quarter with bookings beyond oil and gas now already approaching the 10% mark.

When we talk about the business highlights in a bit more detail, you see that the strategy execution is on track. This is the slide with activities on our four pillars just for the second quarter of this year.

You may have also seen our press release about additive manufacturing from last week informing about capacity expansion in the US and also in the UK. Campbell will provide more color later in the presentation.

Diversification is on track. I mentioned it already: we are approaching the 10% mark in terms of bookings in the first half of this year.

Also on the other pillars, activities were set with new partnerships, new product innovation, and the further ramp-up of the reline and distribution facility in Houston. To note is also the combination of the motor and rotary steerable business under one roof, which will improve the competitive position going forward.

Further information on all our business highlights can be seen in much more detail in the half-year reports. Let's talk about the market environment in the first half of this year.

The market environment was dominated by the Middle East conflict starting end of February, which, in the first instance, impacted the supply side as a result of the closure of the Strait of Hormuz and the damaged infrastructure. The supply destruction at the beginning or at its peak was almost 10 million barrels per day lower supply, which is 10% of daily production, turning from an oil oversupply in the market in 2025 to an undersupply.

The release of the strategic reserves, activities in other regions, and also the demand decrease avoided a supply shock, but the situation is leaving the oil market tight and also highly volatile. It is expected that the oil prices will remain above the pre-conflict prices as a key takeaway of this situation.

Let's now move to the financial highlights of the first half of the year. Business development was characterized by three main factors.

First, the impact of the lower bookings from the year 2025 had an impact in sales and earnings. A further impact came from the Middle East conflict, with all its logistics constraints that impacted our sales and earnings.

The good news is that the bookings continue to rise. After the fourth quarter of last year, in the first quarter of this year, and also in the second quarter, the high level of the first quarter could be kept, although we had three months of a Middle East conflict instead of one month in the first quarter.

Bookings are up 8.5%, backlog is significantly up, and the book-to-bill ratio is greater than 1. As I already mentioned, the sales in the first half of the year reflect the lower bookings from 2025.

Also, it has to be taken into consideration that the first half of 2025 was much stronger than the second quarter. We are comparing to the significantly stronger quarter.

Last year, we have seen a decreasing trend in terms of sales and profitability quarter-over-quarter. This year, we are going to see an increasing trend.

Sales in Precision Technology were below the previous year, I mentioned it already, as a consequence of the lower bookings. Sales in Energy Equipment have been heavily impacted by the Middle East conflict, to some extent lower drilling and completion activities in a half-year-to-half-year comparison, and also the weaker US dollar.

Only the foreign exchange impact on sales was 12 million as a result of the weakening of the US dollar from 1.09 in the first half of '25 to 1.17 in the first half of this year. Important to note, and that's very relevant, is that in the second quarter, we increased our sales by 8%, which means after eight quarters of stagnation or sales reduction, we have seen also now the trend reversal in terms of sales.

EBITDA and EBIT follows the sales reduction, and the main drivers were the lower capacity utilization in Precision Technology, Middle East-related sales defers in Energy Equipment, also an unfavorable product mix, and the ramp-up of the important US reline and distribution center, of course, until it is at full capacity consumes some extra expenses that we will not see going forward. Let us have now a deeper dive into the bookings.

I mentioned already that the bookings increased in a year-on-year comparison by 8.5%. When you look at the right-hand side, and you look at the third quarter and the fourth quarter of last year, the second half of 2025, and compare it with the first half of this year, we see a 24% increase in bookings, and this is promising.

This also results in a almost 32% increase in terms of backlog. Those higher bookings will be reflected in higher sales going forward.

Let's now move on a deeper dive on the segment level. Here I want to start first with a half-year comparison, '26 to '25.

Group sales decreased by 19.3% from 254 to 205, also driven by a weaker US dollar. I mentioned already the impact of about 12 million.

The foreign exchange-adjusted sales decrease was 14.7%. On a segment level, in Precision Technology, the comparison to the very strong first half of the year is 20% down.

