Good afternoon, everyone, and welcome to TR's first half 2026 results presentation. It's going to be conducted as usual by our Chairman, Juan Lladó, and our CEO, Eduardo San Miguel.

It's going to last approximately 25 minutes, and you will be able to pose your questions after the final remarks. Now I leave the floor to our Chairman, Juan Lladó.

Thank you. Thank you very much, Antonio, and good afternoon to everyone.

It is a pleasure to have you all here and being able to start with this very important second-quarter presentation. Allow me now to quickly walk you through today's agenda.

I will start, as most of the time, with the main highlights for these first six months, and then I'll walk you through two very important awards that have taken place this last quarter. Eduardo then will step in to talk about our company TR Power and its remarkable first step in North America—our North America momentum, which is very important—our services and digitalisations, AI, and robotics.

I will finally close with some remarks and our guidance. Let me start with the key highlights.

In this case, the key highlight—I guess the most important one—is this second-quarter performance. I like to be very, very brief.

The important number here is 73. 73 EBIT signifies a 5% of our sales, a decent level of sales of 1,478 million and a net cash of 344 million, and very important here, zero provisions.

This is the important passage here: the fact that we have a decent cash, no provisions, and decent levels of sales also shows how the Middle East projects are moving and progressively moving back to normal. If we want to analyze the full semester, both quarters, it has to be compared with the same period last year.

Now what you see that sales semester against semester have grown by 12% to €3,061 million, and also the net cash, if you compare last year with this year, increases by almost €100 million. Obviously, this first semester our EBIT is €104 million, as we have to maintain the €45 million provision.

Finally, some messages that goes together with the numbers. Middle East execution is moving to normal, that's one message.

It is moving to normal, and it's very well understood as payments from our customers are unchanged and on time. That's a message.

The third message, and that this is very important, it is that we're managing a very robust order intake of €6 billion and a high probability to end the year with €8 billion-plus. An €8 billion-plus driven by the Middle East investment mood, the Power strategy, and North America.

Three places, three businesses that I guess are very important within our strategy and our future growth. Now let's follow with the two most important awards that have taken place this quarter.

That covers part of what I've said before. The first one is a big one.

It's a $5 billion job by ourselves. It is the Abu Dhabi job.

We have two customers, two very important customers: ADNOC and Exxon. Here, quantity is important, obviously $5 billion is important, but quality is very important.

It's very important if we want to take part of this big investment momentum that is taking place in the Middle East. It is important because we need to have, and we are having, the trust of the most important investors, in this case, it's Exxon and ADNOC.

Both, they know and they differentiate well our capabilities. They understand very well our engineering capacity and our engineering quality.

They understand extremely well our modularisation capacity and technology, very much needed to take this job to a safe harbor. They understand very well our capacity and quality to manage construction on islands or very complex sites.

The quality and the quantity of the job are all very important, and we're very proud, extremely proud of this job, and we're extremely proud that both customers have entrusted TR as a sole contractor. The next job, size is different, but in terms of our strategy, as important as the previous one.

It's a power job, we're doing the engineering and procurement. It is Alberta, it is Canada, and it's EPC Power, and we work here with Siemens turbines.

This project very much validates our power strategy that we have presented to you on several occasions, it validates our North America strategy, and it validates our Power strategy, which is very much driven by the enormous demand of the hyperscalers, as Meta happens to be this case. You might be wondering why TR?

We have the strategy, and you have to know that [Deneb? / DBNA?]

is an old customer of us, and understands well the quality of TR services and engineering capacities. Siemens as well, this is not going to be the first nor the second or the third project that we do with them.

You all know that we are well positioned now not only in the United States, but as well as in Canada. This job is good news, and you have to be optimistic, you'll see more to come, there will be more to come.

Only with this talking about Power, I'll let the floor to Eduardo, who will definitely add some color to this.

Thank you. Good morning, everyone, and definitely, as Juan says, many other power projects are to come.

Let me first elaborate about TR and the power generation business. During the first half of this year, we successfully completed the spin-off of TR Power, our power unit.

This was a critical milestone that provided TR Power with a dedicated and focused structure to capture a huge opportunity of growth. Because the key message I would like to emphasize today is the size of the opportunity ahead of us.

Historically, our power business generated a few hundred million euros of revenues per year. More recently, at our Investor Day held in Madrid last October, we were targeting this business could deliver around €1 billion of annual revenues.

Today, however, the outlook is significantly stronger. If we continue securing awards at the pace we are currently doing, €2 billion revenues per year should not be a great challenge.

In other words, we are potentially looking at a business that could double the size we forecasted only a year ago. This is why we are investing heavily in capabilities and talent.

