Hello, everyone, and welcome to INNIO's second quarter 2026 earnings call, our first as a publicly listed company. My name is Tim Furcillo, Vice President of Investor Relations at INNIO, and I'm joined by our CEO, Olaf Berlien, and our CFO, Dennis Schulze.

With us in the room are also Martin Widner, leading global sales for data centers and power solutions at INNIO, and Andreas Eberharter, responsible for product management and marketing. Let's have a quick look at today's agenda.

First, Olaf and Dennis will present the second quarter results. Then you'll have approximately 30 minutes for your questions.

Please note that this conference call is being recorded today, July 28, 2026. Our conference call will include both GAAP and non-GAAP financial results.

Reconciliations of our non-GAAP measures to the most directly comparable GAAP measures can be found in our Form 10-Q for the quiet period ended June 30, 2026, our quarterly earnings release, and the corresponding presentation slides, all of which are available on our IR website. We will be making forward-looking statements about our business, market position, and future performance.

These statements are made only as of today's date. We do not undertake any obligation to update these statements, except as may be required by law.

These statements involve known and unknown risks and uncertainties that may cause our actual results to differ materially from those anticipated or implied today. For additional information on risks and uncertainties, please refer to our SEC filings.

Unless otherwise specified, all comparisons refer to Q2 2026 versus Q2 2025. With that, I'll hand it over to Olaf.

Thank you, Tim. Hello, everyone, and thank you for joining us today.

It's great to have you on the call. Time has flown by since our IPO, and we are very excited to continue our success story now as a listed company.

Since our IPO, INNIO has made substantial progress while continuing to build momentum across the business. In Q2, we delivered record equipment order intake of $2.3 billion, up 316% year-over-year.

Revenue increased 42% to $938 million. Adjusted EBITDA grew 20% to $172 million.

Given this strong performance and our record backlog, we are introducing full year 2026 guidance today. Dennis will provide you further details later.

Our equipment order backlog reached a record $6.6 billion at quarter-end. With capacity expansion progressing as planned, we are well positioned to deliver continued profitable growth.

As this is our first earnings call, some of you may not yet be familiar with INNIO. I therefore begin with a brief introduction of the company before walking you through our key highlights for the quarter.

Let me begin with who we are, what we do, and what is driving the growing demand we see from customers. INNIO delivers decentralized power solutions for critical infrastructure and the AI industry.

In 2025, INNIO generated $2.6 billion in revenue, reflecting continued growth across our businesses. With adjusted EBITDA of $549 million, profitability was also attractive.

Now, please look at the top of the slide, where you can see our leading brands. On the left, Jenbacher, a market leader in power generation with long heritage; on the right, Waukesha, a key player in the compression market.

On the lower half of the slide, you can see how we operate business through two segments, Equipment and Services. Equipment on the lower left represents 52% of '25 revenue, and it's our growth engine.

Across our three business lines, Data Center, Power Solutions, and Compression, we serve a diverse range of end customers. Strong data center momentum is reflected in 59% of 2025 equipment order intake.

Power Solutions represents 35% of the equipment order intake in '25, has been our core business for decades. We serve critical infrastructure, utilities, industrial customers, and municipalities worldwide.

As coal-fired generation continues to retire and renewable penetration increases, our power solutions business is growing. It is supported by continued demand for peaker plants that help maintain grid stability.

At the same time, we are seeing continued momentum of our biogas solutions, especially in Germany, with growing potential in the United States. Services on the lower right accounted for 48% of '25 revenue.

It is built on a continuously growing installed base fueled by the equipment business. Each segment has a long track record of strong profitability.

With that, let's move to page number seven. Here you can see one of the key strengths of the INNIO business model, our service flywheel.

Every engine we sell enters an installed base. That installed base generates high-margin recurring services revenue through long-term service agreements for a large portion of our fleet.

As end of '25, INNIO's installed base stood at approximately 44 gigawatts globally. The fleet requires regular maintenance, parts replacement, and periodic overhauls within its operational life.

This is resulting in a potentially long-duration, nondiscretionary revenue stream that we compound as fleet grows. The dynamic acceleration of our flywheel is clearly visible in our numbers.

On the left side, you can see the significant growth of our equipment order intake, which increased from $3.9 billion in '25 to $6.6 billion for the last 12 months. This impressive order momentum has driven our backlog to a record $6.6 billion.

