Good morning, ladies and gentlemen, and welcome to the TXT conference call, during which Group CEO Daniele Misani will present and comment the main KPIs for the first quarter 2026 results, together with some business updates about future evolution of the business. I will then take the lead to provide more details about the financials, and the call will end with a Q&A section, and for such purpose, you can drop your question in the dedicated section of the meeting room.

We will just wait a few seconds, and then we will start with the conference call, and I have the pleasure to introduce Daniele Misani to this call.

Thank you, Andrea. Welcome to everybody.

This is the presentation of financial results of the first quarter that was very strong. As we are implementing a strategy of growth with the contribution coming from aggregation of new companies and synergies we create among the companies of the group.

This strategy brought good results for the last few years, and Q1 is still in this direction. This makes us confident to meet the goals that we have already communicated to the investor and all the financial stakeholders related to our industrial plan for the next three years.

Looking for the numbers of Q1, there is a strong growth in terms of top line, almost €110 million, with a growth of 18% with respect to the same period of the last year. The important indication is coming from organic growth, like-for-like growth, that is a +17%, €16 million added in the top line with respect to the same perimeter of the last year.

We keep nevertheless the investments and, let's say, the investment made also to sustain the growth. We keep a good EBITDA margin that is almost 14.5%, with a total EBITDA consolidated for the first quarter of €16 million, 1-6, with a growth of 18%.

Our, let's say, strategy is sustainable. We grow in top line, but we are focused on the value proposition, projects with good margins, our own smart solutions, proprietary software, in order to keep a good EBITDA margin in a sustainable way.

Looking to the total numbers, the growth have contribution coming from all the divisions of the group. We have this approach very end-to-end, from the advisory to our proprietary asset and to the system engineering capability to deliver complex projects.

All the divisions registered a good growth for the first quarter. Total growth is 19%.

System engineering is 18%. 23%, a strong growth for the advisory part, mainly related to the public sector.

15% in the growth of our proprietary asset, Smart Solutions. Looking to the EBITDA contribution also in this section, you can see that we have a constant growth from all the divisions by keeping the same margin we had also the last year, incrementing, let's say, the investments, both commercial and R&D, in order to be more effective in our value proposition.

Software engineering growing of 18%, strong contribution from digital advisory, +24%, and 15% coming from proprietary solution, for a total EBITDA almost €16 million, 14.5% as a margin. We continue to invest, as said before, our growth must be sustainable for the long term.

The investment made in our proprietary solution is about €6 million, that is a strong growth with respect to the same period of last year that was 24% less. We continue, we believe that the technology and the latest, let's say, technologies available on the market, including AI algorithms and AI technologies, are fundamentals in order to improve the capabilities of our smart solutions.

For this reason, we are continuing to invest for the existing product lines and also for the new products that we will launch to the market in the next future. In terms of revenues, the investment brought a growth also in the Smart Solution part, our proprietary asset, with a total revenue of €22 million, in growth of 15% with the same period of the last year.

Internationally, we keep, let's say, the market shares, this because the growth on the domestic market, in which we are already leader and we continue to be a reference point for digital innovation, is growing, and so we are growing also internationally. The revenues coming from international business are €16 million, that is a 15% of the total business.

In terms of debt, our, let's say, approach, as is a sustainable approach, we invest for new acquisition by financing the acquisition with the cash we generate, and also we have active a buyback plan in order to continue to buy back our own shares to be used in future acquisition. During first quarter, we closed the deal with the American company for fuel optimization, for aviation and aerospace and defense in general, that has, let's say, an impact of almost €10 million in terms of euros, and €2 million are coming from investment in other startups or minorities that we have in order to increment the footprint and continue to grow.

The total net debt adjusted, without financial investment, is around €100 million, that is a projection below the two times EBITDA that we expect at the end of the year. We are in perfect line with our, let's say, guideline, and we still have treasury shares, in particular first quarter was strong in terms of buyback.

We acquired more or less €2.5 million in our own shares, and the total amount of shares at least evaluated at the share price of end of March is about €13 million. Today, also because yesterday was a very good day after the results in terms of stock price, overall we have almost €15 million in our own shares to be used for future acquisitions.

Looking for the industries in which we are, we have these six pillars, competence centers and clusters that are growing according to the, let's say, guidelines we gave during the industrial plan, and the first quarter registered also a performance stronger than also what we planned during the industrial plan itself. Overall is a 19%, and also in this case, the good thing is our diversification allow us to be more sustainable and reliable, pushing on the markets that are fast growing, but having also good results coming from synergies from the other markets.

