Thanks. Welcome everybody and thanks for joining us at the EuroGroup Laminations 2025 financial results conference call.

Together with me, the Group CEO Marco Arduini, the Deputy Group CEO Isidoro Guardalà, and the Group CFO Matteo Perna. As usual, please note that the supporting deck and the presentation are available on the website in the IR section.

Now I hand over to Marco. Please Marco, go ahead.

Thank you very much, Vincenza. Thank you as well to all of you for attending to this meeting.

We can move to the next page. We can go to the next one, please.

Thank you. When I think that 2025 was a very turbulent year, and we had a big shift in geopolitics, in policy, and all this has as well led to major changes in the condition of the market.

The results of EuroGroup for 2025 prove the resiliency of our business model that is well diversified and as well flexible. The revenues were reaching €831 million, and this is considering as well the forex impact, almost in line with the previous year.

In terms of performance, we reached €88.7 million in terms of EBITDA adjusted. If we go in the details of the businesses that we manage, E-Mobility was reaching €514 million of revenues, and this was down 6.1% at constant exchange rate.

The negative impact was coming from the decrease in volume in the United States and in EMEA. We saw a further increase of our sales in China.

With regards to the Industrial and Infrastructure solutions, we had a moderate revenue growth that is as well enhanced and driven by the expansion that we have made in Asia and by the fact that we started our activity in a very potential segment like the transformer segment. Taking in account this, our total revenue were €316.7 million, and this of course were led by the consolidation of Kumar Precision Stamping in India and by the growth in China and of course by a mild slowdown in EMEA and North America.

With regards to the performance, the margins were impacted by tariffs and by the macroeconomic uncertainty. We had, of course, in both segments, due to the lower volume, a reduced operating leverage in EMEA and North America.

If we look ahead and we speak about order book and pipeline in the EV business, we have, of course, to consider the impact that the shift that we saw in policy has created, especially in North America, but as well slightly in Europe. The order book is now at the level of €2.7 billion.

The pipeline, meaning all the potential orders, additional orders that we have in discussion with customer, is now at the value of €2.1 billion. With reference as well to the additional key operations and performance improvement program that we are as well following in the different region, we want to underline that we are progressing and we progressed in EMEA and in North America the industrial efficiency program in order to compensate the market dynamics, in order to increase the flexibility, and as well to structurally improve our marginality and cash flow.

This operation is of course leading our operational excellence plan in order to as well optimize our industrial footprint and procurement. If we speak about the outlook for 2026, we estimate revenues between €700 and €750 million.

With regards to the margin, the EBITDA adjusted, we estimate around 11%. We estimate a positive operating free cash flow that are including as well CapEx that are in the range of €45 million.

This is the overall summary, taking in account that 2026 is, of course, impacted by the shift and the dynamics that we saw as well in 2025. It is considered a year of transition in order as well to register and review the different program that electrification is requiring to OEMs and players in the market.

I now pass the word to Matteo that is going through the key financial results.

Thank you very much, Marco, and good evening. Let's move to the next slide, please.

In terms of sales, the total amount of consolidated sales was in the range of €831 million in 2025, implying a decrease in the range of 4.4% compared to 2024. This is as well including the forex effect.

As we said, without taking into consideration the evolution of forex, mostly the euro-US dollar in 2025, the revenue at constant forex effect would have been €853 million, implying a decrease year-over-year in the range of 1.8%. Looking at the segments' evolution, on Auto, the total amount of revenues was in the range of €514.3 million, implying a reduction of 8.5%.

With respect to the E-Mobility sector, the forex effect was in the range of 13.7, €13.7 million, whilst moving to the Industrial and Infrastructure solution segment, the forex effect was in the range of €11.4 million. In terms of EBITDA adjusted, the total amount of EBITDA adjusted was in the range of €88.7 million, implying an EBITDA adjusted margin in the range of 10.7%.

The total adjustments were approximately €8.1 million, and then we will elaborate more with respect to the details with respect to the adjustment that we accounted. The decrease in the margin is mostly driven by the evolution of the E-Mobility segment due to the impact on the operating leverage, especially in Europe and North America, with respect to all the difficulties, uncertainties that we faced in 2025 with respect to the market dynamics, and as well with respect the Industrial segment, this is mostly driven by the evolution of our operation in the region.