We are going to double our power workforce by the end of the year, ensuring that we have the engineering resources required to support this growth. As of June 30th, TR Power's backlog stood at approximately €2.2 billion.

In addition, we have a strong visibility on projects that have not yet been incorporated into the backlog. First, there's a €1.1 billion power project in the Emirates where we are already executing early works and where we expect the final notice to proceed by October.

Second, the three combined cycles we were awarded by RWE in Germany, representing around €1.5 billion. Hopefully, the final notice to proceed will be received throughout the next 12 months.

Artificial intelligence in the US, electrification in Europe, and industrialisation in the Middle East are the three drivers that will support the massive growth cycle we are already facing. Rest assured, we are more than ready to be one of the main players to take advantage of this momentum.

Let's now move to North America. North America is becoming one of the most strategic growth regions for Técnicas Reunidas.

In 2025, we secured around €70 million of early engineering services awards. Just in the first half of 2026, we have already reached €52 million.

What is more relevant to me is to observe how our projects awarded a year ago are already transitioning from the pre-FEED and FEED stage to the engineering stage. We also expect some of these projects to enter in the EPC phase soon.

In fact, a first project will be transformed into an EPCM before year-end if everything evolves as expected. Contract value will be around €200 million.

I would like to emphasize we are talking about an engineering, procurement management, and construction management project because our policy is to minimize the risk of construction in America. Other ongoing early engineering services have the potential to evolve into approximately €8 billion of EPCM awards during 2027 and 2028, providing us, obviously, a good visibility for future growth.

Eventually, I would like to emphasize the strong relationships we are building with many of the clients shown on this slide, clients that allow us to capture opportunities in the US, but also in many other countries across America. US is, together with the Middle East, the largest investor in the future energy infrastructure.

We honestly believe we have been able to build a still small, but very solid franchise in the United States. We are confident US will be the region where TR will deliver the highest growth in the coming years.

Let's now turn to services, digitalisation, artificial intelligence, and robotics. Services and digitalisation/robotics/AI are tools that contribute to increase our efficiency and profitability, but also contribute to improve our market positioning, since they strengthen our relationship with the top management of our clients.

Starting with engineering services, momentum remains very strong. During the first half of the year, we secured €130 million of awards, and we expect to close 2026 at approximately €375 million.

A significant portion of this figure will come from North America, as we explained in the previous slide. This performance gives us increased confidence in achieving our objective of €500 million of annual revenues by 2028, while maintaining gross margins around 30%.

Regarding to digitalisation, artificial intelligence, and robotics, we are also making significant progresses. We believe that digitalisation and robotics will be transformational for our industry, but in the meantime, it is an unlimited source of productivity improvement and cost efficiencies that can potentially be converted into a competitive advantage or better margins.

Two years ago, we fixed our target for cost savings in 1.5% of our revenues, and according to our actual understanding, this is not a major challenge at all. That is why we expect to invest around €40 million in 2026 and increase the dedicated workforce up to 400 professionals by year-end.

Before entering into the financial figures, allow me one last message from my side about our operation. We are aware Middle East, power generation, and America gives us a unique opportunity to grow.

We do not plan to grow for the sake of growing. We remain committed to increase our profitability.

Services and digitalisation will definitely contribute to improve our margins and our efficiency. Our traditional EPC activity will not miss its focus in delivering solid margins.

Now the financial results. Juan has talked about revenues at the very beginning of the presentation, and I would like to focus now on margins.

This chart illustrates one of the most important achievements over the last 18 months: the consistent improvement in our profitability quarter after quarter. I would also like to emphasize this improvement has always been fully aligned to our guidance.

Margin improvement is the result of a structural improvement in the quality of our business, driven by a more strict project selection during the commercial stages, the fulfillment of our SALTA strategy, and a disciplined execution with increasing operational efficiency. In this context, we are navigating the consequences of the conflict in the Middle East.

We made an exhaustive analysis in the first quarter, and we concluded the €45 million provision was our best estimation of the impact of the war, and we transparently communicated this impact to the market. Last weeks, we have revisited our analysis, and based on the premise that the conflict ends in this third quarter, we consider the €45 million provision is still correct, and consequently, there is no need to modify the figure.

Now let me finish with one of the clearest KPIs of TR's transformation in the last two years: the strength of our balance sheet. Our financial figures goes on improving.

TR net cash reached €344 million in the first half of 2026, compared with €332 million a year ago. Equity has followed the same positive trend, increasing from €564 million to €622 million, the highest level ever reached in TR's history.

Eventually, as announced in previous quarters, we remain committed to our 30% payout policy. First dividend will be paid from our 2026 results, and the payment date will be communicated after summer.

Now, Juan, I pass you back the floor.

Thank you. Thank you, Eduardo.