Everybody, every industry, every cluster that we have is growing, and the particular, let's say, driver of growth is related to the public sector, that we expect to grow in this segment because the backlog that we acquired in the past few years and the projects that are increasing in this area. Aerospace and defense, that is the other, let's say, main driver for the growth on the year level, is growing at 10%.

First quarter generally is by, let's say, design, the first quarter is almost slower because at the end of the year we start with big projects, the new business will ramp up during the year itself. Still we grow of 10%, and we expect to grow much more in the next nine months.

It's in particular, let's say, good to point out the growth and the contribution coming from Telco & Gaming and Industrial. Specifically, Telco & Gaming is growing in a good way in the first quarter for a big contract we acquired in the gaming industry, for which we are partnering with a big player on the Italian market for the renewal of their own digital infrastructure.

This new contract was, let's say, an upsell very strong that contributed in first quarter for the total growth. For the Industrial, we are starting to consolidate the new business that we launched last year in the second half of the last year, related to the monitoring of complex and critical infrastructures.

This business is completely organic, comes from investments internally and synergies we create among, let's say, different business lines by providing a software proprietary platform towards the market of critical infrastructures that brought, let's say, a strong growth, all organic, in the first quarter. The overall is €2.5 million more or less of revenues coming from this business in the first quarter and is expected to grow in the next months.

The other divisions are in line with the plan, with an average growth of 10%. Looking to the events that are, let's say, happened after the closure of the first quarter and the evolution of the business, as I said, all the strategy that is a mix of M&A, aggregation of companies, and synergies are doing and are bringing results.

In terms of investment, we closed in March the investment in a new startup in partnership with Politecnico di Milano to build a company that will create a, let's say, set of advanced algorithms in order to monitor critical infrastructures, AI-native. We are investing with the know-how coming from the Politecnico and the capability as software, let's say, factory that we have internally to build, let's say, additional functionalities to be provided to our customers in this domain.

The investment is a startup that was founded in March, for which, let's say, TXT will contribute as a financial, let's say, investor and also as, let's say, provider of technology, together with, let's say, the partnership with Politecnico di Milano. The goal here is to leverage of AI capabilities and our engineering knowledge to capture market opportunity and to grow the business that already started in a good way in terms of monitoring of critical infrastructures.

Other investment we did and we closed, it was in 1st of April, we acquired Fast-Inck, that is a smart solution provider with a footprint in the and the proprietary asset in terms of OT and IoT in general for industry and for complex production systems. They have also inside the company proprietary solutions, hardware and software related to warehouse management, and for us it's strategic because synergic with the industrial division.

We add a, let's say, customer base, and we add new assets complementary to the assets that we already had to strengthen our position as an end-to-end provider for complex solution for, let's say, the industrial overall market. The company we acquired registered in 2025 €4.4 million turnover, with a margin around 20%.

We expect a continuous growth before synergies, accelerated by the synergies we can provide. Just to inform the market, we already closed a deal with a customer of, let's say, the newly acquired company by providing, let's say, existing solution we have in the group.

It's a low-hanging fruit that we closed is we are speaking not of a very big deal, we are speaking about €100,000 in new licenses we provide to a customer of Fast-Inck by leveraging the synergies with the rest of the group. This is the most point for us important, the opportunity to create synergies, upsell and cross-sell, and technological synergies in order to be stronger on the market.

We pay for this acquisition at closing €4.5 million, and we expect that will generate growth across the 2026 and further. The other acquisition we completed is on 4th of May.

We completed, let's say, the deal to aggregate NetMediaClick, a smart solution provider in the MarTech domain that have also a proprietary solution related to performance marketing, very complementary to the company that we have already in the group, that is Re-fine. Together, these two companies became one of the leaders, at least in the domestic market, of performance marketing, let's say, offering.

For us it's strategic also in order to support the internationalization, let's say, scale-up initiative that we launched last year, because we create critical mass in terms of software assets, resources for the operation, and market reach to address more strongly and quicker, let's say, the scale-up towards the international business. NetMediaClick in 2025 had revenues of €4.6 million, with an EBITDA margin more or less 20%, and at the closing, we pay €5.5 million in order to acquire the 100% of the shares of the company itself.