Taking into consideration approximately €58 million of total D&A in 2025, the EBIT was equal to €22.6 million, whilst in 2024 was 65.7. The total amount of D&A that we report in 2024 was in the range of €44.6 million.

I have to say that this is as well including the right-of-use, €10.3 million, the depreciation with respect to the fixed assets in the range of €45 million, and then amortization on intangibles in the range of €2.6 million. There is no impairment charges with respect to the total D&A that we accounted in 2025.

CapEx, we accounted below €69 million, the total amount was 68.9, and this is implying a reduction with respect to the 86.5 million that we reporting in 2024. Moving to the next slide, please.

We already spoken about the breakdown by segment with respect to the revenues. I have to say that now, E-Mobility solution is accounting for approximately 62%, whilst Industrial and Infrastructure, it's 38% of total amount of revenues that we generate in 2025.

If we see the breakdown by geography, and let me emphasize the fact that the breakdown by geography is consistent with what we reported over the last quarters. It's now on the basis of the final destination of the customers.

It's now Europe accounting for approximately 52%, North America is decreased to 44%, whilst Asia, including China and India, now accounts for approximately 14% compared to 7% that we reported in 2024. With respect to the E-Mobility solution, we had a total number of new SOP in 2025 of approximately 6 SOP, of which 1 in Europe, 3 in Mexico, and 2 in China.

The total amount of sets, motor core sets, that we sold was equal to 4.3 million. This has to be compared to 3.8 that we sold in 2024.

With respect to the Industrial business, it's important to emphasize that the 316.7 is including the full-year consolidation of Kumar, which reported total revenues in the range of €48 million, and this is important to be remembered. Moving to the next slide, please.

In terms of EBITDA adjustments, as we said, total adjustments were €8.1 million, and this is mainly make reference to extraordinary cost not related to the ordinary course of business, meaning we are now installing a new ERP in Europe, and this is part of extraordinary cost that we are making reference now in EBITDA adjusted. As well to say, this is as well including the completion of a full settlement agreement that we reached last year with respect to a litigation that we had in Russia starting in 2024 and then finalized in 2025.

As we were saying, Kumar, with respect to the EBITDA, it's contributing by approximately €4 million. This is implying an EBITDA margin in the range at 8.5%.

Yeah. I would move to the next slide.

I have to say the total net trade working capital at the end of December 2025, it's approximately €207 million. This is including a strong cash generation that we report in the last quarter of 2025.

You see the inventory decreased from 385 at the end of September to 352 at the end of December. I have as well to say that as well in terms of receivables, we decreased from 163 to 140.

Now the net trade working capital is accounting for approximately 25% over revenues in 2025. Moving to the next slide.

Two major comments on the net debt evolution. As we said, the total amount of net debt reached €219 million compared to €226 million that we reported at the end of 2024.

The 219, it's including financial lease liabilities according to IFRS 16 in the range of €43 million, and it's as well including €21 million in terms of cash-out due to the buyback of the 30 of the total 31% stake that we bought March last year in our Chinese companies, EuroGroup Laminations Jiaxing and as well EuroGroup Hi-Tech, and as well €1 million with respect to the buyback of the minorities for an Italian tooling company called Euroslot Tools. This is as well including approximately €8 million in terms of dividend distribution that we made last May.

Moving to the outlook for 2026. The range that we are now reporting, it's with respect to the revenues, we do expect revenues to be in the range between €700 million and €750 million.

EBITDA adjusted margin in the range of 11%. CapEx will be in the range of €45 million.

As well for 2026, we do expect a positive operating free cash flow, consistently with what we reported in 2025. Okay.

Marco, you want to add some comment?

I think that this guidance are related to merely 2026 in view of the overall situation that we have around us and the need as well to see the stabilization of this condition. I think the decrease in revenue is merely reflecting the shift that we anticipated happened in 2025, and the profitability is, of course, in line with the improvements as well that we have integrated in our program.

Of course, we are decreasing the level of CapEx in order to optimize as well the overall capital invested, and as well in order to use the current capacity that we have. We target to generate free cash flow positive in order to reduce further our net financial position.