The equipment order backlog is providing excellent visibility into the future revenue growth and supporting continued expansion in our installed fleet. At the same time, we are meaningfully expanding our capacity to support future growth.

As additional capacity comes online, we expect to release further production slots, providing further runway for the order growth. As a result, we remain confident in our ability to grow backlog through '27 and beyond.

On the right side, you see our expanding installed base continues to translate into profitable recurring revenue. Service revenue reached $1.4 billion for the last 12 months ended in Q2 '26, with an adjusted segment EBITDA margin of 30% for the same period.

With demand continuing to accelerate, an important question is, why are more and more customers choosing gas engine solutions? Let's move on page eight.

As electricity demand grows and grid constraints become more acute, customers are increasingly looking for practical ways to secure power and support growth. Behind-the-meter gas engines deliver both.

Take a look at the left side on our slide. An actual BloombergNEF analysis shows gas engines can offer the lowest levelized cost of energy among behind-the-meter technologies.

Even grid access becomes available, the operating costs of an installed gas engine can remain below the cost of the grid power, supporting our belief that behind-the-meter solutions are not a bridge solution, but are here to stay. As shown on the right side, the business case becomes even more compelling when you consider recent market developments.

Last week, the White House announced that nearly all utilities as well as several colocation companies signed the Ratepayer Protection Pledge. We believe this is a sign of growing support for behind-the-meter power.

Their participation follows an earlier commitment made by leading global hyperscalers. In many ways, the pledge formalizes what we are already seeing in the market.

Data center operators and utilities increasingly recognize securing dedicated on-site power can be a fast, reliable, and cost-effective path to support growing AI demand. This trend is further supported by infrastructure bottlenecks across the power ecosystem.

This is where INNIO is uniquely positioned. Our platform is built around the Jenbacher Type 6 engine family, including the J624.

This engine was recently recognized by SemiAnalysis as the industry's most consequential engine. It is combining outstanding performance with highly attractive economics.

Our competitive advantage comes down to two factors, performance and modularity. The Jenbacher Type 6 platform delivers industry-leading power density, fast response times, and high rotational inertia.

With this, it is ideally suited for the demanding and dynamic load profiles of AI-driven data centers. The modular design allows customers to scale rapidly, reduce costs, and accelerate time to power.

When a 1-gigawatt of data center capacity can support more than $10 billion in revenue, every month counts. Speed to power becomes a key competitive advantage.

Let me show you how our strong market position translate into our business performance. Just look at our second quarter highlights on page 10.

Overall, it was an excellent quarter for INNIO. First, we delivered very strong order intake, supported by a major new customer win and strong demand across our end markets.

Equipment order intake increased 316% year-over-year to $2.3 billion. Second, revenue growth continues to accelerate.

Group revenue increased 42% year-over-year, reflecting high customer demand and ongoing execution. Third, we continue to grow profitable while investing for the future.

We expanded capacity to support increasing demand. At the same time, adjusted EBITDA increased 20% year-over-year to $172 million, demonstrating the strength and resilience of our business model.

Taken together, these results highlight the strength of our market position and our execution capabilities. Dennis will go into details later.

Let me provide some color on the order activity we saw during the quarter, on the next page number 11. The key message is that demand remains strong, broad-based, and diversified.

Starting on left, order intake in Q2 '26 reached record levels, driven by continued data center demand. We saw follow-on orders from hyperscalers customers and colocation providers as they continue to execute phased data center build-outs.

This is particularly encouraging, as repeat orders validate our technology and execution capabilities. Combining with the composition of our backlog, they further support our view, the structural demand outlook for data center power remains highly durable.

While data centers continue to be significant growth driver, demand was not limited to the market. Importantly, our growth remains diversified.

As illustrated on the right, no single customer represents an outsized share of our order book. Looking ahead, we see additional customers entering our top customer profile.

The pattern is clear. The customer base continues to broaden, providing a healthy balance across the portfolio.

Before I hand over to Dennis, please let me show you how INNIO is helping power the next generation of AI-driven growth. Please move to page number 12.

The highlight deal this quarter was a 1.1-gigawatt order for mega-scale data center customer, one of the largest orders in INNIO's history. We outlined in today's press release more than 200 Jenbacher J624 engines are expected to provide resilient, scalable, behind-the-meter prime power.

This order is powerful proof for our technology and our ability to execute at scale. It is further reinforcing INNIO's position as a key enabler of AI infrastructure with a diversified and growing customer base.

