Thank you and welcome everyone at EuroGroup Laminations H1 2026 financial results presentation. Joining us today are Marco Stefano Arduini, Group CEO, Isidoro Guardalà, Deputy Group CEO, and Matteo Perna, Group CFO.

The press release and the presentation supporting today's conference call are available on the company website in the investor relations section. Before we begin, please note that during this call the company will discuss its business outlook and make forward-looking statements based on its current expectation.

These statements are subject to risk and uncertainties that could cause the actual results to be materially different. I will now hand over to the Group CEO, Marco Arduini.

Please Marco, go ahead.

Thank you, Luca. Thank you very much, and as well, welcome to everyone to the first half 2026 presentation.

I want to start this presentation with a few statement before entering in the results. So, 2025 has brought a lot of changes in the market in view of all turbulence that we experienced and we saw.

For this, we consider 2026 a year of transition. I have to say that the first half 2026 results are in line with our expectation.

On the other side, we see as well that the general macro trends of electrification go behind the electrical car. EGLE diversified business model is ensuring the possibility to catch all the opportunities that are linked to the energy transition, and so to recognize as well the next wave that can secure the growth for EGLE.

Having said that, we enter in the results for this first half, and we confirm the improvement on a quarterly basis driven by the industrial and infrastructure business solution. We see at the same time the first sign of recovery in e-mobility.

If we enter in the detail, we see of course that 2026 is impacted especially in the North American market. For the e-mobility, we achieve €224 million revenues, that is down 13.3% compared to last year.

This lower sales are mainly driven by the North American markets. At the same time, we see early sign of recovery in the order book, and as well in the pipeline.

The region where we see is of course for the order book is China and Europe. For the pipeline is as well the European market.

Overall we see early sign of recovery. If we move to the industrial and infrastructure solution, we see as well a sequential growth in this business, mainly driven by the increase in demand for application that serve the data center market.

Here specifically is about generation of energy, is the cooling down, the refrigeration for this data center. The sales revenue are in line with €173 million, up 9% compared to last year.

The higher volume are consistently in Europe, in North America, while in Asia we see a stable volume compared to last year. Overall the margin are improving thanks to the execution of our performance improvement programs.

If we move to another important part, in May this year, we as well finalize a long-term financing agreement with a duration of 5 years up to €375 million. This was an agreement that was made with a pool of leading banks, and is allowing us to optimize the financial structure.

The average debt maturity moved from 2 years to 4 years. With regards to the performance improvement program, just some as well highlight on this side, with regards to the organization: in the first half we have reorganized our Mexican manufacturing footprint in line with the volume that are now foreseen, and we have consolidated the tooling facility in Italy.

Last but not least, we have as well appointed a new COO, Renzo Argentin, in order to strengthen our operational leadership and as well execution. With regards to the operational efficiency programs, we have advanced our program in Europe, in EMEA, and as well in North America.

Thanks to this, we have as well achieve improvements in margins and cash flow. Based on all let's say this consideration and as well results, we confirm our 2026 guidance.

In terms of revenue, a range between €700 and €750 million. In terms of adjusted EBITDA margin, a level around 11%.

In terms of free cash flow, will be positive 2026, including as well capex of approximately €45 million. With this let's say statement, I now ask Matteo Perna, our Group CFO, to enter in the details of the financial results.

Thank you very much, Marco, and good evening. The total amount of revenues that we generated in the first half of 2026, it's equal to €396.5 million.

This is implying a 7.6% decrease as per last year. This is as well the evolution of the different behavior of the two segments.

You can see that the industrial segment reported a 5% increase compared to last year, whilst the e-mobility solution business a decrease in the range of 15.5%, driven by the evolution of the North American market. I'd to say revenues are above the budget across the different geographies.

I have as well to say that the order intake for the second part of the year, it's as well slightly above our budget. Moving to the EBITDA adjusted, you see the total amount is €36.1 million.

This is implying a 9.1% margin over revenues, a 19.4% decrease compared to last year. A few consideration: the total amount of adjustment which is part of our results, it's approximately €7 million, and I have to say that out of the €7 million, €3 million are restructuring costs.

As we said, we completed the reshaping of the tooling activities in Italy in 2026, and as well we had approximately slightly more than €500,000 restructuring costs in Mexico. The total amount of restructuring costs for the reorganization efficiency was in the range of €3 million.

Having said that, you see that in terms of segment report, good performance coming from the industrial and infrastructure solutions segment, €19.1 million, increased 18.5 compared to 2025, whilst the e-mobility business is reporting €17 million in terms of EBITDA adjusted. I have to say that on a quarterly basis, this is implying approximately €8.5 million in terms of the EBITDA generated in the second quarter for the e-mobility segment.

The increase on a quarterly basis, it's mainly driven by the evolution of the industrial segment due to the strong operation that we had both in North America and as well in Europe. Total amount of D&A that we accounted in the period, it's €27.8 million, basically in line compared to what we report in '25, which was equal to €27.6 million.

