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Operator: Good morning, ladies and gentlemen. Welcome to the Ceres 2025 Full Year Results Investor Presentation. [Operator Instructions] I'd now like to hand over to the management team, Stuart, Phil, good morning. Philip Caldwell: Good morning, everybody, and thank you for joining us for the 2025 full year results presentation. I'll talk you through an update on the company and the strategy to begin with, and then Stuart will obviously talk you through the financial numbers, and we'll obviously go into Q&A at the end as usual. So at Ceres, we're operating on 3 strategic imperatives. The first one is signing more licensees. So new manufacturing license partners is a key focus for us as a business. The second is once we have those partners, bringing those partners to market. So that's obviously assisting them as they scale up and put in capacity, but also actually helping to stimulate demand, which actually helps pull through the products that we're developing with partners. And the third is obviously technology leadership. We believe we have the best solid oxide technology in the world. We have a single stack platform, which we're actually going to be launching in April. And we need to maintain that technology leadership advantage because that's what our partners come to rely on from Ceres. So over the last 12 months, we've made significant progress on all these activities. The first thing to say is there is an acute need for power driving the commercial interest in our technology right now and particularly for SOFC technology in the wider landscape. As we go into partner progress, in the past 12 months, we signed a new manufacturing license agreement in China with Weichai, our partner. We'll give you a little bit more on that today, but that's going extremely well, extremely rapidly. In Taiwan, Delta is also scaling and starting to produce first prototype products and is also investing significantly in land and facilities to do that scale up as well. In South Korea, a big milestone for us in the past 12 months with Doosan starting production at the factory there, both for SOFC stacks and power systems, and that also generated first royalties for the company in this period. In Japan, our partnership with DENSO on the electrolysis side began production of first hydrogen with JERA and also led to government funding recently with an estimated value of about JPY 35 billion, approximately GBP 165 million to continue the advancement of SOEC technology. Great progress in India with Shell. The megawatt scale electrolysis demonstrated actually exceeded performance expectations, high efficiency but capacity as well. And we're progressing now towards the pressurized systems as well with Thermax and Shell and Thermax developing a new pilot facility for testing of those systems. We also undertook a business transformation plan around those 3 strategic imperatives that we talked about. And we've restructured the business, very much focused on accelerating the commercial opportunities. So after 25 years of developing this technology, we are now at that point of commercialization and the point of first production and scale up. We'll talk more about this business transformation, but there's a cultural change there, but also it's anticipated it will drive cost savings of around 20% this year compared to the 2025 cost base. And we finished the year with a very strong cash position of over GBP 83 million at the end of the period. So again, we'll talk in more detail about financial management in the second half of the presentation. We had some news this morning as well, which is very pleasing, partnership with Centrica here in the U.K. It's fantastic to be able to actually bring this British technology to the U.K. And this really is part of our second pillar of that strategy, which is how do we stimulate demand and how do we bring this technology forward at scale. Centrica, as you all know, FTSE 100 leading energy integration company. The statement there is about a multi-gigawatt opportunity that we see in the U.K., Centrica sees. And that's on this gap that we're seeing as we have more need for electrification. We have a time to power need that's becoming quite acute. And this modular high-efficiency technology can really service that market, both in terms of the data center needs, commercial and industrialization partners as well. So the purpose of this is we're introducing our licensing partner network to Centrica, the whole ecosystem of manufacturing partners. And we will support Centrica in terms of bringing that forward, if you like, acting as their technical advisory arm, helping them to set up this model of how they go to market with this. So that will include our expertise in things like installation, commissioning, remote monitoring, maintenance, recycling, all of those good things that we at Ceres know how to do. The initial focus will be the data center market, commercial customers and industrial power. So that's a fantastic step forward for us today, and we'll have more details on that. We have an upcoming Capital Markets Day on April 15, and we'll be able to provide you with more detail on that and from Centrica as well. But that's just in very exciting development today. I mentioned also the single stack platform. So we're going to launch that also at our Capital Markets Day. One of the things that's unique about Ceres is the solid oxide platform, the same stack, the same cell technology can run in both directions, both for power generation and for green hydrogen. That's an amazing benefit to our partners because as they develop the supply chain, as they scale up, that investment that they're putting into factories now for power generation also has this dual use aspect in the future for hydrogen as well. And as you can see in the chart here, that same stack technology is now going into products, Doosan, Weichai, Delta, but also we're using that on the hydrogen side with partners like DENSO, Thermax, Shell and Delta as well. Just wanted to spend a little bit of time on what we're seeing as the emerging demand for power. Our estimate is we see an opportunity for power generation using solid oxide of around 22 gigawatts by 2030. And we see that market roughly split about 50% the data center opportunity, but also a very significant part in the industrial and commercial applications as well. So around 50-50 kind of split. Geographically, it's an interesting split as well. About 25% of that is the U.S. market, which gets a lot of attention right now. I'm sure you're all covering data center applications in North America. But just under 20% of that is here in Europe as well. And the U.K. is a great market opportunity when you think about we have some of the highest power prices anywhere in the world. This is a market that really lends itself well to this application. And then about 50% of that market we see is Asia, the wider Asian opportunity as well. And with our partnership network, we're able to access all aspects of this market. So our aim here is to really establish the service technology as the industry standard, and we're doing that by embedding it in these global partners that are accessing and servicing these different parts of the market. Why is that becoming a critical factor? Well, today, if you need power generation, you're waiting about 6 to 7 years for a gas turbine. Small modular reactors are also coming down the pipeline, but they're about 7 to 10 years away. And then high-voltage grid connections, 5 to 15 years away. So right now, with this acute need for power generation, behind the meter or on-site generation is becoming a really viable alternative because there just isn't the conventional power generation equipment available. I think it also opens a window for us in terms of the technology today is good enough. It's viable in terms of its lifetime, its performance and its cost to actually enter the market. And as we scale, we anticipate these costs coming down significantly. Just to show you some of the progress that's being made. These are the first units developed by Delta, took a license just under 2 years ago. So this is a Thai power in Taiwan. So you can see here the first prototype units being made using car stacks, but all the systems done by Delta. Delta are fitting out their production as well, and they're on track. Delta is a very exciting partnership for us because when we talk about that data center market, Delta are already very much in that supply chain. I think by market cap now, they're the second or third biggest company in Taiwan after NVIDIA and Fox. And where we fit in is they make solid-state transformers, they make power conditioning, they make UPSs, et cetera. So by adding in the power generation capability of the solid oxide, they're developing a complete offering from fuel in all the way through to power out. And that power out can either be AC power or in the data center application, 800-volt DC. So don't forget that the fuel cell technology is actually generating DC power and the way that you actually combine stacks, you're very close to being able to match up that 800-volt DC power direct from the power generation unit, which is the SOFC. It's fuel flexible. So we run on natural gas today. We can run on biogas. We can run on hydrogen in the future. It lends itself extremely well to things like carbon capture. And also, if you want to, you can capture the heat or convert that heat into cooling through absorption chilling as well. So you have the option to go from low carbon all the way through to zero carbon and also push very high efficiencies. In Delta's case, the same market applications apply. It's microgrids, AI data centers, even for the semiconductor industry and manufacturing in general. So I think this is a really good illustration of how our partners take this technology and put it into a complete offering for these kind of market opportunities. Weichai is an exciting partner for us. We've been working with them on system level for about 7 or 8 years now. Their systems are very impressive, I have to say. And I'm expecting this year, they'll launch their latest system, which is going to be a very impressive unit. We've taken the step with them. We've done the technology transfer. So we signed last November. already, we're going very quickly, and there will be more to come from Weichai this year, but they're probably going, I would say, faster than any of our partners have ever gone before. Doosan factory, I was privileged to go around the factory. I've been a couple of times, but this was in July with Doo-Soon Lee, the CEO of Doosan. First production was there. And when you actually get in there to see the realization, the single piece flow end-to-end, it's about the size of 3 football pitches, semi-clean room, it's an impressive facility. And they've actually fulfilled their first capacity orders in the past few months, and that factory is now up and running. So that's a big, big milestone for us going full circle. So Doosan is the first. We expect Delta starting to come on stream and then Weichai. So we are building out this ecosystem. On the hydrogen side, I think it's been fair to say that over the past 12 months, there's been more headwinds on the hydrogen side. But at the same time, I think that opens up an opportunity for, again, higher efficiency technology like the Ceres technology. And as I mentioned, all of the investments that are going in now are directly applicable on to the hydrogen side of the business. So extremely pleased with our partnership with Shell. We've exceeded expectations there. We've met all the targets that we set. And that's leading on to the pressurized development, which is now underway. So taking this one, which was the first atmospheric SOEC that we did and now actually putting that into a pressurized system that can be scaled to megawatt scale. And we're doing that engineering ourselves to begin with, but then in partnership with Thermax in India who can really drive down cost. And India is one of the big markets that we see for this green hydrogen in the future. So we see green hydrogen, particularly opportunities in China and India as those areas come on stream. We also did this with DENSO very quickly. So similar to the Shell container, DENSO actually deployed this on site within 18 months of actually taking the license, and that's using Ceres' technology. That's putting in hydrogen into a thermal power station to reduce emissions from conventional power generation. And that's unlocked further funding for DENSO as well. So great progress on all aspects of the hydrogen side as well. In terms of where we are as a business, we're building out this ecosystem of partners. And really, our aim is to be the technology provider of choice. So we now have manufacturing in Korea. We're seeing manufacturing being built now in Taiwan. That will come on stream in China as well and with DENSO in Japan. So really strong ecosystem of partners. Shell is more in the end user category, and we can add Centrica to that list of partners today as well for U.K. and Europe. So our aim is embed this technology to become the industry standard. So with that, I'm going to hand over to Stuart to give you the financial update for the past year. Stuart Paynter: Thanks, Phil. Good morning, everyone. I'm just going to take you through a few slides, just to give you a bit of an update on where we are from a financial position and financial planning position and some of the actions we've taken to put ourselves in a strong position to be able to execute the strategy Phil has laid out. So here's the headline numbers you can see. As you all know, the revenues of Ceres are largely dependent on how successful we can be in terms of signing MLAs. We signed Weichai in 2025, but towards the end of the year, we in sufficient time to recognize any revenue at all from that contract. So we're rolling that into 2026. But you can still see that the margins remain high, right? That's the asset-light model we retain, and we have good financial discipline around that. The other thing to note here is cash. We're still very strong on the cash side. You can see that the cash burn in the year was just under GBP 20 million. And like I said, that was without the benefit of having an MLA. So we're pretty efficient now. I believe we've got the optimized cost base, which I'll take you through. And you can see that the restructuring that we've been going through in the last few years has fed through to the cost saving in 2025 from 2024. There's more to come on that, but we'll take you through that and be very clear, we now believe we have an optimized cost base. So the actions we took towards the end of '25 will flow through to '26, but we really do think now we've got the correct team to prosecute the strategy, which we've chosen. So here's just a graphical representation of the revenue and gross profit. Gross profits remain industry-leading with the asset-light model we have. And of course, the success and the health of those are maintained by signing new MLAs, and we retain the confidence that we have the opportunities to keep on chasing that Pillar 1 on Phil strategy of signing new MLAs and be successful in doing that in 2026. So Phil mentioned business transformation earlier, very important to us. We now have that single stack platform commercially viable to get out into the market, and that started in earnest with Doosan with others to follow. And now we need to make sure that we are still innovating. Pillar 3 was keeping a technology lead, very, very important to a licensor. -- and we'll continue to do that with one of the biggest solid oxide expertise pools in the world. But now we believe we've reached a point where we need to just look at the focus of the company and be very, very commercially disciplined, commercially focused and make sure we have the right people in the background, giving the R&D sufficient attention that we have something to license in the future. And we believe during the end of Q4 2025, we've realigned the business to be able to do that. The flow-through of that will be a 20% cost saving in 2026, but all the actions needed to do that have been taken and are now finished. So now we're into a business transformation for this year, which is all about culture, team and making a cohesive unit so we can make sure that we succeed and our teams succeed at the same time. So we -- this is all crystallizing, as Phil said, in the Capital Markets Day where we're launching this single stack platform. We're very proud of it. And hopefully, that will make sense to everyone when they see it, and it's something we can go out and actively -- more actively sell into the marketplace. In terms of the cost base, so this is the optimized cost base we see for the next commercial phase. All the actions we've had to take have been taken. There will be a natural flow through into 2026 of this cost saving, but we are essentially building from here. We've still got a world-class R&D team. They're very focused on the things we need to do to be successful. That's cost down, that's lifetime. And we've strengthened the commercial teams in order that we can make the biggest impact we can on the top line. So we really do think we've got the right team, the right place, the right assets in place to make real success for the next few years. And why are we doing that? Well, you can see that commercial momentum essentially over the last few years has reduced our cash outflows. And we're very clear, we've now got the model of our business. If we can sign MLA on average every 12 months on that sort of cadence, we will be very close to breakeven and cash flow neutral. And that's important. That gives us control of our own destiny without having to rely on the capital markets. And it's building that MLA base so we can become that industry standard that Phil talks about. And why is that important? Well, the end goal for any company that's ultimately a licensing company is to build your royalty streams. As Phil mentioned, we're just at this orange blob stage here today. Doosan has fulfilled their first order at the very end of last year led to our first royalty revenues, a big milestone after 20, 25 years of development of this project. But we need now to push on if we can become the industry standard, essentially have a portfolio effect of many, many partners building, we're really going to be able to build these royalty streams, power first, hydrogen second. As Phil mentioned, this is the same technology, but you can attack 2 markets, one right and acute now and the other coming several years after. So we're in this in order to keep on signing licensing agreements, which we know we can for the next few years, and then it's all about building the royalty base. So we like the model. Every time we make progress with Centrica and partners, we think it reinforces the success we need to have that model. But importantly, we need to show that we're financially disciplined to keep this asset-light model, which we're doing. So with that, I'll hand back to Phil. Philip Caldwell: Yes. Look, I think we have a very clear strategy. I think the steps we took last year put us in an extremely good position with the asset-light model. The 3 priorities for this year remain unchanged. We're working hard on signing new manufacturing licenses. I think we're at an exciting stage now where you'll probably hear more from our partners this year as they're starting to actually scale and launch things, but also helping to drive that demand as per the announcement with Centrica today, that also helps stimulate that demand for our partners as well. And then the single stack technology platform launch is a key milestone for us. We do believe we have the world's best solid oxide technology. And we're now at a point where we can actually bring that forward rapidly to new partners and existing partners to scale both for power first and then for hydrogen as that follows. And we're starting this year with a strong cash position. We have around GBP 45 million of contracted revenue based on existing contracts from today for 2026. So we're in good shape. And I think the market opportunity has probably never been stronger, particularly on the power side. And I think now we need to get on and actually grab that opportunity, and we're well positioned to do so. So with that, I think we'll probably move on to questions. Operator: That's great, Phil. Thank you very much indeed. Before we go to those online, Phil, if it's okay, I'm going to come to the room. If you do have a question, just raise your hand and I'll give you the microphone. Christopher Leonard: Chris Leonard from UBS. Maybe 2 questions from me. And to start with, can we go into Centrica. And obviously, you spoke to the time to power and the need there. You also spoke in the presentation to the evolution of cost and what you see is feasible here. It will be really helpful to get a gauge on where you think your partners when they first push out these fuel cell products, where you think they'll land at on CapEx price and where you think that evolution can get to? Philip Caldwell: Yes. I have to be very careful here because whenever I start forecasting our licensees prices, I get into trouble. But let's just -- if we talk in general terms, the SOFCs that are out there at the moment are available at around $3,500 a kilowatt. If you take that in the U.K. market context, and you look at the spark spread of gas and power, then you can generate power very efficiently in the U.K. I mean, obviously, gas prices are moving around a bit at the moment. So I don't want to be precise on this. But given we pay in the U.K., the highest energy bills probably anywhere in Europe and even worldwide, when we map the U.K. out, when we look at market attractiveness, spark spreads, cost of power, et cetera, the U.K. is right up there, Northern Europe, et cetera. So it's a very significant opportunity. To go back to your question, Chris, we think that we can significantly generate power at a lower cost, even at a relatively high entry-level CapEx compared to turbines and other generation because we're so efficient, because of the OpEx, et cetera, and because of the lifetimes that we can achieve. So we think that there's a big opportunity there in terms of that deployment. And then the thing I would add is I think that kind of level is a starting point because I think what we see is a window that's opened up. So people need power. I think SOFC can now fulfill that power. And as our partners scale, we expect the cost of those SOFC units to come down quite significantly. Christopher Leonard: Yes, that was the second part. And then following up on Centrica. Obviously, you spoke to the contracted revenue for this year at GBP 45 million in the books, but presumably, I don't know, but I presume that maybe didn't include Centrica's potential contribution. Like what should we think about for engineering revenues and consulting fees, et cetera? Philip Caldwell: Yes. Look, the role that we're playing with Centrica is more in the advisory support side. So at the moment, that's going to be fairly modest revenue. So it's not like -- don't think of this like an MLA, they're not an MLA partner. The big value add of Centrica, obviously, we generate some engineering support fees, et cetera, there. But really, it's the deployment of our technologies through our partner network that drives that demand that ultimately drives royalties. That's -- we see them in that Pillar 2 category, not in the Pillar 1. So that's where we see that. So the thing that would really move the needle for us this year is new MLAs. Alex Smith: Alex here from Berenberg. Just a quick one on the next-gen kind of stack technology. You kind of mentioned it in your kind of closing comments. Kind of what the real benefit you think that could have to offer? And is that like a key milestone for the business going forward? And then second one is just kind of a new licensee pipeline, how the discussions are going to kind of bring new people in and new manufacturing products. Philip Caldwell: Okay. So look, the stack launch is the culmination of several years of effort. Over the years, we've increased the cell footprint. We've increased the stack height. There's a lot of focus on the simplicity to manufacture. We will continue to drive that in terms of getting down the actual installed manufacturing CapEx of what it takes to build those factories. But that stack itself represents what we believe to be the building block that all our partners will now scale on. And our technology teams, our R&D teams are really focused on driving cost and lifetime, cost as in the unit cost of stacks, but also the manufacturing cost and then the lifetime of the product. So that's where we see that technology evolving. And I think it's a significant milestone for the company because we've been in that investment mode for quite a while on the core technology and R&D. I think by launching this product now, you can see from the optimized cost base, we've got the right team to keep on innovating around that particular platform. In terms of the pipeline. I think it's grown considerably in the past 12 months. I think we're getting incoming from most of the kind of players that are in the power system market, in particular, because I think that's the acute need that people see. Obviously, we're very strong in Asia, but we're looking at how we build out that ecosystem as well. So it's grown considerably in the past 12 months. I would say on the hydrogen side, it tailed off a bit towards the end of '24, et cetera. But I think the -- as I look at the pipeline now, I would say it's about 70%, 80% driven by the power demand side of things as well. Alexandro da Silva O'Hanlon: Alex O'Hanlon from Panmure Liberum. A couple of questions for me. Firstly, well done on the Centrica deal. I'm interested if you could give some more color on how that came about? And is there scope for similar type deals in the pipeline? And the second question is just on the cultural change. You mentioned a couple of times in the presentation. Clearly, you're shifting towards being more commercial now. How are you tracking that and making sure that the change that you want to see is actually permeating throughout the business? Philip Caldwell: Okay. So on the Centrica deal, I reached out and I saw what was happening in the U.K. we saw the opportunity in the U.K. market. It's like this market if this technology is so good, why are we not deploying it in probably one of the most attractive markets for this in the world. So Centrica was a logical choice for that. One of the biggest LNG importers, they're looking to diversify. They're making investments in small modular -- advanced modular reactors for nuclear, et cetera. And I think once we started talking with Centrica, they saw the same thing that we did, which was this acute need for power, et cetera. So we were very, very much aligned. And so I think they're an excellent partner for us in the U.K. I think the other thing we didn't talk too much about today is not just on the power generation side, but also there is the potential to combine this with nuclear in the future to do hydrogen generation on the back of modular reactors. So there's a lot of good synergies there between the 2 companies. And we're very excited about that partnership. And as part of that process, what I did is with Centrica I took them and they've actually visited our partner factories. So they've been to Korea, been to Taiwan, been to China. And at that point, I think they realized this is real. And I think this is the key thing is the question we get asked time and again is, well, yes, fuel cells have had about fuel cells. Yes, but is it real? Does it really scale? -- aren't they expensive? How long do they last, et cetera? And then you go and you walk around the Doosan factory and it's like, oh, right, got it. This is real. Even before they went into the factory, it's like, okay, we know what you're talking about now. Is there potential to do that with other partners? I don't think we need to in the U.K., but it's an interesting model. We have so if we can stimulate demand and then we can introduce our ecosystem of partners, I think it's pretty powerful. So as part of that commercial discipline in the future, we will probably look to replicate this in maybe in other parts of the world. But in the U.K., it's Centrica. So in terms of the commercial progress, how we're tracking it, et cetera, our Chief Commercial Officer, Filip Smeets, joined us last year. There's a lot of rigor now in terms of the pipeline progress. We put more people in regions. We're just getting better, better and better at it through some discipline as well. And also demand helps. So we're getting incoming, but also people are starting to realize who we are. And I think in the industry, already, we've got a very good reputation. I think people, competitors, they respect our technology. I think the thing that people have always maybe had the question mark on is, well, how does Ceres scale and go to market. And I think that's what we're going to see coming through this year. Lacie Midgley: Lacie Midgley here, Bloomberg Intelligence. Just a couple from me. Stuart, your comment on securing the one partnership every 12 months and that triggering the breakeven point. I mean, clearly, that's the place we need to be to before the royalty scale. But I mean, I'd be interested in both your comments really, but what in your mind is a realistic number there because no doubt the demand is there to have as many MLAs as you can across geographies. But presumably, your current partners won't want that number going too high given the competition that they'll likely face in certain geographies. I mean what kind of number are you thinking there on kind of a longer-term view? Do you have anything around that? I mean... Stuart Paynter: Well, if you look at recent history, we've signed 3 in the last 2 years from the beginning of '24 to the end of -- we have set ourselves up that on an average cadence every 12 months, we will achieve what you said, Lacie, sort of breakeven and cash flow neutrality, right? But that's not exciting for anyone. That's just a stop gap until the royalties come along and it helps us diversify, build a portfolio of clients. We think there's really plenty of room to play. Phil showed a 22 gigawatt solid oxide market by 2030. Even if Bloom have scaled to 3 to 5 gigawatts by that, that's 15% to 20% of the market. There's plenty of room for plenty of people to play with plenty of applications and with a much bigger market coming along later in hydrogen. So we really don't feel like there's downward pressure on this number. It's a case of execution for us, building a pipeline, instilling commercial discipline and executing. These are big agreements. So they're very -- it's difficult to predict. But we believe we've got the right team in place now, led by Filip, as Phil said, with some really, really strong people sort of backing his team up to give us the best chance of executing. It's still difficult to do, but we -- given our recent history and new commercial discipline, we believe we can as -- the short answer to your question is as many as possible. Lacie Midgley: I mean as the royalties are stacking, that makes the commercial proof point easier to sell, right? So that all becomes a lot easier. Philip Caldwell: Yes. I think also, we've done this now 5 or 6 times. So building factories is something that we're getting we're getting pretty good at, but it's a learning curve. The first time you do it, second time you do it, et cetera. So -- but we also -- what's good to see is when you -- when our first licensees came on, they had to take a fairly immature supply chain and scale that as well and equipment builders. So when somebody takes a license, it's not just to the technology, it's to that whole ecosystem of partners. And so new license discussions now are much faster, much easier because in some ways, you'd say, well, okay, this is where you would get equipment builders from. This is your choices in supply chain, et cetera. So we started off with a very European-centric supply chain. And now we've added to that to our partnerships with Doosan, but now with the Taiwanese and the Chinese, we're building out quite a formidable set of supply chain partners as well. So that -- in terms of that credibility, not only do we know how to build factories and help our partners to do that, but we can also introduce them to a whole ecosystem of very willing suppliers as well. Lacie Midgley: That's helpful. And then just lastly, on Weichai, I mean, you talked about them moving very quickly, quickest out of all your partners so far. Just trying to kind of work this out. So how much of that is because maybe of the historical work that you had with the sort of legacy partnership? And how much of that is kind of versus your own kind of technology developments, maybe reducing time frames there or just Weichai's desire to get to market more quickly? Just trying to understand, firstly, how quickly they can get to royalties, but then I guess, the time frames from MLA signing to actually getting to royalties, future partnerships? Philip Caldwell: Yes. So when we're talking to new partners, we kind of give a guidance of less than 3 years. And we're obviously looking to reduce that all the time. But some of that's incompressible in terms of technology transfer, the time it takes just to actually build either greenfield or brownfield factories and equip them. But we roughly talk about that kind of time frame. Now in parallel with that, you've got not just the stack manufacturer, which for us now is becoming more like a blueprint. We can take people around our own facility in the U.K. And like I mentioned, we can -- we've got blueprints of how you build factories, and we've got an ecosystem of partners there. But then they also have to develop the product, the power system product as well. I think we started the relationship with Weichai with a system license, and we've developed that system with them over a number of years. But now what they're doing is very impressive in terms of their own system development. So I think they can go fast because the system level maturity is very good. And then it's that desire to get to market is how quickly you build out that capacity. And I think that's -- that's what's happening extremely fast. It's a fairly typical approach in Asia, in particular in China, but they set incredibly aggressive time frame. So they're looking to obviously reduce that 3 years quite significantly. Christopher Leonard: Just a follow-up on that actually in terms of the royalty outlook and thinking about Delta scaling up this year, the target to be online end of '26. Has that changed at all? Are you still looking at that time frame? And Doosan as well? I mean, how are you feeling about them looking into '26? Obviously, you recognize right at the end of '25, some royalty perhaps, but is there more to come? And how should we look at this year? Philip Caldwell: Yes. Look, I think on this year, fresh royalties are there, but they're still pretty modest. So I don't think it's that material into '26 is our guidance. Yes, Delta is on track, but really, that's going to be like '27 type time frame and then obviously, new partners coming on. So in the near term, we're really focused on the license fees, the engineering services still through 2026 and probably into '27. And then -- but royalties build from that point. So that's how we see it. We're not changing guidance on that really. Unknown Executive: It looks as though we're doing well for much into the room. So we've got a couple online that we might start to tackle. So the first one is regarding the Centrica deal. And given they're based in the U.K., you mentioned that there's going to be revenue from U.K. and Europe. And what is the likely spread for revenue, be it U.K.-centric or more broad? Philip Caldwell: I think that's really one for Centrica to look at. But their presence predominantly, it's U.K. and Ireland as well is a very attractive market. So U.K. and Ireland, and then they're active across Europe as well. But I think initially, our focus is predominantly U.K. and Ireland. Unknown Executive: Another question coming from the supply chain. So given the fact that the technology transfer includes quite a bit of the supply chain upgrades, do we have any concerns for material, rare earth material accessibility or scaling up to match our partners for the supply chain potential constraints that you see in other industries at the moment? Philip Caldwell: No, we don't because the nature of our technology, we use Ceria where the company gets its name from the major rare earth material, which is the most abundant. We're not using Scandia. We're not using where we use other rare earths, we're using very small amounts. So we're not concerned about constraints in any of those kind of materials. Unknown Executive: We also have a question on the pipeline, which is wondering when and if there's opportunity for U.S. partners? And have there been any constraints of why we haven't signed any EU partners either recently? Philip Caldwell: There's no constraints. And look, as and when I can update you on commercial activities, I will, but I can't give specifics on particular opportunities or geographies at this point. I think there is interest in the U.S. I can say that clearly, given the market opportunity there. And yes, that's an area of focus for us as well. Unknown Executive: Switching topics slightly. We've got a question on hydrogen. So wondering if we can -- you can expand upon what the pressurized modules are, those and the balance of plant and how Thermax is looking to scale and what the time lines would be for that? Philip Caldwell: Okay. So the pressurized modules are basically taking the core cell and stack technology, putting them inside a pressure vessel. And the reason you do that is by working with OEM partners like Shell, you save a very significant compression cost even on first stage compression, just a couple of bar makes a big difference. So as we look at hydrogen at a refinery kind of level or in an industrial application like steel or fertilizers, et cetera, it makes a lot of sense to have modules that are pressurized and can be scaled. The reason for the partnership with Thermax is twofold, really. One is they're an EPC, so a contractor -- engineering contractor based in India, which is one of the key markets that we see for green hydrogen. And secondly, compared to European suppliers, et cetera, there's significantly lower cost in terms of the engineering and actually driving the unit cost of these things down. So again, we're always looking at what's the most economically advantageous way to bring this technology to market. And that's why we have the relationship with Thermax. Unknown Executive: Great. And Stuart, I'm conscious you've already touched on it, but we've got a couple of other questions on when we expect theirs to reach profitability or break point even. I'm just wondering if there's anything else you'd like to add to clarify. Stuart Paynter: Yes. I mean -- so hopefully, we've made it clear that if we can achieve a cadence of 1 MLA every 12 months, that's where we get to. These aren't as predictable as sometimes we'd like. But that would be the goal. So the moment we can continually execute the pipeline to MLA every 12 months, that's when we're going to reach that sort of profitability level. But that's not long-term sustainable profitability. That comes when the royalty streams become the dominant player in our revenues, and that's going to be a few years out. So the idea now is to have a cost base where we can maintain a technology advantage, execute the commercial strategy whilst preserving cash. And in the end, that getting new partners on board and pushing the technology forward will drive the royalties in the long term. So we think it's a really viable business strategy as Phil laid out those 3 pillars, both for the short to medium term, and it also benefits the long term when we get to royalties as well. So it's a really nice business strategy we're pursuing. Unknown Executive: Great. The only final question that's come up is regarding RFC and wondering what has happened to that investment? And are we continuing to pursue that technology? Stuart Paynter: Yes. So RFC was something we supported in the middle of the year and bought it into the Ceres Group. We're still looking to give that really, really viable long-term energy storage technology life. And we're pursuing some opportunities to see whether we can get that business funded. And when we got more news, we'll share. Unknown Executive: Great. I think that wraps up everyone. So Phil, I'll hold -- hand back to you for any final comments. Philip Caldwell: Yes, sure. Well, Yes. Thanks, everybody, for your time today. I think that we've got an exciting 2026 ahead of us. The company is extremely well positioned. We have a Capital Markets Day on 15th of April, where you'll hear more from the industrial applications with a guest speaker, hopefully from Centrica attending from that side of things. We'll have our new product launch. And then I think you'll hear more from our existing partners as well this year as they hit some key milestones. So the market opportunity is definitely very live, and we need to capitalize on that opportunity right now. But I think Ceres is extremely well positioned to do so. Operator: That's great, Phil. Thank you very much indeed. We will now redirect investors.