Let me do a brief wrap-up. In this brief wrap-up messages that I think we have tried to make clear in these presentations: €8 billion awards for 2026 is not a challenge, that's a message.

Another message is Middle East projects are moving forward, and we've been executing well. Third, profitability very much leverage on service division and digitalisations is extremely well focused.

Those have been important messages. As we manage the business, there is a key message here that I like to transmit here as investors, as an analyst.

The message is that we're extremely well positioned, very well positioned in three very important business cycles, extraordinary business cycles: well positioned in the Middle East investments that are taking place; we're very well positioned in the power investment cycle—Europe, Middle East, and most important, North America; and we're very well positioned, extremely well positioned, better than expected when we started two years ago, in North America as an overall. That message is important, and I wanted to make it very clear in my final remarks.

In terms of guidance, I guess this quarter results and maintaining the 2026 underline—and let me underline the underline—guidance shows that we're having a good performance. This good performance obviously needs to be adjusted, as we did on the first quarter, by the €45 million provision three months ago.

That's the message: we maintain our guidance, and I'd like to finalize with a message of optimism as there is more to come, and I'll open the floor to any questions you may want to pose.

Good evening, gents. Nice set of results.

A couple of questions, if I may. Firstly, just on the power side, you talk about doubling the head count.

What sort of numbers are we talking about on power and just want to get the scale of that? Then secondly, obviously big awards this year.

You're talking of €8 billion EPCM over the next two years, plus the Middle East going in the right direction, plus Europe. If I think back to your medium-term guidance, your EPC target was only 4.5 billion for 2028.

We must be more in hand than that already, are we not?

Thank you, Mick, for the questions. Power, we currently have around 800 people working in the power business, and we need to double it, we need to move close to 1,500 people.

That's the size of the operation. Maybe you wonder where are we planning to recruit all that people, because obviously here at home we do not have resources enough, and the answer is simple: it's India.

We are currently recruiting people specifically specialized in that business. Regarding the second question, yeah, the figure is absolutely obsolete.

We have to revisit the guidance for 2028, and probably by the end of this year, with full visibility of what is coming, probably we can tell you what's going to be the correct figure, but obviously it's not going to be 4.5.

Just on that, clearly it is the lower-margin bit of the mix that's getting bigger versus the services element. Are you still confident in that medium-term margin of 8%?

No, we have to revisit that margin. What we told the market was 10% from EPCs and something like 30% from services.

If the percentage of growth of EPCs is higher and the growth of the volume of services, obviously the average margin will be smaller. We keep stick to the target of 10% coming from EPCs and something like 30% coming from services.

The overall figure, the net global absolute margin will definitely be much bigger. That's obvious.

Thank you.

Yes, good evening. Thanks for taking the time.

I have three, if I may. The first one is on a interesting comment that you just made saying that if the situation normalized in the Middle East in Q3, the €45 million provision will be enough.

Just as a kind of sensitivity analysis, because some of your peers like Technip and Saipem gave some guidance assuming that the situation will last until the end of the year, if we place ourself with this statement, situation until the end of the year, what kind of, let's say, additional provision should we assume? The €45 the €45 million number that you took, that assume in a sense Q2, Q3 divided by two or any color on the, let's say, potential additional costs that will, in a way, emerged from the Middle East?

That would be the first question. The second question is related to the maybe sequential improvement that you expect on the top line H2 versus H1, because we are still close to €1.5 billion-something revenue in Q2.

Is there any pick-up that we should expect in H2? The third one is related to working capital.

Working capital has been quite negative in H1, triple-digit number. What kind of dynamic do you expect for H2?

Thanks a lot.

Hi, Kevin. Thanks for the three questions.

To talk about when the conflict in the Middle East is going to end, my answer is one month ago, we all thought that the war was over. It's very difficult for me to analyze.

I don't know how my peers can say that the war is going to last six months instead of three or instead of nine. Unfortunately, I think none of us know about that.

As I told you before, we have tried always to be very transparent and very accurate. We have made our numbers for the next three months.

We have seen which are the extra costs to come. We have seen how we can recover that from the client.

We have analyzed the disputes with our suppliers, with our clients. We have analyzed everything to come in the forthcoming three months, and our estimation has been this 45 is correct and enough.

Frankly speaking, if I give you any kind of guidance about what could be the impact of the remaining three months of the year, I have to guess it, because the job we have done is exhaustive, is accurate, is a thorough analysis. It's what happens in the next three months.

Unfortunately, I cannot give you any additional information about what could be that impact if the war extends another three months. Regarding the second half of the year, you have the guidance.

We plan to be around €6.5 billion of revenues. Where we are, and this is what this is maths.

This is something is not a judgment. It's a fact.

