Good afternoon, everybody, and thank you for joining the Biesse half year 2026 financial results conference call. Let's start with commenting our half year '26 financial results.

With reference to the geopolitical distribution of the group's main production assets, there are three industrial hubs locating in Italy, India, and Thailand. These are complemented by 20 showrooms strategically positioned worldwide to support the commercial network.

As of June 2026, the group employees are approximately 3,600 people. In terms of revenues, at the same date, 23.4% is generated in the Americas, 64.5% in the EMEA region, and the remaining 12.1% in the APAC region.

Summarizing the group's main economics and financial KPIs, the sales of the period report a decrease of approximately -3.6% compared to half year 2025. The 2026 FX impact was negative for €6.9 million versus half year 2025.

If we look and examine at constant exchange rates, the decline would have been limited to -1.5%. EBITDA adjusted amounted at 5.6%, a 0.6% margin on sales up compared to half year 2025 when it stood at 5% of sales.

It's important to note that the significant reduction in cost resulting from the activation of the contingency plan helped mitigate the negative impact of lower revenues. Headcount decreased by 106 employees compared to half year 2025, primarily driven by the closure of the manufacturing facilities in Northern Italy.

In terms of order intake, as you already know, ongoing geopolitical uncertainties are driving a phase of slowdown and wait-and-see across global markets. Anyway, half year 2026 performance is broadly in line with the Q4 2025 trend, showing an improvement compared to the performance of Q2 and Q3 '25 and reducing the gap with the Q1 '26 from -4.7% to -4%.

The net financial position, excluding IFRS 16, shows a deterioration in half year '26, moving from a positive €1.5 million to a negative of €19.6 million, which is consistent with the business seasonality and broadly in line with the cash absorption recorded in the half year 2025, which was negative for roughly €20 million. It is worth noting that cash absorption in Q2 2026 amounted to €8.5 million, lower than the €12.6 million of cash absorption recorded in Q1 2026.

Then if we look to our top-line performance by product, by material, and by geography compared to half year 2025, we note that revenues mix shifts further towards the service, parts, and components, partially offset by a softer contribution from machine and lines, which remained broadly stable, in line with half year 2025 levels. Referring to material breakdown, in the wood segment, Biesse is outperforming its main European competitors, recording slight growth in a declining market, largely thanks to the performance of lines business, so-called Biesse Tecno, while stone and glass faced a slowdown in demand.

Finally, analyzing sales by geographical area, we can see a positive contribution by the EMEA region, particularly driven by Spain and Portugal, whereas Americas and APAC regions are both negative. Entering deeply in the quarterly figures, we can say that overall, the stand-alone results reported in Q2 2026 were stronger than those achieved in Q1 2026.

In particular, in terms of revenues, the Q2 2026 showed an improvement compared with the Q1 '26, reducing the gap by half. However, some areas of concern remain, particularly referring order intake, which continues to be below expectations.

Q2 2026 operating margin increased as a result of ongoing efficiency initiatives and cost control measures, which partially offset the effects of lower volumes and preserve positive profitability. Finally, the increase in operating profitability was primarily driven by the release of provision for risk and charges related to legal disputes, following favorable development in the relevant legal proceedings.

In addition to the figures already commented about the consolidated P&L, we would like to move directly on the gross margin, where the 1.6% decrease is primarily driven by a negative mix pricing effect for -0.5%, transportation costs for -1%, and an adverse FX impact of -0.1%. As already said, in terms of OPEX and labor costs, contingency plan actions are the main reason behind the €13.3 million reduction versus half year '25, resulting in a positive adjusted EBITDA of €17.3 million.

About the non-recurring items, we have non-recurring items for €0.9 million, referring overall the restructuring costs. Overall, EBIT is positive at €4.8 million versus an negative EBIT at €6.7 million, referring half year '25.

At the end, the net result for June is positive for €0.2 million, showing an increase at €7.3 million compared to half year 2025. Of course, all these kinds of P&L variations are more detailed in a bridge referring net results from half year '26 versus half year '25, which is available on our website in the section conference call.

Regarding the headcount trend, the group's workforce decreased by 106 employees compared to June '25. The reduction of 140 employees within the Italy perimeter was partially offset by an increase of 34 employees in the rest of the world.