Operator: Good day, and welcome to the Bitfarms Fiscal 2025 Conference Call. [Operator Instructions] Please note, this call is being recorded. I would like to turn the call over to Jennifer Drew-Bear from Bitfarms Investor Relations. Please go ahead. Jennifer Drew-Bear: Thank you, and welcome to Bitfarms Fiscal Year 2025 Conference Call. With me on the call today are Ben Gagnon, Chief Executive Officer and Director; and Jonathan Mir, Chief Financial Officer. Before we begin, please note this call is being webcast with an accompanying slide presentation. Today's press release and our presentation can be accessed on our website under the Investors section. Turning to Slide 2. I'd like to remind everyone that certain forward-looking statements will be made during the call, and that future results could differ from those implied in this statement. The forward-looking information is based on certain assumptions and is subject to risks and uncertainties. And I invite you to consult Bitfarms 10-K for a complete list. Also, please note that references will be made to certain non-GAAP financial measures, and therefore, may not be comparable to similar measures presented by other companies. We invite listeners to refer to today's press release and our 10-K for definitions of the aforementioned non-GAAP measures and their reconciliations to GAAP measures. Please note that all financial references are denominated in U.S. dollars, unless always noted. And now turning to Slide 3. It is my pleasure to turn over the call to Ben Gagnon, Director and Chief Executive Officer. Ben, the floor is yours. Ben Gagnon: Good morning, everyone, and welcome to our fiscal year 2025 earnings call. In 2025, we made a bold decision to walk away from our legacy business, Bitcoin, and build the infrastructure in North America for what comes next, HPC and AI. It was a year of deliberate and consequential transformation with a clear mandate. Secure North American pipeline, strengthen our balance sheet, accelerate site development, and position ourselves to engage customers from a place of operational momentum at the peak of the energy bottleneck constraining the growth of AI. I can say with confidence and pride that we accomplished exactly what we set out to do. The foundation you see today, the capital structure, the sites, the team, the strategy was engineered through deliberate choices, developed with discipline and built to propel us forward. We made foundational changes to reposition the business and made 100% of our focus on North American HPC infrastructure development. No half measures, no compromises and in time, no Bitcoin. We built a new company. And while we are presenting as Bitfarms today, tomorrow marks our beginning as Keel infrastructure. The name says it all. A Keel is the bottom of structural component of a vessel. It's what keeps it stable and moving forward in the right direction regardless of the condition above the water line. It is structural, it is essential, and it is exactly how we see our role in the HPC and infrastructure landscape. We are not here to compete with hyperscalers or neoclouds. We are here to enable them. Our focus is providing the critical and largely invisible foundation that will allow the world's most advanced AI platform to deploy on time and scale without interruption. We expect to close the re-domiciliation and finalize our rebranding efforts tomorrow, April 1, and we'll begin trading under the ticker KEEL, 2 business days after completion of the transaction on the Nasdaq and the TSX. We are entering this new phase from a position of strength. With over 2 gigawatts in our pipeline, Keel is a regional leader with some of the largest power land portfolios in some of the highest demand markets in North America and with robust financial strength to execute against our plan. Our current liquidity is far in excess of the CapEx budgeted to get us through permitting and ultimately to start signing leases, giving the company significant financial flexibility to execute on our strategy. And our strategy is equally as clear. We are designing all of our site and campus developments as either powered shell or co-location facilities. We believe this is where we can deliver the most value to shareholders and serve our potential customers at the speed and to the specifications they need. We were originally exploring in parallel to co-location the potential benefits of pursuing a small amount of GPU as a service at our Washington site, Moses Lake, where due to the lowest cost power for data centers in the country and a relatively smaller footprint, we believe it could be an avenue to drive additional shareholder value. Since our last quarterly call, we have spoken with an increased volume of potential customers. And it's clear from those conversations, the most accretive business model for the site is one of co-location. This is not specific to Moses Lake and applies to all of our other sites as well, where demand is even higher. So we will focus on what we do best, being an infrastructure developer and owner. This plays directly to our core competencies. We are a team of developers united by disciplined action, building cost-effective institutional-grade infrastructure at the pace our customers require. The same capabilities have built our energy platform, speed to market, capital discipline, operational rigor precisely what HPC and AI deployments demand today. This is just the natural extension of what we do best. So with all the pieces in place and with the overwhelming support of our shareholders who voted over 99% in favor of the HPC and AI pivot, the U.S. redomicile and the rebrand. Starting tomorrow, we are Keel infrastructure. Turning to Slide 4. When we sat on our pivot, we developed a 3-year transformation plan, one that as of today, we are nearly halfway through completing. In 2025, we did the intensive foundational work for our transformation, including the Stronghold acquisition, securing more power in Pennsylvania, rebalancing the portfolio to North America, a $588 million raise fully institutional and oversubscribed, our U.S. GAAP transition, New York headquarters and establishing a new executive team. This work is done. With power and land secured in some of the power markets that matter most, a team of internal experts and strategic partners that have built data centers for the largest companies in the world and a balance sheet engineered to see us through 2026, we are well positioned to continue our site development and deliver against the time lines, our prospective hyperscalers and neocloud customers need. 2026 is all about execution. Effective tomorrow, we will have completed our redomiciliation to the United States and officially rebranded as Keel infrastructure. Two major milestones that position the company for the next phase of growth. With that complete, we expect the next significant milestones to come from executing against our development at Panther Creek, Sharon and Moses Lake, where we are moving full steam ahead and working diligently across three simultaneous and active work streams. One, finalizing permits, which we expect to be done in the coming months. Two, continued work on architecture and engineering in line with ongoing customer conversations and requirements. And of course, three, our go-to-market to secure highly financeable leases with investment-grade tenants. Commercialization is well underway. The upcoming milestones investors can expect are completion of preconstruction activities like permitting, progress in customer engagement and ultimately lease execution, which we are confident we can achieve this year and will be major catalysts. 2026 is also the year where we expect to leave Bitcoin and Bitcoin mining behind. While we were probably one of the first miners to commence wind down of our Bitcoin mining exposure to reinvest that capital into infrastructure for HPC and AI, we will be accelerating those efforts in 2026 as site developments progress. 2027 is all about delivery. This is the year when we anticipate that sites would come online, we'd begin delivering megawatts to customers, HPC and AI revenue really begins and we complete our transition to a premier North American HPC and AI infrastructure company. By the end of 2027, we expect Keel will be a proven infrastructure developer and a regional leader across Pennsylvania, Washington and Quebec, and we will just continue to grow and scale from there in 2028 and beyond to over 2 gigawatts as we execute against our expansion capacity. Turning to Slide 5. In HPC infrastructure, power, location and time lines are everything. We hold something scarce and valuable secured power, land and expansion capacity in Pennsylvania, Washington State and Quebec. Some of the most in-demand markets with some of the biggest barriers to entry. We know it and so do our potential tenants. Our campuses offer solutions to hyperscalers and neocloud's greatest scaling problems, location, proximity and fiber connectivity to major metro areas and data center clusters solving for latency issues and giving our tenants proximity to their own customers and other data centers. Time lines. Our robust secured power for '26, '27 and with expansion capacity in 2028 is highly coveted in an environment where energy capacity is hard to find and multiyear waitlists are the norms. We create value for tenants by enabling them to deploy years earlier by leasing from us rather than to invest in growing organically. An energy-efficient cool climate, the lower the PUE, the more critical megawatts. Panther Creek is a great example of seeing the hyperscaler and neocloud's appetite at play. While there is a lot of interest in the site last year, inbound customer activity surged after we secured zoning in February. This is not a coincidence. It is the proof point and one that we've been making for the last year, but may still be confusing to some investors. So we'd like to be clear that investment-grade tenants value derisk sites where they can move from lease to revenue fast. The more we advance, the better our leverage. The better our leverage, the better the leases, and the more long-term value we create for shareholders. Turning to Slide 6. It is indisputable that power is the binding constraint for AI infrastructure deployment and will remain so for the coming years. Leading investment banks, Goldman Sachs, JPMorgan, Wells Fargo, Guggenheim, Moelis, they've all published extensively on this. And the consensus is clear. New power generation cannot come online fast enough to meet AI demand today, tomorrow or in the next 5 years. This bottleneck is structural, not cyclical. Hyperscalers and neoclouds that used to plan on 12-month horizons are now locking in 24- to 36-month supply chain commitments. Not tied to specific projects, but as platform level agreements and are now actively competing for the power and land to deploy it. While you are probably familiar with this information, here you can see a summary of the five development sites. The power we have secured and in some cases, the incremental power opportunities that make up our 2.2 gigawatt pipeline. Turning to Slide 7. I want to take a moment to put our current valuation context because there is a meaningful disconnect between where we trade today and the value we are positioned to capture as a company. When we analyze our current valuation against our peers, the picture becomes clear, at approximately $1.9 million per available megawatt of secure 2027 capacity, we're trading in the middle of a Bitcoin miner Group, valued at roughly $1.7 million to $2.1 million for 2027 megawatt meaning we are being valued based on having power but not what we are doing with it. For shareholders and bondholders, we see three distinct catalysts, each capable of driving meaningful reratings. The first is obviously lease execution. Across our sector, companies that have signed leases trade at $4 million to $6 million per 27 megawatts, a 2 to 3x premium to where we are today. This is the market's consistent signal driven entirely by lease execution, not facility delivery, not revenue generation, just signed leases. A signed lease secures revenue and financing derisking the developments. The market pays for that with nearly 500 megawatts actively being commercialized today and visibility on permitting across Panther Creek, Sharon and Moses lake, this catalyst is well within reach. The second catalyst and arguably the most powerful for long-term holders is securing our expansion capacity. 2/3 of our 2.2 gigawatt portfolio or approximately 1.5 gigawatts is expansion capacity, which we believe the market is assigning little to no value. While securing these megawatts is a process that will take more time, we believe additional megawatts can be secured in the second half of 2026 requiring very little CapEx while representing significant embedded value as powered land even before a lease is signed or there is a shovel in the ground. The third catalyst is delivering in 2027. Once facilities are derisked through commissioning and begin generating revenue under long-term contracts, the development risk should drop dramatically and the operator valuation numbers become transformational yet again. We are not taking a leap of faith on technology, our ability to see our power or market demand. The tech is here. The power is secured, the sites are advancing, the inbound demand is real, but the market has not yet priced in is the transformation that happens when a developer becomes a counterparty when we move from site advancing to lease executing. This is the main opportunity ahead of us to accelerate permitting, execute leases, secure our expansion capacity and ultimately deliver to our customers. This is how we will create value for our shareholders and bondholders. Turning to Slide 8. Our execution plan is defined by six areas, each supporting our ability to deliver at the pace and scale our future customers require. First, we've secured our deep bench of talent by adding over 60 years of infrastructure and development in over 50 years of data center construction experience combined in just the past few months. People have delivered at scale for the most demanding customers in the world. Jonathan Mir joined as CFO, bringing 25 years of energy infrastructure strategy and project finance expertise. We have also added an SVP of construction and of power, a VP of HPC Operations and Head of permitting to oversee the execution of these critical functions. We've assembled the right team to execute on our vision. Second, we are engaging the right industry leaders as partners, T5, Turner Construction, Corgan, [ WWT ], Vertiv. These firms have built data centers for the world's largest hyperscalers not once but hundreds of times. When customers look at our project partners, which will be available on the new website when it launches tomorrow, they will see that we have also assembled the right partners to ensure better outcomes. Third, we have the capital required to bring our sites to market. As of March 27, 2026, our liquidity stands at $520 million in cash and Bitcoin, which we expect is much more than the CapEx budgeted to get us to a lease at Panther Creek, Sharon and Washington. Jonathan will go into more detail on our capital position and financing strategy shortly, but the headline is simple. We're well funded and can move fast. Fourth, a disciplined Bitcoin exit. It is clear we are no longer a Bitcoin miner. However, with strong, robust liquidity, we can have a disciplined approach to our exit strategy. We will continue to operate up until the time sites need to be prepared for construction maximizing free cash flow before selling the miners. We will also opportunistically sell Bitcoin into strength to capture and reinvest every dollar we can into HPC and AI infrastructure. Fifth, power assets that cannot be replicated. Our megawatts sit in regions with large barriers to entry, Pennsylvania, Washington State and Quebec, all have multiple year waitlists. No one is cutting the line. Our 350 megawatts at Panther Creek, 110 megawatts at Sharon and 18 megawatts in Washington were secured before the AI demand wave made these markets highly coveted. This isn't power others can easily replicate giving us competitive edge with high-quality tenants to understand these markets and are hungry for assets like ours, which leads us to our sixth point. In this market, speed to power is what drives value. For our customers, the opportunity cost of delayed deployment is huge. So the priority is getting capacity online as quickly as possible. Every day of delay is lost revenue. As a result, power availability and certainty of delivery are the primary drivers of lease economics. This dynamic has pushed lease rates higher since our Q3 call, exactly as we said it would. The opportunity in front of Keel infrastructure is real. We now have the assets and the team is ready. I'm so proud of what we built in 2025, and I'm confident in what we'll deliver in 2026 and 2027. With that, I'll turn the call over to Jonathan. Jonathan Mir: Thanks, Ben. Turning to Slide 9. I joined the team 5 months ago. My focus has been on sharpening our approach to capital allocation, strengthening our balance sheet and capital structure and ensuring the financing actions support long-term shareholder value creation. I've had a front row of the depth of talent, the operational discipline and the strategic momentum across Bitfarms. I work closely with our operations and development teams both to understand the current trajectory of our assets and to ensure our capital plans are aligned with the opportunities ahead. What stood out to me is the extraordinary potential we have driven by the quality and potential of our sites, a strong balance sheet, the best liquidity position in the company's history and a broad team that's both deeply engaged and committed to excellence. We're moving quickly and with purpose. I'm pleased to be here with you today and discuss the progress we're making. I'll use this time to walk through our performance for fiscal year 2025 and outline our current capital strategy that we believe supports the accretive growth we're targeting for 2026 and beyond. Turning to Slide 10. Before discussing our financials for the quarter, I want to briefly frame the results are presented this quarter. As of Q3 2025, the Paso Pe facility in Paraguay has been classified as held for sale. As a result, all revenues, operating costs and asset balances associated with Paso Pe are treated as discontinued operations in our fiscal year 2025 financials. So when I refer to continuing operations, I am speaking exclusively about our North American platform, the foundation of our transition into HPC and AI infrastructure. With that, revenue for fiscal year 2025 was $229 million, up 72% year-over-year. Operating loss for fiscal year 2025 was $150 million including noncash depreciation of $98 million and $28 million of impairment charges. This compares to an operating loss of $28 million in 2024, which included $102 million of noncash depreciation and $4 million of impairment charges. Net loss for 2025 was $209 million or a $0.38 loss per basic and diluted share compared to a 2024 net loss of $7 million or $0.02 loss per basic and diluted share. The differences between 2024 and 2025 were driven by a number of factors, including change in fair market value of digital assets, primarily due to the decline of Bitcoin prices and realization of gains on disposal of Bitcoin during the year. Two additional items also impacted year-over-year comparability. First, we saw a loss of $68 million, reflecting changes in our derivative assets and liabilities. Second, 2025 impairment charges were $25 million higher than in 2024. For the year, our adjusted EBITDA was $29 million compared to $31 million in 2024. Turning to Slide 11. 2025 was a deliberate year of balance sheet optimization and improvement, providing the foundation for our next phase of growth. We successfully issued an oversubscribed $588 million convertible offering, significantly expanding our liquidity. And in February, we repaid the Macquarie debt facility eliminating legacy debt, simplifying our capital structure and freeing the company from covenants. Each of these supports the pursuit of our HPC infrastructure strategy. The Macquarie facility had been originally used to accelerate development at Panther Creek, funding critical project activities, including long lead time item procurement and substation work. Retiring the facility was a strategic decision, strengthens the balance sheet and gives us the flexibility to secure a more cost-effective financing at either the parent or project level. Our current cash position of $520 million provides the runway to advance Panther Creek, Sharon and Moses Lake through lease execution without accessing capital markets. Though we may do so if attractive opportunities arise that improve our ability to deliver the best possible long-term risk-adjusted shareholder returns. Macquarie was an excellent partner, and we appreciate their support so early in our pivot to HPC AI infrastructure. Turning to Slide 12. As we pivot to commercialization of our development sites, we have a clear financial strategy based on three principles. Capital allocation, capital formation and capital structure. Taken together, they are designed to deliver the best possible long-term risk-adjusted shareholder returns. First, capital allocation. We deploy capital into projects where the earnings potential exceeds their weighted average cost of capital. We rotate capital from businesses that are noncore or earning less than optimal returns and deploy the capital into higher return investments. Second, capital formation. Our financing strategy is designed to fund our very large growth opportunities while maintaining the liquidity needed for a stable base of operations. We will be opportunistic in our financing execution. We will fund construction of our data center projects using project or parent level bet and project or parent level equity or equity-linked offerings. We're taking a disciplined approach and at this time, are well capitalized to actively commercialize and execute leases across Panther Creek, Sharon and Washington. Third, capital structure. Our capital structure is designed to capture the best possible long-term risk-adjusted shareholder returns while also retaining overall corporate flexibility and support growth. Our objective is to operate with a deliberate liquidity strategy in order to enable clear-headed commercial decisions and capital allocation decisions rather than having liquidity drive time lines. Stepping back, our road map is clear. We are building a regionally focused high-growth HPC AI infrastructure platform, grounded in disciplined capital allocation, a strengthened balance sheet and a development cadence that maximizes returns and minimizes risk. We're funded through the key derisking stages, permitting and leasing across Moses Lake, Sharon and Panther Creek and we're entering 2026 with momentum, optionality and a balance sheet engineered for growth. We have the right people, assets, liquidity and strategy and we're well positioned to capture for our shareholders the long-term value potential we have today. With that, I'd like to return the call to Ben for closing remarks. Ben Gagnon: Thanks, Jonathan. A little over a year ago, as our team began actively integrating AI into both our business and our daily lives, we came to a realization. This isn't just another technology cycle. It's a paradigm shift. More comparable to the industrial revolution than the Internet revolution. The fundamental measure, productivity capacity is no longer calories or joules, but tokens. This became strikingly clear 2 weeks ago at NVIDIA GTC, where I witnessed hundreds of companies applying AI to everything from straightforward tasks by cleaning and image generation to extraordinary complex applications, including protein folding, cystic simulations and even brain surgery. Walking the conference floor, speaking to the attendees, one thing was unmistakable. We've only begun to scratch the surface of AI's potential. Yet even in these early days, AI is already empowering individuals, communities and companies to accomplish exponentially more. We're witnessing Jevons Paradox unfold simultaneously across every industry, thanks to AI, where improved efficiency can paradoxically drive higher, not lower demand. It is literally never cost less to transform an idea into an action, a product, an image, a refined concept, a service or countless other outlets. The possibilities are truly limitless, and while no one can predict exactly how AI will reshape our future, uncertainty remains. It will require enormous amounts of power. Our 2.2 gigawatts of capacity and strategically position land across Pennsylvania, Washington and Quebec sit directly in the path of this transformation, and we intend to capitalize on that opportunity for our shareholders. We look forward to the opportunities ahead. With that, I would like to open the call to Q&A. Operator, please go ahead. Operator: [Operator Instructions] And our first question comes from Mike Grondahl with Northland. Mike Grondahl: First question, Ben, you talked about your decision not to go the GPU rental route at Moses Creek. And just the colocation route, could you talk a little about what a couple of the major drivers were that got you to that decision? Ben Gagnon: Yes, it's a great question, Mike. When we first started talking about in Q3, we were always evaluating this alongside with the colocation. We're trying to maximize the value for shareholders. So we're always going to evaluate multiple different business models at our sites. And because they have the lowest cost energy and all these other benefits, we thought it would make a lot of sense. But as we've continued to have increasing amounts of customer conversations for Washington and other sites. It was just really clear to us that the best opportunity for us is to just remain a pure-play infrastructure developer and owner and let these customers who really want these megawatts lease these megawatts. Mike Grondahl: Got it. Got it. And then maybe secondly, you articulated, I'll say, a philosophy a quarter or 2 ago about waiting and waiting on signing a lease as terms were continuing to improve kind of implying you're going to be really patient and wait on a lease. Could you kind of update how you're thinking about that lease execution strategy and the potential timing around it? Ben Gagnon: Yes. Our strategy on lease execution has been consistent. It remains consistent today. Our view is that the best way to maximize value for shareholders is to get the best terms in a lease because that's going to be what is going to be driving our NOI and our multiple. And so when we're looking to sign 10- to 15-year agreements, it's really important for us to take the -- maybe a little bit more time than investors may want us to in order to get better terms for longer. When it looks at what is really driving the value in these lease economics, one of the biggest elements is risk, and we've spoken to this multiple times over the last couple of months. And the biggest risk for most of the people -- to go out there and have conversations and get a lot of interest. And in some cases, you could even sign a lease prior to getting permits. But all of that risk is going to be priced into the agreement, you're going to be locked into it for 10 to 15 years, and that's going to negatively impact the long-term value that we're creating for shareholders. So our strategy has been incredibly consistent. And the benefit for us is that we are operating in high demand markets with high barrier to entry. So it takes a little bit longer to get permits going in Pennsylvania or in Washington than it does in Texas, which is the easiest market in the United States for that. But we believe that drives a lot of extra value because it's way more scarce, it's way harder to acquire and there's just not as much optionality. Operator: Our next question comes from Brett Knoblauch with Cantor Fitzgerald. Brett Knoblauch: Maybe to start, could you maybe just go into detail on what permits at what sites you guys are waiting to receive? Ben Gagnon: So permits is a complicated process, and we are develop -- we're getting permits across multiple sites in multiple jurisdictions. So they all have different rules, different regulations, different time lines, different reviews, different authorities. So it's far too much detail to get into exactly what permits are remaining on all the different sites. But we are continuing to make good progress and kind of -- we're looking at the visibility over the next couple of months. And with what we've had so far with the community engagement success that we've had so far, we think that in the coming months, sometime around the mid- to late summer time. we should be achieving the full permitted status across at least one, if not all of the sites. Brett Knoblauch: And then maybe just on the leasing environment across the different sites that you guys have. I guess we were under the impression that maybe Sharon would be first to go given it's relatively further along. Is that still how you guys are thinking about it? And then in the presentation when you guys kind of list the power pipeline and road map. How much of that is from generation on site that you guys are looking into? And do you have any update on where you guys are with respect to sourcing that generation? Ben Gagnon: Yes, sure. So the -- to answer the second part of your question first, all the power that we're talking about developing for our HPC and AI data centers right now is grid connected. So the two operating power plants that we have at Scrubgrass and Panther Creek. Currently, that math is not in those charts for the secured capacity or the site development plans. But in Scrubgrass particular, we are working to expand the generation capacity there with natural gas. So we've been working to tap into the Tennessee Natural Gas Pipeline. We're achieving pretty good results there with the engineering firms. There's still probably another month or two to go before we're getting a clear path forward on the engineering plans. But Scrubgrass is our more of our pipeline site. And so those -- that power generation opportunity is more of a 2028 and 2029 time line. Everything else is grid connected, it's secure today or it's currently active. And sorry, Brett, I'm blanking on the first part of your question, would you mind repeating it? Brett Knoblauch: Yes. Just on maybe the cadence of which sites are -- quicker to go? Ben Gagnon: Yes. So really, that's going to be driven by success on permitting time lines in the customers. So all three of the sites, Moses Lake, Sharon and Panther Creek are all actively in our go-to market right now. Every single one of those has customers engaged under NDA, and they have for quite some time. And so we're continuing to push forward on those conversations and those negotiations. Really, I think what investors should think about with regards to permits, permits are more of a closing condition to a lease, right? They're really not a starting condition to a negotiation. So we have these conversations and these negotiations simultaneously while we're working towards permitting. As permitting gets closer and closer, the negotiations will also get closer and closer in tandem and the first site to get leased is likely to be the first site to be permitted. Operator: Our next question comes from Stephen Glagola with KBW. Stephen Glagola: Just on that last point, if you could clarify the sequencing here between like notice to proceed and lease execution. So in other words, like can you pre-sign leases contingent on notice to proceed? Or is like notice to proceed required before any major customer would commit to a lease? Ben Gagnon: For a customer commit to binding in our view, they're going to want NTP, and that's based on the number of conversations that we are continuing to have and there probably are some customers who would be interested to sign prior to NTP, but those aren't the investment-grade counterparties that we're really seeking to engage with. Stephen Glagola: Okay. And then just one more. How are you thinking about like Vera Rubin hardware availability in '26 and like early '27? And to what extent could that variability in supply influence the timing of lease discussions at your sites? Ben Gagnon: Yes. That's a good question, Stephen. We've been talking about Vera Rubin, I think, since Q3 call because all of our sites are basically coming online in 2027. So we're trying to make sure that they are designed for the highest level of equipment that's coming out in '27 and '28, which is the Vera Rubin. In terms of supply, we haven't seen any impact so far. I understand there's always geopolitical uncertainty in the world that may impact those supply chains. But given that energy is such a huge bottleneck, and it's always been a huge bottleneck on the growth. I don't think that there is going to be a geopolitical situation that's going to make the bottleneck change from energy over to GPUs. So we don't have any expectation right now that, that's going to have any impact on leasing or demand for sites because power is still such an extreme bottleneck. It's hard to imagine what's going to overshadow that geopolitically. Operator: Our next question comes from Michael Donovan with Compass Point. Michael Donovan: Congrats on the progress. Can you provide an update on ESA progress, specifically Panther Creek's ISA to ESA conversion? Ben Gagnon: Yes. So that's a great question, Mike. As investors probably know, we have 350 megawatts secured ESA with PPL. But in addition to that, we also have an ISA that enables us to draw down approximately 60 megawatts from the grid, and that's associated with the existing transmission line and substation for the power plant that we currently have operating. In order to get that converted over, it's really more of a regulatory matter. And so it's hard to put an exact time line as to when those stamps are going to be received, but there's no infrastructure that needs to be built. There's no CapEx that needs to be spent. Really, it's just a matter of getting the regulatory approval to convert a nonfirm service into a firm service, and that would enable us to increase our capacity beyond 350 megawatts to what we probably expect is going to be maybe 400 megawatts or possibly slightly more. We expect this is going to happen this year, but it's hard to put an exact time line on it, given it's a regulatory matter. Operator: Our next question comes from Brian Kinstlinger with AGP. Brian Kinstlinger: Last quarter, Ben, you communicated, you expected the GPU as a service and Moses Lake site would be targeted for, I believe, the first quarter for go-live. How are you shifting to co-location change the timing if at all? And my second question is, can you talk about also how the global memory shortage is impacting your site development or changing your near-term needs or planning for lead times? Ben Gagnon: Yes. So two parts to that question. In terms of switching from a GPU as a service to co-location just changing the business model doesn't really impact the development time line. So we don't really see any delay there associated with changing from GPU as a service, just to co-location. Really, it's just a matter of how we want to allocate our capital and how we want to focus the business. When it comes to the memory shortage. As a pure-play infrastructure developer and owner that really is not coming into our calculus very much, mostly that's a customer situation for them to resolve with their own supply chain because we're not the ones investing in the GPUs and the compute and the servers. Operator: Our next question comes from Martin Toner with ATB Cormark Capital Markets. Martin Toner: Good morning. Can you guys elaborate or [indiscernible] can you kind of give us some time line thoughts there? Ben Gagnon: So I'm going to repeat the question because it was a little quiet, just in case nobody else or other people had difficulty hearing. I believe the question was, can you give some time lines as to how we might be able to expand Panther Creek to 500 megawatts and beyond? So in order for us to move beyond the 350-megawatt ESA that we have secured, there's really two sources for expansion. The first is converting over that ISA from non-firm service to firm service that I just spoke to a minute ago. And that's really a regulatory matter that we expect to be resolved sometime this year. It could be tomorrow, it could be a few months from now. And then when it comes to expanding beyond that, what we have to do with that is we have to actually have new power applications. The good thing here is that the utilities are actually looking to invest in new generation in the area. So in this particular instance, and we weren't actually applying for new power. We actually have the utility call us and ask us how much more power we could take on site. Given the bottleneck constraint on power, that was obviously a very welcome call over here at Bitfarms to receive. And it's a pretty unusual one in the industry, but they're looking to scale up generation capacity in the area, specifically to service our site at greater capacity. So this is probably going to be 2 to 3 years time line because there's a lot of process involved with spinning up new generation and building those new transmission lines. But for a lot of our customers, what they really want is the fastest pathway to energization and a clear path to scale over multiple years. And so this really lines up with what the hyperscalers and what the neoclouds are searching for. Martin Toner: That's great. Hopefully, you can hear me better. Can you clarify when you expect to sign your first lease? Ben Gagnon: So I can't get into a specific time line. But in terms of milestones, as I spoke to earlier, it's really about clearing NTP as kind of the last closing condition or last milestone for us to sign a lease. So I think for the investors and the analysts on the call, the important thing to keep track of, especially over the next coming months is the continued progress that we have towards NTP because once NTP is clear, that's basically the last thing standing between us and a signed agreement. Martin Toner: Got it. Great. And last one from me. Can you talk a little bit about why mining exahash in Q4 was at the level that it was at? Ben Gagnon: So we continue to scale back our mining exposure as we continue to focus on our U.S. HPC infrastructure investments. So we haven't made any investments into Bitcoin mining. We're not spending any money on upgrades or new miners, and we're actively working to scale down the fleet and actively working to spin off assets like we have in Paraguay that are not suitable for conversion. So investors should continue to expect our hash rate to continue to trickle down over 2026 as we continue to execute on this transition to HPC and AI. Operator: Our next question comes from Mike Colonnese with H.C. Wainwright & Company. Michael Colonnese: So, Ben, I'm just curious, after securing the remaining permits across the three sites, which sounds like likely to take place in the coming months here, what does the time line look like from a data center construction and delivery standpoint? It sounds like you're pretty optimistic that revenue generation could commence as soon as next year, but any additional color there would be helpful. Ben Gagnon: Yes. I mean, really, this is the year of execution in 2027 is the year of delivery. And so at all three of our projects that we talked about today, Panther Creek, Sharon and Washington, we all expect them to come online and start delivering megawatts and start generating revenue to customers in 2027. We'll continue to provide updates as we go along. And I think once we have cleared NTP and we have signed leases, there's going to be a lot clear visibility that we can provide to investors for each specific project and their specific time lines. Michael Colonnese: Got it. And then back to Bitcoin mining operations, it sounds like you're progressively going to be scaling back hash rate as you bring some of the HPC AI data centers online. I guess what's the best way to think about hash coming offline and kind of flowing through your operating results over the near term here? Ben Gagnon: I'll speak to it at a high level and then maybe I'll pass it off to Jonathan for some further clarity. But right now, the Bitcoin mining remains profitable, but it's not it's not very -- it's marginal. So it's still contributing to the business. But really, it's not the focus of the business. It's not where we're investing our time, it's not where we're investing our efforts. And given that we have been so successful last year in raising capital and strengthening our balance sheet. It's really not super impactful for the developments that we have this year, the operations or the CapEx. So we'll just continue to scale that down, trying to maximize value in the disciplined exit. If it makes more sense to maybe sell some miners a little bit earlier then we might need to in order to begin instruction, we'll evaluate that as we will always do to maximize value for our shareholders. But really, we kind of see this as a pretty minor element of our balance sheet and a minor element of the financial plan for this year. Jonathan, do you want to add anything further? Jonathan Mir: Only that when we think about our liquidity going forward, the strategic objective is to ensure we are well capitalized through the lease process and beyond without the need to raise any new capital in the markets and that takes into account the current state of Bitcoin mining operations. It's not assuming any improvement in the economics there. So our plan is built on conservative assumptions around the status of the Bitcoin market. Operator: Our next question comes from Nick Giles with B. Riley Securities. Nick Giles: Good morning, Keel team. In the interim period where Bitcoin mining operations are wound down, but kind of pre-revenue generation on the HPC side, could the generating assets at Panther Creek and Scrubgrass be utilized in any way such as the PJM capacity auction? Ben Gagnon: So those power plants do actually participate in PJM capacity auctions. We've done that for quite some time. And so we do benefit from the capacity payments that we received there. Nick Giles: Got it. Okay. And any order of magnitude of what those could be kind of in the 2026 planning year? Ben Gagnon: So I mean, really, it's -- we've kind of maxed out on the capacity auction payments. They set a ceiling, and that's where the capacity auction payments closed. Nick Giles: Got it. Understood. Maybe one for Jonathan. You've made some progress on the capital structure, but just was hoping for any additional comments you might have on what you're looking for in an initial debt package, how you're seeing term shift and kind of what tools you have at your disposal during construction and kind of post energization. Jonathan Mir: Good question. Thanks, Nick. So our basic approach is to compare and contrast our financing options down at the asset level and upstairs at the parent level. And certainly, one of the things that we've seen in the market that has caught our attention like everyone else, is the tightening of spreads between folks issuing high-yield debt in the market that would seem like quite attractive levels for strong investment-grade counterparties or credit wraps. And those converging towards the levels seen in bank-originated classic construction of project financing. So we'll be -- each of those has its own advantages in terms of simplicity of managing the actual capital once it's raised versus negative carry costs. And as we get closer to a funding point, we'll make the decision as to what seems best for our shareholders in terms of how we decide to finance. I'm sorry, Nick, I was just going to say that the markets for our space and for infrastructure generally seem calm right now. Operator: Our next question comes from Brian Dobson with Clear Street. Gregory Pendy: It's Greg Pendy in for Brian Dobson. Just I guess one final one. Just I guess, one final one. Just on the redomiciling to the U.S., are there any implications to costs or structural implications in terms of ownership that we should be aware of as you enter this over the next couple of days? Ben Gagnon: One of the benefits and reasons for the redom is that we will now be eligible for inclusion in indices that require -- want to be a U.S. domiciled company. So for example, we'll be eligible for inclusion in the Russell 1000 and the Russell 3000 as well as for ownership in any other fund who was otherwise limited to the purchase of U.S. securities. We view that as being quite helpful in terms of moving our shareholder base to one that is institutional and long term. There are no other -- there are no cost or flexibility implications in our end. We simply see this as a nice path forward with a lot of benefits for our shareholders. Operator: Our next question comes from Bill Papanastasiou with Chardan Capital Markets. Bill Papanastasiou: Just wanted to touch on the Washington side and decision to shift towards colo. Can you confirm that this won't have any material impact on the purchase commitment that was entered into November? Or is the team considering the shift in development allocation to other sites? Ben Gagnon: Thanks, Bill. No impact on the capital commitments and the equipment we've already purchased for the Washington site by changing business models. In fact, actually, it just helps to reduce the CapEx because we're no longer paying for the compute. Bill Papanastasiou: Understood. And then how should we generally be thinking about maintenance CapEx on existing Bitcoin mining sites as you gradually shift over to AI HPC here? Ben Gagnon: We're not making any investments into the Bitcoin mining sites. Basically, we're just continuing to keep them up and running. And so no further investments are being made in the sites into new sites or into new miners. Operator: Thank you. This concludes the question-and-answer session. I'd like to turn the call back over to Ben Gagnon for closing remarks. Ben Gagnon: Thank you very much, everyone, for joining our call today and really look forward to speaking to you next time as Keel Infrastructure. Have a great day. Operator: Thank you for your participation. This does conclude the program. You may now disconnect.
Sara Cheung: Good day, everyone. Thank you for joining the online briefing to discuss the First Pacific 2025 Full Year Financial and Operating Results. The results presentation is available on First Pacific's website, www.firstpacific.com under the Investor Relations section Presentation page. This results briefing is being recorded, and the replay will be available on First Pacific website this evening in the Investor Relations section. For participants from the media, please note the Q&A session is open for investors and analysts only. If you would like to ask questions, please contact us when the briefing is finished. Today, we have with us our Executive Director, Mr. Chris Young; our CFO, Mr. Joseph Ng; Associate Director, Mr. John Ryan and Mr. Stanley Yang and other senior executives from the head office of First Pacific. Over to you, John, for the presentation, please. John Ryan: Thank you, Sara. I'll just go through very quickly the First Pacific part of this presentation, then we'll move to the Q&A for you folks. Now let's begin on Page 3 with a quick reminder of some of our major investments, all of which have done pretty well in the course of 2025, and we'll discuss this later on. Now on Page 4, we've got the shape of our gross asset value on December 31, 2025. The gap was about $5.3 billion, Indofood just over 1/3. MPIC valued there at $1.3 billion, the U.S. dollar value of the pesos we paid for it when it was privatized back in the autumn of 2023. We own now about 49.9% of MPIC. You might see there that PLP's valuation has increased to $398 million, and that's because we've put some money into it to help finance the building of a new power plant, which our financial controller, Richard Chan might discuss later if that's of interest to you folks. And then, of course, there's PLDT, our 25% or so owned telephone company. And then there's the Philex Group of companies, which make up just over 10% of our gross asset value. Now let's move on to the earnings for 2025 on Page 5. Turnover was up 2%, a little over $10 billion, higher revenue at Indofood and MPIC. Decline at PLP, PacificLight Power. Contribution from operations reached a record high. I believe like the recurring profit, it's been about 7 years in a row, we've had increases in the previous 5 have been records. Indofood, PLDT, MPIC highest-ever revenues and MPIC delivered their highest-ever earnings as well. Now recurring profit, as I say, it's up a good double-digit, 10% to $740 million, up from about $673 million in 2024. Net profit was up a similar number, 10% to another record high, $661 million. Now to a matter that is dear to the heart of many shareholders. The directors approved a final distribution of HKD 0.14 a share. You folks will vote on that at the AGM. And that brings the full year distribution to HKD 0.27 a share, and that's the highest ever on a per share basis that we have ever paid out. And that, of course, fits under our progressive dividend policy where we're committed to increasing the per share amount of money we distribute to shareholders every year apart from special circumstances. As you can see on the middle chart here on the right-hand side, the increase in recurring profit was driven mostly by MPIC and Indofood, and there were little declines at PLDT and PLP. Head office cash flow, as you can see, we had about HKD $311 million of dividend income, and there are the distributions gone out to you folks. That's the biggest amount of money sent out. And then the net cash interest expense follows. And if you look deeper into this book or want to discuss it later, you'll see that our interest bill is declining along with the interest amount that we're paying. Over on Page 6, a little bit more detail on our cash flow and balance sheet. As you can see here, at the present day, we have no borrowings falling due until September 2027 when our only bond, $350 million becomes due. A $200 million that was due in 2026, as you can see, has been shifted over by 5 years to 2031. Our interest cost is around about 4.6% for the year, and the average maturity is about 3.2 years. And I would guess over the course of the next 12 to 18 months, that 3.2 is going to become a bigger number. Our CFO, Joseph Ng, will discuss that in the Q&A, if you like. Dividend income there on the bottom left shows that we've been consistently over $300 million in recent years. And very important to us is the interest coverage ratio, as you can see, was 4.5x in 2025. That's up from 4x the previous year, and that is well above our comfort level. Though it must be said, we don't have any plans for that number changing anytime soon on account of additional borrowing by us. Now I'll wind up the narrative part of this meeting with a quick look at the reason that many people are invested in First Pacific. As you can see from 2018 to 2025, we've had over a doubling of our profit at First Pacific. I think in 2018, it was around $290 million in recurring profit, and we're up to $740 million in 2025. As you can see, the exchange rates of the rupiah and the peso were down about 11% and 14%, respectively, over that time. And what this does is it illustrates quite vividly the hard currency security of putting your money in First Pacific so that you can secure the gains to be had from the fastest-growing economies in the world, which are described by the IMF over in that bottom right-hand chart, where you can see there's a doubling over the 10 years to 2030 from 2020. Let me actually very quickly go through the main companies. Indofood had record sales, as I said. Core profit was up just 1% to a highest-ever level. Many of you may have attended their investor briefing earlier today. If you haven't, we can discuss some more about their description of their earnings and predictions for the future, many of which we have put into the outlook for 2026. To speak briefly about that, there's an inference you can make that 2026 will be rather better than 2025. But of course, we have that devil in the Middle East conflict, which we don't know how it will affect any of us going forward. We can discuss this later on, if you like, but there's pretty high confidence over at Indofood. Now we're going to flip a few more pages to Metro Pacific, looking at Page 14. Record high earnings, as said before, core profit up 15%. And as you can see in the pie chart, most of it was contributed by the power company, Meralco, which is beginning to see a huge contribution from its still fairly new power generation business. They bought into a very large LNG terminal accompanied by 2 natural gas-fired power plants in Project Chromite. Stanley Yang, who worked on that transaction, can help discuss that later on. It just addresses that generation is going to be a big part of earnings growth at Meralco going forward. The newly listed water company, Meralco, also was a very big contributor to the earnings there. And then the toll roads, their contribution, as you can see, didn't grow so much as illustrated on the bottom left. And that's because we owned -- in part, it's because we owned a little bit less of it than we did earlier. Now let's dash ahead to PLDT, which is the biggest telecommunications firm in the Philippines. Service revenues, record high. EBITDA at a record high and the EBITDA margin still very strong at 52%. Core profit rose 1%, actually a similar number to Indofoods. And it was helped for the first time ever by Maya, which is the 38% owned fintech, which has -- it's the only digital bank in the Philippines, which is both owned by a telecommunications firm and has a banking license. It's a very interesting little company, and it moved into profit for the first time during the course of 2025. And the falling column chart on the bottom right there shows you the usual story. It's data that has been driving earnings growth and fixed line voice, too, in a kind of funny way. There's a big international element there. Now we'll skip past Maya and over to PLP, which had earnings slightly down. Sales were a little bit down as well. Market share is steady at 9.6%. And as you can see, the monthly average electricity prices are down quite a bit from those powerful period of earnings we had in 2023, and that's really the main driver of how their earnings have gone over the past couple of years. Net debt is absolutely negligible at less than SGD 40 million. Now over to Page 27, where Philex Mining, which has been operating Padcal for 6 decades, I think, and it's still going strong for another few years until 2028, I believe. You can see that after 6 decades, the grades of gold and copper there in the blue box, they're rather lower than you might want to see. But if you want to see better turn the page to the Silangan project, which is accelerating towards the opening of commercial operations over the next weeks and months. And you can see that the grades there in the middle box are much, much higher than what we've got going on at Padcal. We're very excited about the prospects for Silangan, and we think it's going to be a good solid contributor to First Pacific going forward and to its parent, Philex. Now I'm going to end the introduction with a quick dash to Page 52, where I would like us all to pay attention to the second line, China Securities Depository and Clearing. They're probably up at this day, close towards 150 million shares. We have now a third brokerage about to start equity research coverage of First Pacific for Mainland investors. And this has been almost entirely due to the efforts of my colleagues, Sara Cheung, who's here 2 seats away. And these new Mainland investors provide much valued liquidity to the share trading in First Pacific, and we welcome them with open arms. That's it for the opening narrative. We can move over to Q&A. Sara Cheung: [Operator Instructions] John Ryan: Jeff, could you unmute and ask your question, please? Ming Jie Kiang: Maybe starting with 2 from me. So it is all about dividends first. So I just want to check, the regular final dividends increased 3% year-on-year, which seems to be a little bit muted compared with what we saw in the past. But separately, you also pay a special dividend with respect to Maynilad's subscription shares. So just trying to check whether the regular dividend growth this time is whether a sign of caution on the outlook or whether we are trying to smooth out the total DPS growth down in the next few years, including the specials. So that's the first one. The second one would be about Indofood payout. I understand the dividend will be decided in the AGM in the next couple of weeks. So just trying to figure out, from your perspective, are you seeing any particular resistance for INDF to raise the dividend payout ratio in the future? John Ryan: Jeff, you know our CFO, Joseph Ng, he'll deal with the first question, and I'll ask our Executive Director, Chris Young, to deal with the second. Hon Pong Ng: Jeff, it's Joseph here. I think your 3% is only focused on the final, if I'm guessing your question correctly because last year's final is 13.5 and this year's final is 14. But in aggregate, if you aggregate the interim and final last year was $0.255 and this year, it's altogether $0.27 because we paid $0.13 for the interim. So there's a 6% growth, which is not the 3%, so it's not insignificant. But if you add back the so-called special distribution we make as a result of the Maynilad IPO, we pay another [ $0.15 ]. So as indicated, I think we have almost 10% growth against last year's 25.5%. So that's broadly in line with the growth in so-called recurring earnings line from last year's $673 million to this year's $740 million. So it's 10% growth in the recurring, which is a key KPI indicator for us. So broadly in line, regular growth -- regular dividend growth or distribution growth is 6%, but all in, it's 10% growth. Now with that $0.27 altogether, I think we are paying altogether about $150 million plus. And that also needs to tie to what we disclosed in the cash flow that for 2025, we have $311 million dividend income. So you can see that it's more than half of the so-called gross dividend line that we are returning to the shareholders even without including the so-called special distribution. And then you have the head office overhead and the like. And remember, Jeff, also starting from 2025 and more heavily in 2026, we need to kind of reinvest some of the money that we have from the dividend from the units and then we invest those money back to PLP to fund its equity requirement for the new gas plant there. So we try to kind of strike the balance as to what we return to shareholders, which is not a small ratio, which is quite a high ratio. If you take out the head office expenses and interest, we are returning more than 70% of free cash to the shareholders and keep a little bit for our reinvestment into the PLP gas plant. So I think that's the kind of macro thinking behind kind of fixing the final dividend at $0.14 per share and making a total of $0.27 regular and then about 10% growth in aggregate, including a special dividend we paid to the shareholders as part of the Maynilad IPO. So that's on the dividend side. On the Indofood dividends, maybe Chris could chip in and give us a bit color on that. Christopher Young: Jeff, I think the -- normally, as I think you're aware, it's a discussion with the management there at Indofood. And generally, it's a fairly constructive discussion. I think we would take into account 2 elements in considering that dividend. So I think if you look at John's presentation or you've seen the Indofood results, the recurring profit growth last year for Indofood was 1%. And the outlook at the moment looks reasonable without too much disruption from what's going on in the Middle East. But obviously, there is a bit of uncertainty. So that would be the context to the discussion, what was the underlying growth last year and what is the outlook. But as you yourself noted, that discussion will happen over the next couple of months. John Ryan: Okay. Now we'll ask Timothy Chau to unmute and ask what he's got to ask. Tak-Hei Chau: I have a couple about Middle East first. First, on Indofood. I understand just now management talked about like how the Middle East impact seems to be minimal on Indofood. But I'm just wondering if there will be any implications on the raw material cost because I think over the past year, there reportedly some kind of a raw material price hike that affected the margin. So I'm just wondering if the Middle East, if extended kind of -- being extended event, would that aggravate? And the second question also about Middle East will be on PLP because if I remember correctly, the electricity price in Singapore could actually be moved as long as the gas price is up. So I'm just wondering if there will be any positive read-through from Middle East on PLP here. Yes. And my last question is on the PLP project. So just wondering if there is a finalized budget on the potential CapEx spend on the project yet. And just now you mentioned about like how we have already been spending some -- investing some in PLP already on that particular project. Just wondering the time line of the entire CapEx and how it will be in the coming 2 to 3 years. John Ryan: Timothy, I'll take a stab at the first one and then Stan will help you with PLP. Indofood told us in their briefing this morning that as far as wheat goes, they've got 3 or 4 months of supply on hand, and they see that it looks like there's globally going to be a good crop of wheat better than the previous year in 2026. So they're not too worried about that. CPO prices are up a bit after rising 10% in 2025 to about IDR 14,100. They're around at the end of the first quarter, IDR 15,000. They are in some not feeling any particular pressure from raw material prices. And as far as the Pinehill businesses in Middle East and North Africa, they have been able to secure their supplies up to now. And there is, as of yet, no particular concern. PLP, Stan? Stanley Yang: Sure. Timothy, just to address your questions on Pacific Light, first on the electricity prices and the impact of the Middle East fuel. And for PLP, it's gas comes from a global supplier, in this case, Shell. And there is some impact in terms of some of the flow in terms of the LNG that's supplied into Singapore, some of the disruption. It's a relatively small portion, a minority. And I would say that at least for the next month plus, there's sufficient supply. But when you get beyond it, there will be some impact in terms of the supply coming in that would typically come from the Middle East. Alternate arrangements are being made. The company as well as other generators who are affected in the market are also in discussions on solutions that would help, including having some of the gas supplied by EMA and being able to run, but also others in terms of the existing contractual arrangements that they can procure in terms of their global supply. And so we think in terms of certainly the near term, there will be less impact. But as the months go by and if this crisis continues, then some of these alternatives on how the balance of gas will be filled in light of the retail contracts for the company will need to be covered. When it comes to the project itself, the project itself is looking at starting in 2029. And so the heavy lifting in terms of the construction and so forth is still to come. And so within this year, there would be an expectation of the notice to proceed, which basically kicks off the formal development and projects. And from there, the piling works and then subsequently over the next couple of years, the balance of the plant. And so that CapEx as we would look at it would be spread across the next few years up until the planned operation date in 2029. Tak-Hei Chau: On PLP, the rise in gas price, if I remember correctly, I think back in 2023, when the gas price is up, we actually have a higher profit because of the nonfuel margin being higher. So I'm just wondering if this case, given -- I mean, given the case is not as bad as like the lack of supply in gas in the end. So I'm just wondering if there will be any positive read-through for PLP in this case or we are still cautious about our outlook? Stanley Yang: I think it's too early to make a call. I think the next couple of months will be critical. I think because the company has a strong position with respect to its retail customers for this year, then there is definitely visibility, but the impact of any supply disruption, not just for our company, PLP, but also for the entire market in Singapore. The question will be the balance of any gas that comes from the affected markets, for instance, Qatar and how that would impact the entire supply. As I mentioned before, that's not the majority of the supply. It's a minority small -- relatively small percentage, but it is one that we are monitoring because that clearly, the supply in aggregate into the market has to balance with what the generation demands will be for running the plants. John Ryan: Any more questions, Jeff? I think Jeff has another question. Jeff, please unmute and ask your question. Ming Jie Kiang: So maybe switching gear a little bit to MPI, just trying to figure out how should we think about maybe the water Maynilad that business in 2026. So just trying to -- if there's any tariff adjustment, can you remind us over there, but if not, I just want to hear your maybe general assessment on MPI's 2026. That's my first question. The second would be just talking about the FP Natural Resources, which we usually do not really focus on. Just trying to understand why the loss contribution diminished in 2025? And is there any one-off events there? John Ryan: Stan? Stanley Yang: Sure. On the question of the -- you're talking mostly on the water, was it? John Ryan: Yes. If we can expect some tariff increases in 2026 following the 10% last year. Stanley Yang: This year, it's going to be more muted than the last year in terms of the tariff impact. There have been following the revision -- the revised concession agreement, a series of adjustments over a few years. Those have had the benefit in terms of the flow into Maynilad and the system. This year, it would be 4% though, is the expectation in terms of the tariff adjustment. And the business itself will continue to grow. The supply of water and the management's efforts to improve that. I think they focused heavily on the non-revenue water, which is the losses in the system and bringing that down to levels that the company has not seen ever since our existence in owning the business. And so for us, that's a big savings that helps improve the cost of the water supply and efficiency in the system. And then the management themselves are focused on continuing to improve that along with the continuation of tariffs as part of their CapEx program, which was agreed as part of the concession agreement that they revised. Those would be the key imperatives to continue to build on that business. John Ryan: Okay. Thank you. And second question. Jeff, you remind us, please? Ming Jie Kiang: Yes, the FP Natural Resources, just trying to figure out what -- why did the loss diminished in 2025 compared with 2024 and just trying to check if there's any one-off events driving the narrow losses or anything happened there? That would be helpful. John Ryan: Chris? Hon Pong Ng: Actually, maybe I could take that. It's Joseph here. Yes, I mean, that operation -- the sugar operation has -- basically has stopped. And then basically, we are laying off all stock and trying to basically sell the residual assets owned by the operation. I mean, previously, the alcohol operation and then we are in discussion of selling this kind of final set of operating asset, refinery asset with certain investors, certain buyer. So with that, actually, the scale of the operation basically stopped. So that's the reason why you see the recurring profit line, there's actually no -- without any significant amount there. But we do make some impairment provision as a result of selling those refinery assets that I mentioned because now we have identified buyer, we're in final discussion with the buyer. So we know that the final selling price of the refinery part is lower than the book value. So there's certain impairment provision mix below the line under the nonrecurring item. But above the line, there's basically no operation anymore, no significant operation. That's why you see there is very little impact to the recurring profit line. Ming Jie Kiang: Just -- I would just want to take the chance to just have one more quick follow-up or just other question. So just I want to hear our plan for refinancing the head office borrowings. So John mentioned we have refinanced the repayable loan in 2026. And just trying to figure out how do we think about the current maybe the head office net debt, cash interest coverage ratio and also our maturities schedule down the next maybe 2 years. Hon Pong Ng: Yes. As mentioned by John, we finished the refinancing of the January 2026 bank loan. We actually signed up the commitment before the end of last year. So we just draw the facility and paid off the bank loan in early January. So that's all done as far as 2026 liability management initiative is concerned. So the next one coming up from this bar chart is the bond, $350 million bond due in September 2027. Now we still have, as of today, maybe 18 months to go. So it's still early, but as part of our usual prudent financial management, we are actively looking into that and talking to a number of banks. We are getting proposals on, say, refinancing the bond with another bond. So we have received quite a number of proposals with different quotes. Now we are not in a rush to say because the whole market is so volatile. You probably understand from the market that actually both the bond investor side and many issuers are actually waiting on the sideline to see how all these Middle East crisis will turn out and how that would affect the interest rate environment in the next 6 to 9 months. And for us, I think the plan is that we have 18 months to go, but we should get ourselves ready probably when we get into the second half of this year. We will probably kind of accelerate a little bit on the preparation process and see what will be the revised kind of terms and pricing that we could get from the different banks. And in parallel, of course, we will try to explore other alternatives like syndicate bank loan if we think that those terms and pricing are more attractive. But of course, I mean bank loans will not give you the tenor that we could get from the bond market, the 7 or 10 years. As you can see from the debt maturity profile here, if you get another 5 years, probably you get into the 2021, 2022 space, which may be a bit clouded. So our preference will be still a bond. For one, the tenor; two is to diversify the credit resources so that we don't 100% rely on the bank financing. So that's the initial thinking because we always try to strike a better balance between the bank credit resources and the bond credit resources. So the preference is to go for a bond if the market is there and if the terms and pricing are palatable to us, but we never say never. We just wait until the whole market comes down a bit and the whole bond market becomes active again. Ming Jie Kiang: Maybe can I have a real quick follow-up? I promise, this is my real quick. So just as of the end of 2025, I think you disclosed 54% of the debt is on a fixed rate basis at the head office level. So is this split some sort of optimal in your opinion? Or should we be targeting more fixed rate borrowings as we think for the next maybe 3 to 5 years, given the volatile interest rate environment, sometimes we rate cut, sometimes the expectations just bounce around. So just trying to figure out the thinking here. Hon Pong Ng: Yes, Jeff, these are difficult questions because the interest rate environment is actually shifting back and talk and sometimes they say, I mean there will be one interest rate cut this year and followed by 2 next year and now they are maybe shifting a little bit, given the fact we will be shifting the position, maybe not 2 rate cuts in 2027, maybe 1. I mean all these are subject to changes since the whole market is so volatile. So with that sort of volatile situation, it's really difficult to say that we should increase the hedge ratio to a higher level or we reduce it. As of now, I think we are quite comfortable with what we have. We're probably 50% thereabout because you can't win all and you will not lose all as of now. That's what I can say for now. John Ryan: Okay. And I believe, Timothy, please unmute and ask your question. Tak-Hei Chau: Yes, sorry. Management, it's me again. Just a really quick one on potential corporate events. I think this year, a lot of different conglomerates have been -- the theme has been capital recycling, unlocking asset values. I'm just wondering, given our very diverse and broad portfolio, are we -- do you have similar stuff that the management is looking to maybe divest some kind of non-core or at least partially divest like an IPO, for example, like a Maynilad kind of thinking to really unlock the asset value and maybe pocket some kind of funds as well. Especially, I think I've read somewhere in the news about potential IPO or list or private placement for Maya. And like back in the days, I think there were also some market chatters about the private placement for MPTC back then to help relieve the financial issues for the total assets. So I'm just wondering is there anything regarding corporate events that the company is thinking about now? Stanley Yang: Certainly, as a holding company, we look at a span of initiatives, both on the M&A side, which you've seen over the last few years and also in terms of capital markets, we raised the example of the Maynilad's IPO. When it comes to, as you pointed out, Maya, it's a business that has improved quite a bit. The growth of both the wallet and then subsequently after that, taking the leadership, both in the merchant acquiring and now in the digital banking side has really pivoted that platform from what was quite small a few years ago to now the leader and continuing to grow rapidly. Whether this is the year that at this time, a listing could be done, I think we would -- management and the shareholders are always reviewing the strategic options. I think actually an interesting similar case was there was the Japanese fintech recently PayPay that just listed earlier this month. And despite the challenges of the market, Iran and so forth, actually, the price held up quite well. So I think it's fair to say that we will continue to monitor if there is an opportunity. Of course, Maya is much smaller than the one that listed in Japan, but its growth and its trajectory are moving in a very positive direction. And so we would see this as a potential as it continues to grow. Really, the question is in terms of timing. And I would say with respect to other portfolio companies and across the group, I think we continue to evaluate how we can improve the positions of them in their respective sectors. And as and when decisions are undertaken to pursue things more formally, then, of course, we will provide more guidance at that point in time. John Ryan: MPTC? Stanley Yang: I think MPTC, at the moment, the business is continue to focus on delivering this year its projects. They have quite a number of projects within the Philippines that are looking to complete. And so that's really been the focus. Also some of the deleveraging efforts of management because of the acquisitions that they've undertaken in the last few years, those are the principal initiatives looking at partners and some capital into the business to help in terms of the debt reduction of the overall roads. And then with that, we continue to also consider whatever strategic opportunities are to further enhance our position as a platform and the shareholders of our roads business. John Ryan: Thank you very much, Stan. As there are no more questions and time is getting on, we'll wind up now beginning with a reminder that we will be visiting fund managers in Europe and North America after Easter holidays. If you would like to see us, please get in touch with me or Sara or my colleague, [ fionachiu@firstpacific.com ]. These meetings have historically been quite worthwhile for the fund managers who see us because we cannot hide our feelings on our face. You'll see us coming in and we'll be feeling really, really good, and that will be important to your perspective towards our company. And now to summarize how we feel and where we think we're going, I turn now to Chris Young, Executive Director. Christopher Young: Okay. Thank you, John, and thank you for joining us on the call today. The results, as you've seen for 2025 were good and a continuation of the trend that we've seen over the last 7 years or so. However, clearly, the outlook in the short to the medium term is somewhat uncertain. However, I think we remain cautiously optimistic that given the nature of our businesses, which I think are quite defensive given the consumer-facing nature of them, that we will be able to shelter the group really from these uncertainties over the next few months or so. So we look forward to updating you again on the half year results, which I think are at the end of August 28. So until then, we will keep you informed on a regular basis. And as John and Stan will be visiting Europe and the U.S., hopefully, you will get a chance to meet with them face-to-face before that. So turn you back to Sara. Sara Cheung: Thanks, Chris. Thanks again for joining today's online briefing, and you may disconnect now. Thank you. John Ryan: Bye-bye.