This is the result of the lower bookings in the second half of 2025. In Energy Equipment, the main driver being below the previous year are the deferred sales in the Middle East, lower North America activities, and the already mentioned foreign exchange impact.

More interesting and more relevant is the quarterly development. On the quarterly development, I flagged it already, we see a 7.7 increase in terms of sales, which is a clear improvement.

After eight quarters of decline and stagnation on a group level, we see a trend reversal in sales: 7.7% compared to the previous quarter, and almost 10% compared to quarter number 4. We see SBO is back, and we are seeing that we are at the beginning of a new upcycle.

On a division level, Precision Technology is strongly up by almost 22% after eight quarters of a sales reduction, and this is promising. Energy Equipment, which has a higher exposure to the Middle East, faced this conflict.

We had in the second quarter three months instead of one month Middle East conflict, but managed to be at least on the level of the first quarter in terms of sales. When we now come to the earnings performance, we start again with a half-year comparison, and here I mentioned already the drivers of the lower profitability: the low bookings resulting in lower sales and capacity utilization, an unfavorable product mix, the sales defers to the Middle East conflict, and the ramp-up of the reline facility.

Both on a group and also on a segment level, we managed to keep, also during that downcycle, the EBIT margin in the double-digit area, with almost 12% on the group level, 11% for Precision Technology, and 13% for Energy Equipment. Also here, a discussion on the sequential development.

Next slide, please. One back.

Thank you. Not only sales, but also on profitability, the second quarter is above the first quarter.

Group EBITDA is, with close to 30 million, higher than in the first quarter, 11% higher in terms of absolute figures. The group EBIT is, with 4.2 million, more than 50% higher than the 2.7 million in the first quarter.

In Precision Technology, the clear improvement in terms of sales, and also resulting in a better capacity utilization, resulted in an EBITDA of almost 8 million. This means also an almost quadrupling, four times higher than in the first quarter.

Also on the level of EBIT, after a loss of 1.5 million, now with a profit of 4 million, clearly in the profit zone, and also cumulative in the first half of the year back in that positive territory again. Energy Equipment had a different development, driven by the Middle East conflict, three months instead of one, the unfavorable product mix that I mentioned, and the ramp-up of the reline and distribution center, also impacted by foreign exchange, and had a decreasing profitability in the second quarter.

All in all, starting now with the second quarter, we see not only increase in sales, but also increase in profitability on a group level. Final slide on the financial information is cash flow and the balance sheet.

The operating cash flow is, with 11.2 million, below the previous year. The main drivers are a lower cash flow from profit, an increase in working capital—and that is promising, by the way, because this indicates more activity, this indicates that we are ramping up also in terms of working capital, buying raw material, manufacture it to semi-finished and finished products.

This is a clear indication of an upswing when working capital increases. Also on the free cash flow level, because I read earlier today a comment that the free cash flow is negative.

I don't see that as a concern at all, because this demonstrates that we are picking up our activity in our core business, and also ramping up in terms of strategic CapEx. I mentioned to you the share of diversified bookings is close to 10%.

This means we are investing in additive manufacturing. Therefore, a sequential negative free cash flow is not a concern at all, because with a very strong balance sheet, and it remains and continues to be strong, with almost 48% equity ratio.

The equity, also as a result of a stronger dollar in the first half of the year, higher than at the beginning of the year even after the dividend payment. Also liquid funds continue to remain high, with 255 million.

Net debt is at 100. Gearing continues to be a good figure, a favorable figure with 23%.

This allows us to invest into our future, to invest in the execution of our strategy, and also to manage now the upcoming upcycle. With that information, I hand over to Campbell for a deeper dive into the outlook and also into additive manufacturing.

Thank you, Klaus, very much for that, and good morning and afternoon to everybody from my side. Moving from the first-half results, I want to talk a little bit about the market outlook, and as Klaus has already explained, give an update on one of our key diversification activities, and that is in additive manufacturing.

