Thank you, Letizia, and welcome to everyone to the EuroGroup Laminations first quarter 2026 results. Letizia, please move on the presentation.

2026, as we all know, is a very turbulent year, and for our industry, we see a lot of different dynamics that are impacting the overall as well trends. The key message that we want to pass is that our diversified business model is resilient to this situation in the market.

Overall, our revenues are almost stable at constant forex compared to 2025, but we see different situation and trends in the two business units. In the EV & Automotive solution, we see a 2026 that is a clear transition year that is impacted by the shift in the regulation in the North American market and is impacted by the phase-out of two projects that were in production since 2018 and 2019 in Europe and North America.

These projects have been already started to be replaced by projects that are in start of production and ramp-up, and are connected as well to the new projects that overall we have this year. The 2026 for the EV & Automotive solution is an year where we expect a reduction compared to last year that for the first quarter was €118 million, down 9.4% at constant exchange rate, and the lower sales are mainly coming from US and Mexico markets.

When we speak about the Industrial & Infrastructure Solutions business division, we saw in this first quarter a clear confirmation of the stabilization role that there is in this business unit, thanks to the diversification and the flexibility of the platform that we see in this market. Two segments that are growing compared as well to last year are clearly switchgear and logistics that are, of course, showing higher value and volume compared to last year.

Overall, the margin of the first quarter is impacted by all the dynamics that you see in tariff and macroeconomic uncertainty, and as well the change in the mix. The adjusted EBITDA is €17.1 million.

Overall, the order book and the pipeline for the automotive business unit remains at a good level. We speak of €2.6 billion for the order book and €1.9 billion for the pipeline.

An important activity that was completed last week was as well the refinancing that was executed with an extension of the duration to five years, and was related to €375 million. This refinancing was finalized with a pool of leading banks.

These activities allow EuroGroup to optimize the overall financial structure. In terms of maturity, the debts moved from roughly two years to an average of four years.

In terms of performance improvement programs, the group is actively working on many activities that are related to improvements of the performance. There are important programs in EMEA and USMCA that are, let's say, moving on in line with the target and in line with the budget.

We have as well added more activities for the operational Excel plan, and as well other activity that are related to the improvement of the performance that are across all the companies of the group. In terms of outlook for 2026, we confirm a revenue range between €700 and €750 million, and an EBITDA adjusted in the range of 11%, and we confirm as well the outlook for a positive operating free cash flow from operation, including the capex at approximately €45 million.

I now pass the word to Matteo that can enter in the financial results.

Thank you, Marco, and good evening to everyone. Moving to the next slide, please.

I have to say the major comment here is, as you can imagine, now we will have a tough comparison with, let's say, mostly the first two quarters, the first half of 2025 compared to 2026 will be driven by a tough comparison, especially due to the fact that, the first part of last year was not already impacted by the change in the following, the Trump administration, which had an impact starting from August, as per last year. The major message here is that we are running consistently with our budget?

Again, the full the first-quarter performance is aligned with our budget and therefore, this is very important for us to emphasize this fact and therefore, this has been, let's say, one of the reason for under which we confirm our full-year guidance. Having said that, revenues, you see, at constant exchange rate, we report an amount of €203.5 million in terms of total revenues.

I have to say this is including approximately slightly lower than €10 million of raw material that we sold during the first quarter, which is impacting our revenues, having no impact on our margin, given that, the material that we sold was based was sold at the same cost that we had in our inventory. Let's see in terms of performance by segment: the Industrial, it's 0.5% plus compared to last year.

This is mainly driven by the forex, given that, at constant exchange rate, this would have implied an increase of approximately 6%, as we said before, in terms of growth on a quarter on a year-on-year basis. Then, for the EV & Automotive segment, you see 13.3% decrease, but again, out of, the forex effect, the implied decrease was in the range of 9.4%.

In terms of geography, this is mostly driven by the evolution of our business in North America, partially offset by the performance in Europe. In terms of EBITDA adjusted, the total amount is in the range of €17.1 million.

This is implying a 8.4% of margin. You see in absolute terms, the total amount of EBITDA was the same as per last year for the Industrial business, but the major difference is driven by the EV & Automotive segment.

EBIT, €1.6 million, this is following and including €13.7 million D&A accounted over the first quarter. Total amount of capex, I have to say, it's below our budget as we are trying as much as we can to have a strict control over capex in order to avoid any potential additional capex not only compared to the budget, but as well compared to an improved, let's say, efficiency program on the capex.