Operator: Welcome to the 2025 Annual Results Presentation of Singamas Container Holdings Limited. First of all, I'd like to introduce you to our management of the company, Mr. S. S. Teo, Chairman and Chief Executive Officer; Ms. Winnie Siu, Executive Director and Chief Operating Officer; and Ms. Rebecca Chung, Executive Director, Chief Financial Officer and Company Secretary. Mr. Teo will now present the company's annual results. All the financial figures in the presentation are in U.S. dollars, unless otherwise stated. Mr. Teo, please. Siong Seng Teo: Thank you. Good afternoon, friends, ladies and gentlemen. Thank you for joining us this afternoon. We will go through the presentation by looking into Singamas' corporate profile, industry dynamics, financial and business review. As an established container manufacturer, leasing, logistics and depot service provider, we currently operate 5 factories in China. Our total annual capacity is now at about 270,000 TEU of dry freight and ISO specialized container and about combined capacity of 21,000 units of tanks and customized containers. For leasing business, we currently own a fleet of about 180,000 TEU containers. Singamas is also operating 8 container depots across 7 major cities in China and 1 logistic company in Xiamen. This slide shows the ongoing upgrade of our Huizhou and Shanghai manufacturing plant designed to enhance capacity and capability of energy storage system ESS container orders. At Huizhou plant, the upgrade is aimed at boosting overall production capacity. The facility has been equipped with advanced robotic and automation application to meet the rising demand for ESS containers. At our Shanghai plant, we have expanded dedicated production line for high-value customized containers, including Battery Energy Storage System, BESS containers and AI Data Center containers. This has enabled elevated development of our integrated business. In year 2025, annual capacity for customized container at Shanghai plant has increased to 7,200 units. The next 3 slides, Slide 7 to 10, cover our product ranging from traditional dry freight and ISO specialized container to innovate customized container include customer containers for ESS, data center, car racks, housing and more. And we also provide a full range of container solution services. The core product of Singamas' customized container is ESS, energy saving system. This container facilitate efficient electricity storage and release, benefiting users by allowing electricity consumption at lower period. ESS container ensures stability in new energy power generation and are designed to withstand extreme condition for normal operation in challenging environment. Green Tenaga is our wholly owned subsidiary in Singapore, dedicated to accelerating the journey towards net zero emission and carbon neutrality. Through its BESS solution, it form a pivotal element in our commitment to delivering comprehensive green energy solution worldwide. In 2025, Green Tenaga partnered with Singapore A*STAR ARTC to co-develop an analytic power energy management system that enhanced battery health, energy efficiency and intelligent sustainability energy solution for BESS. In our collaborated in a collaboration with the Institute of Technical Education to co-develop an ESS training program for the youth in Singapore. With this program, Singapore Singamas contribute to its ESG goal through fostering new energy talent development, enhancing ESS safety standard and supporting low-carbon economy transition. Next, for our leasing business. Significant growth was recorded for the business this year. By the end of 2025, we own a fleet of about 18,000 TEU leasing containers, 18,000. Singamas is a major operator of 8 container depot in China. We maintain strong tie with key port operators in the countries and foster relationship with major global shipping and leasing company. Our logistics service business focused on enhancing warehousing capability, integrating multimodal transport resources, improving digital operational capabilities for efficiency and collaborating with service provider to expand network coverage. This slide shows Drewry's analysis of global dry freight container production and pricing trend of January 2026. For the year 2025, worldwide dry freight container production was 6.5 million TEU, far exceeding the initial market expectation. However, it has led to significant surplus worldwide. As the market is expected to regulate the surpluses in years to come, Drewry forecast the industry production for the year 2026 will decline sharply to 3.6 million TEU. On pricing, the average price of a 20-foot standard dry freight is expected to reach USD 1,710 for the year 2026, a year-on-year increase of 2.6%. This trend highlights a market transitioning from over production to caution rebalancing. According to Drewry, long-term lease rate for all standard dry freight containers dropped sharply during 4Q 2025, and leasing rates are projected to remain subdued in the next few years. This forecast from Drewry Q1 2026 provide a solid baseline for market stabilization. However, they were made before the major disruption from the Middle East war, including rerouting around the Cape of Good Hope, elevated fuel and insurance costs. These emerging factors or rather disturbing factors may affect short-term leasing rates and recovery trajectory in ways not reflected in the current forecast. That means the war in Middle East have created many issues, and this may affect what we forecasted. This chart shows Singamas' average selling price trend of 20-foot dry freight container and related steel costs over the years. Despite better-than-expected global trade volume and ongoing new container vessel order, U.S. tariff and trade policy continue to create market uncertainty, leading to softer container demand in the second half of 2025. Consequently, the average selling price of 20-foot dry freight container dropped 12% to USD 1,752 in 2025, meanwhile, container steel average cost dropped about 11%. Now let's move on to the financial review section. Revenue decreased by 17% to USD 481.5 million due primarily to soft market demand and overproduction in previous year. Consolidated net profit attributable to owners of the company decreased by 48% to USD 17.4 million. Basic earnings per share was USD 0.0073 for the year compared with USD 0.0143 in 2024. Net asset per share was USD 23.30 as a year of 2025, almost the same as previous year. We have decided a final dividend of HKD 0.02 per share proposed for the year 2025. Together with the interim dividend of HKD 0.03, total dividend for this year was HKD 0.05 per share, representing a payout of about 88%. Let's move on to business review section. First, manufacturing. It shows the performance of our manufacturing and leasing business. This segment achieved revenue of USD 447.8 million, which accounted for about 93% of our total revenue. Segment profit before tax and noncontrolling interest was about USD 18.1 million. This slide shows the breakdown of container units sold under different product categories and accordingly, the respective revenue generated. The table on the left shows that Singamas sold over 147,000 TEU of dry freight container during the year. The pie chart on the right shows that the sales of this dry freight container made up of 57% of the segment revenue compared to 72% in the previous year. For customized container, more than 13,000 units were sold during this year. As global interest in solar energy grows, revenue contributed by our ESS continued to increased drastically from 16% of 2024 to 33% in 2025. Leasing revenue accounted to 8% of the group total revenue during the year. Finance lease Finance lease interest income was USD 4.1 million, up 47% year-on-year, while operating lease income was about USD 15.6 million, up 176% year-on-year. This slide shows the performance of our logistics service business. Its revenue was USD 33.8 million and segment profit before tax and noncontrolling interest was USD 8.7 million. This slide represents our marketing and operating synergy strategy in the years to come. The political and tariff issue between U.S. and other countries, especially following the outbreak of the Middle East war will impact our operating environment. We believe many carriers will once again choose to avoid the Strait of Hormuz and the Suez Canal. While this rerouting could initially stimulate demand in dry freight container market, the current sizable dry freight pool of 55 million TEU is likely to temper the overall impact, leaving demand for dry freight container unpredictable in the first half of 2026. At the same time, the ongoing crude oil crisis is expected to accelerate global transition to new energy infrastructure, which could translate into further growth in market demand for our ESS containers. Faced with unpredictable demand in dry freight container, we maintain strict cost control and cautious capital expenditure. On the maintenance side, our focus remains on enhancing safety and environmental protection of our plants. On the growth side, we invest on high-growth customized container project and automation -- short payback automation initiative. This balanced strategy keep us agile, cost disciplined and well positioned to capture any new opportunities in this challenging market. The following appendices that show our income statement and the data of our factory and depot for your further reference. That concludes my presentation. If you have any questions, Winnie, Rebecca and myself will be happy to answer. Thank you very much. Operator: [Operator Instructions] Unknown Analyst: [Foreign Language] Siong Seng Teo: [Foreign Language] New energy container [Foreign Language] Unknown Analyst: [Foreign Language] Siong Seng Teo: [Foreign Language] tank container [indiscernible] ESS. [Foreign Language] Unknown Analyst: [Foreign Language] Siong Seng Teo: [Foreign Language] barrier of entry is higher [Foreign Language] Unknown Analyst: [Foreign Language] Wai Yee Siu: [Foreign Language] renewable energy [Foreign Language] Siong Seng Teo: [Foreign Language] sustainable energy [Foreign Language] Unknown Analyst: [Foreign Language] Wai Yee Siu: [Foreign Language] 170 out of 481.. Pui King Chung: [Foreign Language] specialized container [Foreign Language] Unknown Analyst: [Foreign Language] Siong Seng Teo: [Foreign Language] weekly service [Foreign Language] Unknown Analyst: [Foreign Language] Siong Seng Teo: [Foreign Language] solar farm -- solar energy farm [Foreign Language] Unknown Analyst: [Foreign Language] Wai Yee Siu: [Foreign Language] Unknown Analyst: [Foreign Language] Siong Seng Teo: [Foreign Language] Unknown Analyst: [Foreign Language] Wai Yee Siu: [Foreign Language] Siong Seng Teo: [Foreign Language] finished product like quality [Foreign Language] Unknown Analyst: [Foreign Language] Wai Yee Siu: [Foreign Language] economies of scale, productivity [Foreign Language] Siong Seng Teo: [Foreign Language] Singapore, Green Tenaga [Foreign Language] Unknown Analyst: [Foreign Language] Siong Seng Teo: [Foreign Language] Unknown Analyst: [Foreign Language] Wai Yee Siu: [Foreign Language] million dollar question [Foreign Language] Siong Seng Teo: [Foreign Language] Bangladesh, Sri Lanka [Foreign Language] it's not free, there's a cost involved. [Foreign Language] Operator: [Foreign Language] Thank you, everyone, for joining. Thank you Mr. Teo, Winnie and Rebecca.
Operator: Ladies and gentlemen, thank you for standing by. My name is Christa, and I will be your conference operator today. At this time, I would like to welcome you to the TOYO Co Limited Second Half and Full Year Results Financial Results Conference Call. [Operator Instructions]. I would now like to turn the conference over to Crocker Coulson, Investor Relations. Please go ahead. Crocker Coulson: Thank you, Christa. Hello, everyone. Thank you for joining us to review TOYO's 2025 second half and fiscal year results. This morning, TOYO posted both the earnings release and a related investor presentation to our website and you can find it in the Investor Relations section, investors.toyo-solar.com. With us on the call today are Mr. Onozuka, TOYO's Chief Executive Officer; Raymond Chung, the company's Chief Financial Officer; and Rhone Resch, TOYO's Chief Strategy Officer, whose appointment was announced just this morning. We also have Simon Shi, who will be available during the Q&A portion. After the prepared remarks are concluded, we'd like to open this call up for your questions. But before we begin, I want to make you aware that some statements in this teleconference are forward-looking within the meaning of federal securities laws. Although we believe the statements are reasonable, we can provide no assurance that they will prove to be accurate because they are perspective in nature. During this call, we'll also discuss certain non-GAAP financial measures, such as adjusted net income and adjusted EBITDA. We believe these measures provide meaningful supplemental information regarding our operational performance, by excluding noncash items and onetime charges that may not be indicative of our core business. Please refer to the reconciliation tables in our press release and SEC filings for the most directly comparable GAAP measures. Actual results could differ materially from those we discuss today and therefore, we encourage you to carefully review the most recent report on Form 20-F and other SEC filings for risk factors that could materially impact our results. As I mentioned, the earnings release is available today on our website at investors.toyo-solar.com. With those formalities now out of the way, it's my great pleasure to turn this call over to Onozuka-san, our Chief Executive Officer. Onozuka-san, please go ahead. Takahiko Onozuka: Thank you, Crocker. 2025 was the year of decisive action for TOYO. We doubled our operational scale while navigating one of the most volatile trade environment in decent memory. By strengthening our position as a particularly integrated solution provider, we have built a resilient foundation capable of navigating persistent market headwinds and rapidly shifting regulatory landscape. Our record-breaking revenue of over $427 million, a 142% increase over 2024 is a clear validation of our strategic pivot toward high demand and compliant manufacturing hubs. The primary engine of this growth was the rapid ramp-up of our 4 gigawatt Ethiopia facility, which was completed in October 2025 and is now running at full nameplate capacity. During fiscal year 2025, we successfully shipped 2.3 gigawatts from Ethiopia to our U.S. end customers while an additional 1.9 gigawatts of solar cells were dispatched from our Vietnam facility to international markets. As we entered 2026, Ethiopia has provided our U.S. utility scale customers with high efficiency, policy-compliant solar cell technology and we are on track to deliver 4 gigawatts of solar cell from this facility in the coming year. In the fourth quarter of 2025, we launched commercial operation at our new 1 gigawatt module facility in Houston. Last year, we delivered 249 megawatts of module, inclusive of American-made module and those supplied by our OEM facility overseas. By scaling our domestic module production, while maintaining our global reach, we ensure that TOYO can provide the right mix of products our customers require from the right location with 0 lead time friction. Our intent is to scale up production continuously in 2026 and invest to expand capacity in Houston to 2 gigawatts by 2026. In September 2025, we acquired the well-established VSUN brand from our sister company, a strategic move to streamline and unified TOYO operation by bringing the VSUN plans fully under our umbrella. We have successfully migrated the VSUN sales and marketing team, IP, brand and the certification to TOYO, and we are now innovating all existing customers to become direct customers of TOYO as we complete clarification. Acquiring the VSUN brand has allowed us to accelerate TOYO growth and gives our clients flexibility to choose the sourcing that best fits their individual needs. This acquisition was made without any dilution to TOYO shareholders, while the production assets being with VSUN. Looking ahead, we will continue to work closely with our industry partners to migrate the sourcing of key components to the U.S. wherever possible, further strengthening our supply chain and laying forth our commitment to American manufacturing. I will now turn the call over to our CFO, Rhone Resch, to review our strategy for 2026. Rhone Resch: Thank you, Onozuka-san. It's a great honor to be joining TOYO, and I look forward to meeting our shareholders over the coming months and quarters. As you know, this was a challenging year for many solar companies. To be able to more than double our revenue while dramatically increasing gross margins, EBITDA and adjusted net income validates that TOYO has the right strategy in place, combined with exceptional execution capability. Turning to our strategic road map for 2026. TOYO is entering a phase of significant operational scaling designed to meet the accelerating demand in the U.S. solar market. For the full year 2026, we are initiating shipment guidance of between 5.5 and 5.8 gigawatts for solar cells and 1 to 1.3 gigawatts for solar modules. This growth is supported by a robust order book and a favorable domestic policy environment that continues to prioritize high-efficiency traceable technology. Our primary operational focus for 2026 is maximizing our existing infrastructure. Our Ethiopia cell facility is now positioned to run at full nameplate capacity, providing the high-efficiency solar cells that are the backbone of our utility scale offerings. Simultaneously, our Houston module facility is aggressively ramping up its initial 1 gigawatt of module capacity to meet localized demand. To further solidify our domestic footprint, we plan to add an additional 1 gigawatt of module capacity in Houston during 2026, which will bring our total U.S. module capacity to 2 gigawatts. The next phase of our U.S. expansion involves building out a domestic cell production. We are currently in the final stages of the planning process and anticipate disclosing further details regarding our operational road map in the near future. Financially, we are targeting a 2026 adjusted net income of approximately $90 million to $100 million despite increasing very substantial investments in R&D and technology this year. These costs are a deliberate choice. They align directly with our core commitment to establish a robust technology leadership position within the United States. We aren't just building capacity we are building the IP foundation that will define the next generation of American solar energy. TOYO is now uniquely positioned with the domestic capacity, the traceable supply chain and the technical IP to lead this transition profitably. I will now turn the call over to our CFO, Raymond Chung, to review our financial results. Raymond? Taewoo Chung: Thank you, Rhone. So for full year 2025, revenues were $427 million, representing 142% year-over-year increase from the prior year. This growth was primarily driven by $241 million increase in solar sales and a $7.6 million increase in module sales. For the full year 2025, cost of revenue was $331 million, a 113% increase from $155 million in the prior year. Cost of revenue grew at a slower pace than revenue, driven by a higher mix of sales to U.S. end customers with stronger average selling prices. Gross profit increased by 340% to $96.3 million in 2025, up from $21.9 million in 2024. Gross profit margin expanded to 22.5% from 12.4% in 2024. Margin expansion was driven by a higher proportion of sales to U.S. end customers with stronger pricing. For full year 2025, operating expenses were $37.3 million compared to $30 million in the prior year, representing an increase of 186% year-over-year. Selling and marketing expenses were $5.9 million compared to $1.6 million in 2024. The increase was primarily driven by higher sales commissions in line with revenue growth. General and administrative expenses were $31.4 million an increase from $11.4 million in 2024. The increase was primarily due to $13.7 million in noncash share-based compensation issued to management, directors and consultants. Administrative costs also rose as the company scaled its workforce and infrastructure to support the full activation of our Ethiopia and Texas manufacturing plants. EBITDA was $95.8 million in 2025, representing a 40% increase from $68.2 million in the prior year. This was driven by record shipment volume and enhanced operational scale across our global facilities. Non-GAAP adjusted EBITDA, excluding share-based compensation and changes in fair value of contingent consideration payable to earnout shares was under $110.8 million for 2025, up by 228% compared to $33.8 million for the same period in the prior year. Net income was $37.2 million for 2025 compared to a net income of $40.5 million for the same period last year. Adjusted net income, excluding share-based compensation in 2025 and changes in fair value of contingent consideration payable related to earnout shares in 2024 was $52.2 million compared to $6 million in 2024. Earnings per share basic and diluted was $0.98 compared to earnings per share, basic and diluted of $1.09 in the prior year. Adjusted earnings per share, excluding share-based compensation in 2025 and changes in fair value of contingent consideration payable related to earn-out shares in 2024 was $1.48 per share in 2025 as compared to $0.20 per share in 2024. Turning to our balance sheet. As of December 31, 2025, the company had a $58.9 million in cash and restricted cash in total, compared to $17.2 million as of December 31, 2024. In 2025, TOYO generated cash flow from operations of $133 million with $92 million of CapEx invested across our Ethiopia cell facility and U.S. module operations. This level of cash generation provides us with a strong financial flexibility to invest in continuing to expand our fully integrated production platform in the U.S. as we expand our Made in America for American strategy. For 2026, we expect adjusted net income to reach approximately $90 million to $100 million. With that, we will be happy to address your questions. Operator: [Operator Instructions]. Your first question comes from Amit Dayal with H.C. Wainwright. Amit Dayal: Perhaps a fairly strong performance of '25 and a positive outlook for 2026. Just in the context of gross margins, can you provide any color on how we should think about gross margins now that a share of revenues could potentially come from the U.S. market? Crocker Coulson: [ Saska ], you want to translate that? And then I don't know if Simon or Raymond wants to take that question. Unknown Attendee: [Foreign Language] Takahiko Onozuka: [Interpreted] Right. So we are not currently providing our gross margins hold for the year. But as the Ethiopia facility has come to operate at full capacity and our U.S. factory has come online. We believe that we will be able to continue to achieve very competitive margins in the market. Crocker Coulson: Simon, any color you want to provide on that? Simon Shi: Sure. Thanks, Amit, for the question. I think for 2025, we achieved a cross-border average gross margin around 25%, and we -- we do hope to at least maintain these gross margin across group gross margin level going forward. And also just a remark to our -- like our CEO just mentioned, we don't really provide a breakdown of our gross margin for different markets. But we think our gross margin -- our gross margin level is higher than the overall industry number. And also the numbers we have indicated through our -- either historical number -- historical financials and in the 2026 guidance, they are pre -- they are pre the 45x, meaning the $0.07, 45x supposed to receive from -- for our manufacturing are actually not taken into account in the guidance or in the historical financials. Amit Dayal: Yes, that was I was going to ask about the credits in the U.S. market. So for 2026, will you potentially be receiving credits for the at capacity or potentially 2 gigawatts capacity? Just any color on that would be helpful. Simon Shi: Sure. Actually, we are running cautious on giving out the guidance for our Houston production. As mentioned, we are currently running -- sorry, 1 gigawatt capacity over there. And we are hoping to achieve at least 60% to 70% utilization of the capacity in Houston based on the current nameplate capacity. And the additional 1 gigawatt, as mentioned by our CEO, this is a new investment plan that's happening in progress in our Houston facility. Now we are hoping to see a pilot production for the extra 1 gigawatt from third quarter or latest the fourth quarter of this year. So that could be an actual contribution to the delivery from Houston. However, we are not taking that into account for our guidance for the moment. Amit Dayal: Okay. Understood. And just maybe last one for me. Will you be sort of hosting quarterly earnings call going forward? Or will this be sort of every 6 months? How should investors think about sort of reporting and just engagement with the investor community going forward now that the business is most sums in place to provide a little bit more comment to investors more frequently, I guess? Simon Shi: Yes, sure. Thanks. That's very helpful. Yes, Amit, the short answer is, yes, we are planning to report quarterly from this year. So hopefully, we can get our first quarter number released May of this year. And on a going forward basis, where we will continue to report quarterly starting from this year. Operator: We have no further questions at this time. Crocker, I'd like to turn the conference back over to you. Crocker Coulson: Yes. Let's just give one more chance for people to ask questions, operator. And then if we don't have further, I'll wrap it up. Operator: Absolutely. [Operator Instructions]. We have no questions -- and we have no questions. Crocker Coulson: Great. Thanks, Christa. So we appreciate everyone taking the time to join us on the call today. As you can tell, the whole team is very excited about what's ahead for TOYO in 2026 and in the years beyond. We're also thrilled to have a strengthened management team going into this year with Rhone Resch joining us, and he'll be based primarily in the U.S. So we will be more available to meet with investors going forward. If you have questions you'd like to ask that you didn't have a chance to get to on this call, please reach out to me, and I'm happy to either respond or arrange a follow-up call with management or a visit next time that we have a future trip to the U.S. Thank you, everyone, and have a fantastic day. Operator: Ladies and gentlemen, this does conclude today's call. Thank you for joining, and you may now disconnect.
Operator: Good day, and welcome to the Bitfarms Fiscal 2025 Conference Call. [Operator Instructions] Please note, this call is being recorded. I would like to turn the call over to Jennifer Drew-Bear from Bitfarms Investor Relations. Please go ahead. Jennifer Drew-Bear: Thank you, and welcome to Bitfarms Fiscal Year 2025 Conference Call. With me on the call today are Ben Gagnon, Chief Executive Officer and Director; and Jonathan Mir, Chief Financial Officer. Before we begin, please note this call is being webcast with an accompanying slide presentation. Today's press release and our presentation can be accessed on our website under the Investors section. Turning to Slide 2. I'd like to remind everyone that certain forward-looking statements will be made during the call, and that future results could differ from those implied in this statement. The forward-looking information is based on certain assumptions and is subject to risks and uncertainties. And I invite you to consult Bitfarms 10-K for a complete list. Also, please note that references will be made to certain non-GAAP financial measures, and therefore, may not be comparable to similar measures presented by other companies. We invite listeners to refer to today's press release and our 10-K for definitions of the aforementioned non-GAAP measures and their reconciliations to GAAP measures. Please note that all financial references are denominated in U.S. dollars, unless always noted. And now turning to Slide 3. It is my pleasure to turn over the call to Ben Gagnon, Director and Chief Executive Officer. Ben, the floor is yours. Ben Gagnon: Good morning, everyone, and welcome to our fiscal year 2025 earnings call. In 2025, we made a bold decision to walk away from our legacy business, Bitcoin, and build the infrastructure in North America for what comes next, HPC and AI. It was a year of deliberate and consequential transformation with a clear mandate. Secure North American pipeline, strengthen our balance sheet, accelerate site development, and position ourselves to engage customers from a place of operational momentum at the peak of the energy bottleneck constraining the growth of AI. I can say with confidence and pride that we accomplished exactly what we set out to do. The foundation you see today, the capital structure, the sites, the team, the strategy was engineered through deliberate choices, developed with discipline and built to propel us forward. We made foundational changes to reposition the business and made 100% of our focus on North American HPC infrastructure development. No half measures, no compromises and in time, no Bitcoin. We built a new company. And while we are presenting as Bitfarms today, tomorrow marks our beginning as Keel infrastructure. The name says it all. A Keel is the bottom of structural component of a vessel. It's what keeps it stable and moving forward in the right direction regardless of the condition above the water line. It is structural, it is essential, and it is exactly how we see our role in the HPC and infrastructure landscape. We are not here to compete with hyperscalers or neoclouds. We are here to enable them. Our focus is providing the critical and largely invisible foundation that will allow the world's most advanced AI platform to deploy on time and scale without interruption. We expect to close the re-domiciliation and finalize our rebranding efforts tomorrow, April 1, and we'll begin trading under the ticker KEEL, 2 business days after completion of the transaction on the Nasdaq and the TSX. We are entering this new phase from a position of strength. With over 2 gigawatts in our pipeline, Keel is a regional leader with some of the largest power land portfolios in some of the highest demand markets in North America and with robust financial strength to execute against our plan. Our current liquidity is far in excess of the CapEx budgeted to get us through permitting and ultimately to start signing leases, giving the company significant financial flexibility to execute on our strategy. And our strategy is equally as clear. We are designing all of our site and campus developments as either powered shell or co-location facilities. We believe this is where we can deliver the most value to shareholders and serve our potential customers at the speed and to the specifications they need. We were originally exploring in parallel to co-location the potential benefits of pursuing a small amount of GPU as a service at our Washington site, Moses Lake, where due to the lowest cost power for data centers in the country and a relatively smaller footprint, we believe it could be an avenue to drive additional shareholder value. Since our last quarterly call, we have spoken with an increased volume of potential customers. And it's clear from those conversations, the most accretive business model for the site is one of co-location. This is not specific to Moses Lake and applies to all of our other sites as well, where demand is even higher. So we will focus on what we do best, being an infrastructure developer and owner. This plays directly to our core competencies. We are a team of developers united by disciplined action, building cost-effective institutional-grade infrastructure at the pace our customers require. The same capabilities have built our energy platform, speed to market, capital discipline, operational rigor precisely what HPC and AI deployments demand today. This is just the natural extension of what we do best. So with all the pieces in place and with the overwhelming support of our shareholders who voted over 99% in favor of the HPC and AI pivot, the U.S. redomicile and the rebrand. Starting tomorrow, we are Keel infrastructure. Turning to Slide 4. When we sat on our pivot, we developed a 3-year transformation plan, one that as of today, we are nearly halfway through completing. In 2025, we did the intensive foundational work for our transformation, including the Stronghold acquisition, securing more power in Pennsylvania, rebalancing the portfolio to North America, a $588 million raise fully institutional and oversubscribed, our U.S. GAAP transition, New York headquarters and establishing a new executive team. This work is done. With power and land secured in some of the power markets that matter most, a team of internal experts and strategic partners that have built data centers for the largest companies in the world and a balance sheet engineered to see us through 2026, we are well positioned to continue our site development and deliver against the time lines, our prospective hyperscalers and neocloud customers need. 2026 is all about execution. Effective tomorrow, we will have completed our redomiciliation to the United States and officially rebranded as Keel infrastructure. Two major milestones that position the company for the next phase of growth. With that complete, we expect the next significant milestones to come from executing against our development at Panther Creek, Sharon and Moses Lake, where we are moving full steam ahead and working diligently across three simultaneous and active work streams. One, finalizing permits, which we expect to be done in the coming months. Two, continued work on architecture and engineering in line with ongoing customer conversations and requirements. And of course, three, our go-to-market to secure highly financeable leases with investment-grade tenants. Commercialization is well underway. The upcoming milestones investors can expect are completion of preconstruction activities like permitting, progress in customer engagement and ultimately lease execution, which we are confident we can achieve this year and will be major catalysts. 2026 is also the year where we expect to leave Bitcoin and Bitcoin mining behind. While we were probably one of the first miners to commence wind down of our Bitcoin mining exposure to reinvest that capital into infrastructure for HPC and AI, we will be accelerating those efforts in 2026 as site developments progress. 2027 is all about delivery. This is the year when we anticipate that sites would come online, we'd begin delivering megawatts to customers, HPC and AI revenue really begins and we complete our transition to a premier North American HPC and AI infrastructure company. By the end of 2027, we expect Keel will be a proven infrastructure developer and a regional leader across Pennsylvania, Washington and Quebec, and we will just continue to grow and scale from there in 2028 and beyond to over 2 gigawatts as we execute against our expansion capacity. Turning to Slide 5. In HPC infrastructure, power, location and time lines are everything. We hold something scarce and valuable secured power, land and expansion capacity in Pennsylvania, Washington State and Quebec. Some of the most in-demand markets with some of the biggest barriers to entry. We know it and so do our potential tenants. Our campuses offer solutions to hyperscalers and neocloud's greatest scaling problems, location, proximity and fiber connectivity to major metro areas and data center clusters solving for latency issues and giving our tenants proximity to their own customers and other data centers. Time lines. Our robust secured power for '26, '27 and with expansion capacity in 2028 is highly coveted in an environment where energy capacity is hard to find and multiyear waitlists are the norms. We create value for tenants by enabling them to deploy years earlier by leasing from us rather than to invest in growing organically. An energy-efficient cool climate, the lower the PUE, the more critical megawatts. Panther Creek is a great example of seeing the hyperscaler and neocloud's appetite at play. While there is a lot of interest in the site last year, inbound customer activity surged after we secured zoning in February. This is not a coincidence. It is the proof point and one that we've been making for the last year, but may still be confusing to some investors. So we'd like to be clear that investment-grade tenants value derisk sites where they can move from lease to revenue fast. The more we advance, the better our leverage. The better our leverage, the better the leases, and the more long-term value we create for shareholders. Turning to Slide 6. It is indisputable that power is the binding constraint for AI infrastructure deployment and will remain so for the coming years. Leading investment banks, Goldman Sachs, JPMorgan, Wells Fargo, Guggenheim, Moelis, they've all published extensively on this. And the consensus is clear. New power generation cannot come online fast enough to meet AI demand today, tomorrow or in the next 5 years. This bottleneck is structural, not cyclical. Hyperscalers and neoclouds that used to plan on 12-month horizons are now locking in 24- to 36-month supply chain commitments. Not tied to specific projects, but as platform level agreements and are now actively competing for the power and land to deploy it. While you are probably familiar with this information, here you can see a summary of the five development sites. The power we have secured and in some cases, the incremental power opportunities that make up our 2.2 gigawatt pipeline. Turning to Slide 7. I want to take a moment to put our current valuation context because there is a meaningful disconnect between where we trade today and the value we are positioned to capture as a company. When we analyze our current valuation against our peers, the picture becomes clear, at approximately $1.9 million per available megawatt of secure 2027 capacity, we're trading in the middle of a Bitcoin miner Group, valued at roughly $1.7 million to $2.1 million for 2027 megawatt meaning we are being valued based on having power but not what we are doing with it. For shareholders and bondholders, we see three distinct catalysts, each capable of driving meaningful reratings. The first is obviously lease execution. Across our sector, companies that have signed leases trade at $4 million to $6 million per 27 megawatts, a 2 to 3x premium to where we are today. This is the market's consistent signal driven entirely by lease execution, not facility delivery, not revenue generation, just signed leases. A signed lease secures revenue and financing derisking the developments. The market pays for that with nearly 500 megawatts actively being commercialized today and visibility on permitting across Panther Creek, Sharon and Moses lake, this catalyst is well within reach. The second catalyst and arguably the most powerful for long-term holders is securing our expansion capacity. 2/3 of our 2.2 gigawatt portfolio or approximately 1.5 gigawatts is expansion capacity, which we believe the market is assigning little to no value. While securing these megawatts is a process that will take more time, we believe additional megawatts can be secured in the second half of 2026 requiring very little CapEx while representing significant embedded value as powered land even before a lease is signed or there is a shovel in the ground. The third catalyst is delivering in 2027. Once facilities are derisked through commissioning and begin generating revenue under long-term contracts, the development risk should drop dramatically and the operator valuation numbers become transformational yet again. We are not taking a leap of faith on technology, our ability to see our power or market demand. The tech is here. The power is secured, the sites are advancing, the inbound demand is real, but the market has not yet priced in is the transformation that happens when a developer becomes a counterparty when we move from site advancing to lease executing. This is the main opportunity ahead of us to accelerate permitting, execute leases, secure our expansion capacity and ultimately deliver to our customers. This is how we will create value for our shareholders and bondholders. Turning to Slide 8. Our execution plan is defined by six areas, each supporting our ability to deliver at the pace and scale our future customers require. First, we've secured our deep bench of talent by adding over 60 years of infrastructure and development in over 50 years of data center construction experience combined in just the past few months. People have delivered at scale for the most demanding customers in the world. Jonathan Mir joined as CFO, bringing 25 years of energy infrastructure strategy and project finance expertise. We have also added an SVP of construction and of power, a VP of HPC Operations and Head of permitting to oversee the execution of these critical functions. We've assembled the right team to execute on our vision. Second, we are engaging the right industry leaders as partners, T5, Turner Construction, Corgan, [ WWT ], Vertiv. These firms have built data centers for the world's largest hyperscalers not once but hundreds of times. When customers look at our project partners, which will be available on the new website when it launches tomorrow, they will see that we have also assembled the right partners to ensure better outcomes. Third, we have the capital required to bring our sites to market. As of March 27, 2026, our liquidity stands at $520 million in cash and Bitcoin, which we expect is much more than the CapEx budgeted to get us to a lease at Panther Creek, Sharon and Washington. Jonathan will go into more detail on our capital position and financing strategy shortly, but the headline is simple. We're well funded and can move fast. Fourth, a disciplined Bitcoin exit. It is clear we are no longer a Bitcoin miner. However, with strong, robust liquidity, we can have a disciplined approach to our exit strategy. We will continue to operate up until the time sites need to be prepared for construction maximizing free cash flow before selling the miners. We will also opportunistically sell Bitcoin into strength to capture and reinvest every dollar we can into HPC and AI infrastructure. Fifth, power assets that cannot be replicated. Our megawatts sit in regions with large barriers to entry, Pennsylvania, Washington State and Quebec, all have multiple year waitlists. No one is cutting the line. Our 350 megawatts at Panther Creek, 110 megawatts at Sharon and 18 megawatts in Washington were secured before the AI demand wave made these markets highly coveted. This isn't power others can easily replicate giving us competitive edge with high-quality tenants to understand these markets and are hungry for assets like ours, which leads us to our sixth point. In this market, speed to power is what drives value. For our customers, the opportunity cost of delayed deployment is huge. So the priority is getting capacity online as quickly as possible. Every day of delay is lost revenue. As a result, power availability and certainty of delivery are the primary drivers of lease economics. This dynamic has pushed lease rates higher since our Q3 call, exactly as we said it would. The opportunity in front of Keel infrastructure is real. We now have the assets and the team is ready. I'm so proud of what we built in 2025, and I'm confident in what we'll deliver in 2026 and 2027. With that, I'll turn the call over to Jonathan. Jonathan Mir: Thanks, Ben. Turning to Slide 9. I joined the team 5 months ago. My focus has been on sharpening our approach to capital allocation, strengthening our balance sheet and capital structure and ensuring the financing actions support long-term shareholder value creation. I've had a front row of the depth of talent, the operational discipline and the strategic momentum across Bitfarms. I work closely with our operations and development teams both to understand the current trajectory of our assets and to ensure our capital plans are aligned with the opportunities ahead. What stood out to me is the extraordinary potential we have driven by the quality and potential of our sites, a strong balance sheet, the best liquidity position in the company's history and a broad team that's both deeply engaged and committed to excellence. We're moving quickly and with purpose. I'm pleased to be here with you today and discuss the progress we're making. I'll use this time to walk through our performance for fiscal year 2025 and outline our current capital strategy that we believe supports the accretive growth we're targeting for 2026 and beyond. Turning to Slide 10. Before discussing our financials for the quarter, I want to briefly frame the results are presented this quarter. As of Q3 2025, the Paso Pe facility in Paraguay has been classified as held for sale. As a result, all revenues, operating costs and asset balances associated with Paso Pe are treated as discontinued operations in our fiscal year 2025 financials. So when I refer to continuing operations, I am speaking exclusively about our North American platform, the foundation of our transition into HPC and AI infrastructure. With that, revenue for fiscal year 2025 was $229 million, up 72% year-over-year. Operating loss for fiscal year 2025 was $150 million including noncash depreciation of $98 million and $28 million of impairment charges. This compares to an operating loss of $28 million in 2024, which included $102 million of noncash depreciation and $4 million of impairment charges. Net loss for 2025 was $209 million or a $0.38 loss per basic and diluted share compared to a 2024 net loss of $7 million or $0.02 loss per basic and diluted share. The differences between 2024 and 2025 were driven by a number of factors, including change in fair market value of digital assets, primarily due to the decline of Bitcoin prices and realization of gains on disposal of Bitcoin during the year. Two additional items also impacted year-over-year comparability. First, we saw a loss of $68 million, reflecting changes in our derivative assets and liabilities. Second, 2025 impairment charges were $25 million higher than in 2024. For the year, our adjusted EBITDA was $29 million compared to $31 million in 2024. Turning to Slide 11. 