When we spoke at our last earnings call, the Middle East conflict obviously had started, and this then led to the start of a major disruption to the global oil supply. The immediate response was to increase supply from other regions and draw down on inventories to help replace missing barrels.

This has continued, and the near-term environment remains uncertain. One medium-term implication is becoming clearer: inventories are being depleted, and energy security has definitely moved to the forefront of the strategic agenda.

Let me briefly explain the scale of this. The IEA expects global oil supply to decline by approximately 4.3 million barrels per day in '26 compared to '25.

Demand is expected to decline by around 1.6 million barrels per day. In simple terms, supply is expected to fall much faster than demand.

The reduction in supply is approximately 2.7 million barrels per day greater than the reduction in demand. How has the market managed this disruption?

It's done it through additional supply from other regions. There's been alternative transport routes that have worked to some effect, but not fully.

Demand has lowered, and importantly, countries have been using strategic reserves and inventories and drawing down on those. In fact, from the beginning of the conflict through to the end of June, approximately 360 million barrels were drawn down from global inventories, an average of 3.8 million barrels per day.

As of today, even in the United States, the Strategic Petroleum Reserve has fallen to its lowest level since the 1980s. Inventories can only bridge a temporary disruption, but they can't replace lost production indefinitely.

This is a short-term response and not a long-term solution. That leads directly to the three energy security drivers shown on the right-hand side of this slide.

First, refill inventories. Commercial stocks and strategic reserves used during this disruption are already diminishing, and they need to be replenished.

Second is diversify supply. This means reducing dependence on individual producing regions and critical transport routes, and having alternatives.

Third is develop local resources. This means countries developing energy supplies more independently.

In country, if they're lucky enough to have those resources, or at least closer to where they're located, this helps logistically and gives them greater local control. Together, these drivers really support continued investment across both the short-cycle US land activity and the longer-cycle international and offshore developments, including the investment to rebuild production capacity in the Middle East itself.

For SBO, this is very constructive for the medium-term outlook. However, we must remember that near-term disruption does remain in the Middle East, and Klaus has explained this very clearly.

We suffer from logistics, deployments, and customer activity in that region does continue to be affected. At the same time, we're already seeing the first evidence of improvement in our own business: bookings increased, backlog grew, and the recovery is increasingly invisible within our Precision Technologies, again, Klaus has explained in some detail.

Taking together, this suggests that the early signs of a new upcycle are emerging. Of course, the timing and pace of that recovery remains uncertain, depending on how things happen in the Middle East and the conflict emerging.

Bringing that down to our actual outlook at SBO, well, we currently expect the recovery to continue during the second half of '26. During our last call, we described '26 as a transition year, and the first-half results confirm both sides of that description.

Sales and earnings remain below the prior year because they still reflect the lower bookings recorded in '25, as well as the impact of the Middle East conflict. As Klaus said, the first quarter had one month of that impact, now we're to a full quarter in Q2 with the Middle East conflict.

However, as you've just seen, sequential results improved and bookings remain strong, showing the direction of travel is definitely improving, clearly. You see the strongest in Precision Technology, where Precision Technology sales increased 22% sequentially, making the first quarterly increase after eight consecutive quarters of decline from a sales perspective.

The positive booking trends also have continued into the opening weeks of the third quarter. We see this extremely positively.

That's building a higher backlog, and that higher backlog is the foundation for improving the sales and the capacity utilization in Precision Technology as we progressively convert those orders. An easing of the Middle East conflict would certainly provide further momentum, but our positive view of Precision Technology does not depend solely on this.

The outlook for Energy Equipment remains more mixed. The Middle East conflict continues to delay shipments, field deployments, and importantly, new product qualifications.

This is something that needs to be stressed, that we are developing a lot of new products which we are bringing to the Middle East, and even existing products going into the Middle East have to be qualified with customers, and these qualification cycles take a long time. These qualification cycles have been, of course, delayed through this period during the conflict, and that impacts, obviously, the timing of the potential sales in that region.