I don't know if Isidoro wants to add any comments?

I think that your comment was very complete, and we can work also this year to achieve the result in term of revenue and confirming the margin that we had in last year. The work that we are doing in the CapEx reflect the need to fulfill the capacity that we already have in the company.

Very good. We can then listen to all the questions that are coming from the people that are attending to this call.

Good evening. Thank you, everybody.

I have a few questions. The first is on the current trading.

Compared to the implied minus 13% in the midpoint of your guidance, how has the year started so far? What trends do you expect in the first half and in the second one?

Then a question on compensation. Does this full-year '25 results include any kind of compensation?

If you can quantify it. If you expect some compensation in 2026, also in this case if you can tell us if they are included in the guidance and an idea of the potential quantification of those.

One last on the guidance, if you can tell us more or less if you expect a similar trend between the two divisions, or a more pronounced decline in one of them. Thank you.

Alberto, there was a very huge noise in the background, was not really possible to hear, at least for my side, the first question.

I think that I understood. In terms of current trading, I have to say that in the first quarter we are running consistently with respect to the guidance that we communicated today.

In terms of top line, we are progressing consistently. With respect to the claims, yes, the guidance is including approximately $5 million of claim to be expected to be closed this year with respect to the discussion that we are having with a US OEM in Mexico.

The total amount that it's part of such a guidance, it's $5 million. With respect to the Q-on-Q evolution, I have to say, we do expect an acceleration with respect to the top line.

It's back-loaded in the second part of the year. As well, we do expect on a quarterly basis a progression as well on the margins due to the benefit deriving from the execution of the efficiency programs that we are running both in Mexico and in Italy.

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Sorry, my last one was for the Industrial versus the EV business in 2026, if the trend will be similar to the group average of guidance or there is some different trend. Sorry, again, for the background noise.

We do expect the Industrial and Infrastructure segment to increase in terms of revenues in 2026 compared to 2025. This is mostly driven, I would say, by the expected volume evolution.

As you can imagine, the geography which is expected to grow the most is Asia, both India and China, whilst on the other side, E-Mobility is expected to decrease, especially in a year-over-year basis due to the evolution of our business in USMCA. I have to say that on the other side, we are progressing with respect to the penetration of the local Chinese market.

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Okay. Thank you.

Yes, good afternoon. I hope you can hear me.

My first question is general. The guidance, do you have factored in to the guidance the current situation?

Would you feel safer toward the bottom end of the guidance, maybe, because the situation is really difficult to navigate? That's a general question.

The second one is on China. Which are your local active Chinese clients, or how many in China for the E-Mobility?

In general, can you give us an indication of the revenues you are targeting to generate in China? The third question is on the start of production.

The company had six start of production in 2026 in 2025. How many start of production are you targeting for this year?

Then Sorry, I have a lot of questions. I'm sorry about this.

It's on the inventory side. The company did a very good job on the inventory side, but I was just wondering if the company sold the inventories, semi-finished products in 2025.

If yes, if you expect to further sell-out inventories also in 2026? I would say that for the time being, it's all from my side.

Thank you.

Thank you, Monica. With respect to your first question, yeah, now we are not considering, let's say, the situation to be worse compared to what we have faced so far in 2026.

Of course, should the situation getting worse, of course, this is not reflected in our guidance. With respect to China, well, I let then Marco to make a broader comment on the evolution of the Chinese market.

As you can imagine, we are now focusing all of our efforts with respect to what we do consider as the best OEMs to be served in China. I would avoid to disclose specific names, but as you can imagine, we are putting all of our efforts with respect to the Chinese OEMs which are interested in having a global partner, as this is a key selling point of our proposition.

As you can imagine, we are engaged with all of them, again considering the top five Chinese OEMs.

Honestly, the Chinese OEMs that we are already working with and that we are as well discussing new projects are the key Chinese OEM. For some of them, we have already businesses that are as well active, other businesses that are part of the start of production.

The total number of starts of production, Matteo has the precise number, I don't want to say something in this direction, but we are progressing, let's say, the penetration in this. As well in the context of their interest in creating as well an international footprint.