2025 was a deliberate year of balance sheet optimization and improvement, providing the foundation for our next phase of growth. We successfully issued an oversubscribed $588 million convertible offering, significantly expanding our liquidity. And in February, we repaid the Macquarie debt facility eliminating legacy debt, simplifying our capital structure and freeing the company from covenants. Each of these supports the pursuit of our HPC infrastructure strategy. The Macquarie facility had been originally used to accelerate development at Panther Creek, funding critical project activities, including long lead time item procurement and substation work. Retiring the facility was a strategic decision, strengthens the balance sheet and gives us the flexibility to secure a more cost-effective financing at either the parent or project level. Our current cash position of $520 million provides the runway to advance Panther Creek, Sharon and Moses Lake through lease execution without accessing capital markets. Though we may do so if attractive opportunities arise that improve our ability to deliver the best possible long-term risk-adjusted shareholder returns. Macquarie was an excellent partner, and we appreciate their support so early in our pivot to HPC AI infrastructure. Turning to Slide 12. As we pivot to commercialization of our development sites, we have a clear financial strategy based on three principles. Capital allocation, capital formation and capital structure. Taken together, they are designed to deliver the best possible long-term risk-adjusted shareholder returns. First, capital allocation. We deploy capital into projects where the earnings potential exceeds their weighted average cost of capital. We rotate capital from businesses that are noncore or earning less than optimal returns and deploy the capital into higher return investments. Second, capital formation. Our financing strategy is designed to fund our very large growth opportunities while maintaining the liquidity needed for a stable base of operations. We will be opportunistic in our financing execution. We will fund construction of our data center projects using project or parent level bet and project or parent level equity or equity-linked offerings. We're taking a disciplined approach and at this time, are well capitalized to actively commercialize and execute leases across Panther Creek, Sharon and Washington. Third, capital structure. Our capital structure is designed to capture the best possible long-term risk-adjusted shareholder returns while also retaining overall corporate flexibility and support growth. Our objective is to operate with a deliberate liquidity strategy in order to enable clear-headed commercial decisions and capital allocation decisions rather than having liquidity drive time lines. Stepping back, our road map is clear. We are building a regionally focused high-growth HPC AI infrastructure platform, grounded in disciplined capital allocation, a strengthened balance sheet and a development cadence that maximizes returns and minimizes risk. We're funded through the key derisking stages, permitting and leasing across Moses Lake, Sharon and Panther Creek and we're entering 2026 with momentum, optionality and a balance sheet engineered for growth. We have the right people, assets, liquidity and strategy and we're well positioned to capture for our shareholders the long-term value potential we have today. With that, I'd like to return the call to Ben for closing remarks. Ben Gagnon: Thanks, Jonathan. A little over a year ago, as our team began actively integrating AI into both our business and our daily lives, we came to a realization. This isn't just another technology cycle. It's a paradigm shift. More comparable to the industrial revolution than the Internet revolution. The fundamental measure, productivity capacity is no longer calories or joules, but tokens. This became strikingly clear 2 weeks ago at NVIDIA GTC, where I witnessed hundreds of companies applying AI to everything from straightforward tasks by cleaning and image generation to extraordinary complex applications, including protein folding, cystic simulations and even brain surgery. Walking the conference floor, speaking to the attendees, one thing was unmistakable. We've only begun to scratch the surface of AI's potential. Yet even in these early days, AI is already empowering individuals, communities and companies to accomplish exponentially more. We're witnessing Jevons Paradox unfold simultaneously across every industry, thanks to AI, where improved efficiency can paradoxically drive higher, not lower demand. It is literally never cost less to transform an idea into an action, a product, an image, a refined concept, a service or countless other outlets. The possibilities are truly limitless, and while no one can predict exactly how AI will reshape our future, uncertainty remains. It will require enormous amounts of power. Our 2.2 gigawatts of capacity and strategically position land across Pennsylvania, Washington and Quebec sit directly in the path of this transformation, and we intend to capitalize on that opportunity for our shareholders. We look forward to the opportunities ahead. With that, I would like to open the call to Q&A. Operator, please go ahead. Operator: [Operator Instructions] And our first question comes from Mike Grondahl with Northland. Mike Grondahl: First question, Ben, you talked about your decision not to go the GPU rental route at Moses Creek. And just the colocation route, could you talk a little about what a couple of the major drivers were that got you to that decision? Ben Gagnon: Yes, it's a great question, Mike. When we first started talking about in Q3, we were always evaluating this alongside with the colocation. We're trying to maximize the value for shareholders. So we're always going to evaluate multiple different business models at our sites. And because they have the lowest cost energy and all these other benefits, we thought it would make a lot of sense. But as we've continued to have increasing amounts of customer conversations for Washington and other sites. It was just really clear to us that the best opportunity for us is to just remain a pure-play infrastructure developer and owner and let these customers who really want these megawatts lease these megawatts. Mike Grondahl: Got it. Got it. And then maybe secondly, you articulated, I'll say, a philosophy a quarter or 2 ago about waiting and waiting on signing a lease as terms were continuing to improve kind of implying you're going to be really patient and wait on a lease. Could you kind of update how you're thinking about that lease execution strategy and the potential timing around it? Ben Gagnon: Yes. Our strategy on lease execution has been consistent. It remains consistent today. Our view is that the best way to maximize value for shareholders is to get the best terms in a lease because that's going to be what is going to be driving our NOI and our multiple. And so when we're looking to sign 10- to 15-year agreements, it's really important for us to take the -- maybe a little bit more time than investors may want us to in order to get better terms for longer. When it looks at what is really driving the value in these lease economics, one of the biggest elements is risk, and we've spoken to this multiple times over the last couple of months. And the biggest risk for most of the people -- to go out there and have conversations and get a lot of interest. And in some cases, you could even sign a lease prior to getting permits. But all of that risk is going to be priced into the agreement, you're going to be locked into it for 10 to 15 years, and that's going to negatively impact the long-term value that we're creating for shareholders. So our strategy has been incredibly consistent. And the benefit for us is that we are operating in high demand markets with high barrier to entry. So it takes a little bit longer to get permits going in Pennsylvania or in Washington than it does in Texas, which is the easiest market in the United States for that. But we believe that drives a lot of extra value because it's way more scarce, it's way harder to acquire and there's just not as much optionality. Operator: Our next question comes from Brett Knoblauch with Cantor Fitzgerald. Brett Knoblauch: Maybe to start, could you maybe just go into detail on what permits at what sites you guys are waiting to receive? Ben Gagnon: So permits is a complicated process, and we are develop -- we're getting permits across multiple sites in multiple jurisdictions. So they all have different rules, different regulations, different time lines, different reviews, different authorities. So it's far too much detail to get into exactly what permits are remaining on all the different sites. But we are continuing to make good progress and kind of -- we're looking at the visibility over the next couple of months. And with what we've had so far with the community engagement success that we've had so far, we think that in the coming months, sometime around the mid- to late summer time. we should be achieving the full permitted status across at least one, if not all of the sites. Brett Knoblauch: And then maybe just on the leasing environment across the different sites that you guys have. I guess we were under the impression that maybe Sharon would be first to go given it's relatively further along. Is that still how you guys are thinking about it? And then in the presentation when you guys kind of list the power pipeline and road map. How much of that is from generation on site that you guys are looking into? And do you have any update on where you guys are with respect to sourcing that generation? Ben Gagnon: Yes, sure. So the -- to answer the second part of your question first, all the power that we're talking about developing for our HPC and AI data centers right now is grid connected. So the two operating power plants that we have at Scrubgrass and Panther Creek. Currently, that math is not in those charts for the secured capacity or the site development plans. But in Scrubgrass particular, we are working to expand the generation capacity there with natural gas. So we've been working to tap into the Tennessee Natural Gas Pipeline. We're achieving pretty good results there with the engineering firms. There's still probably another month or two to go before we're getting a clear path forward on the engineering plans. But Scrubgrass is our more of our pipeline site. And so those -- that power generation opportunity is more of a 2028 and 2029 time line. Everything else is grid connected, it's secure today or it's currently active. And sorry, Brett, I'm blanking on the first part of your question, would you mind repeating it? Brett Knoblauch: Yes. Just on maybe the cadence of which sites are -- quicker to go? Ben Gagnon: Yes. So really, that's going to be driven by success on permitting time lines in the customers. So all three of the sites, Moses Lake, Sharon and Panther Creek are all actively in our go-to market right now. Every single one of those has customers engaged under NDA, and they have for quite some time. And so we're continuing to push forward on those conversations and those negotiations. Really, I think what investors should think about with regards to permits, permits are more of a closing condition to a lease, right? They're really not a starting condition to a negotiation. So we have these conversations and these negotiations simultaneously while we're working towards permitting. As permitting gets closer and closer, the negotiations will also get closer and closer in tandem and the first site to get leased is likely to be the first site to be permitted. Operator: Our next question comes from Stephen Glagola with KBW. Stephen Glagola: Just on that last point, if you could clarify the sequencing here between like notice to proceed and lease execution. So in other words, like can you pre-sign leases contingent on notice to proceed? Or is like notice to proceed required before any major customer would commit to a lease? Ben Gagnon: For a customer commit to binding in our view, they're going to want NTP, and that's based on the number of conversations that we are continuing to have and there probably are some customers who would be interested to sign prior to NTP, but those aren't the investment-grade counterparties that we're really seeking to engage with. Stephen Glagola: Okay. And then just one more. How are you thinking about like Vera Rubin hardware availability in '26 and like early '27? And to what extent could that variability in supply influence the timing of lease discussions at your sites? Ben Gagnon: Yes. That's a good question, Stephen. We've been talking about Vera Rubin, I think, since Q3 call because all of our sites are basically coming online in 2027. So we're trying to make sure that they are designed for the highest level of equipment that's coming out in '27 and '28, which is the Vera Rubin. In terms of supply, we haven't seen any impact so far. I understand there's always geopolitical uncertainty in the world that may impact those supply chains. But given that energy is such a huge bottleneck, and it's always been a huge bottleneck on the growth. I don't think that there is going to be a geopolitical situation that's going to make the bottleneck change from energy over to GPUs. So we don't have any expectation right now that, that's going to have any impact on leasing or demand for sites because power is still such an extreme bottleneck. It's hard to imagine what's going to overshadow that geopolitically. Operator: Our next question comes from Michael Donovan with Compass Point. Michael Donovan: Congrats on the progress. Can you provide an update on ESA progress, specifically Panther Creek's ISA to ESA conversion? Ben Gagnon: Yes. So that's a great question, Mike. As investors probably know, we have 350 megawatts secured ESA with PPL. But in addition to that, we also have an ISA that enables us to draw down approximately 60 megawatts from the grid, and that's associated with the existing transmission line and substation for the power plant that we currently have operating. In order to get that converted over, it's really more of a regulatory matter. And so it's hard to put an exact time line as to when those stamps are going to be received, but there's no infrastructure that needs to be built. There's no CapEx that needs to be spent. Really, it's just a matter of getting the regulatory approval to convert a nonfirm service into a firm service, and that would enable us to increase our capacity beyond 350 megawatts to what we probably expect is going to be maybe 400 megawatts or possibly slightly more. We expect this is going to happen this year, but it's hard to put an exact time line on it, given it's a regulatory matter. Operator: Our next question comes from Brian Kinstlinger with AGP. Brian Kinstlinger: Last quarter, Ben, you communicated, you expected the GPU as a service and Moses Lake site would be targeted for, I believe, the first quarter for go-live. How are you shifting to co-location change the timing if at all? And my second question is, can you talk about also how the global memory shortage is impacting your site development or changing your near-term needs or planning for lead times? Ben Gagnon: Yes. So two parts to that question. In terms of switching from a GPU as a service to co-location just changing the business model doesn't really impact the development time line. So we don't really see any delay there associated with changing from GPU as a service, just to co-location. Really, it's just a matter of how we want to allocate our capital and how we want to focus the business. When it comes to the memory shortage. As a pure-play infrastructure developer and owner that really is not coming into our calculus very much, mostly that's a customer situation for them to resolve with their own supply chain because we're not the ones investing in the GPUs and the compute and the servers. Operator: Our next question comes from Martin Toner with ATB Cormark Capital Markets. Martin Toner: Good morning. Can you guys elaborate or [indiscernible] can you kind of give us some time line thoughts there? Ben Gagnon: So I'm going to repeat the question because it was a little quiet, just in case nobody else or other people had difficulty hearing. I believe the question was, can you give some time lines as to how we might be able to expand Panther Creek to 500 megawatts and beyond? So in order for us to move beyond the 350-megawatt ESA that we have secured, there's really two sources for expansion. The first is converting over that ISA from non-firm service to firm service that I just spoke to a minute ago. And that's really a regulatory matter that we expect to be resolved sometime this year. It could be tomorrow, it could be a few months from now. And then when it comes to expanding beyond that, what we have to do with that is we have to actually have new power applications. The good thing here is that the utilities are actually looking to invest in new generation in the area. So in this particular instance, and we weren't actually applying for new power. We actually have the utility call us and ask us how much more power we could take on site. Given the bottleneck constraint on power, that was obviously a very welcome call over here at Bitfarms to receive. And it's a pretty unusual one in the industry, but they're looking to scale up generation capacity in the area, specifically to service our site at greater capacity. So this is probably going to be 2 to 3 years time line because there's a lot of process involved with spinning up new generation and building those new transmission lines. But for a lot of our customers, what they really want is the fastest pathway to energization and a clear path to scale over multiple years. And so this really lines up with what the hyperscalers and what the neoclouds are searching for. Martin Toner: That's great. Hopefully, you can hear me better. Can you clarify when you expect to sign your first lease? Ben Gagnon: So I can't get into a specific time line. But in terms of milestones, as I spoke to earlier, it's really about clearing NTP as kind of the last closing condition or last milestone for us to sign a lease. So I think for the investors and the analysts on the call, the important thing to keep track of, especially over the next coming months is the continued progress that we have towards NTP because once NTP is clear, that's basically the last thing standing between us and a signed agreement. Martin Toner: Got it. Great. And last one from me. Can you talk a little bit about why mining exahash in Q4 was at the level that it was at? Ben Gagnon: So we continue to scale back our mining exposure as we continue to focus on our U.S. HPC infrastructure investments. So we haven't made any investments into Bitcoin mining. We're not spending any money on upgrades or new miners, and we're actively working to scale down the fleet and actively working to spin off assets like we have in Paraguay that are not suitable for conversion. So investors should continue to expect our hash rate to continue to trickle down over 2026 as we continue to execute on this transition to HPC and AI. Operator: Our next question comes from Mike Colonnese with H.C. Wainwright & Company. Michael Colonnese: So, Ben, I'm just curious, after securing the remaining permits across the three sites, which sounds like likely to take place in the coming months here, what does the time line look like from a data center construction and delivery standpoint? It sounds like you're pretty optimistic that revenue generation could commence as soon as next year, but any additional color there would be helpful. Ben Gagnon: Yes. I mean, really, this is the year of execution in 2027 is the year of delivery. And so at all three of our projects that we talked about today, Panther Creek, Sharon and Washington, we all expect them to come online and start delivering megawatts and start generating revenue to customers in 2027. We'll continue to provide updates as we go along. And I think once we have cleared NTP and we have signed leases, there's going to be a lot clear visibility that we can provide to investors for each specific project and their specific time lines. Michael Colonnese: Got it. And then back to Bitcoin mining operations, it sounds like you're progressively going to be scaling back hash rate as you bring some of the HPC AI data centers online. I guess what's the best way to think about hash coming offline and kind of flowing through your operating results over the near term here? Ben Gagnon: I'll speak to it at a high level and then maybe I'll pass it off to Jonathan for some further clarity. But right now, the Bitcoin mining remains profitable, but it's not it's not very -- it's marginal. So it's still contributing to the business. But really, it's not the focus of the business. It's not where we're investing our time, it's not where we're investing our efforts. And given that we have been so successful last year in raising capital and strengthening our balance sheet. It's really not super impactful for the developments that we have this year, the operations or the CapEx. So we'll just continue to scale that down, trying to maximize value in the disciplined exit. If it makes more sense to maybe sell some miners a little bit earlier then we might need to in order to begin instruction, we'll evaluate that as we will always do to maximize value for our shareholders. But really, we kind of see this as a pretty minor element of our balance sheet and a minor element of the financial plan for this year. Jonathan, do you want to add anything further? Jonathan Mir: Only that when we think about our liquidity going forward, the strategic objective is to ensure we are well capitalized through the lease process and beyond without the need to raise any new capital in the markets and that takes into account the current state of Bitcoin mining operations. It's not assuming any improvement in the economics there. So our plan is built on conservative assumptions around the status of the Bitcoin market. Operator: Our next question comes from Nick Giles with B. Riley Securities. Nick Giles: Good morning, Keel team. In the interim period where Bitcoin mining operations are wound down, but kind of pre-revenue generation on the HPC side, could the generating assets at Panther Creek and Scrubgrass be utilized in any way such as the PJM capacity auction? Ben Gagnon: So those power plants do actually participate in PJM capacity auctions. We've done that for quite some time. And so we do benefit from the capacity payments that we received there. Nick Giles: Got it. Okay. And any order of magnitude of what those could be kind of in the 2026 planning year? Ben Gagnon: So I mean, really, it's -- we've kind of maxed out on the capacity auction payments. They set a ceiling, and that's where the capacity auction payments closed. Nick Giles: Got it. Understood. Maybe one for Jonathan. You've made some progress on the capital structure, but just was hoping for any additional comments you might have on what you're looking for in an initial debt package, how you're seeing term shift and kind of what tools you have at your disposal during construction and kind of post energization. Jonathan Mir: Good question. Thanks, Nick. So our basic approach is to compare and contrast our financing options down at the asset level and upstairs at the parent level. And certainly, one of the things that we've seen in the market that has caught our attention like everyone else, is the tightening of spreads between folks issuing high-yield debt in the market that would seem like quite attractive levels for strong investment-grade counterparties or credit wraps. And those converging towards the levels seen in bank-originated classic construction of project financing. So we'll be -- each of those has its own advantages in terms of simplicity of managing the actual capital once it's raised versus negative carry costs. And as we get closer to a funding point, we'll make the decision as to what seems best for our shareholders in terms of how we decide to finance. I'm sorry, Nick, I was just going to say that the markets for our space and for infrastructure generally seem calm right now. Operator: Our next question comes from Brian Dobson with Clear Street. Gregory Pendy: It's Greg Pendy in for Brian Dobson. Just I guess one final one. Just I guess, one final one. Just on the redomiciling to the U.S., are there any implications to costs or structural implications in terms of ownership that we should be aware of as you enter this over the next couple of days? Ben Gagnon: One of the benefits and reasons for the redom is that we will now be eligible for inclusion in indices that require -- want to be a U.S. domiciled company. So for example, we'll be eligible for inclusion in the Russell 1000 and the Russell 3000 as well as for ownership in any other fund who was otherwise limited to the purchase of U.S. securities. We view that as being quite helpful in terms of moving our shareholder base to one that is institutional and long term. There are no other -- there are no cost or flexibility implications in our end. We simply see this as a nice path forward with a lot of benefits for our shareholders. Operator: Our next question comes from Bill Papanastasiou with Chardan Capital Markets. Bill Papanastasiou: Just wanted to touch on the Washington side and decision to shift towards colo. Can you confirm that this won't have any material impact on the purchase commitment that was entered into November? Or is the team considering the shift in development allocation to other sites? Ben Gagnon: Thanks, Bill. No impact on the capital commitments and the equipment we've already purchased for the Washington site by changing business models. In fact, actually, it just helps to reduce the CapEx because we're no longer paying for the compute. Bill Papanastasiou: Understood. And then how should we generally be thinking about maintenance CapEx on existing Bitcoin mining sites as you gradually shift over to AI HPC here? Ben Gagnon: We're not making any investments into the Bitcoin mining sites. Basically, we're just continuing to keep them up and running. And so no further investments are being made in the sites into new sites or into new miners. Operator: Thank you. This concludes the question-and-answer session. I'd like to turn the call back over to Ben Gagnon for closing remarks. Ben Gagnon: Thank you very much, everyone, for joining our call today and really look forward to speaking to you next time as Keel Infrastructure. Have a great day. Operator: Thank you for your participation. This does conclude the program. You may now disconnect.
Operator: Good morning, and welcome to JBS Fourth Quarter and the Year of 2025 Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. Any statements eventually made during this conference call in connection with the company's business outlook, projections, operating and financial targets and potential growth should be understood as merely forecast based on the company's management expectations in relation to the future of JBS. Such expectations are highly dependent on the industry and market conditions, and therefore, are subject to change. Present with us today, Gilberto Tomazoni, Global CEO of JBS; Guilherme Cavalcanti, Global CFO of JBS; Wesley Batista Filho, CEO of JBS USA; and Christiane Assis, Investor Relations Director. Now I'll turn the conference over to Gilberto Tomazoni,, Global CEO of JBS. Mr. Tomazoni, you may begin your presentation. Gilberto Tomazoni: Good morning, everyone. Thank you for joining us today. We closed 2025 with a consistent performance and our continued progress in building a stronger, more efficient company. In the fourth quarter, we recorded a revenue of $23 billion with an EBITDA margin of 17.4%. For the full year, revenue reached $8 billion, a company record with a consolidated EBITDA margin of 7.9%. This scale and the diversity of our multi-protein and multi-geography platform remain our greatest strength, allowing JBS to navigate industry cycles or any disruption while capturing structural growth in protein demand. In both the fourth quarter and the full year, JBS delivered record sales with positive consolidated results, reflecting the resiliency of our global platform. Net income totaled $415 million in the quarter and the $2 billion for the year, representing year-over-year growth of 15%, earnings per share of $1.89 per year. Free cash flow was $990 million in the quarter and $400 million for the year. Return on equity reached 25%, and the return on investment capital was 70%. Our leverage ratio at the end of the fourth quarter was 2.39x in line with our long-term target. We also maintained a very strong debt profile with an average debt maturity of approximately 15 years and average cost of the debt of around 5.7%. No significant maturity in the short term. These strong results reflect our consistent performance in a year marked by a challenging environment in some global protein markets. In the United States, the cattle cycle remains under pressure with a limited supply and high cost. This is expected to continue in the coming quarters. Despite this environment in U.S. beef sector, our global results remained positive reflecting the resilience of our diversifying platforms. Australia was one of the highlights of the year. With a strong EBITDA growth and margin expansion as well as the top line growth of 30% year-over-year in the fourth quarter. Our Australian business benefit from the currently imbalance between global supply and demand of beef. Combining with a strong execution and support solid profitability and reinforce the role of region in balancing our global results. In Brazil, the beef business operates with a historical margin range supported by strong export and steady domestic demand. The fourth quarter was particularly strong with the top line sales growing 26% year-over-year. At the same time, livestock productivity continued to improve. Country recorded highest beef processing volume in its history at around 42 million heads. This reflect a total gain in production and reinforce and Brazil growing role in a global supply. In this context, Friboi delivered solid results. with growth in both export and domestic sales volume increase in key international markets, including Mexico, Europe and United States. While the business also strengthened its presence in Brazil, programs such as Friboi+ continues to deepen client relationship and support growth in the domestic market. At Seara, we continue to advance our strategy and strengthening brands and expanding high value-added products. In recent years, Seara has expanded its portfolio entering new categories and strengthen in connection with the consumers. The business is now one of its strong moment in brand perception supported by innovation, execution, a more differentiated product mix. In the United States, our chicken business continued to benefit from the strong demand in both retail and food service. Pilgrim's delivered volume growth above the industry average in segments such as case ready and the small bird. The big birds segment also improved performance through better yields, mix and cost efficiency. Brand diversification continues to progress and Just Bare surpassed $1 billion in retail sales reflecting the strength of our brand strategy and the significant opportunity we see to capture further growth across our modern high-value prepared foods portfolio. In U.S. Pork business, performance remained stable, and the business closed the year with solid margins, supported by disciplined operation and balance supply and demand. Also, in 2025, we completed the dual-listed process, a milestone at the company's history and became a nice listed company and strengthened our capital market position. Since then, we have seen a clear improvement in how the market values the company. Our trading multiply and expanded reflect greater visibility and investor confidence although we still trade at a discount to our global peers. Liquidity also has increased significantly with average trading volume up approximately 3x compared to the prior listing levels. At the same time, our shareholder base has become more global and diversified. U.S.-based investors now represent nearly 70% of the company free float. Overall, this change reinforced our position in global capital market and support the next phase of growth. Global protein consumption continues to grow, supported by demographic health awareness and demand for balanced diets. JBS is well positioned to meet this demand across markets and channels. Our structure remains clear. We will continue to strengthen our brand, expand our value-added portfolio and develop solutions that make protein more accessible and more convenient everyday life. Thank you again for joining us today. And now I will turn the call over to Guilherme, who will walk through our financial results in more detail. Guilherme Cavalcanti: Thank you, Tomazoni. To the operational and financial highlights of the fourth quarter and fiscal year of 2025. Net sales reached a record of $23 billion in the quarter and $86 billion in 2025. Adjusted EBITDA in IFRS totaled $1.7 billion, which represents a margin of 7.4% in the quarter and $6.8 billion in 2025 with a margin of 7.9%. Adjusted EBITDA in U.S. GAAP totaled $1.5 billion which represents a margin of 6.5% in the quarter and $5.8 billion in 2025 with a margin of 6.7%. Adjusted operating income was $1.1 billion with a margin of 4.7% in IFRS and 4.8% in U.S. GAAP in the fourth quarter. In 2025, adjusted operating income was $4.5 billion in IFRS with a margin of 5.2% and $4.4 billion in U.S. GAAP with a margin of 5.1%. Net income was $415 million in the quarter and an earnings per share of $0.39. For the year, net income was $2 billion and earnings per share of $1.89. Excluding the nonrecurring items, adjusted net income would be $500 million and earnings per share of $0.47 in the quarter and for 2025, $2.2 billion with an earnings per share of $2.10. Finally, return on equity was 25% and return on invested capital was 17%. Free cash flow in fourth quarter 2025 reached $990 million compared to $906 million in the fourth quarter 2024. The main positive drivers were related to the deferred livestock, particularly in U.S. and inventories, reflecting strong revenue growth during the period. Despite an $850 million in working capital consumption in 2025 the cash conversion cycle remained resilient and in line with prior year's levels. For the full year, free cash flow totaled $400 million. When we visited free cash flow breakeven, IFRS EBITDA exercise for 2025, the initial estimate EBITDA to a breakeven level was around $6 billion. However, considering the actual results, the EBITDA breakeven would be approximately $300 million lower. The main difference came from working capital, as mentioned earlier, mainly reflecting the deferred livestock effect and a decrease in inventories. On the other hand, CapEx came in about $100 million above estimates as we executed $1.1 billion in expansion CapEx during the period. We also saw a higher number of biological assets, largely driven by the increasing livestock volumes and prices, while the remaining items came in broadly in line with our estimates. Finally, the higher cash tax paid in 2025 were mainly related to the tax payments associated with the results of 2024. For 2026 and for the purpose of the EBITDA cash flow breakeven exercise, we can assume capital expenditures of $2.4 billion of which $1.3 billion is for expansion and $1.1 billion is for maintenance, interest expenses of $1.15 billion and leasing expenses of $500 million in a consolidated effective tax rate of 25%. Just to highlight, it is still too early to estimate the variation in working capital and biological assets as there are many factors beyond our control. such as grain and lifestyle prices. However, if you consider the same amount of working capital consumption in biological assets of 2025, EBITDA cash flow breakeven would be $5.7 billion, in line with 2025 numbers mentioned above. On Page 24, we present our historical free cash flow breakdown to help analyst forecast. Our leverage ended the year at 2.39x, in line with our long-term target of keeping net debt to EBITDA between 2 and 3x. In 2025, we also strengthened our balance sheet by extending our debt maturity profile, reaching an average debt term of approximately 15 years and an average cost of 5.7%. We have no significant debt maturities until 2031. The coupons of our debt are below treasury until and including 2032 maturities with 32% of our gross debt maturing beyond 2052 and approximately 90% of the total debt is at fixed rates. It's worth mentioning that despite the 8% increase in net debt in the last 3 years, net financial expenses remained at the $1.1 billion per year. Our $3.5 billion in revolving credit lines and $4.8 billion in available cash provides us the flexibility to continue executing our expansion CapEx, value creation products and shareholder returns while maintaining a healthy and robust balance sheet. For this reason and given our strong cash position and leverage, we announced last night, the payment of $1 per share in dividends to be paid in June 17. With that in mind, I would like to turn the operator for a question-and-answer session. Operator: [Operator Instructions] We have our first question from Lucas Ferreira with JPMorgan. Mr. Ferreira, you may go ahead. Lucas Ferreira: I have 2. The first one, if you can give us an update on the business environment for PPC, especially in the U.S., but there were some renovation works at the Russellville plant wondering if those are completed. If operations remain fine, if this could be an issue at all for the quarter as well as any update you see in the market regarding crisis. It seems that we are in an environment of a bit more supply than the first quarter of last year. So if you see how robust is the market and how balanced the market today? And the second question is on the U.S. beef operations. We saw a pretty steep recovery in beef spreads over the last few weeks. So to what you attribute this, obviously, demand remains strong, but there have been some capacity rationalizations in the industry. Any updates on the Greeley situation will also be welcome with regards of what -- how that impacts your business and how you see the market for U.S. beef for now? Gilberto Tomazoni: Lucas, thank you for your question. And I will start here to talk about update in terms of Pilgrim's and after that, Wesley will give us the perspective of beef in U.S. As you mentioned before, we completed the transformation of 3 plants of Pilgrim's already completed it. One, we transformed from big bird to case ready because we have a strong demand in the retails, and this strategy will support the retail growth of the demand of chicken. In the other 2 plants, in reality is not a transformation. It's adequate to produce the raw material for our prepared business. Before we sell -- we sell the breast to the market because we are not able to deliver the appropriate cuts that our prepared food needs. Now we invest in machines and we are not need to sell and buy and rebuy the raw material. Now we deliver direct to our prepared business. This, of course, we catch the margin of the third party I think and we are keep best quality and be able to react quickly in case of the increasing demand. And I understood that as a second point that you mentioned about supply/demand. I can say to you, the demand for chicken meat in U.S. is not just in U.S. It's a global demand is very high across all the chains. And if you take in consideration in U.S. the chicken placement in the beginning of the year, grew around 3% and the price of chicken breast increased in the market. But this shows that a balance in supply and demand because we increased 3%, the placement of chicken and at the price of the breast increased. And if you -- USDA forecast for this year is that it will be 2% growth in chicken supply. If we grow 3% in the price market increase, we can anticipate if the forecast 2% will be a very good year for Pilgrim's in U.S. I think this is 2 components. The verticalization of our raw material production, we get more margins in prepared. In the growth of our prepared business in Pilgrim's Just Bare have a strong demand and we are investing in new factories. We see that this year will be a good year for Pilgrims. Wesley Mendonça Filho: Lucas, fourth quarter was a pretty good quarter given the market conditions on the beef side. It's common knowledge that given the market data that first -- at the beginning here of the first quarter has been really tough, really, really difficult, very challenging. Probably the most challenge we've seen in this industry in a very long time. I don't know if there is any other time that we had such, actually a negative spread for January and February ever. And it seems now that current data shows that March is showing that it's going to be a little bit -- it's going to become better, sharply better than where we were from January and February. But let's see what comes out of that. When we are -- one of the things that has happened in this scenario that we have very low cattle availability and very low processing volumes is that the market has become more volatile than we're used to in this market. You see big fluctuations in cutout, big fluctuations in cattle, more so than what we're used to. So that's just an effect of having such a small volume. If you -- if the volume is a little bit higher, it has a big impact and it's become a little bit more volatile. When it comes to the striking really, it's very difficult to forecast how that a strike would go on. We have a very good deal in front of that local. We actually just did a national deal with 14 other unions in red meat -- 14 other locals from the same union in red meat, and it's a historic union company deal. We have a variable pension plan. That's the first time in forever that the industry has brought back pension, something like that for people when they retire for our team members. So we have a very good deal, actually, even -- I think I would say it's probably one of the most innovative deals that we've had in a long time in this industry. So let's see. We think that we hope this gets resolved as soon as possible. Operator: Ladies and gentlemen, we have Mr. Gustavo Troyano from Itau would like to ask a question. Gustavo Troyano: My first question is on Seara and related to chicken supply here in Brazil. We acknowledge that discussions on the supply side should always be on a relative basis to demand, which seems quite strong at this point. But just wanted to get your updated thoughts on the balance between chicken supply in Brazil, what to expect going forward as we move into the second quarter of 2026, if you guys are expecting the chicken supply increase to outpace demand in a way that we could see some profitability compression going forward. So that would be the first question. And the second one, still on U.S. beef and a follow-up on the first question actually is, would you say that the current balance between slaughtering capacity in the U.S. and demand and cattle availability will imply some capacity adjustments going forward from other players or even from you guys. So what could you say on further capacity adjustments going forward because cattle availability is restricted right now. So just wanted to get your updated thoughts on that as well. Gilberto Tomazoni: Thank you, Gustavo. Talking about chicken in Brazil and Seara and after that Wesley will complement the answer about beef in U.S. When you chicken in Brazil, the balance between supply and demand for chicken is still not very clear to us. In one hand, we have strong and growing international demand and new cases of poultry farming influenza in several countries with culture that produce as a competitor of Brazil. And this could boost demand even further. The other hand, we have 2% to 3% increase the chick placement up to February. This is as a reasonable limit for growth in Brazil. There is some news that chicken breeder stock has increased. In this scenario, it's difficult to predict the unfolding events if production of exceed market capacity. But in this case the industry, the sector, the industry has many of tools to manage this. For example, we can export more fertile eggs, we can reduce the average age of the breeding stock. We can reduce the weight of the birds among others, means that so far, the market is very balanced in the market, and we see a strong demand in the international market. If -- because if you look for the breeders can increase more the volume domestic market, each industry needs to take its own decisions. But they have a lot of ways to manage of this supply because chicken is not still in the farm. It still place it. It is in the genetic I can say -- I can talk to you about what -- in our side, how we are -- what we are doing. We are focused on strengthening our export leadership. We have -- and enriched our value-add mix in domestic market. I think it's the both strategy we have. We have well positioned in international market and well positioned domestic market, and we are at value and be more innovative in terms of the way that you present the product to the consumers. Wesley Mendonça Filho: Gustavo, on the U.S. beef, this question about capacity adjustments, it's very difficult for me to answer about, especially when it's something that's not related to our business directly, right? So it would be a competitor. It's very difficult for me to respond on that. . It's clear that there is more capacity in the U.S. than there is kind of available in the U.S., not too many years ago, 4 years ago, had processed 33 million head, and now we're going to be below 27 million. So we're around 27 million, sorry. So that itself shows that yes, there is excess capacity. Having said that, it's very difficult for me to respond about something that's regarding other companies. Operator: Our next question comes from Lucas Mussi with Morgan Stanley. Lucas Mussi: My first one is related to Brazil beef in Australia. If you could talk to us a bit about how you're thinking about the export environment in the context of Brazil and also Australia eventually reaching the limit of the export quota to China? How are you thinking about how volumes are going to behave, perhaps in the second half of this year? What are you thinking about your options here and potential impact to the business divisions and the second one, one for Guilherme. If you could share more details on derivative lines on your P&L that went a bit lower this quarter, that would be helpful. And also, I know that there's still -- we're still a bit early to talk about concrete working capital expectations for this year. But if you had to evaluate looking at where commodity future is today or grains for livestock. What would be your assessment on working capital potential as things stands today for the year, maybe a little bit below 2025, in line with 2025, if you have any on working capital. Gilberto Tomazoni: Thank you, Lucas, for your question. Let me to separate. I think in Australia and Brazil, that is a different scenario. Australia, we are not seeing any challenge in terms of the -- after the quota of Australia to China because Australia is a strong market demand and has a very strong presence in Japan and Korea and all of the Asian markets and U.S. as well and Europe, then Australia is easy to manage the volume for each one of these markets that we are not really worried about this situation. In Brazil, may be more complicated. But our I will talk related to that. But our Friboi team is very confident that they will be able to deliver in this year 2026, this resulting with the line that the last year. Why we are confident on that. Global demand for protein is high, especially for beef. China's quota, if you talk about -- we are expecting to end by the midyear. And in reality, we don't know how China will manage this volume restriction. I believe that some countries will likely not be able to complete their quotas. But this is -- we cannot speculate, but this is a fact. Regarding this situation, Friboi has developed a new international market, new sales chain and investing heavily in value-added and combined with customer service. An example of this strategy is the program of Friboi+ now I think last week at the supermarket conventional in Rio de Janeiro, Nielsen, you know Nielsen, gave a presentation comparing a store with a regular butcher shop to one with Friboi+ and the results showed that the start with the program has a higher revenue and 40% higher overall sales, not just the butcher area, the overall sales, that it's a strong program to support the growth of our customers. And at the same time, the retailers now face a challenge because they need to improve the quality of the sales in the stores because this shift for more protein, this program, what GLP1 and so on, that is booming the consumption of protein they need to enhance the portfolio in the retail. And in our program is, I think it fits perfect with this trend in the necessity of the supermarket. The other point, I believe in the second half of the year, when the supply of feed lot in Greece, this coinciding with the end of quota of China, which is large -- and we know that China is the largest pork selling channel, the price of cattle will likely be affected. I think this will be correlation because of that we are so confident that we are able to deliver this year and results in line with last year. Guilherme Cavalcanti: So on the derivatives line, what you saw there is any sort of derivatives that's not related to the operations. And the recent volatility in currencies and other commodity prices make this number higher despite we have a very limited VaR for those type of derivatives. Now on the working capital side, so far, what can I say, it's only about the -- what we've seen in the first quarter. So first quarter 2025 we have a slightly lower working capital consumption than in the first quarter of 2024 despite the $200 million higher impact of the deferred livestock. So again, it's too early to say for the whole year. But if considering just the first quarter, we had a little lower consumption of working capital. It doesn't mean a lower cash consumption, given that the operational side is slightly worse. Operator: Our next question comes from Thiago Duarte at BTG. Mr. Duarte? Thiago Duarte: Yes, two follow-up questions going back into U.S. beef and then Seara. Wesley mentioned the strong quarter considering the circumstances that you had. But I'm still wondering