It's important as well to mention that out of the total financial expenses that we accounted in the second quarter, we have €1.8 million of one-off costs related to the evolution of our financial structure and the refinancing agreement that we signed with the banks. You had the effect of the previous contract which were closed and as well the related derivatives plus the effect of the new agreement with the banks.

Moving on capex side, we accounted approximately €20.8 million of capex, of which 53% is the part related to auto, whilst the remaining 47 it's to support the growth of the industrial segment. If we can move to the next slide, please.

In terms of a few breakdown over the revenues: so you see that now e-mobility segment it's representing approximately 56% over the total amount of revenues, whilst industrial 44, and Europe is still representing the vast majority of the business, accounting for more than 56% over the total amount. In the period we sold approximately more than 2 million motor sets to support the automotive business, and we had four new SOP in the quarter.

The total amount of SOP that we had, the new project we started to support the traction business for the automotive, it's equal to seven, of which three what we accounted in the first quarter and four in the second quarter. I have to say that we were originally expecting five new projects to get started, but one has been shifted to the Q3.

We do confirm the total amount of new SOP for this year, which is going to be equal to 14 new SOP. If we move to the next slide.

We said the total EBITDA adjusted margin, it's 9.1%, and you see the Q2 2026 EBITDA adjusted margin, it's 9.1%, and this has to be compared with 10.2% that we reported in Q2 2025. It's important to emphasize that in light of the execution of our performance improvement program, we achieved approximately €2.5 million of improvement in EBITDA, which are the result of the execution of such a program.

We already commented the D&A, and if we can move to the next slide. In terms on net trade working capital evolution, we had a €10 million decrease compared to the figure that we reported at the end of March, and we're €10 million above compared to what we reported at the end of June 2025.

It's important to consider that in terms of trade receivables, the total amount it's equal to €163 million, and with this implying a DSO in the range of 75 days, compared to 69 days in terms of DSO that we had at the end of June 2025. On inventory side, our DOI stands in the range of 159 days, compared to 152 days that we reported at the end of June, whilst on payable side, we're running with DPO in the range of 149 compared to 147.

I have to say that one of the major impact that we have now embedded in our net trade working capital, it's evolution of our business on a geographical basis, given that the decrease of our activities in North America, it's having a negative impact in terms of our net trade working capital both in terms of DSO, given that cash collection in North America it's very effective, and as well in terms of DPO, whilst due to the fact that we have to import 100% of the raw material that we consume in North America, the DPO decreased accordingly. Moving to the next slide.

This is a result of the evolution of the performance on economical basis and as well on the capex and net trade working capital absorption. You see that in terms of net leverage, considering the last 12-month EBITDA adjusted, we're now in the range of 3.5 times, implying a net debt in the range of €280 million, approximately €8 million decrease compared to the figure that we reported at the end of March.

You see that out of the €280 million, €40 million, I'm making reference to the financial lease liabilities as per IFRS 16. In the period, we bought BTP which will expire above 12 months, and now it's part of the financial assets, and as well we distributed certain dividends certain of our control companies which are not entirely controlled by EuroGroup Laminations, and the total amount of the BTP purchase and the dividends it's in the range of €3 million.

Moving to the next slide. Given that we are now in line as per our expectation, we do confirm as well the performance that we discussed as well last time.

It's back-loaded in the second part of the year. In light as well of the visibility that we have with order intake for the next month, and again, in light of the expected execution of the efficiency program and related effects to be released in the second part of the year, we do confirm our guidance for the 2026 year, which is including total revenues to be between €700 million and €750 million, an EBITDA adjusted margin in the range of 11%, capex in the range of €45 million, and a positive operating free cash flow.

Thank you, Matteo. We can now pass the floor for the Q&A session.

Hi, good afternoon, everybody. Hope you can hear me well.

My first question is a clarification on the guidance, just to better frame the second half, because as you also said, in the first half, you look ahead on sales, but also even the high end of your guidance would imply a lower half-on-half sales in 2026. Just to understand which kind of quarterly development we should assume in the third and in the fourth quarter.

At the same time, margins, confirming 11%, roughly 11%, would require a significant step-up in the second half, also if you can provide us more color on the moving parts that you expect would bring benefits on margin would be helpful. I have a second one, if you can comment: how is your main customers in the automotive segment doing in this year, in the first half?

What are your expectation for the full year?

Let's get started from the first question. Ciao, Alberto.

We do expect total revenues to be slightly above compared to what we report in the first half of 2026, and you have as well to consider the seasonality that we will have as well in August and December. That's why we do confirm our range between €700 and €750 million.

As of today, to the best of my knowledge, we are more let's say closer to the upper part of our guidance in terms of revenues, but we don't expect to be above the guidance as of today. In terms of margin, you're right.

We have to consider that we do expect an improvement in terms of margin due to the let's say full execution of our performance improvement program. I have to say that as of today, in the first half, we have accounted approximately 40% of the total amount expected to be achieved this year in terms of improvement of the performance.

I have to say that as part of our guidance in the second part of the year, there is as well a potential income deriving from the discussion that we are having in the supply chain. Of course, we don't want to disclose this amount, but it's embedded in our estimate.