They are for sure looking to Europe, and they are active as well already in Europe in order to set their operation. I think during the last weeks, we heard as well some increase of market share.

The Chinese OEM doubled the market share in Europe. They are as well interest in buying plants that the European OEMs are not considering anymore valid.

There is a complete dynamic that is moving with them in order to create as well for them the support that they need. With reference to China, I would like to add that we are as well working in the direction for increasing our ecosystem that are always in the same direction: tooling, R&D and technical activity in China, and supply chain, that in China is key to secure the competitiveness.

This are the three, let's say, streamline that we are progressing in order to increase our impact in China.

In terms of SOP in 2026 on a global basis, we do expect 14, 1-4, new SOPs, of which 10 will be in China. I have to say, the vast majority of them will be towards Chinese OEMs.

There was one last question on the inventory. In 2025, we sold approximately €30 million of inventory that we had in excess at the end of the year.

We sold €30 million without having a negative impact on the margin, were sold at cost value. Of course, this is diluting the EBITDA margin, and we don't expect to sell additional inventory in 2026.

The guidance is not considering a potential additional sale of inventory in 2026.

Thank you. If I may, a follow-up on the revenues the company is targeting overall to generate in China.

If you can give us a rough indication, it could be very useful. I have another general question.

I apologize, I do not remind. If you have excess of capacity in the E-Mobility, in case, could you use this excess of capacity for production in the Industrial?

Step-by-step. In terms of total revenues, what we can say that we do expect to slightly increase our local market share in China representing approximately 3% over the total market.

We were below 3% market share in 2025, and now we are targeting in 2026 to be above the 3%. This should be a proxy as well to make your let's say computation with respect to the total value that we are targeting in China for the auto business.

With respect to the installed capacity, yes, you are right. All of the presses that we installed for the auto business can be used as well for the Industrial business unit.

Could not be the opposite, but what we have installed originally for the auto could be used as well for the Industrial if needed. I have to say in terms of saturation, we are running above 65% in China.

In Mexico now, we are between 55% and 60%, whilst in Europe, we are as well between 55% and 60% with respect to the auto business.

Perfect. Thank you very much.

Thank you.

Yes, good evening, everybody. Thanks for the presentation and for taking the question.

I have a couple. The first one is on your guidance, which in the midpoint targets around 12% year-on-year decline.

Could you give us a rough breakdown between volumes and price/mix? The second is if you can give us a strategic update on India, which is your strategy to increase your revenues in India, and which is the next step for penetrating further the Indian market, maybe also in the automotive market.

Thanks.

Yeah. In terms of volumes, I have to say we have two different trends between the two business units.

For the auto business, in terms of tons to be sold in 2026, we do expect a decrease in the range of 10% approximately, and the rest will be driven by the price and mix dynamic, whilst for the Industrial business, we do expect an increase in terms of volume in the range of 20%. Again, the guidance, it's a combination of two different behaviors expected for the two segments under which we are operating.

Then, there was the second question?

Indian market.

Oh, Indian market. I have to say we are progressing consistently with our original plans in the development of the local industrial business through our joint effort with the Kumar family.

I have to say that we are satisfied about the increased market share that we are now reporting in India, and as well to the growth of the underlying local Indian market. We are as well now considering to expand as well the business to be produced in India as well abroad.

That's another important part of our Indian initiative. As well, it's as well important to emphasize that through the Kumar acquisition, we entered as well the transformer business.

Transformer business will account approximately €20 million of revenues in 2026. This is as well to be fully dedicated nowadays to the local Indian market, but we are as well now making a CapEx to have a new plant dedicated to the transformer business in India that will be as well used to serve overseas customers from India.

On the auto business, we are progressing with respect to a potential discussion targeting a new joint venture with a local Indian partner that will be fully dedicated to the Indian market.

Maybe just to say that we consider India a very potential market, and in view of the Kumar experience, but in addition for the opportunities that we see as well in the automotive business. For us it's a very strategic market.

Thank you very much. Thanks.

Hello everyone, can you hear me?

Yes.

Hello, hi. Thanks for taking my question.