However, we have seen and we continue to see growth opportunities from geographic expansion across Asia, Latin America, Europe, and Sub-Saharan Africa. Our US motor reline and distribution center should also progressively improve equipment availability in North America land, improve our response times to our customers, and also our operational efficiency as the ramp-up progresses.

Overall, our outlook remains constructive, but certainly measured. We expect further recovery during the second half, led by Precision Technology, and a gradual normalization of activity and logistics in the Middle East would provide additional upside as deferred customer programs hopefully start to resume.

The pace of improvement will, nevertheless, depend on the timing of those deferred activities. Alongside the recovery, of course, in our core business, and Klaus has mentioned that, we're seeing quite an increasing momentum from our diversification strategy.

For my last slide, I want to turn to one of the most exciting areas, in my opinion, of our diversification strategy, and that is additive manufacturing or 3D metal printing. Let me explain why this technology matters.

Conventional manufacturing starts with a solid piece of metal and removes material to produce the required shape. Additive manufacturing does the opposite: it builds the component up layer by layer from metal powder.

Why is this important? It allows the engineers to create more complex geometries, lighter structures, and integrated cavities or channels that would either be extremely difficult or even sometimes impossible to manufacture conventionally.

Put simply, in conventional machining, complexity normally adds time and cost. With additive manufacturing, that complexity can be designed directly into the component.

I do believe we're entering into an inflection point in the industry globally, and the adoption of 3D metal printing is starting to really gain momentum. We print with a range of high-performance alloys, including Inconel and titanium, for highly demanding applications.

What do we make? We produce a range of complex components: components for propulsion applications, for thermal management applications, flow control applications, and a whole host of other advanced industrial systems.

Componentry-wise, these include things like turbine components, ramjets, diffusers, stators and impellers, components of heat exchangers, tubing, burners, nozzles, flow diverters. The list really goes on.

The opportunities get larger, because it is very substantial. You can see that the outsourced metal additive manufacturing market is forecast to grow from 1.5 billion in '25 to 4.8 billion in 2030, a CAGR of 26%.

Within this market, aerospace, defense, and semiconductor applications are each forecast to grow by more than 30% annually. This growth is already visible in our business.

Additive manufacturing bookings are accelerating significantly in both the US and here in Europe, supported by demand exactly from those three industries: aerospace, defense, and semiconductors. To meet this demand, we're continuing to expand our capacity.

By September, we will have added seven new 3D metal printers across our US and our UK operations. We're also expanding our US additive manufacturing space by 50% to more than 2,100 square meters.

The printer itself is only one part of the process. After printing, components typically require post-processing, which includes heat treatment, precision machining, surface finishing, and detailed quality inspection and processes.

This is where SBO is very much differentiated. We combine our core capabilities with additive manufacturing, because we're very established and experienced in high-performance materials and precision machining.

This enables us to provide the complete value chain, from printing through post-processing from a single source. Just very recently, our UK additive business, 3T, was recently named Tech SME of the Year at Thames Valley Tech and Innovation Awards 2026.

Overall, the growth in bookings, capacity, and now market recognition of our businesses demonstrates that our diversification strategy is moving from investment into execution. I really feel this is an area for you to watch, as the momentum is only continuing to build.

With that, I'll hand back to Klaus to close the presentation. Thank you.

Campbell, thank you very much for the deep dive into additive manufacturing. I expect the one or the other question in the Q&A related on that.

I simply want to make some closing remarks and ending with the slide that we started with. We see, after the trend reversal in bookings, also now the trend reversal in sales and earnings, and we are at the beginning of a new upcycle.

Campbell mentioned it, also positive booking trend in the third quarter, and therefore, we are currently expecting a further recovery in the second half of the year. Of course, what needs to be watched is the continuous situation in the Middle East depending on the status of escalation.

I always say the Middle East conflict is somehow the elephant in the room at the moment, and therefore, time and pace of the recovery is to some extent also dependent on that. The fundamentals, the basis for the upcycle is existing.