Then if we look at the balance sheet highlights, the net operating working capital increases by €18.6 million compared to December 2025, and the increase is mainly driven by an higher inventories for €15.2 million. This trend is let me say partly seasonal and typical for the first half of the fiscal year, with a gradual normalization expected in the second half.

Nothing in particular to know and to said about trade receivables, trade payables, and contract liabilities, almost in line with the 2025 year-end result. About net equity, net equity remains substantially unchanged, standing at €226.2 million, while the net financial position, excluding IFRS 16, is negative at €19.6 million versus a positive one of €1.5 million at the end of December 2025, decreasing by €21.1 million.

We can explain this kind of variation with a cash flow bridge, where cash generated by EBITDA is more than offset by the net working capital dynamics. The rest are referring CAPEX dynamics, even if lower than planned, reflecting investment postponements and contingency plan implementations, rentals, and other asset and liabilities and fund variations.

To conclude, no changes have been recorded in the composition of the Board of Directors over these last few months, as well as in the shareholding distribution, which remains about the same. This is all from our side, and now we can open the Q&A session.

Thank you.

Good afternoon, everybody. Alberto Francese, Intesa Sanpaolo.

I have a couple of questions. The first one, I've seen that you in the press release mentioned that there is a growth in the wood segment in this first part of 2026.

If can you elaborate a little bit more on on on this trend. More in general, question is how do you see the second part of the year, the second half of the year in terms of order intake and and revenues?

Second question, you mentioned this increase in inventory in the first half '26. Can we expect a reversal of it in the second part of 2026?

Thank you.

Thank you, Alberto, for your question. I try to to answer to your question.

About the the the wood the wood segment, yes, we we confirm a good trend in this part of the year. If we look, for example, to HOMAG Group that we monitored, for example, in terms of sales, they were -9%, and in terms of of order, they are -7%.

This is just a benchmark, but this is the trend that we are seeing in terms of wood. As mentioned during during the first part of the speech, we are we are focusing and we are strengthening our sales referring Biesse Tecno, the lines, and this can give an effort for the rest of the part of the year.

While with reference the the second the second half of of the year, the second half of the year, for us the the demand, as as said, during 2026 has remained weak, and the expectation is to stay so through the end of of the financial year. If if we look at that, we have to say that we hope that it could be stable and and but but for the moment, we we're not seeing any significant sign in terms of recovery.

The other the other items concerning inventories, you you you rightly mentioned the seasonality, and it's correct. In fact, if we we we have a look to the to the previous year, to the previous half year, we have a spike of we had a spike of the increase in inventory exactly the in the last year.

Now the the expectation and we can confirm that is that we will see a decrease in the second part of the year due to our effort on monitor and manage all the working capital dynamics. This is our target for the the end of the year.

About about the the order intake, we have to see if order intake we we see order intake a little bit better in the in the second half, better than the first half of the year, in absolutely in line with the revenues trend. This is this is our view.

Also in terms of in terms of revenues, the the trend is similar.

Thank you very much.

Welcome.

Yes, hi everyone. Thank you for taking my question.

I have a couple. First one is on the business plan assumptions.

When you presented the business plan, you clarified that targets incorporated a market recovery. As this recovery is not yet visible, do you still consider the 2028 targets achievable through, let's say, market share gains, internal efficiency, or could the delayed cycle shift their timing?

The second question is about, let's say, gross margins and transportation costs. H1 gross margin declined by 160 basis points, including approximately 100 basis points impact from transportation costs.

Do you expect this headwind to persist in the second half, or should it progressively normalize? In general, how are mix and pricing currently evolving?

Thank you.

Thank you, Francesco. With reference to our three years plan and targets, as you mentioned, we confirmed the targets, and in this moment, due to all the things that we already mentioned during this call, we can confirm for the moment then the lower end of the range in 2028.

This is the first one. Then concerning the gross margin, yes, looking at our forecasting 6+6, the expectation is a normalization of this kind, you say, things like transportation costs, which impacts inside in gross margin, to recover in terms of efficiency, and so the final result would be a little bit higher than the one reached during this first half.

Okay. Thanks all for your time, and we keep in touch for future step and development.

Thank you.