Also in this case, we expect to generate synergies with the MarTech, let's say, division of the group in order to be stronger in front of the competitors and the requirements of the market. As I want to highlight that these two, let's say, acquisitions plus the investment in the startup with the Politecnico are strategic and in line with our, let's say, industrial plan, because we are looking for very specialized company with already a good customer base and the market presence and with, let's say, innovative and proprietary technologies that generates immediately good margins.

With good EBITDA margin, we add this, let's say, improvement overall to our group because we are adding company that are generating an average EBITDA margin above the average of the entire group. We are speaking here to add with these two companies €2 million pro forma with respect to the overall EBITDA of the group, and of course, pre-synergies €2 million and pre-growth, we expect this year the contribution will be better.

I let maybe now, I ask Andrea to before So I already give some flavor about the growth in the different division that we have. The main point is that for us, AI is an leverage in terms of go-to-market for all the divisions that we have, from either service-based division and Smart Solutions, proprietary product.

We we have different, let's say, opportunities in pipeline in terms of commercial pipeline to extend our footprint of the market. The results of Q1 are good, but it's the beginning of a year that we see very strong in terms of, let's say, opportunities, in terms of sustainability of the growth in all the divisions that we have.

I ask Andrea maybe to go through the financials in order to share more detail about the financial performance. Thank you, Andrea.

Thank you, Daniele. Thank you for this very comprehensive, let's say, overview about results and business updates.

Now we go a little bit deeper into the financials, starting from top line and EBITDA. Top line was broadly discussed by Daniele.

We recorded an 18.5% growth in first quarter 2026, with let's say mostly of the contribution coming from organic growth, with 17% of growth on a like-for-like, let's say, perimeter. In terms of direct cost, we have an increase of 14%, slightly lower than the growth of the top line, bringing a positive effect in terms of gross margin, which reached approximately 36% in the first quarter of 2026.

Looking at the indirect cost, we have a solid growth of research and development cost. As said before by Daniele, we are still investing in new technologies, we want to push in our Smart Solution portfolio to keep it above of the competition in terms of innovation, and let's say this growth of 24% outperformed the growth of revenues and in specific of Smart Solution, but the return on this investment is expected already from the second quarter and for the future years.

As a reminder, we fully expensed all our R&D into the P&L, we do not capitalize any of our research and development costs. A very significant growth was recorded into commercial cost.

Here we have includes also of course the management cost and marketing cost. Here we have some very strong campaign and acceleration into investment, both in internal resources, with the clustering of the group offering by industry, with let's say a new key position, and also with let's say some accrual of sales commission and bonuses, which are somehow linked also to the very strong performance recorded in the first quarter of the year.

Also the marketing investment and the marketing initiatives let's say supported the growth reported of 59%, and we expect this growth to be slower in the rest of the year. In fact, if we look at the incidence of commercial costs over revenues, is a significant increase from 6.6% in the first quarter of 2025 to almost 9% in the first quarter of 2026, but as I said, we expect this, let's say, incidence to get a bit lower in the rest of the year.

Looking at the general and administrative cost, the growth of approximately 20% brought G&A cost to €7.5 million, with an incidence of 6.9% over revenues, broadly in line with the 6.8% incidence reported in the first quarter of 2025. The EBITDA margin maintained the 14.5% level in 2026 first quarter, as was in the first quarter of 2025.

It is important to say that the different mix of the fastest growing of software engineering and digital advisory should have, let's say, a little bit diluted the margin, which instead we were able to keep thanks to synergies and operational efficiency. Moving to the next slide, below the EBITDA, the let's say the group reported total depreciation and amortization, excluding PPA, at about €3 million and with an overall incidence of 4.3% of revenues.

Here the main let's say items is related to IFRS 16, depreciation related to lease, for about €2 million, with an incidence of 1.8% on revenues. The remaining items are mainly related to depreciation of fixed asset for €0.8 million, and depreciation of intangible assets, excluding PPA, for €0.2 million and an aggregate incidence of 1%.

The overall growth of depreciation and amortization, in part of excluding the PPA, is 17%, slightly lower than the growth of the top line. Of course, PPA instead have a very significant growth because includes all the acquisitions completed up to, let's say, 2025, while in the first quarter of 2025, the allocation of the price on Webgenesys and other main acquisitions of 2024 were not included, as the group has 12-month period in order to reflect PPA effect into the books.