We also need to watch foreign exchange developments, the development of the US dollar to the euro. See a lot of noise now also on the bond markets and higher interest rates, but to conclude on that, the foundation is here: the bookings increased, backlog is increasing, and this is the foundation and this is what SBO is well positioned for it, with a bit of a question mark in terms of timing and pace.

The second positive news is the diversification into industries, into markets beyond the oil and gas industry. This is a long-term story, because we have so far done it predominantly organically.

Therefore, we are also investing in capacity, and at the beginning, it is an investment. We are quite excited about the developments and also about the potentials in those industries.

The forecast on the additive manufacturing market was already named by Campbell, but the industries are also very interesting: the space industry, the aerospace industry, the defense industry, the semiconductor industry, and also the energy industry. Even in our core business, our customers more and more ask us, "Can you also print this?"

This is definitely also a promising development and a growth path that we are continuing to go. With those closing remarks, I do open for the Q&A session.

Thank you, Klaus and Campbell, for the presentation. We will now begin with the Q&A session.

As a reminder, you have two options. Please raise your hand in the Webex call.

Once I call your name, you may unmute your microphone and ask your question. As an alternative, you can post your questions in the online Q&A tool, and I will read them out loud.

The first question is coming from Mr. Cinkovic.

Please, go ahead.

Good afternoon. Thanks for taking my questions.

First, congrats on the results, particularly in PT. Could you provide more light on the customers driving the bookings in PT?

Are smaller agile operators expanding their drilling programs moving the needle? Another question would be, could you give us an update on what you're seeing in regard to the delayed orders?

Do you see any material changes to the picture you already provided in the last months? Another one on your expansion of capacity in additive manufacturing.

Is that tied to rising volumes for existing customers of 3T, or are you already seeing new customers? Thank you.

Hello, Mr. Cinkovic.

Thank you very much for your question. Taking your first question and the increase in PT and the customers that's coming from.

As always, it's driven predominantly by the large oilfield service customers. We always see them as the first movers in the market particularly.

I'd say that's the majority of where that demand's coming from. Of course, in our PT division, we don't only supply to them directly, but we supply material to other precision manufacturers in the marketplace as well.

We're seeing a steady demand coming across from other manufacturers to support these oilfield service customers as well. I wasn't quite sure I understood the second question about delayed orders.

If you want to make it a little bit more explicitly, I'll try to answer that for you. Let me jump to the expansion of capacity or the growth at 3T and also at Knust-Godwin, our facility in the US.

The expansion or the growth of those businesses has been driven predominantly by existing customers and working on programs that they already have. Along with our additive business, is you get into a platform and you qualify a part or a program, and this takes time.

Actually, it's a bit like sowing the seeds. We've been sowing the seeds now for some time with some customers on various platforms.

Now what we're seeing is these platforms are actually moving into serial production, and a good significant portion of our growth both in the UK and in the US is these platforms coming to fruition. It is mostly with existing customers we've been invested with for a long time.

Very helpful. To follow up on that, could you share with us the lead times you see to acquire new customers?

To clarify on the delayed orders, it's on Energy Equipment. Tied to that, what would be your worst case in terms of further delays for a sustainable recovery?

Would that at one point affect even more your plans on capital allocation going forward?

Jumping back to the Energy Equipment and the confirmed delays. Most of the delays that we're experiencing in Energy Equipment, of course, are deriving from opportunities or sales that we have in the Middle East.

This has been driven by the fact that some customers are not actively operational in the locations and bases in the Middle East that they were. They're not receiving product.

The demand is still there, but they're continuing to defer it. Other areas in the Middle East are active, but actually getting product sometimes to those areas because of the logistics issues and the costs is also particularly challenging as well.

In terms of how long does that go on, this is a very difficult question to answer. With the escalation just recently in the last few days, it is very challenging to be able to answer that question.

We're working as close as we can with those customers, and in some instances, those customers will take deliveries in other geographies, those larger customers as well. Hopefully that answers as much of the question as I can.