We reported €9.1 million compared to the 26.5 that we accounted in the first quarter of '25. Moving today the next slide, yeah, the major comments on this, we have for the EV & Automotive business, we sold approximately 1.1 million sets in the first quarter, basically in line compared to the amount of sets that we sold in 2025.

You see there is an increased weight for hybrid application given that mild hybrid it's representing approximately 11% of the total amount of sets that we sold, compared to 8% in Q1 2025. Out of the 14 SOPs which are expected to take place this year, three started in the Q1, of which one in Europe, one in Mexico, and one in China.

I have to remember that, out of the 14, 10 are expected to get started in China, meaning that additional nine SOPs will be then executed in China within the end of this year. You see, in terms of breakdown by segment, EV & Automotive is now representing approximately 58% of the total amount of revenues generated in the first quarter, whilst Industrial & Infrastructure is 42%.

EMEA, following, I have to say, a recovery and increase as well in demand for the the Industrial business in the first quarter, it's now representing 57%, whilst North America is now slightly below 30%. Asia remains at 14%.

Moving to the next slide, please. In terms of EBITDA adjusted, yeah, to me, here the major the major message is that, the EV & Automotive segment, it's impacted by the different mix that, again, was already envisaged in the budget, but, in the comparison with last year, it's, of course, having an impact.

I make a reference to the phase-out of two important projects which started between 2018 and 2019, which again are now under in a phase-out phases, and this is of course having a negative impact in terms of mix over the margin. Such all such projects were partially offset by the new projects which started last year and which are now in a ramp-up phase, compared as well to additional project which started this year.

Make a reference to the three projects which started at the beginning of this year. This is having a negative impact in terms of margin, but again, that was already something expected this year.

We do expect to recover profitability going forward on a quarter-to-quarter basis, and this will be basically twofold: one, it's due to the evolution of the ramp-up curve with respect to the project which started the end of last year and as well this year; and the second point, it's the execution of efficiency program, which is expected to unleash the positive effects going forward, again, keeping momentum on a quarter-to-quarterly basis. EBIT, we already said that now D&A are in the range of €13.7 million, and again, this is what is impacting our EBIT EBIT reported.

Moving to the next slide, as per our seasonality, you see the evolution of our working capital, which is peaking up at the end of of March, now is expected to remain somehow stable until the end of June, and then the decrease will start following June, and then, at December will be the bottom of, the working capital evolution. Again, this is mainly driven by the seasonality of our purchasing strategy on on the raw material, and, I have to say that now the working capital is representing approximately 45% over the total amount of revenues on a last-12-month basis.

Moving to the next slide, please. On this point, as we said, net debt is €288 million, which is implying a 3.5 times net leverage ratio over the last-12-month EBITDA adjusted.

Again, let me emphasize again the fact that this is expected to be the peak this year, and after that, we will start to decrease our net leverage consistent as well with the plan of positive operating free cash flow then to be generated going forward. Moving to slide number 10, as Marco said, we we are confirming the full-year 2026 outlook on the basis of, of what we said, and it's important to remember to all of you that we do expect revenues to be on a full-year basis in a range between €700 and €750 million.

EBITDA-adjusted margin for the full year is expected to be in the range of 11%, capex €45 million, and again, we do confirm positive operating free cash flow.

Thank you, Matteo. I think we can now leave the stage to the questions.

Please, Letizia.

Hi. Good afternoon, everybody.

Alberto Gegra from Equita speaking. Couple of question from my side.

The first on margins: so after this quite weak first quarter, you mentioned the pickup in the following ones. Can you give us more granularity, for instance, in terms of evolution of startup cost and maybe also on the pure price component that you are seeing from automotive customers in particular?

The second, if you can recap the timing of the remaining 11 start of production, in particular those on China? Thank you.

Yes,

thank you, Alberto. On the progress on the margin, as we said, the main drivers to support such increase will be, one, the evolution of the ramp-up and therefore, going forward, we will have the benefit deriving from the evolution of the ramp-up of the project which started in the second part of 2025, and then as well the expected evolution of the ramp-up that now we executing the first quarter of 2026.

To this extent, I have to say that we experienced a major ramp-up now in Mexico with respect to an important customer of ours, which is one project replacing one of the project that it's now currently under a phase-out, and again, I make reference to a project which started in 2018 now if I'm not mistaken, Marco, correct? Again, on a quarter-to-quarter basis, we do expect an improvement in the margin with the 11% it's mostly back in the second part of the year.