what do you believe justifies that performance? I mean, Q-over-Q margin rebound, it's not something typically happens considering the seasonality in Q4 and even looking at the industry cut out spread. So my question, you mentioned the volatility has been something that's even higher than usual and maybe that has something to do with a particularly good quarter in Q4, but if you could elaborate a little bit more on what you think justifies that in this quarter in particular. And a follow-up question on Seara. I think Tomazoni talked a lot about chicken demand and protein demand in general. So my sense is that what really drove this very good margin at the Seara division in the quarter was really related to chicken, fresh chicken in natural chicken exports as opposed to the domestic prepared food portfolio. So my question is really if that understanding is accurate in terms of, again, natural margin versus prepared food margins for Seara in the quarter? Wesley Mendonça Filho: So especially when the market has such a volatility in cattle prices and cut out values it's very possible, especially when you look at just the quarter, right, that you have a quarter that you position yourself really well and other ones that you position yourself a little bit worse. And between quarters, you could have those -- just from a positioning perspective, it could be either have a very good -- look really good or look a lot worse than you expect? And just given this such intense volatility that more than we were expecting, I saw some reports maybe question a little bit about if there was any hedging or derivatives there, there was nothing significant from that perspective. I think it's just when markets are more volatile, and you make position selling out -- selling product upfront and all of that, sometimes you get good position sometimes could get worse. I would -- I think the best way to look at performance is look at overall longer term than just one quarter, one quarter could kind of misleading positive or negative either way in this sort of business, especially with the sort of volatility that we've been having on cutout and cattle price. Yes, that's in that foundation. Gilberto Tomazoni: Thiago, let me make some assessment position about what you said, if the margin, if you understood well, you asked for the margin of prepared foods in domestic market and versus to export chicken -- commodity chicken to international market. If you take just in consideration, the margin, yes, the margin of international chicken was higher than the margin of prepared in domestic market. But say that, we improved the margin of the prepared food and domestic market. If you remind some quarters ago, I mentioned that we are advancing as a process to improve our price management in order to get the real value of the brand in domestic markets. And this is a continuous process. We are now focused on taking the advantage of we have the perception of the brand, we have Seara in the market. The penetration of the brand and the rebuy of the brand from the consumers. And we are strengthening our process in order to get this value. And because of that, we are continuously improving the margin in domestic market. But yes, you are right. If you compare this quarter, the margin of international market for chicken was higher than the margin of prepared in domestic market. Wesley Mendonça Filho: Thiago, just to complement something on beef that I meant to say and I forgot. For sure, this comparison quarter-by-quarter could create some -- a little bit of that when it comes to position, positioning of how you sell forward and how we buy and all of that. But having said that, we are very satisfied with the way we are operating. There are still opportunities for sure. There's things that we're working on. But when we compare our operations, just the things that -- how we are running our plants and how we are running our sales strategy, our procurement strategy, compared to a few years ago, we think we've made a lot of progress, and I think we're doing a lot better than we've been doing in the past. Operator: Next is Isabella Simonato from Bank of America. Isabella Simonato: First, on the working capital for the quarter, right? You mentioned the deferred payment of livestock as well as inventories. Can you just give a little bit more details on the inventory performance and versus where you were expecting, right, when you mentioned in Q3 for the remainder of the year. What changed? And what can -- how can that -- if there is any impact to be postponed or translated into 2026 performance? And second, on Seara, you were mentioning right, Tomazoni, about the margins in Brazil. Can you comment how you're seeing Brazilian consumers behaving in the beginning of the year if there is room to increase a little bit prices and if volumes have picked up, we noticed that retailers were running with lower inventories in the end of 2025, and there was any significant change in behavior in the beginning of the year? And finally, if you could give us a brief overview of how are your grain inventories and how you're seeing feed costs for the remaining of the year? Guilherme Cavalcanti: So on the working capital cycle, Isabella. So every fourth quarter is a quarter that we decrease inventories, and we'll review them in the first quarter. And the same happens to the livestock, which we postponed payments from 1 year to the other. Between 2024 and 2025 and '26 we postponed this year $600 million in livestock. Last year, we had postponed $400 million. So we had a $200 million better impact on the fourth quarter. That will be a $200 million worse impact in the first quarter that I mentioned in the previous question. And that is in the inventory side, the same thing. We are seeing the same level of inventory rebuild that we saw in the last years. Gilberto Tomazoni: Isabella, thank you for your question. When you look for -- we have two separate questions. One is, if I understood well, one is related to the behavior of the consumer and domestic market with Seara. We see that the market starts a little bit weak in the beginning of the year in January but they're back, now we are -- when we look for our sales, we are growing the sales compared to the last year but deep with different mix with a value-add mix growing much faster than the low -- the traditional and low value-added it's difficult to say what is value added or not value-added it's prepared. But say, look, the traditional, they are selling less than the innovation. We have a huge growth in the innovation line with high-protein products, air-fry products designed for air fryers, clean label product, this kind of innovation. They grow much faster than the other ones. But average, when we compare this year with the last year, we are growing, even some challenge and some different chains, but it's growing. But it start as just to be clear, we start very tough, very tough in the beginning and recover. Now we are -- our sale is higher than the last year for prepared. And when you talk about the cost, I think you will talk about grains because there is a lot of consideration. We have different views in terms of corn and soybean meal with these 2 key elements for our feed. In the corn market, we see an upward trend. We should expect higher costs in 2026. And due to -- if you look for reducing the global stock and solid demand, increased crude oil price that boost in ethanol margin as well the cost and availability of fertilizers. U.S. acreage at risk given the soybean ratio. And the second crop in Brazil, in face of some climate risk. That we are, I think, is we expect higher costs for corn. In the soybean mill, we see price stability and do the -- if you look for the crush margin, they are positive and as the crush margin positive, we result in as abundant supply. And in the other part, weak Chinese demand to the tight pork margin in the market. But I think it's for soybean meal, we need to monitor U.S. acreage issue in the biofuel policy. But anyway, our outlook remains bearish. Operator: Our next question comes from Henrique Brustolin with Bradesco. Henrique Brustolin: I have 2. The first on U.S. beef Wesley, if you could comment about the Mexico cattle imports, right? They have been shut for a while now. Maybe this could be a discussion the reopening could be a discussion amid the higher prices in the U.S. So it would be great to hear your thoughts in how relevant that could be in shaping the outlook for 2026 if we saw a reopening of the animal imports from Mexico to the U.S.? That will be the first one. And the second is a quick follow-up on Seara but Seara has been through a very big investment cycle over the past few years. It would be great just to hear how those investments have already ramped up and what would you expect for volume growth into 2026 as probably you complete the ramp of some of those plants? Wesley Mendonça Filho: Henrique, so on Mexico, it's difficult to tell when that's going to reopen. I mean it's very meaningful. It's 1.2 million to 1.5 million head per year. So it's more than the size of a double-shift plant, right. So it's a big bottom and it's very important, especially to the south of the U.S. I mean the USDA is doing -- I mean, it's doing a good job in doing all we can to keep the disease outside of the U.S. They are working on the sterile flies and all of that. And Mexico, obviously, is also trying to get this result as soon as possible. But for me to be able to tell you like I hope that this would get resolved within the year, but I have no way to forecast and to even have an indicator of if that's going to really happen anytime soon. But it's really important is probably the most important short-term change that could happen to this whole beef supply and demand equation. The most relevant in the short term for sure, it's this whole Mexico thing. It's very important, especially for the south of the U.S. But again, it's very difficult for me to tell you a forecast. I hope it opens this year or as soon as possible, but very difficult forecast. Gilberto Tomazoni: Henrique, about the investment of Seara, all of them will be completed this year. And when completed the additional capacity will be around 10%, 13%. I will say 10%, 13%, but can depend on the mix. There's some mix that is less volume, high value, but it depends on that. But you can consider 10%, 13% in terms of volume capacity growth. Operator: Your next question comes from Benjamin Theurer there with Barclays. Benjamin Theurer: Yes. Just following up real quick on the CapEx side. I think you said about $1.4 billion for expansion. I mean, I know there is a lot that Pilgrim's Pride has part of that and share of it with their outlook in terms of CapEx. But could you remind us a little bit about some of the other projects you're currently talking and working around as it relates to capacity expansion aside from what Tomazoni just mentioned on Seara. That would be my first question. I have a quick follow-up as well. Guilherme Cavalcanti: Ben, so basically, the Pilgrim's Pride expansion on the prepared food parts on the rendering facilities, the pork sausage plant in Iowa. But the ones that we announced. Also the Oman project, we also announced a plant in Paraguay. Cactus, Texas, also on the beef side, so everything that we've been announcing. And of course, all these capital expenditures are phased out throughout the years, and that's the portion for 2026. Benjamin Theurer: Okay. Perfect. And then as you kind of like look from just general capital allocation, I mean, obviously you announced the $1 dividend per share in the very large CapEx program. We're seeing a bit more activity right now as it relates to M&A activity within food companies in generally but particularly between European and North American companies. So just wanted to get your latest as to your willingness or the opportunities you might be seeing on growth through M&A, which obviously has always been part of JBS's DNA to grow . Guilherme Cavalcanti: We're always looking at opportunities through our plan everywhere in the world, but there's nothing that we are looking very keen at the moment, and that's the reason that we increased our organic growth because we are not seeing many opportunities on the acquisition front. So I think that I would say there's nothing that we could say that we expect to announce or anything in terms of M&A. So that's why we were -- we increased expansion CapEx, and that's why we are returning capital to the shareholders. And given that our net interest expenses continues to be at the $1.1 billion level, we are very comfortable with this capital allocation. Operator: Our next question comes from Thiago Bortoluci with Goldman Sachs. Thiago Bortoluci: Congrats on the results. I have two follow-ups. The first one this is on volumes, right? Tomazoni, you have been very vocal on the solid momentum for global protein markets. And to be honest, when I look over the last few quarters. Obviously, a lot of debate on the margin cycles, but volumes and top line has been consistently surprising everyone to the upside. And I think it might be a continuous source of upside going forward. It's difficult to break out for us your sales component between volume and pricing. But internally, from a volume perspective, could you please share with us what business unit segments and destinations are the ones that are contributing the most with your growth and which regions make you more excited with the opportunities for 2026. Particularly, if you could also comment on the opportunities in Africa. I know you announced a few things last year. Just an update here, and then I can follow up with my second question. Gilberto Tomazoni: Thiago, thank you for your question. If I understood well, you talk about Seara or you talk over about... Thiago Bortoluci: Volumes. Overall. Gilberto Tomazoni: Okay. Overall. Okay. Overall, we see that the demand, when you say all of the market, it's not just because we try to simplify, but it's the reality. We have a strong demand in Europe. Friboi increased a lot of the sales of red meat in Europe as Seara increased in volumes in Europe. And the demand in chicken in Europe mainly is driven by some influence in some countries. And the demand for beef is because the beef production in Europe decreased. And I think it's not just Brazil, sell more in Europe and Australia sell more. And in Australia and the U.K., now they have a new agreement. And this is -- the demand is -- we are expecting to grow the demand from beef in Europe. The other part, we see demand in all of the Asia. Take China out of this the component of Asia, but all of the Asia, the demand is growing for chicken. And for beef as well, we see the demand and the market -- this is not new markets. We open a lot of new markets, but in traditional markets like Japan, like Korea, we increased the volume from the market. And I believe this is the trend. It's not a trend because price. It's a trend because the demand decrease in the local production decreased, decreased because of the cycles there or because of some disease in the market. We see Middle East now we are facing a war there, but the flow of the product to the market didn't change so far. They changed the logistic of vessels there, the logistics of internal logistics, we need to change port and when you change port, we need to use trucks to deliver the product to the customer. But the flow is still there. The demand is there. Because of this, we are investing in the Middle East, new factory opened some months ago in Jeddah and the investment we have announced in Oman because the demand is strong. The U.S., there is a strong demand for beef as Australia, Brazil, sell a lot streamers and from U.S. When we say a lot more than before, I would not say compared to the production in the matter. Sales compared to what previous forecast. If you look, we are not seeing that one market is the restriction. We see the demand for all of the markets. Even in Brazil, the demand in Brazil for protein is high. Look for what is the -- how Brazil have grown in terms of the number of fed processed in Brazil is amazing. And what is this? This is because the global demand for protein because there is a reason we have been talking before about that. There is a trend it's not a trend, it's a structural change in the demand of the market because of regulatory guidelines in U.S., they change the guidelines and they put -- they need to add more protein to need to go to 1.1 grams per kilo per 1.62 grams per kilo. You can manage how much we need to produce to fulfill this market that we -- that there is a lot of the health habits that for young generation for old generation, there's a new medicine technology, this GLP-1. And combined all of this, the demand is very high, very high. I don't know if I answered your question, Thiago. Thiago Bortoluci: Perfectly, Tomazoni. This is very helpful. On the second one, still talking about the conflict in the Middle East. Obviously, this is an ongoing situation. But could you help us framing the impact so far in your freight expenses -- and by freight, I'm mentioning seaborne freight, but also truck freight in Brazil and maybe a sensitivity of how this could impact your profitability if sustained going forward or how you plan to pass this along? Gilberto Tomazoni: Thiago, I think I just mentioned before, the flow, the product to go to the market didn't change. Didn't change from Brazil. Didn't change from Australia and any of the other markets didn't change. We keep supplying the market. We have -- what we saw the growth -- the cost, we have a contract with the marine agents and they put extra cost because of the risk to navigate in these regions. And this is one of the cost. The second cost is the cost that we need to change the port -- some -- the destination of the product, some destination will change from one port to the other port. And when we change the destination for the different part, we need to have the truck transportation because to there is not -- there is no closer to the customers, then we need to have this cost of transportation. But so far, this -- all of these costs was beared by the market. We not see impact in our results. Thiago Bortoluci: This is also true in Brazil. Tomazoni, with diesel prices. Gilberto Tomazoni: No. In Brazil, we see the increase of price of diesel. And we see that increase in terms of the cost of freight. I talk about the Middle East, but when you look for Brazil, yes, you are right, increase the cost of the freight. I think if the crude oil keep this price and depends on how far the development of this war, I believe that other costs will be increased, the cost of packaging and what is depend on the oil will be increased as a raw material. I think this will be the impact, I think, the fertilizer will be impacted, and then it could be -- then I mentioned before, when they talk about the cost of the corn because the fertilizer will be higher, the availability of fertilizers, maybe the use of fertilizer will be reduced and then the productivity of the crop will be low. But it's -- I believe it's too early to predict. Too early because you don't know how will be the end of this war. I think this is -- I saw this impact in the short term, but could be back if they end the war. I think it would all be back. It is -- I think this is a situation that we are -- how we are looking and act in this situation. Operator: Mr. Benjamin Mayhew from Bank of Montreal would like to ask a question. Benjamin Mayhew: Can you hear me okay? Yes. Gilberto Tomazoni: Yes, good morning. Benjamin Mayhew: So a lot has been covered already, but I'd like to ask a high-level question to begin. So in looking at 2026 versus 2025, just across your global segments, where do you see pockets of improved market fundamentals and where do you see pockets of maybe not so strong fundamentals throughout the year? So we'll start there. Gilberto Tomazoni: Ben, thank you for your question, Ben. I think it's a rule of improvement we've seen in all of our business units because we have a methodology that mapping the gaps. It's a one of the model that we work. All business units need to understand, need to know very well, where is the opportunity to improve, then we call mapping the gaps and when you look -- when you have the budget, we go there and see the gaps, and we forecast in our budget, some gap up in the -- each one of the operation. And it's not just for the business, but -- we got the business because we deploy each one of the process and subdivisions of the business. That is when you look -- if you look it's a huge opportunity we have yet because that new technology, a new way to do the things. We are closing the gap. We open a bigger gap, and this is the way that we see -- or get operational excellence. I think this is the mentality and the mindset for all of the business. But if you go to a structural, we see that Brazil is 1 of that has a huge opportunity for growth in terms of meat, beef in Brazil, I think, is if you compare Brazil and U.S., brazil has more than double of the [indiscernible] than U.S., more than double. And we produce just this year or last year, Brazil produced a little bit more meat than U.S. It means that -- if we are able to get the same productivity in the U.S. or can double the production in Brazil of meat. Then we see Brazil in terms of red meat huge opportunity in the future for growth. But it's not just for growth [indiscernible] all of the protein produced in Brazil is very competitive because we are grain competitive in terms of the cost of the grain. We are very competitive. We have good quality management. And I think it's -- Brazil is one. We see U.S. good opportunity. Chicken U.S. performed so well, and we see that demand in the U.S. for chicken grow before U.S. export a lot of red meat [indiscernible]. Now I think it's a huge chunk of the volume for red meat is [indiscernible] in the market because they start to appreciate the product made by red meat from chicken, say, leg meat. This is I think in U.S. is an opportunity for growth for chicken for pork demand. In U.S., we have -- if you look for the result of our pork business, they are a very consistent results for a long period of time, well managed business. And we see that we can grow in our pork business because U.S. is very competitive to produce chicken and pork. So look, it's difficult for me because I'm booming in all of the markets that we are present. Australia, we see -- we are very excited with the pork business there. We are delivering a great result there. The Australia import -- Australia now import pork meat but Australia export grain. When you export grain, the price of grain is international price, that does not make sense that you export grain in pork meat. You can produce meat there. And we are investing in our pork business, build farms and improving the operation, the productivity of the operation. Then we are so, so excited with the opportunity for Australia. And our salmon business, we have announced an investment to improve more than 50% of our capacity of salmon in Tasmania. So we see Europe. Europe, I think, is an opportunity of our growing chicken, mainly in chicken and value-added. We are excited because we are in a segment, in a sector that is growing. It's a protein. And we -- we have our global platforms that we can easily meet this demand, I think is -- we have a good situation an advantage to take the opportunity and transform this opportunity result to the company. And I think it is -- I don't know if I answered your question . Benjamin Mayhew: Yes, you did. And I really appreciate all the detail. That's very helpful context. So my second and last question would just be around the beef cycles. Just wondering if you're seeing a little bit more progress on U.S. heifer retention. So wondering about that. Also, curious about your thoughts on the durability of the Brazil cycle and then, of course, the Australian cycle. So if you could just kind of summarize that quickly, that would be amazing. Wesley Mendonça Filho: Thank you, Ben. So yes, we are seeing the herd review more actively in Canada. We're seeing that in the dairy business as well in the U.S., which also obviously impacts the overall supply. When I look at the USDA data, it shows that I think we are retaining heifers, but it's relatively slower than we expected. But I think it's -- all the economics are there, everything should be there for us to be doing that. Actually, I have an information that's pretty interesting is the beef cow slaughter in 2025, for full year, we processed 2.3 million head. In 2022 was 3.9 million heads. So we're almost half of what the beef cow slaughter was in 2022. I think those things -- that information is important, and it shows that if it wasn't for -- to keep more females for breeding, we wouldn't see such a sharp decrease in -- it's almost half of what it was in 2022, not too long ago. So I think that there is some information that kind of makes us more optimistic, but obviously, it's lower than we would wish. Gilberto Tomazoni: Then related to Australia, we see we are in the middle of the cycle in Australia. And back to Brazil. Brazil, we see that the reduction of production in terms of the number of cows but the other side, we have a different force. The Brazilian -- if you look Brazilian and compared to U.S., or compared to Brazilian -- cannot need to compare to U.S. You can compare it for the high level of productivity in Brazil producers and the average of Brazil. The average of Brazil, they bring to harvest if at 4 years age in -- but the good producer or the modern farmers. They live 2 years to get the product finished, to get the cattles finished means that at the same time, we have a reduction in the age of the cattles. And this combined with increased a lot of feedlot in Brazil. The feedlot in Brazil was not well developed. Now you can see a lot of feedlots in Brazil. And the other part, we have an improvement in genetic improvement nutrition the Brazilian ethanol, corn ethanol industry, now they deliver good byproduct from the ethanol that is DDG, it is support a lot to grow the growth of improvements in feed. We see that we are -- I think Brazil will be able to manage this situation and postpone the cycle, the cattle cycle, that is normal cattle cycle. Operator: Our next question is from Heather Jones with Heather Jones. You may now go ahead and Mrs. Jones. If you're trying to speak you might be on mute there, Mrs. Jones. For the moment, we'll move on to the next question on the list, which is Leonardo Alencar from XP Investimentos. Mr. Alencar? Leonardo Alencar: I'd like to go -- wanted to talk back to U.S. beef discussion. And then we mentioned many points on the supply side. I wanted to focus probably more on the demand side. So if we can get -- First, a view on the resilience of beef prices. We've been seeing some amazing beef prices in the beginning or even before the spring season. So just to understand if you -- this is this is feasible or even if it's possible for us to expect higher price throughout the next few months. There was an interesting change in choice and select spreads. I don't know if there's any signal that point, if you could provide us with more information. And this discussion on the product of USA label, I understand it's really new. But if you have any early -- any views on that would be interesting as well. And then on the second point, maybe more like an exercise here. I understand that we've been discussing value-added products and processed goods and that U.S. is the main focus for that. But you already have a lot of revenue on that channel. If we split that from the commodity business in U.S., would you say the performance for -- even from the end of 2025 or 2026, maybe better than the commodity business. It is possible to do that exercise? Wesley Mendonça Filho: So demand is -- it remains pretty strong for beef. Obviously, supply is pretty short. But it seems like beef continues to be very resilient. It seems like ground beef is especially ground beef. We've always measured ground beef versus chicken breast versus pork loins. And it seems like the demand for beef in general, just there is -- obviously, there is a little bit of a substitution with other proteins, but the demand for beef stays still remains and remains pretty strong. So we see that going forward. And all these labor requirements and all that, it's something that we're always -- whenever something changes, we discussed with our retailers and see what our customers and see what are the impacts and cost of that. But it's not something that I'm super concerned right now. Leonardo Alencar: Okay, in the value-added products? Wesley Mendonça Filho: Sorry, that value-added question was about which business unit? Sorry, I missed that. Leonardo Alencar: Exactly not related to a business unit. If you could split, remove or suggest value-added products and remove from the commodity business, would you say 2026 is expected to be better or not on that part of the business? Gilberto Tomazoni: Look, our focus is to increase value-added, in brand is the focus that investment, if you look for an investment we have done in the past, we prioritize the value-added product. And because it's we take the advantage of verticalization of the product. And the second 1 is a higher margin and more stable market that value add is one of our priorities. Leonardo Alencar: Okay. And just 1 more follow-up here. On this split up deal that was being discussed in the U.S. government, I understand it's more noise than anything, but any comments here? Wesley Mendonça Filho: It seems like it doesn't have a lot of support in the -- so right now, it's not something that we're concerned about, Leonardo. Operator: We have Mrs. Heather Jones back online, if you would like to go ahead with your question Mrs. Jones. Unknown Analyst: Are you able to hear me now? Gilberto Tomazoni: Now, yes. Operator: Seems we have some connection issues on Mrs. Jones' side, so we'll continue for now with our next question from Guilherme Palhares with Santander. You may go ahead, Mr. Palhares. Guilherme Palhares: Over the last couple of years, one of the main points here of the investment thesis of JBS has been a bit of the geographic diversification, right? And you do report each of the businesses individually in terms of Australia, Brazil, the U.S. I just wonder if you could share a bit what is -- I think U.S. is a good indication there. In terms of the supply to the market, how much of beef meat in the U.S. is being sold through JBS. Do you know a bit how much do your selling today that it's coming from Brazil and Australia? Just to give the point here is a bit of food security, right? So having this geographic diversification, how much you can maintain supply even when the cycle conditions are not there. So if you could give us some color there, I think it would be appreciated. And the second question here, Tomazoni, over the last 2 years, you guys entered in a new protein, which is table eggs, of course, you still have a minority stake on the investment there. But I just want to hear a bit your thoughts going forward with this year behind you? What is your impression there? And how much -- how big is the opportunity there? Wesley Mendonça Filho: Sure. It's very relevant to have access to import meat from the Australia from Brazil when -- especially in periods of time when there is a shortage of beef in the U.S. So that does help, and it's I mean, and obviously, the volumes at Brazil and Australia produce are significant. So it's -- so it's -- there is not -- there isn't a supply problem when it comes to that. Having said that, the U.S. is a very, very, very competitive place in the world, probably one of the most competitive places in the world the American rancher is one of the most -- are among the most capable in the world to produce beef and high-quality beef. And so obviously, the shortage is a situational thing right now, but the U.S. it's a country that doesn't need to import in the long run, it doesn't need to depend on import. It doesn't need to have imports to be able to supply its own demand. It should be able to, in the long run, to be able to have its -- for the domestic production to supply its domestic market and actually be an important exporter of beef, like it's always been. Obviously, in the short term, we have the situation that we're importing a little bit more beef than usual. But -- and it's useful to have that when there is a shortage because the demand is still there. But the U.S. is a very, very productive place and doesn't need -- for beef and it doesn't need doesn't -- in the long run, shouldn't depend on imports. Gilberto Tomazoni: And Guilherme related to table eggs, we are -- we enter in the segment because it's -- we see that the affordability of the protein, so one of the more affordable protein in the market in and we before to enter we study these categories, and we are excited the first impression, the first movement we have done is to buy a company in the U.S. and to -- we are building farms in Brazil, we are excited with the business. This is one of the businesses you want to grow. Guilherme Palhares: Okay, Tomazoni. And just one follow-up there. You guys are also entering in the U.S., right? So what is also out there that you want to do on table eggs that you think it is a relevant market that you can play and make a difference. Gilberto Tomazoni: Look, we just buy this farms in U.S., and we are without I would say that the population of the chick. Now we are populate our farms and we are excited with this. I think is this -- we are on their strategy with both with Mantiqueira because Mantiqueira has the know-how and this accelerate all of our lands in the market. Operator: Our next question comes from Pooran Sharma, you may go ahead -- with Stephens, you may go ahead, Mr. Sharma. Pooran Sharma: Can you hear me okay? Gilberto Tomazoni: Yes. Pooran Sharma: A lot of good content covered. So maybe I could just focus on the first question, maybe just on your U.S. pork business. We've been hearing from U.S. hog producers that they expect disease impacts to be the same, if not worse than last year. I was just wondering if you can kind of share what you've been hearing regarding hog disease pressure in the U.S. and if you would expect that to weigh in on margins in FY '26? Wesley Mendonça Filho: Yes, it could be. And the margin impact -- it's not necessarily that it's -- it depends on how and when it does impact, it doesn't necessarily mean that it's actually a negative impact. It could actually -- we could have a short term -- obviously, we're not expecting disease, and we don't want disease. And we do everything we can not to have them. But in the short term, you actually could have actually a higher -- given a shorter supply, you could actually have a better margin if that happens. Pooran Sharma: Okay. I appreciate the color there. And my follow-up, maybe just wanted to further on some of the comments you made about the listing on the NYSE. You mentioned stock has seen some liquidity and valuation benefits but that you're still expecting to get more. And in the past, you all have talked about, I think, index inclusions and the potential for -- to get into some of those and the timing to get into some of those. So I think as we're looking in FY '26, I was just wondering if you could maybe give us an update on what's out there in terms of inclusion on some of these passive indices? Guilherme Cavalcanti: Okay? So on the multiple side, if you look at our enterprise value EBITDA forward-looking, we are trading higher than we used to trade before the listing. So there was a multiple expansion already, but we still traded at a discount to our peers. One of the reasons is also the index inclusion. There was a research that was sent last -- yesterday from Stephens. Saying that according to what we released on our financial statements in terms of information of revenues and assets breakdown. We should be included in the Russell, which is next June, and it could bring around 14 million shares demand from passive funds. But it's out of our control. We cannot guarantee that but that's what is in the short term. On the longer term, at some point, most likely beginning next year, we will start to find -- to make files of 10-Ks and 10-Qs instead of 6-K in order to be eligible to the S&P family. So then I think 2027. So I think this year, Russell is the plan. Next year, the plan is to be on the S&P family. First on S&P 400. And once we reach it $22.7 billion market cap, that's the threshold for the S&P 500, although, again, it's not in our control. It's their committee decision for shares inclusion. Also worth mentioning that our average daily trading volume is 3x higher what it used to be before the listing. And the Brazilian investors fell to 10% of our free float. And the U.S. investment today, it's already 70% of our free float. Operator: And our next question comes from Ricardo Boiati from Safra. Ricardo Boiati: One. My first question goes to Wesley. I wanted to circle back to the U.S. business. You, in fact, already answered part of my question here, which related to the competitiveness of the U.S. ranchers, right? We are seeing very favorable conditions, right, for a faster herd rebuilding in the U.S. with the beef prices, the cattle prices. My question here would be exactly when you look from the ranchers' perspectives, right, we see some concerns that labor, even succession plans could be an issue for the ranchers longer term. You expressed a very strong positive outlook for the U.S. beef industry, which is very, very good. So I would ask you to elaborate a little further on the drivers for the industry especially from the ranchers' perspective, right? Is there anything that could prevent a more robust business expansion for the ranchers, anything that could be a risk in the horizon? So that would be the first question. And the second one, just more broadly looking at the current market environment. the risk environment globally. Does this situation here of increased volatility could imply an even more conservative approach when it comes to the balance sheet of the company? It's quite clear that the balance sheet is very strong. I mean, in terms of leverage, in terms of debt maturity, you already showed this in details. But the very short term, the current environment, does it imply an even greater conservativeness from your side or nothing relevant so far? Wesley Mendonça Filho: Ricardo yes, there is -- obviously, there is issues that are very relevant, succession is always very relevant, and labor and all that. But at the end of the day, I have a pretty simple view of this. It's the -- and obviously, like interest rates are relevant as well when it comes to herd rebuild, right, because you have to carry more working capital and livestock and all of that. But at the end of the day, I think it's pretty simple. The U.S. has the nature, has the culture, I mean in nature, I mean, like just environment, right, just the natural resources to do it, to have a thriving beef production, it has the culture to do it. It has the infrastructure like no other countries. So at the end of the day, we remain very optimistic about it in the medium long run. Guilherme Cavalcanti: In terms of balance sheet, I think it's worth mentioning that sometimes you should not look at the net debt absolute value itself. But not even on the net debt to EBITDA, I think it's where I mentioned that in the last 3 years, we increased our net debt in 8%. However, financial expenses stayed the same. So through like big management exercises, we've been able to despite increases in net debt to keep the same level of interest expenses. So our capacity of debt repayment didn't change. So as long as we have this comfortable debt capacity repayments, we have no -- not been needed any restrictions in terms of our return to shareholders or our growth given that we have discovered. And also, as I mentioned before, we don't have significant maturities in the next 5 years. which gives a lot of comfort that we don't need to go to the market at any interest rates. Our cash position is also -- we ended the quarter with $4.8 billion which is around $1.5 billion higher than what is our minimum cash given our cash conversion cycle. So again, we have a lot of questions that currently, we don't need to be restricted in any of our initiatives. Operator: Our next question comes from Igor Guedes with Genial. Igor Guedes: Can you hear me? Gilberto Tomazoni: Yes. Igor Guedes: Okay. I would like to talk a little about Seara. Regarding the first part of the question, this quarter, we saw a resumption of shipments to China after several months of suspension due to avian flu last year. I'd like to understand how the resumption went for you guys? The resumption happened around November. So it didn't cover the entire quarter for Q1 '26, should we expect an even stronger quarter in terms of volume? Is this recovery gradual? Or do you believe the full effect has already being captured in 4Q? And the second part of the question, I'd like to understand from the perspective of breaking down the positive impact -- we have volume growth as well as price improvements realized through premiums paid on certain chicken cuts standard for China, such as chicken feet, given the increase in volume, there is also an effect of improved fixed cost dilution. So my question is, if you could break it down a bit, what we saw in terms of margin improvement what influenced it the most? Was it the increase in volume, the price improvement or the fixed cost dilution? Gilberto Tomazoni: Igor, is not a simple answer for you. If you talk about the volume to China, when opened this helped a lot in terms of profitability because we have the best market for chicken wings and for chicken feet is China. Then we increase in terms of -- we -- feed don't produce were not market to deliver all of the production. But then we do open the markets, they improve volume and improve price. And about wings, they improved the price because the value of the wings in China is higher than the other markets, means that we are -- we got part of the benefit because it was in November, I think it was October, November, and now we have got the benefit in the -- in this first quarter of all of the benefit. When you talk about what is important, the cost of dilutions of price, of course, the impact of the feed, it's a huge impact in terms of profitability because these represent 60% of our cost of chicken goes to feed, around 50. This is huge that is more than to get increased the volume to compensate this is, of course, volume compensate but not able to compensate all of these costs. Operator: Our next question comes from Priya Ohri-Gupta with Barclays. Priya Ohri-Gupta: Great. I hope you can hear me. A lot of questions have been asked at this point. I would just like to ask 2, first, around just the capital allocation. You've already announced the $1 dividend per share that's going to be paid in June. That works out roughly to what you've been indicating for some time now around the ability to consistently pay about $1 billion to shareholders. Is that sort of how we should think about the dividend for the entirety of the year? Or is there room to potentially increase that with a second payment later in the year? And then relatedly, how should we think about share repurchases? Just given that you guys did do about $600 million in '25. And then I'll ask my follow-up. Guilherme Cavalcanti: Priya. So at this moment, we are sticking to what we will try to do as long as our leverage ratio allows to have the $1 billion per year in dividends. So I think this $1 billion is what we plan to pay this year. And then depends on how much excess cash or cash flow generations, then we can reevaluate a share repurchase again or not. But that do depend on the cash generation in the next quarters. Priya Ohri-Gupta: Okay. Great. And then I know you're pretty clear just now about not having any maturities in the next 5 years or so, and so you don't have any real need to come to market. But some of your bonds do become callable later this year and into early next year. Is there a scope for you to think about addressing those or consider other liability management? Or is this the rate backdrop that -- or would this rate backdrop not necessarily went? Guilherme Cavalcanti: Now the callable bonds, they have very low interest rates. So it's not worth it. The coupons are below treasury. But there's opportunities to decrease interest rates and extend maturities on the '34 and '33 maturities. So maybe I think -- it could be -- liability management could be targeted on those 2 bonds, '33 and '34 which has high coupons and higher than what we could be issued today at 30 year, for example. Operator: And next, we have Mr. John Baumgartner with Mizuho. John Baumgartner: Two for me on North America. First, on the value-add side. I mean traditionally, there's been a focus on value-add through M&A. More recently, you've gotten involved in CapEx to build the Italian meats business. But I am curious, alternatively, I know you had a relationship with Wendy's. You had done some test marketing of Wendy's burgers last summer. I'm curious what you sort of learned from that test market? And how you think about maybe licensing third-party brands to get those value-added brands in-house in lieu of making expensive acquisitions or even investing to build brands from scratch? Wesley Mendonça Filho: So look, we're looking at we obviously look at every option. For us, greenfield has made more since recently just because of valuations and the price of building some of these things. And actually, some of these businesses that we did greenfields. It's better to do to have a new plant instead of buying old assets. And so that was very specific to those greenfield acquisitions or greenfield projects, sorry. The project we won is what was very interesting was very -- it worked out well, and it's great partners. But it's an option as well, but it's not -- we'll look at that, too. But we've seen that it's not necessarily, as you mentioned, expensive as kind of prohibited to build brands. Look at what we've done at just there, right? It's we never had an the earnings call or Pilgrim's hasn't had an earnings call that they said that they were -- had invested -- the results were good for 1 reason, had a negative impact because we were building brands, right? We build brands as we build the business and it was sustainable in itself. So nowadays is a $1 billion brand. So it's in revenue. So I think it's possible to do those 2 things at the same time. John Baumgartner: Okay. And a follow-up also in North America. Guilherme, I think you mentioned there's really no imminent M&A on the horizon here, but I am curious on the egg industry, seeing where prices are for eggs, I'd imagine there's a fair amount of distressed profitability in the industry. I'm curious, looking at producer capitalization, that business specifically relative to beef, pork, other species, where you've made acquisitions at the down trend -- the down point in the cycle. How do you think about this profitability issue in eggs right now, maybe accelerating your ability to build out and maybe be opportunistic and acquire some assets in eggs. Guilherme Cavalcanti: John. So basically, it all depends on having the opportunity at the asset price. So sometimes it's not related to the current egg price and we're always looking at opportunities. So it's difficult to say and then that's our approach. It has to be an accretive acquisition. Operator: Ladies and gentlemen, there being no further questions, I would like to pass the floor to Mr. Gilberto Tomazoni. Gilberto Tomazoni: I would like to thank everyone for joining us today and all JBS team members for their dedication, the commitment to deliver the results. Let me close with 3 key points. First, though, we delivered record revenue of $86 billion and 13% growth for the prior year, reflecting the strength of, and the consistent of our global platform. Second, return, we continue to operate with a strong capital discipline with return on equity at 25% and return on investment cut out at 17%. Third, earnings per share, EPS reached $1.89, up 15% year-over-year, growing faster than net income and reinforce our focus on shareholder value. As we look ahead, we haven't changed our focus, execution, efficiency and disciplined capital allocation. That is what allowed us to deliver consistent results and build long-term value. Thank you. Operator: This is the end of the conference call held by JBS. Thank you very much for your participation, and have a nice day.