The momentum is clearly reflected in our results. With that, let me hand over to Dennis to walk through the financials.

Thank you, Olaf, and hello, everybody, from my side as well. It's a great pleasure to present INNIO's financial results to you for the first time as a public company.

I will take you through our second quarter performance, the visibility we have on the business ahead, our capacity expansion, and at the end, our outlook for the full year. Let me start with the four key messages of this quarter.

First, demand is accelerating across all of our business lines. Second quarter equipment order intake was up more than 300% year-over-year.

Second, we are delivering strong top-line growth in equipment and services as we execute on our backlog and control our supply chain and operations against a demanding growth plan. Third, the success of our multiyear capacity expansion plan across the US and Europe is already visible today as we continue to increase our output.

The expansion is financed from our own operating cash flows. Fourth, we are initiating full year '26 guidance with adjusted EBITDA of $720 to $740 million, an increase of 33% versus '25.

In summary, we are pleased with our second quarter performance. Accelerating demand and disciplined execution both reinforce our confidence in our full year guidance and our mid-term ambition.

Let me now walk you through the details, starting with the financial snapshot on the next slide. One table, five lines, and each line tells the same story of accelerating momentum.

Starting at the top with equipment order intake, $2.3 billion in the second quarter, up 316% year-over-year. I would like to highlight one number in particular: with $3.9 billion of order intake in the first 6 months, we have already booked more orders in the first half of '26 than in the entire year of '25.

Our equipment book-to-bill stands at 4.4 for the first 6 months. Demand is strong, and our growing capacity allows us to convert the demand into firm orders.

Second line, equipment order backlog, $6.6 billion, up 279% year-over-year. This backlog provides multiyear visibility for our equipment business.

Because of our service flywheel that Olaf described earlier, we believe it can lock in decades of high-margin services revenue on top. The growth we are seeing in equipment today translates into our services business of tomorrow.

Third line, total revenue, $938 million in the quarter, up 42% year-over-year. Equipment revenue growth shows that we are executing successfully against our order book, while services continue to grow on the back of our expanding installed base and pricing.

Fourth line, adjusted EBITDA, $172 million, up 20% year-over-year. Here I would like to spend some time on the EBITDA margin, which is notably below prior year.

Consistent with our expectations and communication in the past, this is driven by a few deliberate factors: the natural mix shift toward equipment based on our order intake, some changes in product scope with a higher share of containerized solutions, and front-loaded investments and ramp-up costs related to our capacity expansion. Margin is in line with Q1 '26 and ahead of our planned path for the year.

Based on operating leverage and pricing dynamics in our backlog, we are confident to deliver on our full year guidance. Fifth line, free cash flow, $205 million in the quarter, up 352% year-over-year, fueled by strong operating cash flows.

As we pointed out in the past, INNIO's business model is supported by a production cycle in which customer down payments keep equipment manufacturing cash-positive from order to commissioning. Since Olaf touched on the Q2 order dynamics before, let me give you some color on the overall backlog and visibility.

Combining our equipment order backlog with our slot reservations, we have more than 15 gigawatts of committed business as of Q2 2026. This is more than four times the power we delivered over the last 12 months.

When we say slot reservations, these are production slot commitments. They are non-tradable and they typically carry a non-refundable down payment.

We are particularly excited about this metric for three reasons. First, approximately 64% of the more than 15 gigawatts relates to behind-the-meter data center solutions.

Within data center, around 94% relates to prime power. The substantial majority of our data center business is prime power.

We believe INNIO engines are solidifying their reputations as the power generation technology of choice when it comes to powering data centering in behind-the-meter setting. Second, the expected service intensity embedded in this backlog is substantially above the average of our existing installed base.

Our data center customers rely on our engines as their primary power source and run these assets hard. In other words, we believe every megawatt we install from this backlog carries more service content over its life than our historical fleet average, raising the long-term earnings power of the flywheel.

Third, quality. The pricing on our recent order bookings shows a positive margin trend compared to our historical average.

This is not growth at any price. As the backlog grows, we expect the embedded profitability to grow with it.

The takeaway is simple. More than 15 gigawatts of committed business gives us multiyear revenue visibility, fuels a growing, higher-intensity service base, and confidence in our long-term ambitions.

This demand raises an obvious question. Can we build it?