As per the next quarter, we do expect an improvement, not a significant improvement compared to what we report in now at the end of March, and again, the 11% then it's fully back in the second part of the year. That was a question on the margin.

On the SOP, okay, we said now out of the 14, three started in the first quarter. We do expect approximately additional five projects to get started in the second quarter, and then the remaining will start in the second half of this year.

Again, let me emphasize that out of the 14, 10 will be launched in China, and I have to say that many are making reference to Chinese OEMs.

If I may, a quick follow-up: in terms of margins, these projects in China, which is the gap compared to the Western project?

There is a gap, honestly speaking, and as you can imagine as well, given that are now the first project that we are now entering the business with additional Chinese OEMs compared to those which were already part of our portfolio. I have to say that the margin are below on what we report now in Europe and North America, and stands more in the range of 7% and 8% compared to the above 10% or 15% that we are usual to report against other customer of us.

Again, this should be as well read on the fact that it was important to get started a relationship with such OEMs.

Clear. Thank you, Matteo.

Maybe also a question on the Industrial side, since you mentioned in March an expectation for quite significant growth in volume, if you can confirm this trend, maybe just a bit more color here on the subsegment of the Industrial, and maybe also an update on the strategic developments in India and China.

Let's get started from China and India. This year in China, I have to say that we do expect to make a turnover above €100 million, whilst in India, we do expect to reach a turnover which will be above €55 million, and again, this is something what we expect to achieve this year in India.

It's important to remember that last year, we accounted approximately €48 million of revenues under the Indian business. Then, with respect to the evolution of the Industrial different subsegments, I have to say that compared to last year, we see a positive evolution in terms of volumes for the so-called home segment, which is reporting an increase of more than 10% over the quantity in terms of kilo that we sold last year, as well the other industrial application it's reporting more than 10% increase.

I have to say that the subsegment which is growing the most, it's the transformer business under which we reported a more than 30% increase in terms of volume. These are the major segments which reported a significant increase compared to last year.

Clear. Thanks again.

Thank you,

Hello. Hello?

Hello. Hello.

Yes.

Can you hear me?

Yes.

Okay. Sorry, I'm out of the office.

I have Alberto Francese, Intesa Sanpaolo. I have a couple of questions: first one regards raw materials, if you can give us a little bit of color if you see any impact coming from the Gulf conflict and so how do you see raw material evolving during the year; and the second question regards the saturation that you have in your industrial sites and if there is a difference between the different geographies where the sites are located.

Thank you.

Maybe I let Marco to add some color on the evolution of and the potential impact on our raw material base. Let's get started from the saturation.

Now in China, we are now in the range of 65% in terms of saturation rate. In North America, the auto business, it's running between 55% and 60%, whilst the Industrial, it's more in the range of 60% 65%.

Europe, auto, it's in the range of 60%, whilst Industrial, it's more in the range of 55%. That's the average saturation rate that we are now reporting in the first quarter.

Then, in terms of raw material, it's important to remember to all of you that under the contracts that we have in place with our customer, all of the potential impact deriving from an increase in raw material would be a pass-through basis to our customers. I have to say that as of today, I'll let Marco to add some color on the electrical steel.

What we see, it's an increase in the quotation and line price for the alloy, which is an important effect of what is happening in the Gulf. I have as well to say that other raw materials like tungsten are as well increasing, which are not in our product, but again are in our toolings, which are then part of what we sell to the customers.

Maybe just again to underline that, of course, the tension that are coming from the war that we see today are impacting the energy, and overall, this is, as we know, is a key driver in the production of steel. If this process continue, we will see, of course, as well effect in all the raw material: steel, alloy, and etc., etc.

On top of this, we need as well to remind that the Europe has diminish the quota of steel that can be imported from the rest of the world in order to, let's say, secure that there is a protection for the local production that is made in Europe. This quota will, for sure, create additional condition for increase of prices for the steel in Europe in the second half of this year.

The other point that is as well impacting the European market are, let's say, the condition and the measure that are related to the so-called CBAM that are, let's say, expected to be executed retroactively starting from the beginning of this year, but that will be only confirmed later by the European regulation. Overall, the three trends that we see coming from the energy increase, from as well the new tariff and quota that will start in Europe from the second half of the year, and the effect of the CBAM, for sure, will create a pressure for increase of prices in the second half of this year.

Again, thanks for your interest and your attention on EuroGroup Q1 2026 results. Thank you for your question, and we remain available for any further request of information you may need.

Thanks to all of you.