Of course, the incidence of PPA on revenues increased significantly from 1.1% in first quarter 2025 to 1.8% in the first quarter of the current year. Also in terms of net financial income and charges, with the net results of €2.7 million reported in 2026 first quarter, showed a growth of 45% compared to the same period of the previous year, and they are the main effects linked to the different financial and structure of and debt structure of the group.

As we will see in the next slide, the group also increased the exposure towards bank in order to sustain the ongoing M&A plan, which is very active in the first half of 2026. Of course, we have the results from the minorities broadly in line, let's say, compared to the first quarter of the previous year, less than €100,000 of net loss, compared to €23,000 of net loss in the same period of the previous year, with an earning before taxes adjusted by PPA, which ends at €10 million in 2026 first quarter versus €8.9 million in the first quarter of the previous year, with an net increase of 12.6%, downperforming, let's say, the 18.3% of the EBITDA margin, but this is mainly related to the different financial results.

The net profit adjusted has a similar rate, as an incidence of 7% on revenues versus the 7.1% from the previous year. In terms of net profit reported, the difference of 80 basis points is to be attributed to the PPA mainly and also to the different financial results.

In terms of result from the net profit attributable to minority interest, we have €0.4 million in the first quarter of 2026 versus half a million in the first quarter of 2025. Looking to the next slide, the net debt of the company increased overall by €2.7 million, and the increase in the net debt comes from an offset of the very strong free cash flow generated by the company in the quarter, which was, let's say, above historical data and above targets thanks to a better DSO reported in the period and other effects on the net working capital.

These effects, this very positive effect, was offset by the extraordinary investment incurred by the group, in particular €12 million coming from M&A, of which €5 million related to earnouts and €2.4 million related to capital increase into minorities, and the repurchase of treasury shares, already disclosed by Daniele, by €2.6 million, and also the payment of interest and financial charges for €2 million. If we look at the net debt by nature, we have cash and cash equivalents for €114 million, with an increase of approximately €12 million compared to the previous year, and this is also reflected in the total bank loans and borrowing that are about €210 million in 2026 end of March versus €197 million end of 2025, with an increase of €13 million.

The group is getting, let's say, more cash in order to be ready to, let's say, pay for the M&A that are on plan. Just as a reminder, as of today in the second quarter, two acquisitions were already disclosed and closed, and there are the possibility to close further M&A.

Other, let's say, main items into the net debt position in terms of financial asset, there are financial instruments at their fair value, which report which are quite stable, with a €236,000 decrease coming from the fair value of such financial instruments. In terms of main liabilities other than bank loans and borrowing already commented, we have IFRS 16 liabilities for overall short-term and long-term €18.5 million, with a net increase of €0.4 million.

We have earnouts liabilities for about €16 million, with a net increase of €5 million related to acquisitions closed in the first quarter of 2026. Let's say those are the main financial liabilities included in the net debt.

The difference between the net debt reported of about €119 million as of end of March 2026 versus the adjusted net debt as of the same period for €101.5 million is related to the financial investment in Banca del Fucino, which is expected to be monetized within the year, at least, let's say, a big portion of it. If we look to the next slide in terms of balance sheet, the balance sheet of the consolidated balance sheet of the group show total fixed asset as of end of March 2026 for €254 million, with an increase of about €10 million compared to year-end 2025.

The main category is intangible assets, equal to €290 million as of end of first quarter 2026, with a net increase of €9 million. Within intangible assets, the main category is related to goodwill for a total amount of €141 million as of end of March 2026, with an increase of €11 million compared to the year-end 2025, following the acquisitions of the period and the related fair value of the earnouts.

The remaining item accounted for within intangible assets are mainly customer relationship and intellectual properties coming from M&A, with a net book value of €45 million as of end of March 2026. Tangible fixed assets are equal to €24 million in as of end of March 2026, with a net increase of €0.4 million compared to the year-end 2025.

The main items included consists of office and car lease recognized under IFRS 16 for a total of €20 million, one building with a net book value of €4 million, plant and machine with a net book value of €4 million, which are mainly related also to the new lab in which the group invested between end of 2025 and beginning of 2026, and laptops and other electronic equipments for a total net book value of €3 million. The other fixed assets, the last item last category of the fixed assets, amounted to €29 million as of March 2026, with a net increase of €0.7 million.