The answer is yes. Our self-funded capacity expansion is well underway, giving us the confidence to continue driving order intake and expanding our backlog.

Importantly, we are enabling this expansion through debottlenecking and doubling down on our existing facilities, a brownfield approach, not greenfield, which we believe meaningfully reduces execution risk. Let me make this more tangible with a few numbers.

We are on our way to roughly double our output in the coming years and to approximately triple our total production capacity by 2030, from 3.5 gigawatts per year in '25 to roughly 10 gigawatts per year. We feel very good about our progress today as we are ramping our production output, with gigawatts delivered in Q2 already at 1.3 times of prior year.

As new capacity comes online, we expect to release incremental production slots, and each one of these can convert directly into additional order intake, given demand has recently been exceeding our ability to take orders. Where is this happening?

First, at our Jenbach campus in Austria. We are constructing a new state-of-the-art assembly line, which exists with debottlenecking the existing lines and can significantly increase throughput for our data center products.

In parallel, we are investing substantially in additional machining capacity, including our new site in Hall, just a few minutes from Jenbach. Second, in the US.

Our new sites in Trenton, New Jersey, and Waller, Texas, are dedicated to containerization and packaging. In addition to increasing capacity, these sites offer proximity to key suppliers and customers, thereby shortening lead times and reducing logistics costs.

Third, in Waukesha, Wisconsin, and Welland, Ontario, we continue to expand machining and assembling capabilities, driving another step change in capacity. Two aspects about our growth plan are important to understand.

The expansion is financed from our own operating cash flows, supported by a production cycle in which customers' down payments keep equipment manufacturing cash-positive from order to commissioning. Secondly, our investments yield attractive ROIs and paybacks, which means that our substantial backlog and slot reservations visibility can substantially derisk our growth investments.

Now, let's take a deeper look into our Q2 equipment order intake. Two charts, one message.

On the left, the composition of our order intake. The growth is broad-based.

In the second quarter, Data Center contributed close to $1.5 billion, Power Solutions $546 million, and Compression $281 million, each business line growing strongly year-over-year and all of them well-aligned with the market trends Olaf outlined earlier. While data centers are the largest driver, this order momentum is more than a data center story.

Our equipment book-to-bill stands at 4.4 for the first 6 months. On the right, our equipment order backlog, growing from $3.6 billion end of '25 to $6.6 billion as of June 30, 2026, representing an 83% increase just in H1 2026.

Compared to prior year's quarter, the increase is even significantly higher, at 279%, with sequential growth in every single quarter. As mentioned before, we generally observe the new orders carry accretive pricing and higher service intensity compared to our average past business.

Our growing backlog and book-to-bill ratio shows the continuing acceleration of our business, with increasing visibility for the years ahead. Our proactive investments and flexible supply chain are already delivering strong top-line growth against this demand.

At the same time, and as we communicated in the past, we continue to invest, which is temporarily reflected in our relative margins. On the left, total revenue, $938 million in the quarter, up 42% year-over-year, with attractive growth on both Equipment, up 61%, and Services, up 21%.

For the first half, revenues reached $1.6 billion, up 39%. On the right, adjusted segment EBITDA, $188 million, up 24% year-over-year at a 20% segment margin.

I commented on the drivers of the temporary margin compression earlier in this presentation. As mentioned, this development is in line with our expectations and supports our full year guidance and continued margin improvement.

I'm now going to step through the segments on this and the following page. Equipment revenue reaches $569 million in the quarter, up 61% year-over-year.

We are delivering against our order book, which includes large-scale data center projects. In Q2 2026, data center revenue nearly doubled to $232 million.

Power Solutions grew to $274 million, and Compression contributed $63 million. This growth across all business lines demonstrates the execution strength of our teams, our production sites, and our supply chain.

On profitability, the segment margin came in at 14%, compared to 19% in the prior year quarter. This reflects the self-funded growth investments that are enabling the substantial increase in order intake you saw earlier, as well as the increase in order scope.

The expanded scope for the early data center products was priced with a lower average margin than our core business. Two points that are important here: first, the equipment segment margin already recovered meaningfully from the first quarter; and secondly, we are expecting to continue to grow equipment segment margins to high teens in Q4 based on operating leverage and backlog pricing dynamics.

Turning to services, our quarterly trading nicely shows that our flywheel-based business model delivers, and our existing installed base generates growth at attractive margins. Services revenue grew 21% year-over-year to $368 million and 21% for the first half of the year.