I might have missed something because I joined later, but just out of curiosity, I was wondering whether the mid-term targets are still achievable given today's update, especially in 2026 guidance, but maybe I've missed it like I said, if you already commented on that. Then if you can please then quantify exactly what is the change of the order book based on the cancellation in North America, and if I heard correctly before, you mentioned about potential $5 million compensation on the back of that?

Please, Giovanni.

No, I'm done with the question.

Let's get started from the mid-term. The mid-term guidance will be communicated once the situation will be stabilized.

We're not now in the position to release any update with respect to the mid-term guidance due to the current scenario, which is very, very, very volatile. We do prefer to communicate any update with respect to the mid-term guidance at a later stage once we will be as well in the position to do it.

On the $5 million, your understanding is correct. We said that 2026 guidance is embedding $5 million to be accounted with respect to the discussion that we're having with our customers following the major shift that we experienced in USMCA due to the evolution of the Trump politics.

That's what we said. I have to say the order book, it's mostly impacted by the evolution of our business in USMCA.

This is a combination of both projects which were canceled, especially from certain US OEMs that changed their original plans with respect to the adoption of new electrified models to be produced and then sold in the area, but as well to the postponement of other project which were expected to start in our order book.

Matteo, just trying to derive the number here, because if I look at your presentation of the nine-months results, the order book was still at €4.2 billion and now is at 2.7. It means a €1.5 billion difference.

Of course, some is executed in Q4. Are we talking about a more than a billion cancellation in the order book?

No. We are below €1 billion.

As you can imagine, order book evolution in USMCA it's reporting let's say slightly less than 50% with total order book deviation versus what we communicated at the end of September.

Okay.

A couple of follow-ups from my side. The first is on the price effect, because if I do the math, the average selling price of motor core set is more or less minus 20% compared to 2024.

Of course, there is also a mix effect, but if you can help us in identifying the pure price in 2025 and expectation for 2026. Then a follow-up on the previous question.

You mentioned it, 20% volume growing in Industrial, which seems to me quite high, if you can tell us the drivers and a bit of color on this growth. Yeah.

On the price effect, again, this was to be considered like mix between the price and mix, because as you can imagine, now shifting towards as well motor cores dedicated to the hybrid application, as you can imagine, the weight is lower compared to a motor core dedicated to a full electric model, and therefore this is as well part of the price and mix effect. On the auto business, we do expect price/mix effect to be in the range of 10% approximately, a decrease of 10% between '26 and '25, whilst for the Industrial business, we do expect a lower price effect, which is in the range of minus 5%.

Volumes in Industrial,

Matteo. You want to comment on a broader sense the industrial market?

I have to say we are in terms of geographies, in 2026, we are considering growth to be achieved in Asia, as we said, both in China as well to the development of the discussion in a new pipeline of project that we are now in an advanced stage with respect to certain of our key European major industrial customers. India, it's expected to maintain its expected growth rate in the range of slightly below 10% on a year-over-year basis.

I have as well to say that we do expect as well increasing volumes and revenues in the US for the Industrial business due to this is as well one of the few positive effect of the Trump policies, which is somehow reactivating as well the local industrial manufacturing. In terms of segments, we do expect that what we call energy and as well transformers will be the segment reporting the highest growth rate in 2026 compared to 2025.

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Thanks Matteo. One very last on my side linked to previous one.

If you can recall what is the split between BEV and hybrid in sales and in the backlog?

I have to say, let's go step-by-step. In the order book, we now have BEV, battery electric vehicles, it's in the range of 80%.

So, 20% it's the part for hybrid application. As you can imagine, we have seen an increased weight for the hybrid application started, I have to say, in the last quarter of 2024, and this has progressed as well in 2025.

What we see as well in North America, it's a switch now from expected BEV programs to be substituted by hybrid programs starting from the last quarter of 2027 onwards. Now OEMs will be mostly dedicated to the sale of internal combustion engine and now to take as well time to offer to the market new projects mostly on the basis of hybrid applications.

Thank you very much for all the question and as well for your attention. 2026 remains a turbulent year, but we confirm that energy transition, electrification remains a positive trend in all the markets.

Through the resiliency of our business model that is covering different segments, market, and as well the flexibility that we can secure, we remain, of course, positive as well for the guidance that we have passed to you with regards to 2026. Thank you and we will remain connected when we will have news to be communicated.