Operator: Good morning, and welcome to the Genel Energy plc investor presentation. [Operator Instructions] The company may not be in a position to answer every question received during the meeting itself. However, the company can review all questions submitted today and publish responses where it's appropriate to do so. Before we begin, I'd like to submit the following poll. And I'd now like to hand you over to Paul Weir, CEO. Good morning, sir. Paul Weir: Good morning. Good morning, everybody. My name is Paul Weir, as you've just heard, I'm the CEO of Genel Energy, and I'm joined as usual by our CFO, Luke Clements. Welcome to our 2025 results presentation. We published our annual report and our full year results last week. And in my statements, then we broadly reiterated the key messages and guidance provided in our January trading statement. Obviously, the big change since January is the security situation in the Middle East, which has resulted in our production effort being temporarily suspended on a precautionary basis since hostilities began almost 4 weeks ago. Understandably, the operator's priority since then has been the safety of its personnel. Steps have been taken, however, to maintain a state of readiness for a prompt restart, but the security situation in the region remains very dynamic and very uncertain. The focus of this presentation then is not to provide you with the Middle East security update, which wouldn't likely add to the understanding you've already had from mainstream media. Instead, we will take you through the key elements of the performance of the company in the last year, the current position of the business and the catalysts and priorities for '26. Luke and I will work through these slides. I think there's 10 or 11 basically. We'll work through those fairly briskly, and then we will be very happy to take any questions that you submit during the course of the presentation. We start with an overview of the business, and this slide pulls together some key metrics to outline the building blocks we now have in place. We ended the year with a daily average working interest production rate of around 17,500 barrels per day. Net 2P reserves of 64 million barrels and a net cash position of $134 million. EBITDAX was $43 million. Our barrels are low cost with a low emissions rate, well -- industry average target rate for 2025, which was 17 kilos per barrel and with world-class operating costs at around $4 a barrel. Even in a year that included significant production disruption at Tawke and continued domestic market pricing, the business has remained resilient, cash generative and well funded and with the potential for very significant value uplift. The key building blocks for that significant value uplift are listed at the foot of this slide. The Tawke PSC, our world-class production asset generating material free cash flow even at domestic sales prices, a significant cash holding of more than $220 million at year-end and about the same right now, ready for deployment and a portfolio with significant organic upside potential from exports resuming, Tawke drilling resuming, Oman appraisal and Somaliland drilling, all of which supports our ultimate objective of getting back to a regular dividend in time. Once we've established some geographical diversity and the further resilience that follows that diversification and repeatable cash. On to the next slide, please. This slide sets out our strategy and strategic objectives in the way that we think about them every day. The 3 familiar boxes on this slide represent our objectives in simple terms, and I've spoken about many times before, so I won't dwell on them too much. Firstly, maintaining a strong balance sheet; secondly, maximizing cash generation from the assets we have, which means investment in Tawke and resuming exports from Kurdistan. And finally, adding some new sources of cash flow in a disciplined and value-accretive manner. That order matters, but we need to do a good job in all 3 of those areas if our eventual aim to return value directly to shareholders in a regular way. Let's move into the detail on the platform now. The world-class characteristics of Tawke are well known, but 2025 again demonstrated the resilience of the combination of the assets and its operator, DNO. If you look at the production graph on the right-hand side of the slide, you can see quite clearly the effect of the drone attacks in Q3 of last year. And thereafter, you can see just how quickly production was restored to a production rate at the [indiscernible] of the year of around 80,000 barrels a day. It's also worth noting that production in the months not impacted by the drone event was actually higher than the 2024 average despite no new wells contributing to that production rate. Drilling restarted then in Q4 of '25. First Tawke well was spudded in December and immediately started delivering results. A second good production well followed in the same month, but the 2026 drilling campaign for which 2 more rigs have been mobilized to site has now been suspended given the security situation. So today, we're in a position where both production operations and the drilling campaign are temporarily suspended, and we remain on standby until such times as the operator determines that it's safe to reestablish a full presence at site and resume activity. We remain close to and very supportive of the operator on that. All that aside, when we talk about Tawke as a world-class asset, we mean 254 million barrels of gross 2P reserves, very low operating costs, low emissions, long reserve life and clear upside from drilling. Right, I'm going to pass you on to Luke now for the next couple of slides. Luke Clements: Thank you, Paul. Good morning. This slide provides the buildup of what we call production business netback. Production business netback is revenue less production asset spend. That's both OpEx and CapEx, less G&A. It tells us what funding our business is generating and making available for capital allocation outside of the Tawke PSC. And you can see that it has been double-digit millions for 2 years in a row now, having been negative in 2023 despite similar levels of revenue. So you can see that we've been working hard on our spend. So what was the income side of that double-digit production business netback made up of last year? Firstly, while Brent averaged $69 a barrel in 2025, our realized price sold was $32 a barrel with all production sold domestically. If we were exporting, we'd expect that realized price to be close to Brent. Secondly, working interest production averaged 17,500 barrels a day, lower year-on-year only because of the drone-related interruption in Q3 that Paul just mentioned. And finally, EBITDAX of $43 million. You can see our underlying EBITDAX is back to more normal levels for domestic sales at around $35 million for the past 3 years now. This underlying number excludes movement on arbitration cost accruals, which negatively impacted '24 and positively impacted '25. So the key point here is that the production business is now delivering consistent double-digit netback even at domestic sales pricing, while still funding all production activity and investment on the Tawke license and so building our balance sheet cash position and available funding. That is the product of Tawke resilience and the discipline we've applied to the business since 2022 in simplifying the portfolio, stopping non-value accretive spend, exiting licenses and reducing cash G&A. Next slide, please. This slide illustrates our balance sheet strength. We finished the year with $224 million of cash, the net cash of $134 million and gross debt of $92 million. Our cash is about the same today as it was at the end of the year, so it's around $225 million. In April last year, we issued a new 5-year bond maturing in 2030, replacing the bond that had been due to mature in October 2025. That issuance was oversubscribed, and we continue to see good support and appetite for our bonds. That issuance has reduced funding risk around delivery on our strategic objectives. This remains a very underleveraged balance sheet with significant headroom to fund investment. That matters because the cash and capacity for further debt provide us with significant optionality. We can fund the appropriate Tawke program, progress our organic growth assets and pursue value-accretive acquisitions without being forced into decisions by capital structure pressure. Next slide, please. This slide shows our primary capital allocation options when we consider the best way to deliver shareholder value. Our first consideration is to maintain the strength of our balance sheet. Then the best place to invest our capital, providing the instant significant returns is the Tawke PSC. Then we think about how best to diversify our cash generation. All 3 building blocks have to be properly managed to establish a sustainable dividend. That means not every potential project will automatically be funded and not every acquisition opportunity will be pursued. Every value creation opportunity has to compete with others within our strategic framework. The Board reviews capital allocation on an ongoing basis, and we take care to remain disciplined. I'll hand back to Paul now to talk about our acquisition strategy. Paul Weir: Thank you, Luke. So look, we want to add resilient cash-generative production or near production assets that reduce our reliance on one asset in one geography. We want something that complements what we already have and supports long-term shareholder value. During 2025, we were very active. We originated, developed and actually bid on a number of opportunities. We were involved in bilateral discussions and in broader processes, too. We've looked at opportunities within our current region and further afield. And to be entirely frank, although it's early days still, 2026 is already shaping up to be as active as 2025 was. Having said all of that, there isn't an abundance of suitable opportunities, and there's a great deal of competition for the good ones that are available. So we continue to diligently scan the deal horizon. We're trying to avoid being distracted by the current unsettling events. Patience and discipline are key. Finally, on this, and again, as we've made clear in previous presentations, we will resist overpaying to get short-term positive market reaction only to find over time that the assets that we buy are unable to deliver the value that we need. We remain very confident that we will secure the right opportunity in time. On to Oman then. On Block 54, the initial activity set did exactly what it needed to do. The reentry and testing of the legacy Batha West-1 discovery well was completed safely ahead of time and under budget. That was a low cost and very useful first step in understanding the block better. Our block is adjacent to the prolific Mukhaizna field, and we are targeting reservoirs that are proven in that neighboring field on another adjacent block, Block 4 and on legacy well logs from Block 54 itself. The immediate focus now is not to rush to a drilling location decision. Instead, we will use the data from Batha West properly to reprocess existing seismic and to acquire new 3D seismic in the most efficient and cost-effective way that we can, so that the joint venture can identify the best locations for the 2 commitment wells that we will now drill on the block. That's the right technical sequence, and it's also the right capital allocation sequence. And based on current planning, we expect those commitment wells to be drilled early in 2027. So Block 54 is exactly the kind of exactly the kind of organic opportunity that we like, modest initial capital outlay, a clear work program, data-led decision-making and meaningful upside if the subsurface case continues to strengthen. And on Somaliland on the next slide. In Somaliland, the opportunity remains for a material discovered resource addition from our existing portfolio, and we've seen steady progress towards drilling the highly prospective Toosan-1 well. Toosan-1 targets best estimate prospective resources of about 650 million barrels across multiple stacked reservoir objectives. As the first mover, the commercial terms are also very attractive, meaning that even a modest discovery would likely be commercial. Of course, wherever we find logistically will benefit from proximity to the Berbera Deep Water Port on the Gulf of Aden. In terms of drilling preparedness, the majority of the civil engineering work is complete and most long lead items are already held in inventory, but we will remain quite measured in how we talk about this. There's still work to do. That work is ongoing, and there is still a need for operational, commercial and geopolitical elements to all come together. The key takeaway for today is one of continued progress towards drilling, while we continue to invest in the well-being of our host communities there to further strengthen our social license to operate. On the next slide, we'll -- we can see -- we can sort of give you a flavor of the work that we carried out last year and through into the first quarter of '26. We've been proactive in the areas of mother child health care, educational facilities and conservation projects. And we've been reactive. Very importantly, we've been reactive in response to the very severe drought conditions that the region is now suffering. Genel has recently distributed around 9 million liters of fresh clean water in the area of our SL10B13 license. Okay. So I think we can wrap up now. This closing slide returns to our 3 strategic pillars. Firstly, maintaining a strong platform. That means protecting the balance sheet, keeping the business efficient and being careful about how we spend our money. Secondly, maximizing cash generation. That means cost consciousness, executing the Tawke drilling program well, pursuing the net amounts that are owed to us and positioning ourselves to participate in exports when the conditions are in place -- when the right conditions are in place. And finally, diversifying production and free cash flow. That means finalizing and executing the right plan for Block 54 and continuing to progress Toosan-1 and Somaliland. Most importantly, it means continuing the disciplined pursuit of value-accretive acquisitions. Those are the building blocks. They're fairly straightforward. They are mutually reinforcing and they remain the right framework for Genel's value delivery. If we execute well, we continue the journey towards a business with resilient cash flows that can support a regular dividend for our shareholders. That's our clear objective, and we are determined to get there. So thank you. That was a relatively brief run through the slides, but I want to thank you for your time this morning. Luke and I will now be happy to take any questions that you might have. Operator: Paul, Luke, thank you both very much for your presentation. [Operator Instructions] Guys, as you can see we received a number of questions throughout today's presentation. Could I please hand back to Luke to read out the questions and give responses where appropriate to do so, and I'll pick up from you at the end. Luke Clements: Thank you. So there's a few questions on security in Kurdistan, Paul, and how quickly we can restart production. I think as you said at the start, we're not really going to comment on security in the Middle East and Kurdistan because it kind of changes all the time. There is a question about once you do restart production, how quickly can you get back to pre-conflict production levels? I think it is worth you answering, Paul. Paul Weir: Well, I think we can get back to preproduction -- pre-conflict production levels very quickly indeed. I mean it's worth pointing out, and there is a little bit of an overlay here into the security question. We've shut down as a precautionary measure. We haven't been targeted, and we haven't suffered any damage during the course of the current conflict, although obviously, there's been quite a lot of ordinance heading into Kurdistan. It's not been headed at us. The point being that when we do sense that the time is right to restart all the equipment there and functional. The operator has been working cleverly to make sure that we maintain a state of readiness. And as soon as we can get boots back on the ground, we can get production away quite quickly. So I'm confident that we can resume production levels pretty quickly within a week or 2 of giving ourselves a green line. Luke Clements: Okay. So staying Kurdistan on exports. We understand that the Tripartite deal has been extended to the end of June. Has Genel approached MNR to join the deal? Paul Weir: The answer to that is no, we have not approached MNR to join the deal. I think we've made our position on the current export arrangements quite clear, but I'll repeat them just now. A number of our peers elected to participate in that arrangement. We chose not to do so. We wanted to make sure that all of the conditions within the deal were on fully before we felt able to commit to that. Primarily amongst those conditions, of course, is the top-up payments that would actually render the participants hold with respect to the PSC. So we would want to see that before we elected to try and join the current arrangements. In the meantime, we would continue to sell our product locally. Luke Clements: And there's a kind of related question, which you've kind of answered, how are other operators being paid through the pipeline. I mean, for me, Paul, that's really for others to comment on. It looks like the first part of that is working okay. But as you alluded to, we -- the top-up payment hasn't been expected yet and hasn't been paid yet, I think, is the right way to think about it. Paul Weir: Agreed. Luke Clements: Are you still a member of APIKUR? Paul Weir: Yes, we are still a member of APIKUR. Obviously, when some of the APIKUR members elected to participate in the export or the arrangements that were in place up until the facility stopped. When some of the APIKUR members elected to participate in that arrangement and others chose not to, APIKUR essentially divided into 2 counts, but APIKUR remains the trade association. It remains the forum where all of the IOCs within Kurdistan can talk together. And we have a directorship there, and we remain a part of APIKUR. Luke Clements: Okay. Moving outside of -- sorry, one more on Kurdistan. Any update on court case costs? Paul Weir: No, there isn't. And next month, our appeal against the award of the other side's costs goes to court, and we're waiting to see the outcome of that appeal before we engage with the authorities on that matter. Luke Clements: Okay. So now as on Kurdistan. How quickly can new assets? And I don't know if that means the organic portfolio or newly acquired assets, but how quickly can new assets meaningfully reduce reliance on Kurdistan? Paul Weir: Well, those new assets, if we're able to secure the kind of asset that we're looking for, those new assets can immediately reduce our reliance in Kurdistan because it's a production asset, then we benefit from a new income stream immediately. So certainly, first prize for us is securing an arrangement that gives us an alternative cash flow as soon as the transaction is completed. As far as the other -- as far as near production assets are concerned, if we were to go down that route, then it would be entirely dependent on the nature of the deal we were considering. I couldn't give a time line on that. Luke Clements: Yes. I'd just add, we've always said we want to do a bigger deal rather than a smaller deal. And you can see the cash pile we have on the balance sheet. And you can assume that an asset we acquire would have debt capacity on it as well. So you can see if you're spending that kind of money, you should be able to achieve some meaningful diversification of your cash generation. I think you probably already answered it, but can you provide an update on Toosan-1 in Somaliland? Any specific milestones before spud? Any specific time line that we want to set out? Paul Weir: No. I think I appreciate there'll be a great deal of curiosity around our progress in Toosan-1 because we talk about it and from an outside-in point of view, it may at times be difficult to see progress, but work does continue, and we are quite active on that front. Engineering work continues and procurement work continues. We've been looking at the market to -- we have most of the long lead items in place, but we've been putting together a project execution plan. We've been putting together a project plan. We've been trying to determine who are the best people to come in and help us manage that drilling campaign. And all of that continues as we speak, and we have people in-house dedicated to that task. And as with all projects of that nature, we have a stage gate process in place. So we will convene with the executive every time we reach a stage gate, and we will convene with the Board every time we reach a stage gate. And we will take a conscious decision to embark on the next stage of the process and be prepared to spend the money that's associated with that particular stage. We can't commit to a particular time line at the moment. As I said in the presentation, a number of commercial, operational and geopolitical pieces of the jigsaw need to fall into place together before we can actually define with certainty when things are going to happen. But work does continue, and we are committed to the cost. Luke Clements: Okay. Back to Oman. What is your estimate of drilling costs concerning the 2 wells in Oman? Paul Weir: Well, the wells are relatively shallow wells, and we're in an area that's well serviced by the oil industry. So services are readily available. We're competitive and they're relatively low cost. I wouldn't want to put a figure right at this moment for the well cost because, of course, that's determined to some extent by precisely where we want to drill, and we haven't determined precisely where we want to drill yet. But what I can repeat is what the cost of this entire project is going to be, and that's around $15 million over a 3-year period to Genel. That obviously started last year. So all the work that's taken place so far has been extremely well planned and very clearly executed and it's below budget. But we're expecting to spend a total of around $15 million over a 3-year period starting last year. Luke Clements: Okay. It looks like we are through the questions. Operator: Thank you both for answering those questions you have from investors. And of course, the company can review all questions submitted today, and we'll publish those responses on the Investor Meet Company platform. Just before redirecting investors to provide you with their feedback, which I know is particularly important to the company. Paul, could I please just ask you for a few closing comments? Paul Weir: Yes. I mean I'll close, first of all, by thanking everybody for taking -- continuing to take an interest in Genel and for taking the time to listen to us talk about our business today. I just want to close basically by reiterating the 3 main points that we wanted to land during the course of this presentation and in fact, in all our recent presentations. The first is that we have a very resilient business, and our strategic priority is to maintain that degree of resilience, protect the balance sheet. The second is to emphasize the extent to which we have potential within the organic portfolio. Oman and Somaliland, both represent very exciting potential value builders for the business, and we continue to push forward with those. But of course, the biggest story and the biggest strategic thrust at the moment is making use of our cash pile. We've been sitting on that quite patient and are waiting for the right deal. But we continue to be very, very active in the M&A space, and we continue to be extremely confident that in time, we are going to find the right deal that's going to allow us to deploy that cash. So thanks, everyone, for your time. Thanks very much for the questions, and we look forward to talking to you with more good news. Operator: Paul, Luke, thank you once again for updating investors today. Could I please ask investors not to close this session as you'll now be automatically redirected to provide your feedback in order that the management team can better understand your views and expectations. This will only take a few moments to complete, and I'm sure it will be greatly valued by the company. On behalf of the management team of Genel Energy plc, we would like to thank you for attending today's presentation, and good morning to you all.
Operator: Good day, and thank you for standing by. Welcome to the T1 Energy Fourth Quarter Earnings Conference Call. [Operator Instructions] I would now like to hand the conference over to your first speaker today, Jeffrey Spittel, Executive Vice President, Investor Relations and Corporate Development. Please go ahead. Jeffrey Spittel: Good morning, and welcome to T1 Energy's Fourth Quarter and Full Year 2025 Earnings Conference Call. Before we get started, please turn to Page 2 for our forward-looking statements disclaimer. During today's call, management may make forward-looking statements about our business. These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from expectations. Most of these factors are outside T1's control and are difficult to predict. Additional information about risk factors that could materially affect our business are available in our annual report on Form 10-K filed with the Securities and Exchange Commission and our other filings made with the SEC, all of which are available on the Investor Relations section of our website. Turning to Slide 3. With me today on the call are Dan Barcelo, our Chief Executive Officer and Chairman of the Board; Otto Erster Bergesen, our SVP of Project Engineering; Evan Calio, our Chief Financial Officer; and Jaime Gualy, our Chief Operating Officer. With that, I'll turn the call over to Dan. Daniel Barcelo: Thanks, Jeff, and welcome, everyone, to our fourth quarter and full year 2025 earnings call. Our theme for today's call is finishing what we started. 25 was the year we built T1 Foundation. In 2026, we are building our G2_Austin solar cell fab to complete our vertically integrated domestic solar chain in the U.S. market that completely changed on January 1 with the implementation of new federal rules on foreign content and ownership. . Next year, 2027 is the year we intend to deliver a step-change in our ability to generate earnings and cash flow as a U.S. solar leader delivering high domestic content. While we execute these core objectives of our strategy, we also plan to stack additional EBITDA streams through organic and inorganic opportunities. During the fourth quarter and so far in 2026, we have made significant strides to realize this vision. Let's turn to Slide 4 for a review of T1's remarkable progress in the fourth quarter, during which we announced several important milestones and transactions. Building on the extended supply agreement with Hemlock, Corning, we announced the supply partnership with NextPower. Together, these relationships serve as critical building blocks to advance our vision of developing a fully integrated American polysilicon-based solar supply chain. We also executed 2 transactions to fund T1's growth and expansion plans, including a $72 million registered direct common equity offering and a $50 million convertible preferred tranche from certain funds and accounts managed by Encompass Capital Advisors, one of our founding investors. In November, I met with Vice President of J.D. Vance in Washington, D.C. to discuss the resurgence of American energy and advanced manufacturing and our commitment to establishing domestic solar supply chains. As our momentum continued to build, we returned to the capital markets in December with our concurrent common equity and convertible notes offerings, raising combined gross proceeds of $322 million and adding several new institutional investors to T1's capital structure. Capital is and will remain the lifeblood of T1's growth ambitions over the near term. The funding from the December transaction strength in T1's balance sheet position us to begin Phase 1 construction of our G2_Austin solar cell fab. Following the completion of Phase 1, we expect to begin producing high efficiency, high domestic content solar cells by the end of this year with an annual capacity of 2.1 gigawatts. Our successful capital formation initiative and the start of construction at G2 triggered an important commercial milestone when T1 announced a strategic partnership with Treaty Oak Clean Energy, highlighted by a 3-year agreement for T1 to supply 900 megawatts of G1 modules with G2 domestic cells starting in 2027. Also in December, we completed a series of transactions intended to preserve our eligibility for the Section 45x tax credits under the One Big Beautiful bill Act. Importantly, we also validated our ability to monetize the credits by completing our first sale of 45x credits to a U.S. financial institution. As we'll discuss shortly, our team at G1_Dallas continue to demonstrate their world-class capabilities during Q4. And with a factory fully operational demand for merchant volumes bolstered by customers clearing up 45x eligible inventory before year-end, quarterly production and sales surpassed 1 gigawatt for the first time at our state-of-the-art facility. Our busy fourth quarter capped off an impressive year at T1, and we were excited to carry that momentum into 2026. So with that, let's turn to Slide 5 for an update on the business. G2_Austin, our U.S. solar cell fab that is under construction, has been the centerpiece of our business plans from the start of our journey as a U.S. solar company. We believe that demand for domestically manufactured U.S. polysilicon-based solar cells is meaningfully underserved. And while G1 has been our entry point into the U.S. utility scale market, is expected to be the driver of margins, earnings and cash flow. This morning, I am pleased to report that the first phase of construction of G2_Austin is progressing on schedule. April should be a busy month on site as first deal is scheduled to be erected within the next few weeks. While we have deployed meaningful capital to advance construction of G2_Austin, our sales and finance teams have been busy working to secure an additional offtake contract and to line up capital formation options required to achieve full financial close on Phase 1 of G2_Austin. We remain in advanced discussions on both fronts and expect to close funding in April. As Evan will discuss later, we have multiple potential options to fund the first phase of G2, and we plan to select the financing pathway that provides the best balance of cost, speed, structure and quantum for T1 and our investors. Following a successful ramp-up at G1_Dallas, our fully operational 5 gigawatt solar module facility, we achieved records in production and sales in Q4 when we expanded our customer base through merchant sales. As we move through 2026 with the 3 gigawatt on either cost plus or fixed margin offtake contracts, we are seeing higher indicative pricing in the merchant market, and we expect that T1's module production costs will decline. We are maintaining our production and sales targets of 3.1 to 4.2 gigawatts for G1 in 2026, and we are growing increasingly comfortable with our ability to achieve the high end of that to target range. As near-term variables, including a potential Section 232 ruling and second half customer demand post safe harboring deadlines come into clearer focus, we will update investors with more detailed 2026 guidance. T1's profile within the industry continues to rise, yielding attractive opportunities to stack EBITDA and expand our commercial presence within the utility scale and AI development ecosystems. The deal flow we are seeing as a result of companies wanting to partner with T1, and we will continue to evaluate opportunities that fit strategically, culturally and financially with T1's priorities. T1 is an American company focused on building a critical domestic solar supply chain. But we also intend to unlock value from the legacy assets in our European portfolio, which are attracting growing interest from potential partners to support AI infrastructure. Earlier this month, we reported an important step to monetize our Nordic data center asset, the restoration of a 50-megawatt grid allowance in Mo i Rana, Norway. This initial power allowance better positions T1 to accelerate discussions to monetize this asset, and we have an application in the queue for up to 396 megawatts to unlock additional value. All these steps are intended to position T1 to generate meaningfully higher EBITDA in 2027 and beyond as we navigate this bridge year to G2. Let's turn to Slide 6, please. The ramp-up of G1_Dallas kicked into high gear in the fourth quarter, which was punctuated by record production and sales and the delivery of merchant volumes to major new customers. In roughly 1 year, the T1 operations team has taken G1 from initial production to maximum daily run rates over our 5 gigawatt nameplate capacity. With the strong finish to the year, we produced a total of 2.79 gigawatts of solar modules in 2025, meeting our annual production target. This progress reflects the talent and dedication of our people and gives us strong confidence in our ability to build on this momentum in 2026 and beyond. We believe that G1 is poised to generate improved margin performance in 2026. We expect production sales to ramp sequentially throughout the year, and we anticipate that sales and EBITDA will improve each quarter through year-end, based on our contracted delivery schedules and our expectation for reduced overall costs. The project development timelines adjusting to the new supply chain regulations, we are working with customers and anticipate moving some Q1 deliveries into Q2. T1 has 3 gigawatts of G1 modules under contract for 2026. Our supply chain team is sourcing cells through international suppliers who have certified their [ non-FIOC ] status to feed G1 during the bridge period ahead of the anticipated start of production at G2 in Q4 2026. In total, we plan to procure between 3.1 and 4.2 gigawatts of cells through our global vendor network. As we continue to engage with and qualify new cell suppliers to G1, we are growing increasingly confident in our ability to procure high-quality cells closer to the high end of this range. And with that, I'll turn it over to Otto, our SVP of Project Engineering, for an update on the construction of G2_Austin. Otto Erster Bergesen: Thank you, Dan. Let's move to Slide 7. Construction of the first 2.1 gigawatt phase of G2_Austin continues on schedule, and we're advancing towards some exciting milestones over the next several weeks, all sites. As a reminder, we're pursuing a 2-phased approach to reach more than 5 gigawatts of capacity at G2. Phase 1 will be a 2.1 gigawatt fab, which we plan to follow with a second phase of at least 3.2 gigawatts. Following the start of construction in December, our team in close cooperation with Yates Construction as our general contractor has made excellent progress. The G2 sites have been leveled, the building pad is prepared and foundation work has started with concrete works following shortly. We placed the order for structural steel back in November. The first full section is on track for delivery and erection in April, marking a key step towards our goal of producing first cells by the end of 2026. Our design team, together with SSOE engineering as our engineered record has also been working hard and clearing items of our punch list. We're currently at 90% design and have not been the production line equipment design in concert with our turnkey equipment vendor at Laplace. The comprehensive engineering work and planning that we've done over the past 15 months enabled us to start manufacturing of the production line equipment earlier this month, and we expect the equipment to arrive in the U.S. over the summer. With the support of T1's Board of Directors, we have deployed significant cash to reduce the remaining CapEx required to complete Phase 1, which now stands at $350 million. This has enabled us to place orders for critical long-lead items to protect the overall timeline. So the teams are working well together, and we have some major milestones ahead of us in the next several weeks. We look forward to sharing updates from G2 over our social media channels to document this progress. We're excited to bring this flagship U.S. solar cell fab into operation, which is expected to be the engine of T1's cash flow in the fourth quarter of 2026. And now I'll turn the call back over to Dan. Daniel Barcelo: Thanks, Otto. Let's turn to Slide 8. 2025 was a year to build the commercial foundation of T1 as a U.S. solar manufacturing leader, the capabilities our team has demonstrated both at G1 and now during the construction of G2 have been instrumental to the growth in our customer base. Our first major offtake contract for Treaty Oak source G1 modules with G2 cells and our ongoing discussions with additional potential offtake partners and merchant customers. To date, T1 has already sold and delivered modules to some of the largest utilities and developers in the U.S. without sharing names publicly. And while we continue to advance discussions related to additional offtake agreements for integrated G1, G2 modules, we are seeing indications of meaningful merchant demand for both our current G1 modules with international cells and our high domestic content modules in 2027 and beyond. Today, we are in discussions with current and potential customers for nearly 13 gigawatts of merchant sales opportunities in addition to the advanced offtake pursuits that represent more than 10 gigawatts of demand from some of the largest U.S. utilities and developers. When combined with approximately 18 gigawatts of mid-stage pursuits, we have a total opportunity set of 41 gigawatts. And with that, I'll turn the call over to Evan for a review of our financials and an update on our capital formation initiatives. Evan Calio: Thanks, Dan. Please turn to Slide 9. T1 ended 2025 with a much improved liquidity position in a fully ramped factory that hit our production targets. With equity market capitalization that expanded by more than 11x from our 2025 spring lows to the year-end, we're able to raise more than $440 million in the fourth quarter, enabling us to start construction of G2, execute a series of contracts to preserve our 45x compliance and establish a solid financial foundation for our business as we grow in 2026 and beyond. From this position of strength, we've been deploying meaningful cash from our balance sheet to fund critical stages of G2_Austin construction which reduced our remaining capital needed to fully fund Phase 1. In the coming months, we are focused on selecting the optimal solution to achieve full financial close at G2. Our first year T1 was dynamic, and there were a number of moving parts that impacted 2025 EBITDA, much of which we believe were onetime related to the implementation of new OBBBA restrictions before the start of 2026 in account for much of the miss versus guidance. The nonrecurring and unusual items included the following: an accounting classification of $34 million sales commission waiver we received. Although we previously accrued for the savings through the P&L, accounting standards would not let us recognize the reversal of this item on the P&L despite the favorable cash impact. Net sales were $16 million lower than expected from an inventory sale that was tied to changing regulatory restrictions at year-end, where we had to sell into a weak market to retain 45x, given the onetime implementation of OBBBA change. Net sales were $22.7 million lower due to customer offtake true-up. And lastly, in advance of new supply chain restrictions, we incurred $15 million and higher-than-forecasted tariffs on imported sales. Let's move to Slide 10, please. Looking ahead to 2026 and 2027, T1 is well positioned to navigate this bridge year to G2. On production, we're maintaining our guidance of 3.1 to 4.2 gigawatts as we continue to qualify new cell suppliers. We're increasingly confident in our ability to deliver towards the high end of the range in 2026. With 3 gigawatts under contract for 2026, we have solid visibility, but there's some meaningful swing factors that we expect to play out in the near term that will bring the year into clearer focus for T1. Number one, as a large buyer of U.S. polysilicon, the potential for a ruling in a Section 232 case has potential meaningful impact for our merchant capacity pricing in 2026 and beyond. Number two, as we expand our global vendor network of qualified cell suppliers, there may be potential to bring additional volumes. And three, customer safe harboring activity and projected timelines are still adjusting to the new regulatory climate. Our 2026 outlook is underpinned by several important distinctions between our position today and where we were at the start of 2025. number one, with our organization maturing and year-end contract changes, we are moving away from service agreements with Trina, which saved an estimated $30 million to $100 million at a 3 to 5 gigawatt run rate. These arise from the [ dilution ] of the trademark licensing agreement and the inapplicability of sales commission resulting from the [ dilution ] of the [ TLA ]. Number two, we entered 2026 with 3 gigawatts under firm offtake contracts, which is more than double the contract coverage we had in 2025. As a reminder, these contracts include a 1 gigawatt cost-plus contract and a 2 gigawatt fixed margin contract, both which represent superior economics compared to our full year sales mix in 2025. Number three, as Dan mentioned in the commercial update, we are fielding meaningful inbound customer interest for volumes in later 2026 as developers work down inventory and move past July 2026 safe harboring milestones. Number four, G1_Dallas started 2026 fully operational and capable of producing above nameplate capacity. Recall that installations and commissioning activity was ongoing in Q1 through 1H of 2025. So while 2026 represents a bridge to an expected step change in T1's earnings power with G2_Austin, we're confident that 2026 will be a significantly better year for T1 in terms of profitable operations. Within 2026, we're deferring some 1Q deliveries and expect a significant shift in sales volumes from 1Q to 2Q 26 due to customer requests and timelines. The shift does not change our expected 2026 revenue or adjusted EBITDA, only the timing. There are also no changes to our run rate EBITDA projections as we achieve integrated production between G1, G2 as in the table. Now let's move to Slide 11 for an overview on our capital formation initiatives. Following our successful capital raise in the fourth quarter, our finance team has been advancing multiple options to fund the remaining capital required to complete Phase 1 of G2_Austin. While speed is the essence for G2, our strengthened balance sheet has enabled us to prudently evaluate multiple funding pathways to ensure we arrive at the appropriate blend of cost, leverage, structure, duration and the potential for counterparty halo effects. To be clear, we have had opportunities to enter into transactions to fund the first phase of G2, but we have elected to pursue what we believe are more attractive options. With the capital we've already deployed at G2, we've maintained the projected schedule and timeline. So we are now targeting full financial close of the remaining $350 million at G2 in April. Our confidence in our ability to fund this phase of our growth is founded by the transformation in our investor base across T1's capital structure since last summer and the ongoing interest in partnering with T1 from a host of institutions, strategics and lenders. And now I'll turn the call back to Dan. Daniel Barcelo: Thanks, Evan. Let's turn to Slide 12. Elon Musk's recent announcement of its intention to construct 100 gigawatts of U.S. met solar capacity has been the talk of the solar industry in recent weeks. Just last week, he also announced plans to construct Terafab, a $20 billion chip facility here in Austin. While we can't speak for other companies, we believe these announcements have positive implications for the solar industry in general and for T1 specifically. Our North Star at T1 is to invest in American advanced manufacturing and to establish critical domestic supply chains to power AI, electrification and onshoring. Having much larger companies such as Tesla and SpaceX implement a similar playbook here in our home state suggests two things: T1 is on the right path, and the support that Elon's companies are likely to receive in building out domestic manufacturing in Texas should create additional momentum for landmark projects like our G2_Austin solar cell fab. And Elon selection of solar as a central pillar of power generation to support his portfolio company's growth ambitions is a landmark validation of solar as an energy source, potentially creating a rising tide effect for the domestic solar industry. Now let's turn to Slide 13. Our vision of building a fully integrated silicon-based solar supply chain in the U.S. could not be more perfectly aligned with the priorities of this country and the current administration. As shown on Slide 15. In many ways, T1 is setting the standard for reverse technology transfer, bringing cutting-edge solar capabilities back to America. This end-to-end domestic polysilicon solar supply chain will provide scalable, low-cost energy while strengthening American energy independence. By investing in a fully integrated domestic supply chain, T1 supports the U.S. polysilicon industry and ensure solar energy can free up domestically produced natural gas for export to our partners. With U.S. electricity demand surging, optimizing domestic energy resources has never been more critical. Solar-paired storage deployed directly at data centers can insulate consumers from demand-driven price spikes. And as geopolitical risk premium returns to the global energy markets, developing a domestic supply chain becomes essential to keeping energy affordable. Moreover, as AI drives a new wave of electricity demand, solar is the most scalable resource available to help power the next generation of data center infrastructure. By scaling domestic solar, T1 supports both the country's energy needs and the growth of U.S. AI leadership. Turning to Slide 14. Let's conclude with a review of T1's top priorities for 2026. Our priorities continue to evolve as we strengthen the business, but our core objective remains unchanged in building the first fully integrated U.S. polysilicon solar supply chain. To support that, we're focused on the following key initiatives: We're completing our capital formation to achieve full financial close on Phase 1 of G2_Austin and continuing to advance construction on schedule, which will position T1 to produce high domestic content modules at G1_Dallas using domestic polysilicon, wafers, steel frames and solar cells. Once G2 Phase 1 achieves full financial close, we should have visible demand for Phase I that should support offtake commitments and subsequent funding. In parallel, we are taking definitive steps to enhance T1's profitability and capital structure. We're driving efficiencies at G1 Dallas to achieve sustainable profitability and reducing unit cost of production through automation and software upgrades. At the same time, we're optimizing our capital stack, carefully managing leverage cost, complexity and ownership as our business model continues to mature. These efforts position us to deliver stronger returns while maintaining a disciplined, flexible financial foundation. Delivering long-term shareholder value is our ultimate objective as we build T1 into a cash flow engine and a leader in the underserved domestic solar cell market. We're focused on driving EBITDA and cash flow through both organic growth and strategic acquisitions while investing in high-margin opportunities that complement our manufacturing business. As a company, we're proud of what we encompassed in 2025, and we're entering 2026 with strong momentum. More importantly, we are excited for the year ahead as we move closer to our goal of creating the first end-to-end domestic polysilicon solar supply chain in the U.S., a milestone that will both set T1 apart and set a new standard for the industry. And with that, I'll turn it back to Jeff to coordinate the Q&A session. Jeffrey Spittel: Thanks, Dan. Marvin, we're ready to open the line for questions, please. Operator: [Operator Instructions] And our first question comes from the line of Philip Shen of ROTH Capital Partners. Philip Shen: First one is just on the remaining base for Phase I. You talked about closing this in April. You've had many other options, but you're waiting for -- or trying to create the right set of and sources of capital. So I just was wondering if you might be able to provide more color on what those alternatives sources might be and what the makeup might look like? And is it earlier in April, later in April? Daniel Barcelo: Yes. Thanks, Phil. We can't give too much color on this. We are confident that it will be in April. As Evan said, we have passed on certain, we'll say, higher-cost options. The state and maturity of the project continues to support this. G2, we made tremendous progress in terms of where we are with PLE equipment starting to come in, in June, July and August. So we're comfortable now in many, many conversations with many, many capital providers. They're seeing that G2 is on track. They have more confidence in what's going on in the market. They see that the G1 asset is working at a production level, albeit at lower EBITDA, which we just went through. But we see the volumes working, and there's more confidence in that base asset. So that's really giving us a lot of comfort in what we're seeing in April. We're committing to April. We're confident that we'll have April. We just can't give too much color for a few reasons there. Evan, would you like to add anything about the funding for G2, which remains $350 million. Evan Calio: Yes. is hard to give you kind of more detail. I think Dan covered it. I mean, look, we want to finance in a way that provides the most flexibility to expand G2, given all sales are through G1 is going to be a holistic type of financing. So that's important to us. And we also believe that future sales price will be above what our still attractive long-term contract offtakes, but there are a significant discount to current and what our expectations are in future. And so we want to maximize kind of our merchant exposure as we move into the year. So I think those are two additional points of color, but yes, it's hard to answer your question, were -- we got 30 days here right now. Philip Shen: Okay. No problem. Shifting over to your customer situation and kind of driving new customers, you guys talked about 2 new customers in the quarter. And you've given a lot on the pipeline. As we get through -- one, can you share who those 2 new large customers are? I think Treaty Oak might be one. And then maybe give some more color on the pipeline and maybe the cadence of additional contracts as we get through the year. Daniel Barcelo: Yes. Treaty Oak did allow for public disclosure of their name. The others prefer confidentiality so we can't talk to that. We remain close on a significant contract. We're confident that we can get that contract through. As you can imagine, there's a lot of work to be done with a new plant in 2025. with the quality in the QA/QC of that plant, which is being demonstrated. We have executed quite a bit a further deep [ FIAC-ing ] and we'll see further deep [ FIAC-ing ] proofing at the end of last year. All of those things are very important aspects for new customers to come in. So we're comfortable more and more increasingly, many more customer visits, much more interaction. As we're building with that as part of the EBITDA growth and moving away from an agency agreement from in the past, building these relationships with these customers now is important. We've had over a dozen very significant customers visiting it. All of them are very pleased with what they're seeing in terms of QA/QC, and many of them are very pleased with the progress we're making on G2. Everyone really wants a high-efficiency TOPcon cell. Everyone really likes the commercial, we'll say, maturity of the TOPcon that we're producing, and there's a lot of comfort there. Philip Shen: Okay. One last one, if I may, and then I'll pass it on. As it relates to the European assets and the recent news there, can you update us on how much cash you could raise from potentially selling those assets and what the timing might be? And possibly, could you finance that asset ahead of time so you can kind of leverage that asset value earlier and maybe take some cash up? Daniel Barcelo: Yes. We're looking at it the way you're looking at it. Those assets are legacy assets. In Norway, we have an already existing powered [ shell ] now with 50 megawatts. We're in the queue for a further 350 to 400 megawatts of power. That secondary power takes longer, but there's a pathway to that. we're active. We've hired [ Pareto ] to start marketing that. We are open to full divestment. We are open to partnership, but we're as -- soon as possible there. I'd say that's moving ready. There's a lot of interest there. That power is 100% uptime and hydroelectric power. In Finland, we are getting close to permitting on a site. This was a legacy industrial site. We took this industrial platform site. We held the option. That option, we're ready to execute that option with building permits to get close to 300 megawatts of power. That will be a brownfield site in an industrial zone. That's the same thing. It's hard to speculate at what prices we will get, but you're looking at pricing in the market right now from anywhere from $0.5 million a megawatt to $1 million in megawatt in terms of power, it's a very robust Nordic market right now, and we are very committed to divesting this as soon as possible and/or partnering to retain upside value. Operator: Our next question comes from the line of Greg Lewis of BTIG. Gregory Lewis: Dan, I was hoping you could talk a little bit about shift in IP to Evervault? And just, I guess, what, last month, there was some talk of, I guess, a CBD on India. Just as we think about that, like does -- how are we thinking about margins? And is that something that we're looking to broaden out beyond Evervault because of the margins I mean the CBD out of India? Daniel Barcelo: Yes. Well, Evervault is a Singaporean entity, and we are licensing from Evervault. I can let Andy touch more about that if it's a specific question on there. In terms of India, we don't we don't have operations in India. I think that India, AD/CVD is only going to make it harder for product to be coming through India to the United States. We have been supportive of AD/CVD cases publicly. We've been supportive of 232 very publicly. We remain optimistic that the U.S. will have a robust 232 across the chain, down to the modules, down to the products. I think that's very important for the profitability of the American solar market. So from those perspectives, we're still hopefully optimistic in terms of what's going to happen there. And Andy, do you want to touch on [ volt ] a bit about our licensing strategy? Andy Munro: Yes. Well, as you said, our license with Evervault, doesn't, in any way, result in tariffs. We're not importing anything. So that's all upside, the solar, 3 tariffs, which helps to level the playing field for U.S. manufacturers. So a core tariffs that will be implemented soon and the 232, so that's all upside and wind at our back. And what we have with Evervault is simply an IP license. And so from our perspective, that's only reducing the risk that we face going forward on the [ FIOC ] front. So further solidifies our position when it comes to compliance. We put a lot of effort into a world-class compliance program. Even without that transaction, we believe we were compliant but it's essentially the suspenders to our belt because we have taken a very conservative approach on [ FIOC ] compliance, and we're confident that we will be. We had a number of strategic transactions at year-end. That was one of them. But if you go down each and everyone of the prongs the [ FIOC ] compliance, equity debt covered to officers IP effective control and material assistance, we feel confident that we're compliant. And early this year, there was a guidance given, and that made it clear that our strategy of procuring [ non-FIOC ] cells would allow us to satisfy the material system cost ratio by providing safe harbors. And so that guidance is good news, And we welcome additional guidance on [ FIOC ] and are confident that we'll -- our world-class compliance program will ensure that we're compliant. Daniel Barcelo: Yes. I think just to close it out, there's been a tremendous amount of safe harboring in '25 that was happening, OBBBA clearly put a lot of volatility into buying and selling. They're going back to 232. There's still pressure from imports from imported modules from Asia or imported poly -- particularly from imported polysilicon from Asia. 232 for level of playing field would be very important from a margin -- from leveling the playing field and enhancing that margin. That still seems to be the key area. I'd say there's a lot of optimism in the market now that developers are hoping to see higher PPA prices rising. Obviously, the conflicts in the Middle East has been a lot of rise of natural gas. Natural gas vis-a-vis solar has been the key competitive. Solar and storage is only more competitive with higher natural gas prices at home. So there does seem to see a lot of tailwinds behind the market. Obviously, the debate between the developers wanting that margin versus the manufacturers getting that margin remains. But again, we're very optimistic that we'll see a 232 strengthen margins for American-made solar. This whole thing we've been doing is about American manufacturing as it is about American energy, and it's very important that we're restoring jobs that we're creating manufacturing jobs, and I think that's very supportive by the administration. Operator: Our next question comes from the line of Sean Milligan of Needham & Company. Sean Milligan: Evan, you went through a little quickly on the call, but I wanted to confirm, did you say that you've reduced the Trina sales and service agreement commitments for 2026 and moving forward? Evan Calio: Yes. I mean there were 23 changes that happened on January or December 31 that deleted one contract that has collateral impact into another, And that would reduce the year-over-year comparison on the fees owed under those agreements. And I gave a range of $30 million to $100 million. And just to be clear, that per year, that -- the low end is 3 gigawatts without a G2 sale. And the high end, 100 plus is 5 gigawatts with the G2 sale to dimension the range. Both those contracts are publicly filed with our deal in December, so you can kind of go through the math otherwise, but that's our -- and it's based on an estimated sales price and EBITDA, so they're estimated kind of amounts. Sean Milligan: Okay. That's coming out of the -- I just want to make sure I'm understanding this correctly. But is that coming out of the G&A line in 2026 if we look at it compared to 2025? Evan Calio: Yes. Yes. I mean, there will be -- I mean, look, I mean SG&A, it was clearly heavy in 2025. It was a ramp-up of a new asset. It was a ramp-up of a new business for T1. And it embeds a growth project, right? And so when you think of the construction of SG&A, there's a large -- and you'll see the 10-K right this evening or after the close, which you can see some of this stuff. But there's a large noncash component in your SG&A, right, that relates to largely carried by the impairment, but there's other noncash stock comp allowance doubtful accounts, other accounts and D&A, depreciation and amortization, that result in a noncash piece of about 33%. And then there's other third-party fees in there, which were 26% of that number in 2025. And that contains those contract fees, largely the commission fee that will not be -- it will be reduced in that number going forward, depending upon volume and the quantum that I mentioned to mention. So long-worded answer, yes. Sean Milligan: Okay. That's great. And then just to kind of circle back up. So that contract, I think, had a fixed margin on the gross margin side, right? Has that changed? Like how should we think about the third-party margin for 2026? Evan Calio: Yes. I mean we have 2 different contracts, right? We have a one 5-year long-term contract that underpins the financing of the asset. That is a cost-plus contract. And then we have a second 1-year contract that's fixed margin at 2 gigawatts. And neither of those contracts -- we executed 9 different contracts in conjunction with the acquisition of the asset, right? And the deletion of the contracts that I mentioned were different than the offtake contracts. So they're not -- they don't impact the contract calculations. So no change in that year-over-year. I mean, but there's a new contract. Operator: This concludes the question-and-answer session. I would like to turn it back to Jeffrey Spittel for closing remarks. Jeffrey Spittel: Thanks, Marvin. Well, thank you all for your attention and participation today. Please feel free to contact us. We will back out on the road in the next few weeks with Dan and Evan. But you know where to find us and look forward to following up with everybody after the call. This will conclude today's call. Operator: Thank you for participating in today's conference. This does conclude the program. You may now disconnect.