As you will recall, our services are nondiscretionary, recurring businesses based on wear parts, overhauls, and upgrades. With a healthy share of long-term service contracts, our installed base gives INNIO a stable earnings foundation, which compounds over time.

For the quarter, services adjusted segment EBITDA margin came in at 30%. Similar to equipment, we made temporary growth-related investments in parts capacity and in our service force, which were largely mitigated by margin-accretive mix of parts versus labor.

For the first half, the service margin stands at 31%. We showed you earlier how our equipment adjusted EBITDA generally carries 2.5 times life-cycle services adjusted EBITDA.

Based on everything we see in our backlog and order pipeline, we feel confident to deliver or improve on this relationship for our business. This brings me to our full year guidance we are initiating today for fiscal year 2026.

On revenue, we expect $3.8 to $3.9 billion for the full year, growth of approximately 46% at the midpoint versus '25. Within that, we expect the mix to continue shifting towards equipment, at around 65% of revenue, as we deliver our booked business in line with available capacity.

Revenue growth is expected to further accelerate in the second half. On profitability, we expect adjusted EBITDA to be $720 to $740 million, an increase of roughly one-third versus the $549 million we delivered in '25, at a group margin of approximately 19%.

To help you with the quarterly phasing, we expect the fourth quarter to be stronger than the third, driven by shipment cadence against the backlog and the ramp-up of our added capacity. Adjusted EBITDA margins are expected to increase as the equipment business stands to benefit from improved operating leverage and the conversion of our margin-improving backlog, taking equipment segment adjusted EBITDA margins to an expected exit rate in the high teens by the year-end.

In summary, accelerating revenue growth combined with an improving margin profile delivered by a self-funded growth model. With that, back to you, Olaf.

Thank you, Dennis. Let me close by summarizing the key takeaways.

Please turn to page 24. First, demand is strong and broad-based across our business, driven by the long-term trends of AI, data centers, and decentralized power generation, providing high visibility into our revenue growth through 2030 and beyond.

Second, every engine we deliver today expand our installed base and fuels our long-term high-margin service business. Third, to capture this opportunity, we continue to invest in our people, technology, and capacity.

We are working towards strengthening our technology leadership. We are expanding capacity in a target and returns-focused manner and building the scale of our North American services offering to support future growth.

Finally, none of our success would be possible without the outstanding INNIO team. I would like to thank our more than 5,000 employees around the world for the dedication, commitment, and hard work.

The opportunities ahead of us are significant, and we remain focused on creating long-term value for our stakeholders. With that, I'll hand over to Tim.

Before we open the line, I ask everyone to ask just one question so we can get as many people as possible. Operator, please open the line for questions.

hi, thanks so much, and congratulations on the first quarter here being public. I was wondering if you could comment maybe first on the pricing trends that you're seeing, especially on new slot reservations and just generally pricing trends in the market for engines.

Is this your first question or you would like to have another question?

Let's see. I guess that was my first question.

If I were to throw another one in there, I guess I was also curious if when you consider the slot reservations that you have, how far out are you reserved at this point? Is there any capacity available in 2028?

Thank you.

Thanks, David. Nice to hear you again.

Hope to see you in New York. Coming to your first question, the pricing trend is clearly still strong.

That means the demand is high. If the demand is high and delivery is limited, you are always in a good position to do something on prices.

I do not see any signals going down on price trend. On the delivery time, we are talking about today we deliver on 2029 and '30.

We are more or less sold out for '26, '27. If customer asking us, we have many projects they are talking about '30 and '31.

For example, the project what we announced this morning is delivery till '31. Any addition, Martin?

Maybe just to add on the slot reservations because you asked how long we are sold out. With that, one strategic differentiation is also our tool to secure that the customers are buying from us.

We don't allow to trade this slot reservations, they are only dedicated to a single project. As Olaf mentioned, the slot reservation reaches out now till 2030.

Great. Thank you so much.

Thank you, David.

Hey, guys. Good morning and again, congratulations on your first public company earnings call.

I wanted to ask about the order trajectory. Clearly, the orders were robust this quarter.

I know that orders can be lumpy. I'm just curious, as you kind of take a look at your pipeline for the second half of the year, maybe provide a little bit of color on what the pipeline looks like.

Then for the one really large order that you booked in data centers this quarter, I was curious what portion of the billion and a half that you booked this quarter from an order standpoint was that one large order?