The balance mainly include the investment in Banca del Fucino with a fair value of approximately €18 million, in line with the previous year; the investment in unconsolidated subsidiaries for €8 million, with an increase of €1 million compared to year-end 2025; and other minority amounts linked to, for example, security deposits on lease and deferred tax assets. The net working capital of the group in the period reported a net decrease of €2.7 million, which positively contributed to the cash to operating cash generation of the period itself.

Here if we look at the trade receivable with customer, the increase at a lower late at a lower rate compared to the top line thanks to the improved DSO and the effect of invoice discounting, while payable with supplier and work in progress increase at a rate in line with the growth of the business itself. The other items are related to other short-terms assets, other short-term receivable, which increased by €3 million in the first quarter, mainly for the increase in deferred expenses account.

Tax payable instead increased by €1 million in the first quarter following the recognition of income tax of the period, which more than offset the reduction of deferred tax liabilities account. The main decrease of the net working capital is related to other payable and short-term liabilities, which decreased by €6.7 million.

Here the main effects is related to the increase of deferred income related to annual subscription invoiced during Q1 for a total €5 million and for the increase of payable with employees for accrued holidays and salaries, related for example to the 13-month salary. In terms of other items, severance and other non-current liabilities are in line with the year-end of previous year.

Shareholder equity is the net effect coming from the net results of the period and the effects on treasury shares, while the net financial debt was this is the reported, let's say, value was broadly reported into the and commented with the previous slide. If we move to the next slide, in terms of shareholding structure, the structure as of end of March 2026 is broadly in line with the year-end 2025, with Laserline being the financial vehicle of Enrico Manghi, accounting for 30% of the overall, let's say, capital.

We have managers with more than 20%, 24% stake, which includes manager both part of the, let's say, executive team and also those who entered in the group following the M&A plan, as the group used to as a tendency used to pay, let's say, price partially in cash and partially in treasury shares, which became, let's say, shares owned by management. Then we have market, the float market owning 43% and 3% related to treasury shares.

In particular, related to treasury shares, during the first quarter of 2026, TXT share price reached a the treasury shares amounted to approximately 430,000 shares, representing 3.3% of the issued shares. For comparison, the treasury shares were 334,000 as of end of year 2025, and the increase reflect the share buyback program.

In fact, during the first quarter, TXT repurchased 95.6 thousand shares at an average price of €27.3 per share, for a total investment of approximately €2.6 million. In terms of dividend for 2026, and based on the 2025 results achieved by the group, the shareholder meeting resolved the distribution of a dividend of €0.35 per share, calculating on outstanding shares excluding treasury shares, which will correspond to a payout of approximately €4.5 million.

The dividend payment date is May 20, is the, let's say, the payout is not reflected into the figures reported in the first quarter of the year. In terms of performance of the TXT stock, during the first quarter of 2026, TXT share price reached a high of €31.4 as of March 17, 2026, and a low of €23.85 as of February 16, 2026.

As of end of March 2026, the price per share was €29.6. We completed the financial overview section of this conference call.

We will now go through the Q&A that we have collected during the presentation. We currently have two question.

I will publish first question coming from Andrea Randone, which I don't see anymore. Maybe I've pushed the wrong button, but anyway, the question was asking if you can if we can provide more color about the €500 million of bids on the public sector expected to be awarded by 2026.

Yes. The business for our public sector division is based mainly on public tenders.

In order to acquire the backlog that we are now delivering, also the results of the first quarter are related to tenders we won in the past few years that we are delivering, is needed to continue to do, let's say, new bids, new tenders in order to have the continuity of the business for the next few years. In terms of acquisition, we participated to a lot of new tenders because in the first part of the year, there is a new wave of big digital transformation programs for the central public administration and local public administration, for which we have a goal to acquire at least, let's say, to keep the level of the backlog constant and growing 10% in order to deliver next few years the growth.

Far, there are no public, let's say, information related to the closure of these deals that are expected to be completed in the first half of the year. Of course, for these tenders, there are also, let's say, possible discussion between who participated, it's a long-term vision.

In order to have more, let's say, details about this information, we will publish as soon as we secure new deals, a comprehensive communication of the deals we acquired during the year. Far, there are no, let's say, information, also price-sensitive, to share.

The point is that we are positioned in a very good way, we expect to collect at least the backlog in order to give continuity to the business of the public sector, let's say, cluster that we have in TXT Group.

Thank you, Daniele. We have additional three questions, one from Andrea Randone from Intermonte, one from Niccolò from Kepler, and the other from Andrea Bonfà from Akros.