Fair enough. Yeah.

The other question that was in relation to— Lead times. —the lead times in additive manufacturing, that's a very varied question.

Lead time can be very short. Parts can be printed in days.

Even long parts can be printed, even larger parts would take a week to print. To get these to serial production, it can be a gestation period of maybe 1 to 2 years to develop with a customer to get a part suitable to be printed and get through all of the appropriate qualification processes.

It's very important that you have an ongoing business development with your existing customers on different platforms and working with new customers as well.

Very helpful. Thanks.

Thank you. Now we have three questions coming from Baptiste Lebacquer, ODDO.

The first question is, you mentioned seven machines, could you give us an idea of the total machines on stream? What is the target of 3D machines sorry, the screen is jumping what is the target of 3D machines over the next two years?

The second question would be, could we expect some reverse on working capital movements in Q3? The third question is, in terms of margins, is additive business accretive in terms of market margins versus group level?

I'll take the question with regard to the number of printers. The number of printers we have approximately across all of our three sites at the moment adds up to about 30.

At the moment, we have orders in place confirmed to deliver and come in to the end of this year another three, and we're right about to go into negotiation for at least another three or four at the moment. You can see that we're growing this part of the business very rapidly.

In terms of how many machines do we expect within another two years, we could say going another two years would like to think that we'd be able to add at least another 5 to 10 machines in that period. Bear in mind, not all machines are equal.

Some are very small and their output obviously is smaller as a result of that. Some are very large, with significant investments, and of course, they produce much more revenue as well.

I'm going to take the second and the third question. Are the margins in additive manufacturing accretive?

Yes, clearly yes, because it has to fit to our strategy of delivering EBITDA margins north of 20%. This is where we are normally in our core business when we are not in a downcycle.

All the diversification efforts, is it either in additive manufacturing or in geothermal or in flow control, the prerequisite is to generate EBITDA margins north of 20%, and this is what we are doing and also this is what is happening. Related to working capital, I would not be concerned if the working capital further increases, because this would be a clearer indication that there is even more acceleration in terms of an upcycle, because to some extent, especially on the accounts receivable, the working capital is somehow a relation also to the sales development.

The higher the bookings go, the more business we are doing, we will have temporarily a higher working capital. This, as I said before, this is not concerning me.

This is even good news, because this will fill our capacities, will us make more profitable, and will also generate higher profits and a higher EBITDA.

Thank you. The next question is coming from Richard Dawson.

Richard, please go ahead.

Hi, good afternoon. Can you hear me all right?

Yes. Excellent, loud and clear.

Great. Thank you.

A couple of questions from my side. Firstly, just on orders.

We've seen order intakes really leveled off about €120 million a quarter now across the first half, well above 2025 levels. If you look back historically, probably a touch lower.

When you look at your discussions you have with customers so far in Q3, do you think there's scope for that 120 million to go up, and so actually see orders actually pick up Q-on-Q into Q3 and Q4? Then a second question on EE.

You spoke about an unfavorable product mix coming through this quarter, which saw margins come down a bit. Is that solely due to delays in the Middle East, or are there other factors we should be aware of?

When we look at H2, do you expect similar sort of product mix as well? Thank you.

Talking about the order intake going forward and discussions with customers, Richard, the most recent discussions I've had with customers is they're positive about going into 2027, and their expectation is that they're investing in their capital in the areas that we support them. We expect, at this moment in time, in terms of the discussions we have with customers, the open inquiries, and the level of order intake we're seeing, that this will improve as we move forward.

Richard, good afternoon. This is Klaus.

Let me take the Energy Equipment question. It was partly related to the Middle East, because last year, we also had project sales in the first half of the year related to North and South America that have not been repeated.

Project business is not a sequential, regular, steady business. Rental business is more a steady business, and therefore, I do expect going forward a better product mix.

Okay. That's clear.