The second question, you know that we don't want to comment on our customers. I had to say that we are progressing a very very important discussion with them.

We have been involved in 100% of the project that they are launching, and this is not only making reference to the automotive segment, and I had to say that we are able to serve them across all the different geographies. As of today, we are progressing very well as per our expectation.

A few follow-up from my side. The first on data center business, if you can better quantify the percentage of sales on the first half and maybe also the growth rate, and also the kind of complexity that this application requires to understand the competitive advantage in this segment.

Then if you can provide an idea at least directionally of what is the expected trend for the capex in 2027. Very last on Indian market, if you can comment on how is Kumar going, how is the transformer business is going, and maybe how close you are to finalize the additional partnership in India for the automotive segment.

Okay. On data center, it's interesting because we do expect to generate approximately slightly more than €50 million of total revenues in 2026 deriving from data center application.

To let let's say on a apple-with-apple basis, the total amount of revenues that we generated in 25 in 2025 was in the range of €30 million. This is implying an increase year-on-year in the range of 87%.

This is very meaningful. As you can imagine, now we are able to catch this let's say opportunity mostly in North America, especially through our Mexican, but as well through our EuroGroup USA plant, and as well in Europe, whilst is still not meaningful the amount of revenues expected to be generated this year from such a trend in Asia.

Then, with respect to our segment, this is having an impact both in HVAC, as Marco was saying, as well in what we call energy, as well due to the need of new electric generators to support the energy consumption required by the data center, and as well, as you were saying, deriving from the transformer business. Capex, we didn't provide the market with any guidance for 2027, but I had to say that to the best of our knowledge, we don't expect guidance to be above compared to what we will report this year.

We do expect capex of 2027 as of today to be above the €45 million. Kumar, for start, I had to say in line as per our expectation.

This is implying approximately a 10% year-on-year increase without the forex effect, which is having as of today a negative effect. We are progressing consistently with the expectation with Kumar.

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JV?

On the JV, yes, so as we're in advanced stage of discussion with a potential local partner to support our entrance in the Indian market in the e-mobility segment. I had to say, again, we're in advanced stage of discussion, we do expect to complete such discussion within year-end.

Maybe just to add two points related to the data center: so as you can imagine, all the specification that are connected to this application are very sensible to the efficiency. Efficiency in the consumption of energy and efficiency in the generation of energy.

It's important to secure the best technologies in order to have let's say the right capabilities that are required by the customer operating in this field. With regards to the rate of growth, I think you can of course consider as well what the market is expressing.

The number are really incredible. I don't want to throw numbers that are, but if you consider the declaration that all the big companies are making in North America and in Europe, the rate of growth is double-digit for sure.

Thank you. If I may, very quick follow-up on tariffs on steel because of the new European regulation.

If you can remind us which percentage of the steel that you use in Europe is imported, and if you are having any impact from the new regulation that lower the allowable amount of steel without paying tariffs.

We import approximately 65% over the total amount of electrical steel that we consume in Europe, and finally, the quotas were published a few weeks ago. Of course, now that we know the rules, it's a matter to reorganize ourselves to be able as well to face such a change.

We have as well to remember that it's not only a matter of different quotas, but as well the duty has been increased from 25 to 50%, and on top of that, there is as well the so-called CBAM having as well an impact on our import price. For us, it's important to be able to pass through the expected evolution of the electrical steel purchasing cost in our price list.

I have to say that, as well our competitors are facing such a situation, of course we do expect overall the price increase in Europe compared to what we have experienced over the last months. To me, it's the major points which are worth to be discussed.

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Perfect, clear. Thank you.

As we said, the order book compared to the figure that we reported at the end of April, despite the fact that in the meantime we have generated sales increase by approximately €100 million, and this is mostly driven by, as Marco said, evolution of the business in China, but as well the evolution of the business in EMEA, and I have to say as well through the significant business development activity that we have been able as well to carry out in North America. Pipeline increased, and now somehow surprisingly the region which is leading the most growth in pipeline, it's Europe, and it's Europe as well including potential new projects which have been requested to be quote from Chinese OEMs, which are now considering potentially to establish and set up their set up in Europe.

On top of that, I have to say that as per this year, given that, we do expect 14 new projects to get started, and the total amount of revenues deriving from the new projects is expected to be in the range of €40 million, compared to what we have in our guidance. Maybe just to add as well one point that is of course: so as

robotaxi is a trend in North America that is growing and for which of course there are new forecast that are let's say as well increasing the pipeline and as well the order book. It's important to underline this trend that is not perceivable here in Europe, but is perceivable when you travel to America and you visit certain city.

This is as well one of let's say the causes of this increase in order book and pipeline.

Thanks again for attending today's conference. We want to just underline again that 2026 is a year of transition, and the first half results are in line with our expectation, and that the macro trends of electrification go behind the electrical car, and our diversified business model can secure that any opportunity that there is in the market, EGLE is capable to catch it.

Any opportunity connected to energy transition is of course an opportunity for EGLE. We remain positive, and we thanks again for your attention to EGLE.