I will start from the second one from Andrea Randone, who is asking, "Can you explain us how TXT was able to secure the European Defence Fund project and what are business expectations? How TXT was appointed coordinator of the consortium?"

Thank you. We just announced and we just received, let's say, the confirmation we get this, let's say, project from the European Defence Fund that is related to a data collection platform for interoperability across different defenses across Europe, for which we were coordinator.

Coordinator means that we presented as, let's say, head of this consortium the proposal to the fund, and we won also against big players. We achieved this result because on this, let's say, topics of the defense at European level, let's say, fundings and innovation, it's years that we are preparing and positioning ourselves.

We build a strong relationship with big players. In the particular case of the, let's say, achievement we reached, we decided to participate together with other big players in order to be an alternative also at European level, and we managed to win this one against also more, let's say, big or structural companies.

Since the focus is related to innovation, in the consortium there is a lot of partners that are more industrial and producer, like Safran or MBDA, for example. We, as technological provider of, let's say, digital innovation, are a perfect, let's say, coordinator of this activity because we will coordinate contribution coming from big players and also from academic world in order to deliver innovative solution for the European defense.

Is strategic for us because put us on a different plane with respect to the past, because here we are protagonist of this kind of, let's say, initiative, and for us is strategic. In terms of business, let's say, impact, the overall fundings is almost €30 million in three years, for which our share is 20%.

This, let's say, achievement is not the only one with the fund or other funds related to defense innovation investments. It's just a part of a total that is much more bigger, we are speaking about a total of €10 million in fundings and new projects we acquired.

Also for this, we will have during the next period better communication also through not only financial channels of the initiatives in terms of content, of which contribution we will provide for the innovation of the digital infrastructure of defense at European level.

Thank you, Daniele. I will go through the next question from Niccolò Marchetti from Kepler.

The question is: "You flagged additional extraordinary transaction expected by end of Q2. Could you give us a sense of the typical size and verticals being targeted?"

It's longer. Do you want to answer first this one, or do you want me to read the entire question, Daniele?

No, if you publish it, I can see it. The problem

I publish and then sometimes they disappear, if I publish, then the risk is that I don't see it anymore. I will try to publish as soon as Okay.

This first question, we have in line an additional acquisition. I will not address too much, let's say, the details because we are working on it, but, let's say, strategically, we are acquiring a company that will be in line with the offering that we have, according to our strategy to strengthen the competencies and proprietary assets and strengthen the position in the cluster that we already have.

In particular, this company has different business units that is covering at least two or three of our business lines, will be a sort of addition in order to strengthen more than one. The focus is more to the industrial side, banking and finance as a cluster.

Let's say, the size will be bigger than the two acquisitions that we did in the first quarter. I gave a riddle more or less, but let's say, since it's still ongoing, we have good probability to close it, but until you sign, it's not done.

Since we don't disclose too much about the new operation, is an opportunity that will be disclosed as soon as completed.

Thank you so much, Daniele. Then the question continue with another question and another topic.

"With Brent and jet fuel prices having moved meaningful higher year-to-date, route optimization solutions become more economically compelling for airlines on a payback basis. Are you seeing this translate into a tangible step up in commercial activities for the FPO smart routes offering, both in terms of inbound interest from new airlines and in pricing power on renewals?

Could you share how the sales pipeline has evolved over the past few months, and whether you expect this fuel-driven tailwind to accelerate contract signing in the remaining of 2026?"

For sure, all the pressure related to a fuel price, it's a driver for growth for this business line. Strategically, we decided also to accelerate the acquisition of Smart Routes in order to be a stronger player in this field.

In terms of, let's say, immediate growth, of course, already FPO, our optimization solution to the market, it's something that takes time in order to go, because it's not something that reduce fuel by just pressing a button, but it's a software that is running in the cockpit of an aircraft, connected with the control tower, with a strong implication related to security of the data, data privacy, and, let's say, usage of professional operator like pilots that are regulated. They will start to use the tool as soon they have the proper training and the certification in order to use it.

The impact, of course, accelerate the trials from customer or, let's say, the selection of this kind of tool with respect of other many initiatives that are in fuel optimization, but the impact in terms of revenue stream is on a longer term. What we are, let's say, experiencing now is an increase and is an upsell to the current customer base.

Just as an example, American Airlines, that is already adopting the solution, asked us for an extension of licenses in order to adopt the solution of other fleets and other models of aircraft that they have already in the fleet. There is an upsell potential with immediate, let's say, return on our profit and loss.