Thank you. Maybe a follow-up just on additive manufacturing, because you spoke about the market as a whole growing about 26% CAGR over the next couple of years, but when you look at the niche that SBO operates in and the fact you're adding quite a lot of capacity in those 3D printers, what would be a growth rate which we could look to for sort of the next 2 to 3 years from your 3D printing?

I think it's safe to say you could see a growth rate of up to maybe potentially 20% per year over that period, over the next 5 years in terms of what is available in the market, the pipeline that you see, and it's down to us then to be able to execute and actually convert that. We're very, very optimistic about what the opportunities are there and really going out to get them.

If I even may add to that question, we have, of course, when we look for investment into additive manufacturing, we also look at the total addressable market. As Campbell said, we have printers with larger formats, we have printers with smaller formats.

We defined for us in additive manufacturing five industries. It's the space industry, that we are in for various years.

It was even the start additive manufacturing many years ago, even before we were in full production with prototyping, our first customers were in the space industry. It's the aerospace industry, it's the defense industry that is gaining more and more momentum predominantly in the US, but definitely also be followed in other parts of the world.

It's the semiconductor industry, and it's also the energy industry. Those five industries, and when you look at market studies over the next couple of years, those industries have growth rates between 20 and 30%, and it is our aim also to at least perform according to this market developments.

Great. Thank you very much.

Thank you. We have an additional question here from Nicolas Kneip, Wiener Privatbank.

"Based on your estimate, to what extent were bookings in Q2 '26 impacted by the Middle East conflict? To what extent did sales from existing orders have to be deferred from Q2 to H2?"

On the booking side, probably not an easy answer, but to be honest, I was positively surprised that we managed to keep the bookings level in the second quarter of the first quarter. Without the Middle East conflict, bookings would have been higher.

Very difficult to quantify how much it is. In terms of the sales defers, clearly are now in a low double-digit sales figure for the first half of the year that we could not ship, that we could not deliver.

The impact and the fact what Campbell also mentioned of delayed product qualifications is not even factored into that, it is definitely a material amount.

Thank you. Are there any further questions?

If so, please raise your hand. Yes, Richard, please go ahead.

Thanks for the follow-up. Maybe just on that final point when you talked about the delayed product qualifications, because you mentioned there that it takes 1 to 2 years for these new products to come through and be qualified by customers, which I understand.

If you have this conflict going on for another six months, H2 as well we don't get a normalization in the Middle East, do you start to see material reductions in potential products you can ship to your Middle Eastern customers, and does that have a knock-on impact when we look sort of 2 to 3 years in the future?

Richard, perhaps you've picked something up wrong. When we were talking about 1 to 2 years on product qualifications, that was in reference to the additive manufacturing business.

The product qualifications in the Energy Equipment field in the Middle East or with any customers, these are not such a long period of time. These are down to getting field testing and putting components in hole and making sure that they function and operate properly.

Once they're in there and they do that, that happens very quickly. The issue is that these things have been delayed with the Middle East conflict.

The availability of wells to actually be open for testing for new product development and qualification has slowed up significantly. Please, no, there is not a one- or two-year delay in product development or qualification of parts in our core Energy Equipment business.

Hopefully that clears that up.

That does. Thank you.

Good. Are there any further questions?

Richard, do you have an additional question or is just simply your hand still raised? I'm lowering my hand.

Thank you. Further questions?

As there seem to be no further questions at the moment, please feel free to contact me should any questions arise later. Let me now hand back to Klaus for a closing statement.

Yes, ladies and gentlemen, thank you very much, as always, for your interest and also your very interactive and productive Q&A session. We are looking forward to seeing you at the latest in November for the Q3 call, and the one or the other in between at conferences.

Wishing you all a nice remaining day, a nice remaining summer, and all the best for you. Thank you very much.

Thank you, Klaus and Campbell, for your insights into the business, and thank you to the audience for your questions and interest. As mentioned, our next scheduled call will be on the first three quarters results on November 26.

With this, we conclude today's conference call. Thank you for joining us, and goodbye.