Hi, Joe. Good question.

Look, I think we are really remain very confident expect our order backlog at the year-end to be higher than it is today. Looking ahead, continue to expect to see strength in the H2 given we see very healthy environment, and we expect that our order backlog to increase further.

There is no decline or weaknesses in the pipeline. I'm looking now in the eyes of Martin and he is saying, "No, no, no, it really is very, very strong."

We are talking together about so many projects, I don't see it. Maybe with the 1.1 gigawatt, would you like to add on this

order? The portion of it is one-third, definitely below one-third.

It's even below 30%. Some of the engines sold to this 1.1 gigawatt is containerized, with more scope.

Some of it is for a powerhouse installation, with a little bit less scope. This was just one very big deal.

We had as well many, many other deals, bigger deals, smaller deals worldwide. As Olaf said, the order robustness is fantastic, right?

We have so many requests for projects which we are not able to fulfill because of capacity. I don't see at all that the market demand is going down for us, right?

We are really in

a fantastic environment. Great.

Thank you, guys.

Thanks, Joe.

Thank you.

Thanks, guys. Good morning, and I'll echo my congratulations on the first big quarterly results.

Maybe first just on capacity expansion, an update there. Maybe double-click on how much progress you've made towards the plan that you laid out.

Then with the orders being much better than expected and the really robust commentary on backlog and pipeline, I'm curious if 10 gigawatts is enough. Then second question on the 1.1-gigawatt data center order, I'm just curious if you see more orders of this magnitude in your pipeline.

Thank you.

Okay. Nicole, thanks for asking.

Dennis speaking. Starting with your question on capacity, I think overall the capacity expansion is progressing on plan.

Our scale-up from 3.5 to first 7 based on our site in Jenbach and then up to 10 based on further ramp-up from '28 onwards in Waukesha is on track. We don't see any stumbling blocks from today's perspective, and we are executing on plan.

Both projects are actually fully on track. The one is delivering already right now.

We are going to be ahead of 3.5 obviously this year, and the other project in Waukesha is also on track. On your question regarding the 10 gigawatts, this is something that we as a management team are reviewing on an ongoing basis, on a quarter-by-quarter, month-by-month basis.

From today's perspective, we are fully focused to execute on the 10 gigawatts, but we'll obviously carefully view over time and we'll take respective decisions on that one. On your second question, probably...

I can do it. The 1.1 gigawatt that we just announced today, look, maybe you have seen that we announced a record one with 1.25 gigawatt.

It's a little bit a longer run project. We have some of them we just signed.

I think that's in the press as well that we are working with Aggreko, a long-term contract, delivering engines type J624, Type 6. There are many of these coming up.

From my point of view, as a strong demand, and as Martin said, I don't see any weaknesses in this. The

size of 1.1 gigawatt is not the exception. It's now, I would say, common.

Common size.

Thanks, Nicole. Now

Thank you. Morning, afternoon, everybody.

I don't know if you guys disclosed an actual data center revenue number for the quarter. I think it was about $100 million last quarter.

Can you just give us that number, Dennis? I assume that the margin inflection as we progress through this year to the high teens in equipment has to do with that revenue scaling.

Just give us a sense of where we were in data center revenue, where we are, and where we expect to go, and sort of your confidence in executing on that ramp. Then related to that, Martin, there's a lot of questions about sustainability of demand and concerns that people have around any potential cliff in demand for anything related to data centers.

Obviously, with your order number today, that is a strong counterpoint against that. Maybe, Martin, talk about when you talk to your data center customers, hyperscaler customers, or even the energy-as-a-service customers, how confident are they that this level of ordering and spending is sustainable, not just in 2030, but beyond?

Just give us a flavor for those types of conversations. Thank you.

Hey, Amit. Thanks for your question and good talking again.

On your first question regarding the data center revenue, yes, we are disclosing it. The number for the second quarter stands at $232 million.

First quarter has been $107 million, second quarter has been $232 million. That's the trajectory that we are seeing.

Your question also on the connect to margins, the trend slightly ahead of 7% margin for all of the equipment segment in the first quarter, now is improved to 14%. I hinted that we are seeing a further trend up on the year '26, we should see the latest deals getting out on average at high teens.

The trajectory is upwards. This is driven by us working through the backlog, and you could see the orders step by step in terms of margins.