Operator: Welcome to the earnings call of Aumann AG regarding the full year figures for 2025. The company's CEO, Sebastian Roll; and CFO, Jan-Henrik Pollitt, will guide you through the presentation and the figures shortly, followed by a Q&A session via audio line and chat box. Having said this, I'm handing over to you, Sebastian. Sebastian Roll: Good afternoon, everyone, and thank you for the kind introduction. I'm pleased to have you with us today. And for those I haven't met yet, my name is Sebastian Roll, and I'm the CEO of Aumann. So joining me in the call today is our CFO, Jan-Henrik Pollitt. So we really appreciate your time and your interest in Aumann. In the next few minutes, we will guide you through a brief overview of Aumann, the latest developments in our E-mobility and Next Automation business and of course, our financial performance in 2025, where we delivered strong results in a challenging market environment. So let's start with a quick look at our business model. So we design and build high-end fully automated production lines tailored precisely to the needs of our international customers. With decades of experience in automation, industry leaders around the world trust Aumann to deliver innovative solutions. One of our competitive advantages is staying ahead, especially in fast-growing markets, enabling us to quickly provide customized solutions. This is why the automotive market, especially the E-mobility sector remains so attractive to Aumann. In addition, the robotics and automation market is growing rapidly, driven by demographic change, labor shortages and cost pressure. These trends also drive our Next Automation segment, allowing us to use our automation expertise in many industries beyond automotive. So let's take a quick look at Aumann's solutions. So our portfolio ranges from modular solutions and complex process solutions to fully integrated large-scale production solutions. At the modular end, we provide standardized cell systems. They enable our customers to adapt quickly and cost efficiently to changing market demands. Building on this, Aumann designs production lines for more complex processes, including technologies such as winding, coating and testing. The aim is to implement special process steps in the most efficient way. Moreover, Aumann offers fully customized large-scale solutions built to maximum output while ensuring high quality. Thanks to Aumann's wide range of solutions, we can fully support different production strategies of our customers. So this slide here shows how Aumann became a technology leader in E-mobility. Starting from the traditional automotive business, E-mobility was identified as a growth market. Through targeted M&A, Aumann took the first step into E-motor technologies. Building on our know-how, we developed different solutions for the rotor, quickly followed by solutions for the stator and finally, full E-motor assembly. After the E-motor, we leveraged our expertise to develop large-scale production solutions for battery modules and packs. In addition, we introduced our own modular systems, for example, in inverter assembly, but also very useful in the field of Next Automation. Furthermore, we have expanded into converting technology, enabling us to offer, in addition, production solutions for electrode manufacturing. Aumann is a leading provider of turnkey solutions in E-mobility. This illustration here shows the drivetrain of a fully electric car and most of these components can be produced on Aumann production lines. From the outset, we have focused strongly on the E-drive unit. Even today, our customers still use different approaches to stator and rotor design. As a turnkey provider, we offer the latest production solutions for both. Beyond that, we have expanded our portfolio with modular production systems, for example, for electronic components such as sensors or, for example, such as inverters. This enables us to offer flexible and scalable solutions perfectly tailored to each customer's needs. Let me now turn to our battery portfolio. Here, Aumann benefits from its strong position in energy storage. We cover the full range from battery modules and packs to cell-to-X solutions. This expertise allows us to meet customer needs and develop new solutions for next-generation battery technologies. Let's look at the E-mobility market today and in the future. BEV, or battery electric vehicle sales continues to gain traction. In 2025, more than 13.7 million were sold worldwide. So this means a plus of 30% in comparison to 2024. China stays in the lead with 9 million units, but Europe follows with strong growth, reaching more than 2.2 million units with 26% increase compared to 2024, including Germany with an impressive 43% growth. The U.S. market, which currently shows the lowest volume in comparison, remains at least stable at 1.2 million units. By 2030, BEVs are expected to make up 40% of sales by 2035, even 2/3. So overall, rising BEV sales and a more stable geopolitical situation are expected to drive new investments in the near future. So let us now turn to our key commercial focus in 2025. As mentioned earlier, we are expanding beyond the automotive sector and focusing more on industries that need greater efficiency, higher productivity and less manual work. At the same time, rising labor costs and the shortage of skilled workers are accelerating the shift towards automation. In this context, we have moved, as you know, our Next Automation segment from an opportunistic to a strategic approach. This segment focuses on growth industries beyond automotive, such as defense, aerospace and life science. So let's take a closer look. In our Next Automation segment, we have defined 3 strategic growth areas. Aerospace, as you know, is gaining momentum. Demand in civil aviation is rising. Boeing and Airbus are forecasting more than 40,000 new aircraft over the next 20 years. Against this backdrop, Aumann is preparing its reentry into aviation, offering solutions to support production ramp-ups with initial orders already secured in early 2026. At the same time, defense budgets are boosting. Drones combines exactly what we do best: electric motor, battery packs and full system integration, including end-of-line testing just like in E-mobility, same technology, new applications. Therefore, we easily developed integrated drone assembly lines and secured our first orders in 2024 (sic) [ 2025 ]. Besides aerospace and defense, clean tech is also good. Here, Aumann has acquired a double-digit million order in energy infrastructure, delivering flexible assembly and test lines for medium voltage circuit breakers. Finally, life science. So this sector benefits from long-term trends such as an aging population, strong investment levels and attractive margins. In 2025, Aumann entered the pharma market with solutions for producing skin delivered patches and oral thin films. Now I would like to hand over to Jan. Jan-Henrik Pollitt: Yes. Thank you, Sebastian, and also a warm welcome from my side. I would now like to share with you the financial figures of the year 2025. Let me start with a brief overview. We entered the year aware that revenue would face a decline, primarily due to a softer order intake in 2024. At the same time, we remain fully committed to implementing every possible measure to protect our margins and sustain strong profitability. It is also important to highlight, particularly in the automotive sector, that investment behavior continues to be very cautious. This trend is visible across the full spectrum of OEMs and suppliers. Against this backdrop, in 2025, revenue reached EUR 204 million, 35% below the previous year. Profitability remained strong with a double-digit EBITDA margin of 13.8%. Order intake totaled EUR 147 million, down 26% year-over-year. Order backlog decreased from EUR 184 million to EUR 122 million at year-end 2025. And our balance sheet remains robust with a net cash of EUR 148 million. With this foundation, let us now dive into the details. Across segments, we achieved a revenue of EUR 204 million, representing a year-over-year decrease of 35%. The main driver of this decline was the E-mobility segment, where revenue decreased by 37%. Revenue in the Next Automation segment also declined from EUR 53.8 million to EUR 40.2 million, mainly because the prior year included a larger contribution from a major photovoltaic project. For 2025, we had initially expected revenue of approximately EUR 210 million to EUR 230 million. Based on early projections in January, this estimate was refined to EUR 205 million. With the audited figures now available, we ended the year 2025 at EUR 204 million, closely matching this guidance. Looking ahead, we will now turn to the profitability and earnings performance to provide a complete picture of the financial results. Despite the decline in revenue, our profitability remained robust, demonstrating the resilience of our business model. EBITDA came in at EUR 28.2 million, down 21% year-over-year. EBITDA margin increased from 11.5% to 13.8%. This reflects the strong execution, especially in our E-mobility segment. Key drivers of this solid performance include a high-quality and well-diversified order backlog, strict cost discipline across all projects, capacity adjustments aligned with the subdued market environment, and an above-expectation Q4 with some larger E-mobility orders completed ahead of plan. Based on these dynamics, we raised our initial EBITDA margin guidance of 8% to 10% in January to 14%. With the final margin at 13.8%, we outperformed last year by 2.3 percentage points, underlining the operational strength of our segments. With profitability well established, let's now turn to order intake. As already mentioned, the overall investment climate remains challenging. Our business relies on our customers' CapEx, and especially for large-scale projects, long-term forward-looking decisions are essential. Many industries, particularly automotive, are currently not making these kinds of commitments, which affect our markets. However, we are not standing still. Internally, we continue to optimize costs and adjust capacities. Externally, we are actively developing new sales opportunities and pursuing M&A leads. We see clear opportunities to grow, and we are confident these initiatives will deliver value. In 2025, total order intake declined 26% year-over-year to EUR 147.5 million. The Next Automation segment is showing strong progress. Order intake increased 54% year-over-year to EUR 56.5 million. Our sales pipeline is also growing, demonstrating the potential of the Next Automation initiatives to drive future revenue. As a result, total order backlog declined from EUR 184 million at year-end 2024 to EUR 122.2 million at year-end 2025. However, the Next Automation segment continues to gain momentum with its order backlog increasing 39% to EUR 47.9 million. While the overall backlog is below our desired level, both volume and quality of the backlog are solid. And we have, of course, continued to account for this backlog conservatively in our financial statements. Let me now move to the next slide and walk you through the segment figures, starting with the E-mobility segment. In the E-mobility segment, order intake of EUR 91 million is 44% and under the previous year due to the mentioned market conditions. As a result, order backlog decreased by 50% to EUR 74.3 million. At the same time, revenue decreased by 37% to EUR 163.8 million. EBITDA is declining at a slower rate than revenue by minus 21% to EUR 26.6 million, which means a strong margin of 16.2%. In the Next Automation segment, order intake increased year-over-year to EUR 56.5 million as the new positioning is opening new markets. End of 2025, order backlog amounted EUR 47.9 million. Revenue decreased 25% year-over-year to EUR 40.2 million. And the EBITDA margin increased by 2 percentage points to 12.8%, which leads to a total EBITDA of EUR 5.1 million. Before we take a closer look at the balance sheet, let me provide a brief overview of our group cash flow in 2025. Cash flow from operating activities reached EUR 38.4 million, reflecting the strong results for the year and the EUR 50 million reduction in working capital compared to 2024. Importantly, we returned EUR 23.3 million to our shareholders through dividends and the share buyback program, underlining our commitment to delivering value to investors. As a result, cash and cash equivalents, including securities, remain at a record high level of EUR 152.8 million. By the end of December 2025, our balance sheet continues to be in a good shape with an equity ratio of 66.7% and EUR 153 million cash, of which EUR 148 million are net cash. Our financial foundation will continue to allow us to respond flexibly to market opportunities, to drive the expansion of the Next Automation segment, both organically and through M&A activities, and to ensure further shareholder participation through share buybacks and dividends. Following the successful year 2025, we will propose a dividend payment of EUR 0.25 at the AGM, which is a further modest dividend increase compared to the previous years. And of course, we currently have an existing authorization to acquire treasury shares up to 10% of share capital. This provides the company with flexibility to act opportunistically in the market, and at the same time, it ensures that we can continue to participate our shareholders in the company's success. To conclude, we would like to provide our guidance for 2026. We expect a mixed, but well balanced development across our segments. E-mobility revenue is likely to decline due to a lower starting order backlog. In Next Automation, we see continued positive momentum. Overall, the group enters 2026 with an order backlog of EUR 122.2 million. We expect total revenue of around EUR 160 million with an EBITDA margin of 6% to 8%. Our diversified business model provides stability and supports a resilient and profitable year. Let me now hand over to Sebastian again. Sebastian Roll: Yes. Thanks, Jan. So let me briefly summarize. 2025 was a challenging year for Aumann. Revenue dropped to EUR 204 million as investments across the European automotive sector remained weak. So despite these headwinds, we delivered a strong operating performance. We reduced capacity, further increased the flexibility of our cost structure and achieved additional cost savings in project execution. As a result, we reached EUR 28 million EBITDA, achieving an EBITDA margin of 13.8%, a strong indication of improved efficiency and profitability despite lower volumes. Thanks to these, we proposed a dividend of EUR 0.25 per share, continuing to provide an attractive return to our shareholders. Looking ahead to 2026, we are facing a decline in revenues again. Nevertheless, we are targeting a profitable EBITDA margin of 6% to 8%. So also in 2026, as Jan mentioned, our financial position is strong with high liquidity. That clearly sets us apart from most of our competitors and gives us the freedom to shape 2026. Last year, Next Automation developed strongly. This confirms that our diversification is working. Our clear goal is to accelerate this growth, both organically and through M&A. So thank you very much for your attention. We are happy now to take your questions. Operator: [Operator Instructions] What will be recurring revenue after sales services next year and in year 2025? Jan-Henrik Pollitt: Yes. The recurring revenue from after sales and services is approximately 10%. What we see in investment reluctance phases like 2025 and maybe also in '26 that some customers have higher volumes of retrofits of production lines, and this could, as long as the general CapEx is low, give maybe an additional increase on the aftersales side. Operator: How do you view Aumann's competitive position in the European EV ecosystem? And to what extent our increasingly aggressive Chinese entrants reshaping pricing, technology and market share dynamics? Sebastian Roll: Maybe starting the question with the question of competition out of China. So I mean maybe in comparison to other sectors, so we are dealing with China competition, I would say, the last 10 years. So there's nothing new. I also would add that there are not any changes concerning the competition out of China. Our business model is to be the front runner for the first very important, let's say, 1 or 3 lines, especially start of production of new EV is very important, for example, like it was in the new class for BMW. And I mean, in this area, the customer still is buying, let's say, more or less confidence, and this is our business model. So for the fourth, fifth, sixth line, there might be competition out of China. But then normally in normal market conditions, we are already ahead in new projects. Operator: And could you please give us more details on M&A environment and activities in Americas, which can give us inorganic growth? Sebastian Roll: Yes. So M&A, as you know, is an important pillar of our strategy, that's for sure. That's not new. So as we said also in other calls before, so we switched a little bit the direction. So we are now looking especially for targets in the area of Next Automation. That's where we would like to expand our portfolio, and that's clear our target for 2026 to acquire a company in this area. Operator: And the next question is slightly similar. Could you please elaborate further on the target focus, the size, geography and technology? Sebastian Roll: Yes. So geographically, it is still, for sure, the United States. So that's something we would like to enter. Therefore, we need a hub which is close to our technology, maybe a little bit similar. Within the European area, we are more searching, as I said, for additional technology and for additional customer relationships within the Next Automation. So looking in, as we said before, aviation, defense or, for example, life science as well. Operator: And with our large M&A, your capital structure looks rather inefficient and the share price level low. Any further buybacks to be expected? Jan-Henrik Pollitt: So there is no current decision on further buybacks. But as we have shown in the presentation, we have authorization for another 10% buyback of our share capital and we will decide if necessary on that topic. Operator: What is the potential revenue that can be achieved with the current personnel and corporate structure? Jan-Henrik Pollitt: Yes. So we adjusted capacities during 2024 and 2025. We didn't adjust directly on the EUR 160 million revenue guidance, which we have for '26. We still have a bit more capacity in-house so that we can hope for the rebound in order intake and scale up fast again. So if we don't see a positive effect, then of course, we will also use 2026 to further adjust capacities. We will also have the one or other topic in '26 where we see a few adjustments necessary but not larger ones. And as soon as the market rebounds again, that we are able to do like EUR 160 million to maybe EUR 240 million, EUR 250 million revenues again. Operator: You already answered one of the next questions. Have you continued to reduce the number of employees year-to-date? Jan-Henrik Pollitt: Yes. As said, we had some smaller adjustments, not like bigger topics, but small adjustments here and there. So we continue to make some homework, but no big issues. Operator: And there are 2 questions left. Any new strategic industries, markets, or processes that Aumann is looking on? And can you say something about order intake in Q1 and the sales pipeline? Sebastian Roll: Yes. I think what we tried to show in the presentation in a little bit more detail to give to give some ideas in Next Automation. So Next Automation for us is important. For us, it was important, especially that we had this growing market or that we had really acquired one big project, but also some minor projects in the fourth quarter of 2025. So I think you have seen that I think in the middle of the year, we are roughly 20% higher in order intake in Next Automation. After the third quarter, it was roughly 35% higher. And now after the last quarter, overall, we are 55% higher. So that means that the sales pipeline, especially in Next Automation is rising. This takes a little bit of time step by step. But as I said, for us, really important was to have, for example, this big project within the infrastructure area, yes? So in our point of view, a really nice project in the infrastructure, but also in clean tech and also in aviation. So in all these areas, now we have the first projects. In infrastructure, we even have this big project. So this is important for us. And you have to have in mind that, unfortunately, this order intake in Next Automation takes more time than in E-mobility because, as I said, the industry is new. We have the customers that are new or the products are new. And this will take a little bit of time also in 2026. So we will not see the big recovery in the first quarter, but we will see step-by-step a very increasing Next Automation. Operator: Thank you very much. And with an eye on the time, we have the last questions. There are 3 questions in a row, and I will take them one by one. The first is, Aumann reports EUR 12.2 million in securities apparently in the form of bonds. What specific type of bonds are these? Jan-Henrik Pollitt: These are government bonds and corporate bonds, but each with good credit ratings. Operator: And can you provide any information regarding order intake in the first quarter of 2026 broken down by segment? Jan-Henrik Pollitt: Honestly speaking, not yet. Operator: We expect significant working capital effects in cash flow in 2026? Jan-Henrik Pollitt: Yes. We finished the last 2 or 3 years at relatively low working capital levels. So each year, we expected a little bit working capital increases, but managed to hold the working capital at that low level. For '26, from today's perspective, I would see some working capital increases maybe back to a level of 15% to 20% of revenue. Operator: And the last question, can Next Automation reach similar EBITDA margin levels at the currently higher ones of 16% E-mobility? Sebastian Roll: Yes, in general, of course. So we had this high EBITDA margins, especially in E-mobility in 2026 (sic) [ 2025 ]. As said, we finished a project better than expected, which boosted the EBITDA margin end of the year, especially in Q4. For 2026, both segments will be a little bit lower in margins due to the decline in revenue. But in general, we are trying to maintain a good and profitable margin level in both segments. And as we said in the other segments like -- or the other industries like aviation or life sciences, there are also good margins to reach and achieve. Operator: Thank you very much. Ladies and gentlemen, we have come to the end of today's earnings call. Thank you very much for your interest in the Aumann AG. A big thank you also to you Sebastian and Jan-Henrik for your presentation and your time. Should you have any further questions, ladies and gentlemen, you are always very welcome to place them to Investor Relations. I wish you all a successful day around the world, and handing back over to Sebastian for some final remarks. Sebastian Roll: Yes, I hope that we have shown that Aumann will stay strong also in 2026, in unfortunately another challenging year for our industry, but we are focusing on what we can control. So that means internally, we are continuously optimizing our cost structure, we are building our sales opportunities in Next Automation. And for sure, we have an eye on M&A activities. So thank you very much for your interest.
Operator: Good morning, ladies and gentlemen. Welcome to the Ceres 2025 Full Year Results Investor Presentation. [Operator Instructions] I'd now like to hand over to the management team, Stuart, Phil, good morning. Philip Caldwell: Good morning, everybody, and thank you for joining us for the 2025 full year results presentation. I'll talk you through an update on the company and the strategy to begin with, and then Stuart will obviously talk you through the financial numbers, and we'll obviously go into Q&A at the end as usual. So at Ceres, we're operating on 3 strategic imperatives. The first one is signing more licensees. So new manufacturing license partners is a key focus for us as a business. The second is once we have those partners, bringing those partners to market. So that's obviously assisting them as they scale up and put in capacity, but also actually helping to stimulate demand, which actually helps pull through the products that we're developing with partners. And the third is obviously technology leadership. We believe we have the best solid oxide technology in the world. We have a single stack platform, which we're actually going to be launching in April. And we need to maintain that technology leadership advantage because that's what our partners come to rely on from Ceres. So over the last 12 months, we've made significant progress on all these activities. The first thing to say is there is an acute need for power driving the commercial interest in our technology right now and particularly for SOFC technology in the wider landscape. As we go into partner progress, in the past 12 months, we signed a new manufacturing license agreement in China with Weichai, our partner. We'll give you a little bit more on that today, but that's going extremely well, extremely rapidly. In Taiwan, Delta is also scaling and starting to produce first prototype products and is also investing significantly in land and facilities to do that scale up as well. In South Korea, a big milestone for us in the past 12 months with Doosan starting production at the factory there, both for SOFC stacks and power systems, and that also generated first royalties for the company in this period. In Japan, our partnership with DENSO on the electrolysis side began production of first hydrogen with JERA and also led to government funding recently with an estimated value of about JPY 35 billion, approximately GBP 165 million to continue the advancement of SOEC technology. Great progress in India with Shell. The megawatt scale electrolysis demonstrated actually exceeded performance expectations, high efficiency but capacity as well. And we're progressing now towards the pressurized systems as well with Thermax and Shell and Thermax developing a new pilot facility for testing of those systems. We also undertook a business transformation plan around those 3 strategic imperatives that we talked about. And we've restructured the business, very much focused on accelerating the commercial opportunities. So after 25 years of developing this technology, we are now at that point of commercialization and the point of first production and scale up. We'll talk more about this business transformation, but there's a cultural change there, but also it's anticipated it will drive cost savings of around 20% this year compared to the 2025 cost base. And we finished the year with a very strong cash position of over GBP 83 million at the end of the period. So again, we'll talk in more detail about financial management in the second half of the presentation. We had some news this morning as well, which is very pleasing, partnership with Centrica here in the U.K. It's fantastic to be able to actually bring this British technology to the U.K. And this really is part of our second pillar of that strategy, which is how do we stimulate demand and how do we bring this technology forward at scale. Centrica, as you all know, FTSE 100 leading energy integration company. The statement there is about a multi-gigawatt opportunity that we see in the U.K., Centrica sees. And that's on this gap that we're seeing as we have more need for electrification. We have a time to power need that's becoming quite acute. And this modular high-efficiency technology can really service that market, both in terms of the data center needs, commercial and industrialization partners as well. So the purpose of this is we're introducing our licensing partner network to Centrica, the whole ecosystem of manufacturing partners. And we will support Centrica in terms of bringing that forward, if you like, acting as their technical advisory arm, helping them to set up this model of how they go to market with this. So that will include our expertise in things like installation, commissioning, remote monitoring, maintenance, recycling, all of those good things that we at Ceres know how to do. The initial focus will be the data center market, commercial customers and industrial power. So that's a fantastic step forward for us today, and we'll have more details on that. We have an upcoming Capital Markets Day on April 15, and we'll be able to provide you with more detail on that and from Centrica as well. But that's just in very exciting development today. I mentioned also the single stack platform. So we're going to launch that also at our Capital Markets Day. One of the things that's unique about Ceres is the solid oxide platform, the same stack, the same cell technology can run in both directions, both for power generation and for green hydrogen. That's an amazing benefit to our partners because as they develop the supply chain, as they scale up, that investment that they're putting into factories now for power generation also has this dual use aspect in the future for hydrogen as well. And as you can see in the chart here, that same stack technology is now going into products, Doosan, Weichai, Delta, but also we're using that on the hydrogen side with partners like DENSO, Thermax, Shell and Delta as well. Just wanted to spend a little bit of time on what we're seeing as the emerging demand for power. Our estimate is we see an opportunity for power generation using solid oxide of around 22 gigawatts by 2030. And we see that market roughly split about 50% the data center opportunity, but also a very significant part in the industrial and commercial applications as well. So around 50-50 kind of split. Geographically, it's an interesting split as well. About 25% of that is the U.S. market, which gets a lot of attention right now. I'm sure you're all covering data center applications in North America. But just under 20% of that is here in Europe as well. And the U.K. is a great market opportunity when you think about we have some of the highest power prices anywhere in the world. This is a market that really lends itself well to this application. And then about 50% of that market we see is Asia, the wider Asian opportunity as well. And with our partnership network, we're able to access all aspects of this market. So our aim here is to really establish the service technology as the industry standard, and we're doing that by embedding it in these global partners that are accessing and servicing these different parts of the market. Why is that becoming a critical factor? Well, today, if you need power generation, you're waiting about 6 to 7 years for a gas turbine. Small modular reactors are also coming down the pipeline, but they're about 7 to 10 years away. And then high-voltage grid connections, 5 to 15 years away. So right now, with this acute need for power generation, behind the meter or on-site generation is becoming a really viable alternative because there just isn't the conventional power generation equipment available. I think it also opens a window for us in terms of the technology today is good enough. It's viable in terms of its lifetime, its performance and its cost to actually enter the market. And as we scale, we anticipate these costs coming down significantly. Just to show you some of the progress that's being made. These are the first units developed by Delta, took a license just under 2 years ago. So this is a Thai power in Taiwan. So you can see here the first prototype units being made using car stacks, but all the systems done by Delta. Delta are fitting out their production as well, and they're on track. Delta is a very exciting partnership for us because when we talk about that data center market, Delta are already very much in that supply chain. I think by market cap now, they're the second or third biggest company in Taiwan after NVIDIA and Fox. And where we fit in is they make solid-state transformers, they make power conditioning, they make UPSs, et cetera. So by adding in the power generation capability of the solid oxide, they're developing a complete offering from fuel in all the way through to power out. And that power out can either be AC power or in the data center application, 800-volt DC. So don't forget that the fuel cell technology is actually generating DC power and the way that you actually combine stacks, you're very close to being able to match up that 800-volt DC power direct from the power generation unit, which is the SOFC. It's fuel flexible. So we run on natural gas today. We can run on biogas. We can run on hydrogen in the future. It lends itself extremely well to things like carbon capture. And also, if you want to, you can capture the heat or convert that heat into cooling through absorption chilling as well. So you have the option to go from low carbon all the way through to zero carbon and also push very high efficiencies. In Delta's case, the same market applications apply. It's microgrids, AI data centers, even for the semiconductor industry and manufacturing in general. So I think this is a really good illustration of how our partners take this technology and put it into a complete offering for these kind of market opportunities. Weichai is an exciting partner for us. We've been working with them on system level for about 7 or 8 years now. Their systems are very impressive, I have to say. And I'm expecting this year, they'll launch their latest system, which is going to be a very impressive unit. We've taken the step with them. We've done the technology transfer. So we signed last November. already, we're going very quickly, and there will be more to come from Weichai this year, but they're probably going, I would say, faster than any of our partners have ever gone before. Doosan factory, I was privileged to go around the factory. I've been a couple of times, but this was in July with Doo-Soon Lee, the CEO of Doosan. First production was there. And when you actually get in there to see the realization, the single piece flow end-to-end, it's about the size of 3 football pitches, semi-clean room, it's an impressive facility. And they've actually fulfilled their first capacity orders in the past few months, and that factory is now up and running. So that's a big, big milestone for us going full circle. So Doosan is the first. We expect Delta starting to come on stream and then Weichai. So we are building out this ecosystem. On the hydrogen side, I think it's been fair to say that over the past 12 months, there's been more headwinds on the hydrogen side. But at the same time, I think that opens up an opportunity for, again, higher efficiency technology like the Ceres technology. And as I mentioned, all of the investments that are going in now are directly applicable on to the hydrogen side of the business. So extremely pleased with our partnership with Shell. We've exceeded expectations there. We've met all the targets that we set. And that's leading on to the pressurized development, which is now underway. So taking this one, which was the first atmospheric SOEC that we did and now actually putting that into a pressurized system that can be scaled to megawatt scale. And we're doing that engineering ourselves to begin with, but then in partnership with Thermax in India who can really drive down cost. And India is one of the big markets that we see for this green hydrogen in the future. So we see green hydrogen, particularly opportunities in China and India as those areas come on stream. We also did this with DENSO very quickly. So similar to the Shell container, DENSO actually deployed this on site within 18 months of actually taking the license, and that's using Ceres' technology. That's putting in hydrogen into a thermal power station to reduce emissions from conventional power generation. And that's unlocked further funding for DENSO as well. So great progress on all aspects of the hydrogen side as well. In terms of where we are as a business, we're building out this ecosystem of partners. And really, our aim is to be the technology provider of choice. So we now have manufacturing in Korea. We're seeing manufacturing being built now in Taiwan. That will come on stream in China as well and with DENSO in Japan. So really strong ecosystem of partners. Shell is more in the end user category, and we can add Centrica to that list of partners today as well for U.K. and Europe. So our aim is embed this technology to become the industry standard. So with that, I'm going to hand over to Stuart to give you the financial update for the past year. Stuart Paynter: Thanks, Phil. Good morning, everyone. I'm just going to take you through a few slides, just to give you a bit of an update on where we are from a financial position and financial planning position and some of the actions we've taken to put ourselves in a strong position to be able to execute the strategy Phil has laid out. So here's the headline numbers you can see. As you all know, the revenues of Ceres are largely dependent on how successful we can be in terms of signing MLAs. We signed Weichai in 2025, but towards the end of the year, we in sufficient time to recognize any revenue at all from that contract. So we're rolling that into 2026. But you can still see that the margins remain high, right? That's the asset-light model we retain, and we have good financial discipline around that. The other thing to note here is cash. We're still very strong on the cash side. You can see that the cash burn in the year was just under GBP 20 million. And like I said, that was without the benefit of having an MLA. So we're pretty efficient now. I believe we've got the optimized cost base, which I'll take you through. And you can see that the restructuring that we've been going through in the last few years has fed through to the cost saving in 2025 from 2024. There's more to come on that, but we'll take you through that and be very clear, we now believe we have an optimized cost base. So the actions we took towards the end of '25 will flow through to '26, but we really do think now we've got the correct team to prosecute the strategy, which we've chosen. So here's just a graphical representation of the revenue and gross profit. Gross profits remain industry-leading with the asset-light model we have. And of course, the success and the health of those are maintained by signing new MLAs, and we retain the confidence that we have the opportunities to keep on chasing that Pillar 1 on Phil strategy of signing new MLAs and be successful in doing that in 2026. So Phil mentioned business transformation earlier, very important to us. We now have that single stack platform commercially viable to get out into the market, and that started in earnest with Doosan with others to follow. And now we need to make sure that we are still innovating. Pillar 3 was keeping a technology lead, very, very important to a licensor. -- and we'll continue to do that with one of the biggest solid oxide expertise pools in the world. But now we believe we've reached a point where we need to just look at the focus of the company and be very, very commercially disciplined, commercially focused and make sure we have the right people in the background, giving the R&D sufficient attention that we have something to license in the future. And we believe during the end of Q4 2025, we've realigned the business to be able to do that. The flow-through of that will be a 20% cost saving in 2026, but all the actions needed to do that have been taken and are now finished. So now we're into a business transformation for this year, which is all about culture, team and making a cohesive unit so we can make sure that we succeed and our teams succeed at the same time. So we -- this is all crystallizing, as Phil said, in the Capital Markets Day where we're launching this single stack platform. We're very proud of it. And hopefully, that will make sense to everyone when they see it, and it's something we can go out and actively -- more actively sell into the marketplace. In terms of the cost base, so this is the optimized cost base we see for the next commercial phase. All the actions we've had to take have been taken. There will be a natural flow through into 2026 of this cost saving, but we are essentially building from here. We've still got a world-class R&D team. They're very focused on the things we need to do to be successful. That's cost down, that's lifetime. And we've strengthened the commercial teams in order that we can make the biggest impact we can on the top line. So we really do think we've got the right team, the right place, the right assets in place to make real success for the next few years. And why are we doing that? Well, you can see that commercial momentum essentially over the last few years has reduced our cash outflows. And we're very clear, we've now got the model of our business. If we can sign MLA on average every 12 months on that sort of cadence, we will be very close to breakeven and cash flow neutral. And that's important. That gives us control of our own destiny without having to rely on the capital markets. And it's building that MLA base so we can become that industry standard that Phil talks about. And why is that important? Well, the end goal for any company that's ultimately a licensing company is to build your royalty streams. As Phil mentioned, we're just at this orange blob stage here today. Doosan has fulfilled their first order at the very end of last year led to our first royalty revenues, a big milestone after 20, 25 years of development of this project. But we need now to push on if we can become the industry standard, essentially have a portfolio effect of many, many partners building, we're really going to be able to build these royalty streams, power first, hydrogen second. As Phil mentioned, this is the same technology, but you can attack 2 markets, one right and acute now and the other coming several years after. So we're in this in order to keep on signing licensing agreements, which we know we can for the next few years, and then it's all about building the royalty base. So we like the model. Every time we make progress with Centrica and partners, we think it reinforces the success we need to have that model. But importantly, we need to show that we're financially disciplined to keep this asset-light model, which we're doing. So with that, I'll hand back to Phil. Philip Caldwell: Yes. Look, I think we have a very clear strategy. I think the steps we took last year put us in an extremely good position with the asset-light model. The 3 priorities for this year remain unchanged. We're working hard on signing new manufacturing licenses. I think we're at an exciting stage now where you'll probably hear more from our partners this year as they're starting to actually scale and launch things, but also helping to drive that demand as per the announcement with Centrica today, that also helps stimulate that demand for our partners as well. And then the single stack technology platform launch is a key milestone for us. We do believe we have the world's best solid oxide technology. And we're now at a point where we can actually bring that forward rapidly to new partners and existing partners to scale both for power first and then for hydrogen as that follows. And we're starting this year with a strong cash position. We have around GBP 45 million of contracted revenue based on existing contracts from today for 2026. So we're in good shape. And I think the market opportunity has probably never been stronger, particularly on the power side. And I think now we need to get on and actually grab that opportunity, and we're well positioned to do so. So with that, I think we'll probably move on to questions. Operator: That's great, Phil. Thank you very much indeed. Before we go to those online, Phil, if it's okay, I'm going to come to the room. If you do have a question, just raise your hand and I'll give you the microphone. Christopher Leonard: Chris Leonard from UBS. Maybe 2 questions from me. And to start with, can we go into Centrica. And obviously, you spoke to the time to power and the need there. You also spoke in the presentation to the evolution of cost and what you see is feasible here. It will be really helpful to get a gauge on where you think your partners when they first push out these fuel cell products, where you think they'll land at on CapEx price and where you think that evolution can get to? Philip Caldwell: Yes. I have to be very careful here because whenever I start forecasting our licensees prices, I get into trouble. But let's just -- if we talk in general terms, the SOFCs that are out there at the moment are available at around $3,500 a kilowatt. If you take that in the U.K. market context, and you look at the spark spread of gas and power, then you can generate power very efficiently in the U.K. I mean, obviously, gas prices are moving around a bit at the moment. So I don't want to be precise on this. But given we pay in the U.K., the highest energy bills probably anywhere in Europe and even worldwide, when we map the U.K. out, when we look at market attractiveness, spark spreads, cost of power, et cetera, the U.K. is right up there, Northern Europe, et cetera. So it's a very significant opportunity. To go back to your question, Chris, we think that we can significantly generate power at a lower cost, even at a relatively high entry-level CapEx compared to turbines and other generation because we're so efficient, because of the OpEx, et cetera, and because of the lifetimes that we can achieve. So we think that there's a big opportunity there in terms of that deployment. And then the thing I would add is I think that kind of level is a starting point because I think what we see is a window that's opened up. So people need power. I think SOFC can now fulfill that power. And as our partners scale, we expect the cost of those SOFC units to come down quite significantly. Christopher Leonard: Yes, that was the second part. And then following up on Centrica. Obviously, you spoke to the contracted revenue for this year at GBP 45 million in the books, but presumably, I don't know, but I presume that maybe didn't include Centrica's potential contribution. Like what should we think about for engineering revenues and consulting fees, et cetera? Philip Caldwell: Yes. Look, the role that we're playing with Centrica is more in the advisory support side. So at the moment, that's going to be fairly modest revenue. So it's not like -- don't think of this like an MLA, they're not an MLA partner. The big value add of Centrica, obviously, we generate some engineering support fees, et cetera, there. But really, it's the deployment of our technologies through our partner network that drives that demand that ultimately drives royalties. That's -- we see them in that Pillar 2 category, not in the Pillar 1. So that's where we see that. So the thing that would really move the needle for us this year is new MLAs. Alex Smith: Alex here from Berenberg. Just a quick one on the next-gen kind of stack technology. You kind of mentioned it in your kind of closing comments. Kind of what the real benefit you think that could have to offer? And is that like a key milestone for the business going forward? And then second one is just kind of a new licensee pipeline, how the discussions are going to kind of bring new people in and new manufacturing products. Philip Caldwell: Okay. So look, the stack launch is the culmination of several years of effort. Over the years, we've increased the cell footprint. We've increased the stack height. There's a lot of focus on the simplicity to manufacture. We will continue to drive that in terms of getting down the actual installed manufacturing CapEx of what it takes to build those factories. But that stack itself represents what we believe to be the building block that all our partners will now scale on. And our technology teams, our R&D teams are really focused on driving cost and lifetime, cost as in the unit cost of stacks, but also the manufacturing cost and then the lifetime of the product. So that's where we see that technology evolving. And I think it's a significant milestone for the company because we've been in that investment mode for quite a while on the core technology and R&D. I think by launching this product now, you can see from the optimized cost base, we've got the right team to keep on innovating around that particular platform. In terms of the pipeline. I think it's grown considerably in the past 12 months. I think we're getting incoming from most of the kind of players that are in the power system market, in particular, because I think that's the acute need that people see. Obviously, we're very strong in Asia, but we're looking at how we build out that ecosystem as well. So it's grown considerably in the past 12 months. I would say on the hydrogen side, it tailed off a bit towards the end of '24, et cetera. But I think the -- as I look at the pipeline now, I would say it's about 70%, 80% driven by the power demand side of things as well. Alexandro da Silva O'Hanlon: Alex O'Hanlon from Panmure Liberum. A couple of questions for me. Firstly, well done on the Centrica deal. I'm interested if you could give some more color on how that came about? And is there scope for similar type deals in the pipeline? And the second question is just on the cultural change. You mentioned a couple of times in the presentation. Clearly, you're shifting towards being more commercial now. How are you tracking that and making sure that the change that you want to see is actually permeating throughout the business? Philip Caldwell: Okay. So on the Centrica deal, I reached out and I saw what was happening in the U.K. we saw the opportunity in the U.K. market. It's like this market if this technology is so good, why are we not deploying it in probably one of the most attractive markets for this in the world. So Centrica was a logical choice for that. One of the biggest LNG importers, they're looking to diversify. They're making investments in small modular -- advanced modular reactors for nuclear, et cetera. And I think once we started talking with Centrica, they saw the same thing that we did, which was this acute need for power, et cetera. So we were very, very much aligned. And so I think they're an excellent partner for us in the U.K. I think the other thing we didn't talk too much about today is not just on the power generation side, but also there is the potential to combine this with nuclear in the future to do hydrogen generation on the back of modular reactors. So there's a lot of good synergies there between the 2 companies. And we're very excited about that partnership. And as part of that process, what I did is with Centrica I took them and they've actually visited our partner factories. So they've been to Korea, been to Taiwan, been to China. And at that point, I think they realized this is real. And I think this is the key thing is the question we get asked time and again is, well, yes, fuel cells have had about fuel cells. Yes, but is it real? Does it really scale? -- aren't they expensive? How long do they last, et cetera? And then you go and you walk around the Doosan factory and it's like, oh, right, got it. This is real. Even before they went into the factory, it's like, okay, we know what you're talking about now. Is there potential to do that with other partners? I don't think we need to in the U.K., but it's an interesting model. We have so if we can stimulate demand and then we can introduce our ecosystem of partners, I think it's pretty powerful. So as part of that commercial discipline in the future, we will probably look to replicate this in maybe in other parts of the world. But in the U.K., it's Centrica. So in terms of the commercial progress, how we're tracking it, et cetera, our Chief Commercial Officer, Filip Smeets, joined us last year. There's a lot of rigor now in terms of the pipeline progress. We put more people in regions. We're just getting better, better and better at it through some discipline as well. And also demand helps. So we're getting incoming, but also people are starting to realize who we are. And I think in the industry, already, we've got a very good reputation. I think people, competitors, they respect our technology. I think the thing that people have always maybe had the question mark on is, well, how does Ceres scale and go to market. And I think that's what we're going to see coming through this year. Lacie Midgley: Lacie Midgley here, Bloomberg Intelligence. Just a couple from me. Stuart, your comment on securing the one partnership every 12 months and that triggering the breakeven point. I mean, clearly, that's the place we need to be to before the royalty scale. But I mean, I'd be interested in both your comments really, but what in your mind is a realistic number there because no doubt the demand is there to have as many MLAs as you can across geographies. But presumably, your current partners won't want that number going too high given the competition that they'll likely face in certain geographies. I mean what kind of number are you thinking there on kind of a longer-term view? Do you have anything around that? I mean... Stuart Paynter: Well, if you look at recent history, we've signed 3 in the last 2 years from the beginning of '24 to the end of -- we have set ourselves up that on an average cadence every 12 months, we will achieve what you said, Lacie, sort of breakeven and cash flow neutrality, right? But that's not exciting for anyone. That's just a stop gap until the royalties come along and it helps us diversify, build a portfolio of clients. We think there's really plenty of room to play. Phil showed a 22 gigawatt solid oxide market by 2030. Even if Bloom have scaled to 3 to 5 gigawatts by that, that's 15% to 20% of the market. There's plenty of room for plenty of people to play with plenty of applications and with a much bigger market coming along later in hydrogen. So we really don't feel like there's downward pressure on this number. It's a case of execution for us, building a pipeline, instilling commercial discipline and executing. These are big agreements. So they're very -- it's difficult to predict. But we believe we've got the right team in place now, led by Filip, as Phil said, with some really, really strong people sort of backing his team up to give us the best chance of executing. It's still difficult to do, but we -- given our recent history and new commercial discipline, we believe we can as -- the short answer to your question is as many as possible. Lacie Midgley: I mean as the royalties are stacking, that makes the commercial proof point easier to sell, right? So that all becomes a lot easier. Philip Caldwell: Yes. I think also, we've done this now 5 or 6 times. So building factories is something that we're getting we're getting pretty good at, but it's a learning curve. The first time you do it, second time you do it, et cetera. So -- but we also -- what's good to see is when you -- when our first licensees came on, they had to take a fairly immature supply chain and scale that as well and equipment builders. So when somebody takes a license, it's not just to the technology, it's to that whole ecosystem of partners. And so new license discussions now are much faster, much easier because in some ways, you'd say, well, okay, this is where you would get equipment builders from. This is your choices in supply chain, et cetera. So we started off with a very European-centric supply chain. And now we've added to that to our partnerships with Doosan, but now with the Taiwanese and the Chinese, we're building out quite a formidable set of supply chain partners as well. So that -- in terms of that credibility, not only do we know how to build factories and help our partners to do that, but we can also introduce them to a whole ecosystem of very willing suppliers as well. Lacie Midgley: That's helpful. And then just lastly, on Weichai, I mean, you talked about them moving very quickly, quickest out of all your partners so far. Just trying to kind of work this out. So how much of that is because maybe of the historical work that you had with the sort of legacy partnership? And how much of that is kind of versus your own kind of technology developments, maybe reducing time frames there or just Weichai's desire to get to market more quickly? Just trying to understand, firstly, how quickly they can get to royalties, but then I guess, the time frames from MLA signing to actually getting to royalties, future partnerships? Philip Caldwell: Yes. So when we're talking to new partners, we kind of give a guidance of less than 3 years. And we're obviously looking to reduce that all the time. But some of that's incompressible in terms of technology transfer, the time it takes just to actually build either greenfield or brownfield factories and equip them. But we roughly talk about that kind of time frame. Now in parallel with that, you've got not just the stack manufacturer, which for us now is becoming more like a blueprint. We can take people around our own facility in the U.K. And like I mentioned, we can -- we've got blueprints of how you build factories, and we've got an ecosystem of partners there. But then they also have to develop the product, the power system product as well. I think we started the relationship with Weichai with a system license, and we've developed that system with them over a number of years. But now what they're doing is very impressive in terms of their own system development. So I think they can go fast because the system level maturity is very good. And then it's that desire to get to market is how quickly you build out that capacity. And I think that's -- that's what's happening extremely fast. It's a fairly typical approach in Asia, in particular in China, but they set incredibly aggressive time frame. So they're looking to obviously reduce that 3 years quite significantly. Christopher Leonard: Just a follow-up on that actually in terms of the royalty outlook and thinking about Delta scaling up this year, the target to be online end of '26. Has that changed at all? Are you still looking at that time frame? And Doosan as well? I mean, how are you feeling about them looking into '26? Obviously, you recognize right at the end of '25, some royalty perhaps, but is there more to come? And how should we look at this year? Philip Caldwell: Yes. Look, I think on this year, fresh royalties are there, but they're still pretty modest. So I don't think it's that material into '26 is our guidance. Yes, Delta is on track, but really, that's going to be like '27 type time frame and then obviously, new partners coming on. So in the near term, we're really focused on the license fees, the engineering services still through 2026 and probably into '27. And then -- but royalties build from that point. So that's how we see it. We're not changing guidance on that really. Unknown Executive: It looks as though we're doing well for much into the room. So we've got a couple online that we might start to tackle. So the first one is regarding the Centrica deal. And given they're based in the U.K., you mentioned that there's going to be revenue from U.K. and Europe. And what is the likely spread for revenue, be it U.K.-centric or more broad? Philip Caldwell: I think that's really one for Centrica to look at. But their presence predominantly, it's U.K. and Ireland as well is a very attractive market. So U.K. and Ireland, and then they're active across Europe as well. But I think initially, our focus is predominantly U.K. and Ireland. Unknown Executive: Another question coming from the supply chain. So given the fact that the technology transfer includes quite a bit of the supply chain upgrades, do we have any concerns for material, rare earth material accessibility or scaling up to match our partners for the supply chain potential constraints that you see in other industries at the moment? Philip Caldwell: No, we don't because the nature of our technology, we use Ceria where the company gets its name from the major rare earth material, which is the most abundant. We're not using Scandia. We're not using where we use other rare earths, we're using very small amounts. So we're not concerned about constraints in any of those kind of materials. Unknown Executive: We also have a question on the pipeline, which is wondering when and if there's opportunity for U.S. partners? And have there been any constraints of why we haven't signed any EU partners either recently? Philip Caldwell: There's no constraints. And look, as and when I can update you on commercial activities, I will, but I can't give specifics on particular opportunities or geographies at this point. I think there is interest in the U.S. I can say that clearly, given the market opportunity there. And yes, that's an area of focus for us as well. Unknown Executive: Switching topics slightly. We've got a question on hydrogen. So wondering if we can -- you can expand upon what the pressurized modules are, those and the balance of plant and how Thermax is looking to scale and what the time lines would be for that? Philip Caldwell: Okay. So the pressurized modules are basically taking the core cell and stack technology, putting them inside a pressure vessel. And the reason you do that is by working with OEM partners like Shell, you save a very significant compression cost even on first stage compression, just a couple of bar makes a big difference. So as we look at hydrogen at a refinery kind of level or in an industrial application like steel or fertilizers, et cetera, it makes a lot of sense to have modules that are pressurized and can be scaled. The reason for the partnership with Thermax is twofold, really. One is they're an EPC, so a contractor -- engineering contractor based in India, which is one of the key markets that we see for green hydrogen. And secondly, compared to European suppliers, et cetera, there's significantly lower cost in terms of the engineering and actually driving the unit cost of these things down. So again, we're always looking at what's the most economically advantageous way to bring this technology to market. And that's why we have the relationship with Thermax. Unknown Executive: Great. And Stuart, I'm conscious you've already touched on it, but we've got a couple of other questions on when we expect theirs to reach profitability or break point even. I'm just wondering if there's anything else you'd like to add to clarify. Stuart Paynter: Yes. I mean -- so hopefully, we've made it clear that if we can achieve a cadence of 1 MLA every 12 months, that's where we get to. These aren't as predictable as sometimes we'd like. But that would be the goal. So the moment we can continually execute the pipeline to MLA every 12 months, that's when we're going to reach that sort of profitability level. But that's not long-term sustainable profitability. That comes when the royalty streams become the dominant player in our revenues, and that's going to be a few years out. So the idea now is to have a cost base where we can maintain a technology advantage, execute the commercial strategy whilst preserving cash. And in the end, that getting new partners on board and pushing the technology forward will drive the royalties in the long term. So we think it's a really viable business strategy as Phil laid out those 3 pillars, both for the short to medium term, and it also benefits the long term when we get to royalties as well. So it's a really nice business strategy we're pursuing. Unknown Executive: Great. The only final question that's come up is regarding RFC and wondering what has happened to that investment? And are we continuing to pursue that technology? Stuart Paynter: Yes. So RFC was something we supported in the middle of the year and bought it into the Ceres Group. We're still looking to give that really, really viable long-term energy storage technology life. And we're pursuing some opportunities to see whether we can get that business funded. And when we got more news, we'll share. Unknown Executive: Great. I think that wraps up everyone. So Phil, I'll hold -- hand back to you for any final comments. Philip Caldwell: Yes, sure. Well, Yes. Thanks, everybody, for your time today. I think that we've got an exciting 2026 ahead of us. The company is extremely well positioned. We have a Capital Markets Day on 15th of April, where you'll hear more from the industrial applications with a guest speaker, hopefully from Centrica attending from that side of things. We'll have our new product launch. And then I think you'll hear more from our existing partners as well this year as they hit some key milestones. So the market opportunity is definitely very live, and we need to capitalize on that opportunity right now. But I think Ceres is extremely well positioned to do so. Operator: That's great, Phil. Thank you very much indeed. We will now redirect investors.