We are confident that this €3.5 billion for the second half is the right figure. The working capital, I don't want to look naive today, but today working capital, today, meaning the 30th of June is of July is not my main concern, and I'll tell you why.

We are expecting another at least two additional billion euros of awards. We still have to collect the down payments from all the projects that have been awarded in the second quarter of the year.

We are going to receive lots of cash from my clients. My main concern is how to use this cash as wisely as I can, because I have always told you that the best thing I can do is to pass this money to my suppliers to force them to accelerate.

At the very beginning of the life of the projects, it's not that easy to pass that money, but we will try to do it if we can. The only thing I can tell you about cash is by the end of the year, the final figure is going to be by far better than the existing figure.

Understand. Thanks a lot.

Hi, thank you for taking my question. Sorry to go back on the provision.

I just want to have it clear to see what has changed for your previous assumption of €45 million being that the war lasted until June, and now that it lasts until Q3. Is it the fact that cost recovery with clients has gone better than you initially expected?

If you can give some color there. Also, if you can give some color on the cash usage of this provision to date, it would be very helpful.

Then the second question is just how your feelings on how negotiations with clients are going in general in the Middle Eastern region. Is it more based on you see some clients struggling or is it based on some countries which are suffering more and then clients are not fully trespassing the cost recovery because they're in that country?

If you can shed some color there, it will be also very helpful.

Hi, Alvaro. Thanks for the two questions.

The provision, I don't know how to describe it, is an alive animal. New costs are coming, we are trying to reduce some of these costs by removing people from the countries to other geographies.

We are recovering money from the clients. It's a fact that this provision is just the net effect of all the extra costs less the money we are going to recover from the clients.

That is the philosophy behind the provision. You are right.

There are more costs than those we estimated three months ago, but we are recovering more money than originally expected, and that's why we believe this is the right figure. In terms of cash, it's a bit difficult for me to give you an answer, because the idea is it is not there is a cost of €40 million, €45 million and there will be a cash out of €45 million, because it is not the case.

We will collect money from the clients, we will pay our suppliers, and what is clear to me is that, well, give or take, most of this extra cost and most of this extra collections will have to happen within this year. That's my feeling, but that's just common sense.

We have to solve the problems with the clients, with the suppliers, and it has to be done now. I'm sorry, I cannot give more color.

Also, I have to be honest to you, I don't want to give more tips to my clients and suppliers because I am negotiating with them, I cannot enter into a deeper analysis. The feeling of clients in the Middle East, when we are talking about we have not call it super cycle, but we are talking about a huge volume of investments are coming in the Middle East.

This means that our clients are trying to be supportive. I think that this is the global message.

Obviously, there are many different clients. The richest clients tend to help us as much as they can.

Those that have smaller money, obviously they are not that generous, it's a fact. The overall feeling is those guys want to invest.

Here in Europe, everyone is talking about reconstruction, destruction, and when we travel to Saudi, to Emirates, yes, obviously we have to reconstruct something, but the main message is we want to invest and we want to do it as fast as possible. That's the message we see from them.

The immediate consequences, as I told you before, we have the feeling the clients have been supportive now. The big, main clients.

Understood. Thank you.

You're welcome.

Hi. Good afternoon, gentlemen.

Just wondering if you can give us some more granularity regarding the breakdown of the project exposure you have in the Middle East and the level of execution of three or four main projects you have in the Middle East, just to get a better understanding of where some of the risks may be in the second half of this year. I don't know if you may be able to give us those details.

Thank you very much. That was my only question.

I have to be careful. Again, I have to provide you a good answer, but I don't want to enter into many details if I can.

One of the reasons why the provision is somehow limited to these €45 million has to do with the fact that most of the projects we have in the Middle East are in very early stages or in the very last stages of construction or even in the final negotiation stages. Those projects where you are still in the engineering phase or you are procuring equipment, and those projects that all the equipment has arrived to the site and your only pending activity is to construct, are not significantly affected by the conflict.

To be honest, there are only two projects in two different countries which are in a phase where we still have to enter big equipment into the countries. We have the Strait of Hormuz closed, it's a fact.

What we are working together with our clients is how to enter this equipment through different routes. I cannot give you more details, but only two big projects are being affected, and we are working together with the client how to solve the logistic difficulties to enter this equipment in the countries.

This is the big, big problem we are facing there.

Thank you very much, Eduardo clear.

You're welcome.

We are done. Thank you very much for all of you for listening to this second-quarter presentation.

If some of you can take some holidays, take it, because it's about time. We'll be talking to you, I guess, on the third quarter, which is second week of November, I do guess, right?

Again, thank you very much, and please, if you have any further questions, you can call Antonio. Okay.

Bye-bye. Thank you.