There is, let's say, more long-term return that we expect to have starting from the next year because the number of trials with customer is increased in the last periods because the interest is much more. Of course, the fact that is not a solution immediate to save fuel, but is more a sustainable long-term solution for the airlines has this effect on the revenue stream and the adoption of the technology itself.

For us, for sure, flight optimization is, let's say, the smart solution offering that we have in portfolio fast growing and with more profitability. Of course, we are also in the middle of a period in which the market demand is increasing.

We are investing in it, we are deploying additional also functionalities to our platform because it's a fuel optimization, but strategically as a broader adoption by the airline itself because became a communication device to exchange real-time information across the fleet of a airline company. For us, strategically is a part that is growing faster, and we want to continue to invest in order to capture the opportunity that will come in the next period.

Thank you, Daniele. We have one last question for now from Andrea Bonfà from Banca Akros, who is asking, "Can you provide more details on the growth building block for the next nine months?

You already anticipated an organic growth rate around 10% or that of your business plan, but more details would help."

Andrea Bonfà wants too much secret that we will keep in our house. No, in general, you see, the first quarter is already above the guidance we gave as a group.

Because, let's say, we present data that are sustainable, we deliver on promises. We promise what we can reach, and of course, we are pushing in order to exceed the expectation and the declared one.

Of course, starting with the Q1 so strong, the expectation and the guidance for the next nine months will improve with respect to the 10% guidance we gave at the beginning of the year. We are planning to do an update of our industrial plan after one year and a half, we are planning to do that immediately before summer or just after the summer break, that will give more details about the contribution of growth of the different business lines.

For sure, let's say, with respect to the first quarter for which we have a strong contribution coming from also the growth of Telco & Gaming for the new contract with the gaming, let's say, player that we have acquired during the first quarter. Let's say we don't expect that this segment will continue to grow stronger for the next of the year, but the contract is at least nine months to one year, the contribution will last for all the years.

We expect a stronger growth for the aerospace and defense, as I said before. First quarter is a season in which there is a seasonality of the business itself, because let's say a lot of smart solution business and also the projects in terms of service delivery in general increase in the Q4 of the year, in the last quarter of the year.

We had a ramp-up very strong, the performances of Q4 for this industry were stronger, and so we started from a plafond already high, and so the first quarter is more, let's say, a starting of the new activity coming. During the year, we expect more, let's say, growth, very strong, as I declared also in the past meetings.

Last year aerospace and defense growth of a 20% overall. We expect similar growth for this year for the aerospace and defense, first quarter is 10% means that next quarter will be stronger than 20% in order to have the average 20% of all the year.

Plus we have opportunity and risks, of course. Some areas are more under pressure, like the telco business.

Some area have opportunities that are not yet reflected in numbers, specifically the initiative related to the digital payments domain, for which we have a good commercial pipeline, but this must be closed in order to have results in our profit and loss. We have the international scale-up of the MarTech business that is less than expected when we design our industrial plan, specifically because first, let's say, startup at international level was in Dubai, and Dubai in this period is frozen because all the activities in Middle East.

We think that the stronger domains that will grow and will continue to grow will compensate possible risk that we have in other area. The average of 10% growth of first quarter of the industrial plan is already exceeded in the first quarter, we expect to continue to grow at better rate with respect to what we declared in the industrial plan.

Of course, as I said, as soon as we will present the revision of the industrial plan, more detailed will be provided.

Thank you so much, Daniele. I think we didn't get any further question, we can maybe close the call.

For any other question or information that the market might require, of course, I remain available for follow-ups.

I would like to thank you, everybody. As, let's say, you noticed probably yesterday after the publication of the results, also the market was well impressed about the sustainability of our business.

We renewed also the board, we have, let's say, a strong commitment from the management team in order to continue to implement and to execute our strategy in terms of further acquisition and, let's say, enabling synergies among companies in order to capture opportunities and became more and more a player well recognized on the market and deliver value for the large customer that needs a company like us to support, let's say, the innovation by putting new technologies in the core processes, in their core business. We will continue on this in order to meet and exceed the results that we communicated to all of you.

Thank you very much, and have an update after the results of the six months in which we will give more detail about the business what you asked. Thank you very much.

Thank you, Andrea, for contribution.

Thank you. Thank you, Daniele.

Thank you, everyone.

Have a

nice time.

Bye-bye.

Bye.