If you look at what is driving really the upturn, it is mainly driven by the data center revenues now flowing through the funnel. You're absolutely right on that one.

Amit, let Martin and me, we will answer this question. As I said, we have a strong, sustainable demand for projects.

We have these unique technology, the engine, the J624. If we talk to the energy-as-a-service company, the rental companies, and maybe then, Martin, please you can talk about every single day you have calls and you have WhatsApp, what we can deliver.

Maybe talk about the rental company and energy-as-a-service company, what Amit

was

just asking for that.

Yes, Amit. We hear as well that there is some noise in the market about how sustainable it is.

The only thing I can tell you on INNIO and on the demand I see for our product, it's huge. It's as high as ever.

Talking about a lot of projects in '29, in 2030, in 2031, a pipeline of projects we together develop with energy-as-a-service companies, with rental companies for different hyperscalers is huge, going into permits already, into plans for 2031, 2032. This proves to me at least that our pipeline is really sustainable and strong.

In addition, what I need to say, we are always talk about data center, but I'm even, to be honest, a bit concerned about the capacity we have because there are so many other markets coming up. There was big auctions in Brazil, auctions coming in Argentina, Germany changed the law on their

power pledge.

There is demand growing and growing and growing. As I said, capacity-constrained, but not market-constrained.

As Martin said, in Germany and for '26, the German government agreed that 9 gigawatt is coming in a market, and auction will be delivered in '29, '30, '31. Auction for '27, you have another 2 gigawatt.

As Martin said, it's not only data center. I know we are talking about the data center, but our core business is power solutions, and this is very strong, peaker business.

Maybe one last sentence to this: we talked about our containerized solution, fast to install on-site. We don't need a lot of EPC capability on-site, which is a very, very strong argument at the moment because everybody knows in the States EPC capacity is constrained.

With our solution, we don't have here a big need. That's the reason I really see a huge demand for us.

Got it. Helpful.

Thank you.

Thanks, Amit.

Thank you.

Hi, good morning. This is David Ridley-Lane on for Andrew Obin.

Can you talk about the timing of those expected incremental production slots? When are you going to release the incremental production slots from those capacity additions?

Could there be any 2027 slots in there, 2028 slots? What is the delivery time for those incremental production slots?

Thank you very much.

David, yeah, Dennis speaking. Good to talk again.

Good question here on that one. You're completely right.

We commit to increase our capacity from 3.5 to 10, and this provides for a certain curve. As we mentioned beforehand, we are not selling everything under this curve already right now because we want to get sufficient visibility that this ramp-up is in time, in spec, so that we can really deliver what we promise to our customers.

With having said that, we are freeing up slots on the way. This is not digital decision where we decide at one point to free this up.

We are freeing this up over time. Since we last spoke, probably 6 weeks ago or so, or 12 weeks ago, we freed up certain slots already.

You saw in our statement that we already have 15 gigawatts plus in backlog and slot reservation, and a certain amount of this is linked to this already freed-up slots. This is an ongoing process.

'27 is completely sold out, there are no further slots to be freed up for '27. We are open for about '28 and the further ramp-up then in Waukesha, '29 and 2030.

Overall, an ongoing process. We are well on track, as I mentioned beforehand.

Thank you very much.

Welcome.

Good morning, everyone. Good

morning,

Andy. Hi.

Good

morning. Services was stronger than I expected and had a good year-over-year growth.

I know a lot of the data center contracts don't kick in to higher service levels for several years, 5 years. You did mention more demand for spare parts, for instance.

Can you give more color on what you're seeing? Do you expect to continue to see a sustained step-up in transactional work, and what could that mean for service revenue in the future?

Sure. I'm happy to give it a kick here, Andy.

Dennis speaking. You're absolutely right.

The second quarter came in strong on parts versus labor. To a certain extent, that's been also driving our pretty nice margin that we delivered in the quarter, percent up versus the quarter beforehand.

As we mentioned before, parts are coming with a pretty nice margin. Right now, I wouldn't read too much into it rather than the ongoing good running hours of our equipment out there in the field and good running hours of our Waukesha business line.

That business line is then, to a certain extent, more transactional and more parts-driven actually than labor-driven, given our position in the value chain. Good momentum on that end.

I don't see a slowdown on that. We're obviously carefully monitoring that.

Cut-off between second and third quarter came in handy for us, probably a bit of an tailwind in the second quarter. We have to see if this continues in the third and the fourth quarter.

Far, we don't see a change there. That's been the overall framework.

As you rightfully mentioned, this is not driven at this point in time by the data center fleet. This is only going to be installed, growing, and the real service carry from that is only really kicking in and driving our margin from the early 2030s onwards.

What we're seeing right now is a very healthy operating performance of our installed fleet in our traditional business.

Supports our sentence that we have a strong business aside of the data center. In gas compression we have a strong business, in service and service parts, and as well as in our power solutions.

Data center service is coming up in the future, not yet.

Appreciate the color, guys.

Thanks, Andy. Thank you.

Great. Thanks for taking our questions.

I'll echo my welcome to the public markets here. I appreciate the disclosure that about 94% of your data center backlog is for prime power.

Dennis, you touched on this a bit, but I'm curious if you can just give a bit more color on how to think about the magnitude of the upside in kind of service ASPs and margins over time, just given that higher mix towards prime power. Then just my quick follow-up, with the greater than 15 gigs that are in backlog and slot reservation, are you able to give us kind of a split of the percentage of what is backlog versus SRs?

Thank you.

Hey. Thanks, Mark, and good to speak.

On the second question, no, that's not a number that we are going to talk about now and also going forward. We have the absolute amounts, obviously, in terms of dollars for the backlog, and we are not going to split down the gigawatts at this point in time.

Regarding your question on the service side, we see some positive momentum in the service business driven by now short-term, given by the effects that I just mentioned. You're referring to the positive performance of the data center business in terms of service.

As we talked about beforehand, given the way we account for this and given that the real calories on the service side for this bigger data centers are really sitting in the minor and major overhauls that are happening after 30k and 60k hours, we definitely see positive tailwind, and maybe more than we thought about beforehand. This is supporting our story and giving us confidence to deliver or even overdeliver on the service part of the business.

This is going to hit our P&L 30k from today, which is 4 years out. Yes, from that point in time onwards, what we're seeing right now gives us great confidence to even overdeliver to what we believed beforehand to be our plan.

Thanks, Mark. Thank you.

Thanks for squeezing me in and congrats on the first print here. The note of the 94% of data center backlog relating to prime power, just want to clarify, is the 6% therefore emergency backup for data centers that replaces what we normally would have thought goes to diesel, and any thoughts broadly on your ability to capture share from diesel backup?

That would be great. Thank you.

Yeah.

You're fully right. 94% is prime power, and the 6% is backup power where that's replaced with gas engines.

The reason for that is that the data center hubs get so big that even the diesel emissions would be too high, the NOx emissions, if you have all diesel engines, would be too high. That's the reason these customer, one of the hyperscalers, chose here gas engines.

We are, as a company, going in that market. We would have the opportunity to even get more of these orders to translate more from diesel to gas.

However, given the capacity we have, we look very, very detailed on that, how much we want to give to prime and to backup power.

Very helpful. Thank you.

Thank you.

Hey, good day. Thanks, guys, and congrats.

My question was just, with the order and backlog and congratulations on that, could you just talk about the concentration, not with specifically a customer, but with projects? As we've seen project delays, whether permitting or financing, and just how you guys think about any kind of risk with projects flipping to the right as they get permitting and financing both throughout your order book?

Thank you, guys, very much. Yeah.

Thanks, Ben. Good question.

As I said on our roadshow and testing the water, we are celebrating this year 500 years and we are doing business in 100 countries. We have really customer all over the world.

Nevertheless, we have now big hyperscalers and they are big customers, of course. The big difference if you have a smaller customer or you have one of these six or seven big hyperscalers and they are all our customers.

Nevertheless, we have not one single cancellation. That means we take really a deep look before we go to a project about the financing, the project, who is the customer.

For this reason, we do not have one single cancellation today in smaller project as well as in big projects.

Maybe to add to your second part of the question on the permitting, so far our customer projects are on time. Of course, right, the usual few days or weeks up and down.

Far, we don't see a big delay on construction on-site, on permitting on-site due to our standardized containerized solution as well. The job on-site is easier.

As Olaf said, we're really taking care that the projects we are awarding and we get awarded that we have in detail know your customer, we know that the permits are ongoing or in place. That's the reason we try to reduce this risk a lot.

Thank you, guys.

Thanks, Ben. With this, we are finished for today.

Thanks for your question. Of course, hope to see you and speak to you soon.