Operator: Good morning, ladies and gentlemen, and welcome to the DiaMedica Therapeutics Full Year 2025 Earnings Conference Call. An audio recording of this webcast will be available shortly after the call today on DiaMedica's website at www.diamedica.com in the Investor Relations section. Before the company proceeds with its remarks, please note that the company will be making forward-looking statements on today's call. These statements are subject to risks and uncertainties that could cause the actual results to differ materially from those projected in these statements. More information, including factors that could cause actual results to differ from projected results appear in the section entitled Cautionary Statement Note regarding Forward-Looking Statements in the company's press release issued yesterday and under the heading Risk Factors in DiaMedica's most recent annual report on Form 10-K. DiaMedica's SEC filings are available at www.sec.gov and on its website. Please also note that any comments made on today's call speak only as of today, March 31, 2026, and may no longer be accurate at the time of any replay or transcript rereading. DiaMedica disclaims any duty to update its forward-looking statements. Following the prepared remarks, we will open the phone lines for questions. I would now like to introduce your host for today's call, Rick Pauls, DiaMedica's President and Chief Executive Officer. Mr. Pauls, you may begin. Dietrich Pauls: Thank you, Morgan, and thank you all for joining us for our fiscal year 2025 earnings call. With me this morning are Dr. Julie Krop, our Chief Medical Officer; and Scott Kellen, our Chief Financial Officer. Looking back for a moment, 2025 is a year in which we made significant progress across our pipeline, achieving a number of key milestones. As most of you know, our lead candidate, DM199, is a recombinant form of the naturally occurring KLK1 protein, a serum protease that acts through the bradykinin 2 receptors in the walls or endothelium of our blood vessels to increase the level of nitric oxide, prostacyclin and endothelial-derived hyperpolarizing factor. The combination of these factors has the potential to more effectively enhance blood flow and vascular health than any other factor given by itself. We believe that this mechanism is why DM199 is so well suited to improve patient outcomes for preeclampsia, fetal growth restriction, acute ischemic stroke and other indications associated with vascular pathology. I'll now turn the call over to Julie to provide an update on our preeclampsia and stroke programs. Julie Krop: Thanks, Rick, and good morning, everyone. Starting with our preeclampsia program, 2025 marked a very strong year of progress. In July, we announced positive interim results from Part 1a, the ascending dose portion of our investigator-sponsored Phase II trial being conducted in South Africa. These results showed that DM199 produced statistically significant reductions in blood pressure and in the uterine artery pulsatility index, consistent with reductions in vascular resistance that suggest a potential improvement in blood flow to the placenta. Importantly, the interim data demonstrated that DM199 did not cross the placental barrier. These interim results were observed in hypertensive women expected to deliver within the next 72 hours. We believe these results demonstrate an on-target mechanistic response, which supports DM199's potential to be a first-in-class disease-modifying therapy for preeclampsia. Key findings from the interim analysis of Part 1a, specifically from Cohorts 6 through 9 in pregnant women with preeclampsia planned for delivery within 72 hours include the following: First, blood pressure data demonstrated clear dose-dependent and statistically significant sustained reductions in both systolic and diastolic blood pressure, underscoring DM199's potential to control maternal hypertension associated with preeclampsia. Second, DM199 significantly reduced the uterine artery pulsatility index, a Doppler-based measure of arterial resistance that suggests improved uteroplacental perfusion. Third and most importantly, DM199 did not cross the placental barrier, placing it in a unique position with respect to safety and reduced fetal risk in this highly vulnerable patient population. Through additional analysis, we have also demonstrated that DM199 does not pass to babies through breast milk, further reinforcing its confinement to the maternal circulation. This advantageous safety profile combined with DM199's novel mechanism of action may enable earlier initiation and longer treatment duration, which has the potential to drive meaningful prolongation of pregnancy without added safety burden. We believe the observed improvements in vascular resistance reflect restoration of normal endothelial function, consistent with an on-target mechanistic response to DM199 therapy. By improving endothelial health, DM199 has the potential to address the underlying vascular dysfunction driving the disease that should result in stabilization of maternal vascular pathology and prolonged pregnancy as opposed to current therapies that simply manage symptoms. Taken together, the ability to reduce blood pressure, improve uterine placental perfusion and restore endothelial function reinforces our belief in DM199's potential to be a first-in-class disease-modifying therapy for this life-threatening condition for which there are currently no approved treatment options. During the fourth quarter, under the leadership of Professor Cluver, enrollment continued in the Part 1a expansion cohort, which will include up to 12 additional patients to provide us with a more comprehensive data set. We anticipate completion of this cohort in the first half of 2026. Protocol amendments are being finalized for Part 1b and 2 of the study. Part 1b will enroll up to 30 hypertensive women with late-stage preeclampsia expected to deliver within 72 hours to further confirm the Part 1a results. These participants will receive continuous IV administration of DM199 that will be titrated to maintain blood pressure in the targeted range. Part 2 will enroll up to 30 women with early onset preeclampsia, who are candidates for expected management where the therapeutic goal is to prolong the pregnancy as long as possible while also providing increased blood flow to promote larger, healthier babies. These protocol amendments represent refinements to the previous treatment regimens based upon learnings from Part 1a. The fetal growth restriction cohort will be enrolling patients without preeclampsia, but with impaired placental function, further expanding the potential application of DM199 across placental vascular disorders. The first patient in that cohort is anticipated to be dosed in Q2 2026. Importantly, we have also recently received regulatory clearance from Health Canada to initiate a global Phase II clinical trial of DM199 in early onset preeclampsia. This is an important regulatory milestone for our PE program. We are currently finalizing plans to commence site activation in the second half of the year. We intend this trial to be a global Phase II study. It is an open-label dose-finding trial designed to enroll approximately 30 participants with early onset preeclampsia between 24 and 32 weeks of gestation. This expected management population represents patients with the greatest unmet medical need where safely prolonging pregnancy can have the most meaningful maternal and neonatal impact. The study will evaluate the safety, tolerability and preliminary efficacy of DM199 with dosing anticipated to continue until delivery. We are assessing 3 dose levels to inform dose selection of the optimal regimen for Phase III. Primary study endpoints include maternal pharmacokinetics and further confirmation that DM199 does not cross the placental barrier, an important safety consideration for both regulatory review and patient acceptance. In addition, we will evaluate clinical and biomarker outcomes, including prolongation of pregnancy, blood pressure control, uterine artery blood flow, circulating pathogenic biomarkers and renal function. We are also preparing to seek approval to expand the study to include sites in the U.K. And with respect to the additional reproductive tox study in rabbits requested by the FDA, preliminary results from a dose range finding study in rabbits suggests that rabbits may not be a suitable animal model for reproductive toxicology studies with DM199. This is likely due to an unusual immune response to the recombinant human protein unique to rabbits that has not been seen in rats, monkeys or humans thus far. Most importantly, from our perspective, there were no teratogenic effects observed in the approximately 200 pups or baby rabbits produced in a prior study. This included no external visceral or skeletal malformations. We are currently evaluating an alternative animal model to address the FDA's request, and we will work with FDA to find a solution in parallel to initiating the Phase II trial in Canada and other potential jurisdictions. Turning to our ReMEDy2 trial. 2025 was also a good year for our stroke program. Over the past several months, we have intensified our engagement with study sites to share best practices and build friendly competition. We've also added additional resources to support sites through the enrollment and follow-up process, and we continue to work on additional ways to support our study sites. These activities, along with increased site activations globally have resulted in encouraging enrollment momentum over the last few months. At present, I'm very pleased to report that with these additional efforts in the United States and Canada, along with expansion into the U.K. and Europe, we have achieved almost 70% of the required enrollment of 200 participants for the interim analysis. We currently have close to 61 active sites, including 4 in the U.K. and an additional 12 across Europe, and approximately 25 more sites are expected to activate in the coming quarter. With our recent progress, we are reiterating our guidance to complete the interim analysis by the second half of 2026. Since the last earnings call, an independent Data Safety Monitoring Board meeting was conducted after the enrollment of 100 patients. Following review of the safety data from these participants, the independent DSMB unanimously recommended that enrollment continue without modification. I will now turn the call back to Rick. Dietrich Pauls: Thanks, Julie. We're also pleased to note the paper titled Endothelial Triple Pathway Basal Relaxation as an adjuvant strategy in resistant hypertension was recently published in the Journal of Hypertension. The article authors included Dr. Luke Laffin, a recognized key opinion leader in the treatment of resistant hypertension. This publication underscores the need for new treatment approaches to lower blood pressure in patients with chronic kidney disease. It also highlights findings from our prior Phase II REDUX trial, which demonstrated DM199's ability to significantly reduce blood pressure in patients with elevated levels over a 3-month treatment period. DM199 was also observed to lower serum potassium levels in patients whose potassium levels were elevated, placing these patients at risk of developing hyperkalemia. We look forward to sharing more on the potential use of DM199 to control blood pressure in patients with chronic kidney disease in the future. I would like to now ask Scott to review the financial results for the quarter. Scott Kellen: Thank you, Rick, and good morning, everyone. We announced our full year financial results for 2025 and filed our annual report on Form 10-K yesterday. As of December 31, 2025, our cash, cash equivalents and short-term investments were $59.9 million. Current liabilities were $5.1 million and working capital of $55.5 million compared to cash and investments of $44.1 million, current liabilities of $5.4 million and working capital of $39.2 million as of December 31, 2024. The increase in cash and short-term investments is due to the net proceeds received from the sale of common shares in the company's July 2025 private placement and under its at-the-market offering program. We feel confident about our cash position and anticipate it will fund our planned clinical studies and corporate operations through the end of 2027. Net cash used in operating activities for the full year 2025 was $29.1 million compared to $22.1 million for the full year of 2024. This increase is primarily a result of the increase in net loss for the full year of 2025 as compared to the prior year period. Turning to the income statement. Our research and development expenses increased to $24.6 million for the year ended December 31, 2025, up from $19.1 million for the prior year. This $5.5 million increase is driven by a combination of factors, including the continuation of our ReMEDy2 clinical trial and its global expansion, the expansion of our clinical team in both the prior and current year periods and increased noncash share-based compensation costs. These increases were partially offset by cost reductions related to manufacturing process development work performed and completed in the prior year period. Our general and administrative expenses were $9.8 million for the full year 2025, up from $7.6 million for the full year 2024. G&A expenses increased by $2.2 million due to a number of factors, including increased noncash share-based compensation expense, increased personnel costs, increased investor relations expenses and increased patent prosecution costs. With that, let me ask the operator to open the lines for questions. Operator: [Operator Instructions] Your first question comes from Stacy Ku with TD Cowen. Stacy Ku: So we have a couple. If we could just stay with preeclampsia for now. The first question is on kind of your update with the rabbit preclinical trials for the U.S. IND approval. So just help us understand what are your early thoughts on the alternative species with the FDA? Are there -- what other preclinical models are best for reproductive tox studies? So that's the first question. If you could maybe further elaborate there. And then as we think about the ISP and clearly, a lot of great signals that we're going to get -- continue to get there, what key learnings are you hoping to carry into the early onset preeclampsia kind of cohort? As we think about Part 2 and Part 3 so fetal growth as well. Is there any potential that we can get an update later this year? So just help us understand where you all are in potential timing there? And then, of course, ahead of the U.S. trial, Julia, we kind of heard all the high level of preparation ahead of moving forward in the U.S., but just help us understand how our conversations progressing? What criteria is the team focused on when it comes to enrolling the right preeclampsia study investigators. And then if I could sneak in a tiny question on CKD. Clearly, a big opportunity. When could we expect a detailed plan or a more detailed plan for pursuing DM199 in treatment-resistant hypertension in CKD patients? Dietrich Pauls: So I'll start off maybe with the CKD, the fourth question is that we're very excited about the opportunity for our drug to lower blood pressure. We've clearly seen it in numerous trials. I think there's a huge clinical need, in particular in patients with chronic kidney disease as many of these patients have elevated levels of potassium that puts these patients at risk of hyperkalemia. So I think first, we can treat these patients, control their blood pressure when they frankly don't have a lot of options and what we did see in our previous trial, the ability to lower potassium levels, which could be a very exciting opportunity. Right now, really the focus though is on our preeclampsia and stroke program. And at the appropriate time, we'll look at potentially advancing into CKD. But right now, we want to make sure we're really focused here near term on our other 2 programs. And then maybe I'll hand it off to Julie. Julie Krop: Yes. Stacy, all very good questions. I think it's premature right now to tell -- to say exactly which species that we're going to focus on. We want to first be able to -- we submitted a package to the FDA, and we're having a discussion with them further on appropriate models. There are several appropriate models we're considering. But again, we'll hold back until we will give an update once we have that discussion. And then with regards to your question around what have we learned from previous cohorts, I think I think we understand the PK better after running the initial studies. And one -- one of the learnings we're taking forward is for our early onset studies using the subcutaneous only and probably reserving the IV for the later onset as we've been doing previously. So that was one element. I think as far as site selection, we are highly focused on selecting sites that have both experience with preeclampsia studies as well as a practice that's well suited for early onset expectant management, which is something -- some sites are very adept at and other sites are more conservative about when to deliver patients. So again, it's that tight rope between treating -- between the mother's health and the baby's health and making sure that we select centers that are comfortable keeping the mother even though there's some severe -- there's potentially severe complications going on, it feels like they can stabilize them enough to prolong the pregnancy. So those are kind of the considerations that we're focused on. Operator: Your next question comes from Josh Schimmer with Cantor. Joshua Schimmer: Two quick ones. For the evaluation of DM199 in earlier onset preeclampsia, how do you think about the potential risk of the protein crossing the placental barrier at that stage? And what evidence do you have to suggest that it in that setting as well will not cross in any meaningful extent to the placenta? And then for the interim analysis for the Phase II/III stroke program, what are the potential outcomes there? Are there stopping criteria either positive or negative or resizing criteria? Maybe you can share a little bit more about what you expect the interim to inform? Dietrich Pauls: Sure. Thanks, Josh. So starting off with the early onset and crossing of the placenta. We don't think it will happen. I mean we've done now over 35-plus patients with more late onset preeclampsia where we didn't see this crossing. To cross the placental barrier is about -- the size to cross will be about 500 daltons, where our protein is about 26 kilodaltos, so 50x larger. So it would be very shocking if it did occur. We also did an earlier study in the rat model, we also did not see it. So it's just -- I think we're at this point here, another check the box, but we feel very good the fact that in the South African patient population, we didn't see it. With regards to your second question, the ongoing Phase II/III stroke program, for the interim analysis, first off, if we're not seeing a drug effect, we will terminate the study for lack of efficacy. Otherwise, there'll be a resample size and the sample size will range from 300 to 728. How we designed this trial, and we believe a base case that if we're seeing a drug effect that's comparable to our Phase II, which is comparable to the many studies that have been shown with the human urinary form of the study in China. Looking at the modified ranking score of 0 to 1 as the primary endpoint, we're anticipating that if we see, again, a drug effect comparable, we'll be looking at something ideally in the 300 to 350 range. If we need to go above 500 patients, we'll have to really evaluate the next steps for the program in light of the high prospects we think as well for the preeclampsia program. Operator: Your next question comes from Thomas Flaten with Lake Street. Thomas Flaten: Just a question on the Part 1a expansion cohort. It strikes me that it's taking a bit longer than I might have thought in my mind given how many patients Dr. Cluver sees on a weekly basis. Is this a slow and deliberate approach she's taking? Or has something else been going on there? Just some additional color on that expansion cohort would be great? Dietrich Pauls: Sure. Yes, it's a good question. It really has been a result of some staffing challenges that Cathy Cluver has had at her site. We've recently provided some additional financial support. And with the hiring of a couple of new nurses just in the last few weeks, we anticipate that enrollment is going to pick up again. Thomas Flaten: And then following on from that, if I understood the press release and your commentary correctly, are Parts 2 and 3 -- are Parts 1b and 2, sorry, dependent on the completion of the expansion cohort? Or will they initiate prior to the full completion of that cohort? Dietrich Pauls: Those -- so we've made a few protocol amendments that are going through shortly. And so we're anticipating later in Q2 that those 2 cohorts should initiate. Part 1a expansion study is ongoing and will be completed as well in Q2. Thomas Flaten: Got it. Understood. And then just a quick one on ReMEDy2. You mentioned some acceleration or some momentum building. I was wondering if you could just give us a sense of in the first quarter of this year, how many patients did you enroll compared to what you did in the fourth quarter of last year, just to give us some kind of scope and scale of that momentum? Dietrich Pauls: Yes. I would just say at a high level, the enrollment increase really has been more so it's been this year. So even going into the end of 2025, it was still relatively slow, but it really has picked up substantially in the last month, last 2 months. But really, the more recent months is where we've seen the really uptick. And that also correlates to where we've had the increase in sites and all the work that Julia and her team have been doing has been wonderful. And I think we're now starting to see the benefits of all that work. Operator: Your next question comes from Matthew Caufield with H.C. Wainwright. Matthew Caufield: For the ReMEDy2 trial, there had been some prior discussion of some challenges with stroke enrollment formally being slower in the U.S. due to initial triage in the community hospitals. Kind of thinking bigger picture, do you ultimately foresee any limitations for real-world access if or when DM199 could ultimately be approved for the AIS indication? Dietrich Pauls: Yes. Good question. So I think there's a difference between the challenges that we had been seeing with enrolling at more of these hub-and-spoke hospitals. But ultimately, for commercialization, the wonderful thing about our drug is the safety profile should be great in being able to be used very broadly at small community hospitals and big academic centers. So I think that the previous challenge we're having is really more with enrolling patients at the large academic centers. But in terms of -- again, at the commercial side, I think it will be a wonderful drug because of that safety profile. Operator: Your next question comes from Chase Knickerbocker with Craig-Hallum. Chase Knickerbocker: I was just hoping to work one more in on the nonclinical side here. Can you just maybe walk us through kind of the differences in your prior nonclinical rabbit study that you had kind of mentioned where you didn't see any toxicity in this one? Was there kind of a different species used here? Or maybe just kind of your biological rationale as to why this antibody response arose? Dietrich Pauls: Yes, Julie, can you take that one? Julie Krop: Yes. So that's a very good question. The first study was a different gestational age time period for the pre- and postnatal rabbit study. We studied an earlier -- I mean, a slightly later gestational age as well as a slightly different duration of treatment, different doses. So it's hard to explain. We did see maternal toxicity in that study as well. It wasn't quite as significant. But I think the difference here and the issue really with the FDA is not related to concern on the part of the fetus -- I mean, sorry, the pups, if you will. The pups really did not show any increase in malformations or teratogenicity from the control group in either study. But I think the concern with the FDA is finding a NOAEL effect dose where they don't see any adverse effects and the maternal toxicity that we saw, which we believe is due to immunogenicity, which is not uncommon to see in rabbits and immune responses very quickly to human proteins. So I think really, it was in both studies, we weren't -- we had maternal toxicity. So I don't think they were really that different other than gestational ages being different and the FDA wanting us to dose primarily after the first trimester after the development -- the early development of the fetus because that's closer to the way we're going to dose humans. So it just turns out, I think the rabbits just are not a good species, and we're going to just have to do it in a different species. Chase Knickerbocker: Got it. And then just maybe a little bit on time lines as far as when you'd expect to get that feedback that you need to continue with the different species or just kind of color from FDA on what they would like to move forward. Do you have a meeting scheduled in Q2? Maybe just walk us through time lines there. Julie Krop: So we are going to -- we'll provide an update as soon as we have something to update. I don't think we're giving a forecast yet until we understand and get alignment from the FDA on the path forward. Chase Knickerbocker: Understood. And then just last for me, Rick, on the stroke timing, could you just give us a little bit more color as to kind of what you're seeing from an enrollment rate perspective? I mean, is it kind of being driven by kind of breadth increasing? Or is that depth really kind of increasing as we thought it would to kind of drive this acceleration in enrollment in the stroke study? Dietrich Pauls: Yes. And it's a combination of, in particular, over the last few months, an increase in the enrollment rate per site and also for a greater number of sites. And then with being at 61 sites now and having sites having a chance to be in the trial and understand some of the challenges and opportunities of running the trial. And then I think also having a number of sites that are also on the verge of coming on board here in the coming weeks, we feel good about reiterating our guidance for this year. Operator: That concludes our question-and-answer session. I would like to now turn the conference back over to Rick Pauls, DiaMedica's President and Chief Executive Officer, for closing remarks. Dietrich Pauls: Well, thank you all for joining us today. We greatly appreciate your interest in DiaMedica and hope you enjoy the rest of the day. This concludes our call. Thank you. Operator: This concludes today's call. Thank you so much for attending. You may now disconnect, and have a wonderful rest of your day.
Sara Cheung: Good day, everyone. Thank you for joining the online briefing to discuss the First Pacific 2025 Full Year Financial and Operating Results. The results presentation is available on First Pacific's website, www.firstpacific.com under the Investor Relations section Presentation page. This results briefing is being recorded, and the replay will be available on First Pacific website this evening in the Investor Relations section. For participants from the media, please note the Q&A session is open for investors and analysts only. If you would like to ask questions, please contact us when the briefing is finished. Today, we have with us our Executive Director, Mr. Chris Young; our CFO, Mr. Joseph Ng; Associate Director, Mr. John Ryan and Mr. Stanley Yang and other senior executives from the head office of First Pacific. Over to you, John, for the presentation, please. John Ryan: Thank you, Sara. I'll just go through very quickly the First Pacific part of this presentation, then we'll move to the Q&A for you folks. Now let's begin on Page 3 with a quick reminder of some of our major investments, all of which have done pretty well in the course of 2025, and we'll discuss this later on. Now on Page 4, we've got the shape of our gross asset value on December 31, 2025. The gap was about $5.3 billion, Indofood just over 1/3. MPIC valued there at $1.3 billion, the U.S. dollar value of the pesos we paid for it when it was privatized back in the autumn of 2023. We own now about 49.9% of MPIC. You might see there that PLP's valuation has increased to $398 million, and that's because we've put some money into it to help finance the building of a new power plant, which our financial controller, Richard Chan might discuss later if that's of interest to you folks. And then, of course, there's PLDT, our 25% or so owned telephone company. And then there's the Philex Group of companies, which make up just over 10% of our gross asset value. Now let's move on to the earnings for 2025 on Page 5. Turnover was up 2%, a little over $10 billion, higher revenue at Indofood and MPIC. Decline at PLP, PacificLight Power. Contribution from operations reached a record high. I believe like the recurring profit, it's been about 7 years in a row, we've had increases in the previous 5 have been records. Indofood, PLDT, MPIC highest-ever revenues and MPIC delivered their highest-ever earnings as well. Now recurring profit, as I say, it's up a good double-digit, 10% to $740 million, up from about $673 million in 2024. Net profit was up a similar number, 10% to another record high, $661 million. Now to a matter that is dear to the heart of many shareholders. The directors approved a final distribution of HKD 0.14 a share. You folks will vote on that at the AGM. And that brings the full year distribution to HKD 0.27 a share, and that's the highest ever on a per share basis that we have ever paid out. And that, of course, fits under our progressive dividend policy where we're committed to increasing the per share amount of money we distribute to shareholders every year apart from special circumstances. As you can see on the middle chart here on the right-hand side, the increase in recurring profit was driven mostly by MPIC and Indofood, and there were little declines at PLDT and PLP. Head office cash flow, as you can see, we had about HKD $311 million of dividend income, and there are the distributions gone out to you folks. That's the biggest amount of money sent out. And then the net cash interest expense follows. And if you look deeper into this book or want to discuss it later, you'll see that our interest bill is declining along with the interest amount that we're paying. Over on Page 6, a little bit more detail on our cash flow and balance sheet. As you can see here, at the present day, we have no borrowings falling due until September 2027 when our only bond, $350 million becomes due. A $200 million that was due in 2026, as you can see, has been shifted over by 5 years to 2031. Our interest cost is around about 4.6% for the year, and the average maturity is about 3.2 years. And I would guess over the course of the next 12 to 18 months, that 3.2 is going to become a bigger number. Our CFO, Joseph Ng, will discuss that in the Q&A, if you like. Dividend income there on the bottom left shows that we've been consistently over $300 million in recent years. And very important to us is the interest coverage ratio, as you can see, was 4.5x in 2025. That's up from 4x the previous year, and that is well above our comfort level. Though it must be said, we don't have any plans for that number changing anytime soon on account of additional borrowing by us. Now I'll wind up the narrative part of this meeting with a quick look at the reason that many people are invested in First Pacific. As you can see from 2018 to 2025, we've had over a doubling of our profit at First Pacific. I think in 2018, it was around $290 million in recurring profit, and we're up to $740 million in 2025. As you can see, the exchange rates of the rupiah and the peso were down about 11% and 14%, respectively, over that time. And what this does is it illustrates quite vividly the hard currency security of putting your money in First Pacific so that you can secure the gains to be had from the fastest-growing economies in the world, which are described by the IMF over in that bottom right-hand chart, where you can see there's a doubling over the 10 years to 2030 from 2020. Let me actually very quickly go through the main companies. Indofood had record sales, as I said. Core profit was up just 1% to a highest-ever level. Many of you may have attended their investor briefing earlier today. If you haven't, we can discuss some more about their description of their earnings and predictions for the future, many of which we have put into the outlook for 2026. To speak briefly about that, there's an inference you can make that 2026 will be rather better than 2025. But of course, we have that devil in the Middle East conflict, which we don't know how it will affect any of us going forward. We can discuss this later on, if you like, but there's pretty high confidence over at Indofood. Now we're going to flip a few more pages to Metro Pacific, looking at Page 14. Record high earnings, as said before, core profit up 15%. And as you can see in the pie chart, most of it was contributed by the power company, Meralco, which is beginning to see a huge contribution from its still fairly new power generation business. They bought into a very large LNG terminal accompanied by 2 natural gas-fired power plants in Project Chromite. Stanley Yang, who worked on that transaction, can help discuss that later on. It just addresses that generation is going to be a big part of earnings growth at Meralco going forward. The newly listed water company, Meralco, also was a very big contributor to the earnings there. And then the toll roads, their contribution, as you can see, didn't grow so much as illustrated on the bottom left. And that's because we owned -- in part, it's because we owned a little bit less of it than we did earlier. Now let's dash ahead to PLDT, which is the biggest telecommunications firm in the Philippines. Service revenues, record high. EBITDA at a record high and the EBITDA margin still very strong at 52%. Core profit rose 1%, actually a similar number to Indofoods. And it was helped for the first time ever by Maya, which is the 38% owned fintech, which has -- it's the only digital bank in the Philippines, which is both owned by a telecommunications firm and has a banking license. It's a very interesting little company, and it moved into profit for the first time during the course of 2025. And the falling column chart on the bottom right there shows you the usual story. It's data that has been driving earnings growth and fixed line voice, too, in a kind of funny way. There's a big international element there. Now we'll skip past Maya and over to PLP, which had earnings slightly down. Sales were a little bit down as well. Market share is steady at 9.6%. And as you can see, the monthly average electricity prices are down quite a bit from those powerful period of earnings we had in 2023, and that's really the main driver of how their earnings have gone over the past couple of years. Net debt is absolutely negligible at less than SGD 40 million. Now over to Page 27, where Philex Mining, which has been operating Padcal for 6 decades, I think, and it's still going strong for another few years until 2028, I believe. You can see that after 6 decades, the grades of gold and copper there in the blue box, they're rather lower than you might want to see. But if you want to see better turn the page to the Silangan project, which is accelerating towards the opening of commercial operations over the next weeks and months. And you can see that the grades there in the middle box are much, much higher than what we've got going on at Padcal. We're very excited about the prospects for Silangan, and we think it's going to be a good solid contributor to First Pacific going forward and to its parent, Philex. Now I'm going to end the introduction with a quick dash to Page 52, where I would like us all to pay attention to the second line, China Securities Depository and Clearing. They're probably up at this day, close towards 150 million shares. We have now a third brokerage about to start equity research coverage of First Pacific for Mainland investors. And this has been almost entirely due to the efforts of my colleagues, Sara Cheung, who's here 2 seats away. And these new Mainland investors provide much valued liquidity to the share trading in First Pacific, and we welcome them with open arms. That's it for the opening narrative. We can move over to Q&A. Sara Cheung: [Operator Instructions] John Ryan: Jeff, could you unmute and ask your question, please? Ming Jie Kiang: Maybe starting with 2 from me. So it is all about dividends first. So I just want to check, the regular final dividends increased 3% year-on-year, which seems to be a little bit muted compared with what we saw in the past. But separately, you also pay a special dividend with respect to Maynilad's subscription shares. So just trying to check whether the regular dividend growth this time is whether a sign of caution on the outlook or whether we are trying to smooth out the total DPS growth down in the next few years, including the specials. So that's the first one. The second one would be about Indofood payout. I understand the dividend will be decided in the AGM in the next couple of weeks. So just trying to figure out, from your perspective, are you seeing any particular resistance for INDF to raise the dividend payout ratio in the future? John Ryan: Jeff, you know our CFO, Joseph Ng, he'll deal with the first question, and I'll ask our Executive Director, Chris Young, to deal with the second. Hon Pong Ng: Jeff, it's Joseph here. I think your 3% is only focused on the final, if I'm guessing your question correctly because last year's final is 13.5 and this year's final is 14. But in aggregate, if you aggregate the interim and final last year was $0.255 and this year, it's altogether $0.27 because we paid $0.13 for the interim. So there's a 6% growth, which is not the 3%, so it's not insignificant. But if you add back the so-called special distribution we make as a result of the Maynilad IPO, we pay another [ $0.15 ]. So as indicated, I think we have almost 10% growth against last year's 25.5%. So that's broadly in line with the growth in so-called recurring earnings line from last year's $673 million to this year's $740 million. So it's 10% growth in the recurring, which is a key KPI indicator for us. So broadly in line, regular growth -- regular dividend growth or distribution growth is 6%, but all in, it's 10% growth. Now with that $0.27 altogether, I think we are paying altogether about $150 million plus. And that also needs to tie to what we disclosed in the cash flow that for 2025, we have $311 million dividend income. So you can see that it's more than half of the so-called gross dividend line that we are returning to the shareholders even without including the so-called special distribution. And then you have the head office overhead and the like. And remember, Jeff, also starting from 2025 and more heavily in 2026, we need to kind of reinvest some of the money that we have from the dividend from the units and then we invest those money back to PLP to fund its equity requirement for the new gas plant there. So we try to kind of strike the balance as to what we return to shareholders, which is not a small ratio, which is quite a high ratio. If you take out the head office expenses and interest, we are returning more than 70% of free cash to the shareholders and keep a little bit for our reinvestment into the PLP gas plant. So I think that's the kind of macro thinking behind kind of fixing the final dividend at $0.14 per share and making a total of $0.27 regular and then about 10% growth in aggregate, including a special dividend we paid to the shareholders as part of the Maynilad IPO. So that's on the dividend side. On the Indofood dividends, maybe Chris could chip in and give us a bit color on that. Christopher Young: Jeff, I think the -- normally, as I think you're aware, it's a discussion with the management there at Indofood. And generally, it's a fairly constructive discussion. I think we would take into account 2 elements in considering that dividend. So I think if you look at John's presentation or you've seen the Indofood results, the recurring profit growth last year for Indofood was 1%. And the outlook at the moment looks reasonable without too much disruption from what's going on in the Middle East. But obviously, there is a bit of uncertainty. So that would be the context to the discussion, what was the underlying growth last year and what is the outlook. But as you yourself noted, that discussion will happen over the next couple of months. John Ryan: Okay. Now we'll ask Timothy Chau to unmute and ask what he's got to ask. Tak-Hei Chau: I have a couple about Middle East first. First, on Indofood. I understand just now management talked about like how the Middle East impact seems to be minimal on Indofood. But I'm just wondering if there will be any implications on the raw material cost because I think over the past year, there reportedly some kind of a raw material price hike that affected the margin. So I'm just wondering if the Middle East, if extended kind of -- being extended event, would that aggravate? And the second question also about Middle East will be on PLP because if I remember correctly, the electricity price in Singapore could actually be moved as long as the gas price is up. So I'm just wondering if there will be any positive read-through from Middle East on PLP here. Yes. And my last question is on the PLP project. So just wondering if there is a finalized budget on the potential CapEx spend on the project yet. And just now you mentioned about like how we have already been spending some -- investing some in PLP already on that particular project. Just wondering the time line of the entire CapEx and how it will be in the coming 2 to 3 years. John Ryan: Timothy, I'll take a stab at the first one and then Stan will help you with PLP. Indofood told us in their briefing this morning that as far as wheat goes, they've got 3 or 4 months of supply on hand, and they see that it looks like there's globally going to be a good crop of wheat better than the previous year in 2026. So they're not too worried about that. CPO prices are up a bit after rising 10% in 2025 to about IDR 14,100. They're around at the end of the first quarter, IDR 15,000. They are in some not feeling any particular pressure from raw material prices. And as far as the Pinehill businesses in Middle East and North Africa, they have been able to secure their supplies up to now. And there is, as of yet, no particular concern. PLP, Stan? Stanley Yang: Sure. Timothy, just to address your questions on Pacific Light, first on the electricity prices and the impact of the Middle East fuel. And for PLP, it's gas comes from a global supplier, in this case, Shell. And there is some impact in terms of some of the flow in terms of the LNG that's supplied into Singapore, some of the disruption. It's a relatively small portion, a minority. And I would say that at least for the next month plus, there's sufficient supply. But when you get beyond it, there will be some impact in terms of the supply coming in that would typically come from the Middle East. Alternate arrangements are being made. The company as well as other generators who are affected in the market are also in discussions on solutions that would help, including having some of the gas supplied by EMA and being able to run, but also others in terms of the existing contractual arrangements that they can procure in terms of their global supply. And so we think in terms of certainly the near term, there will be less impact. But as the months go by and if this crisis continues, then some of these alternatives on how the balance of gas will be filled in light of the retail contracts for the company will need to be covered. When it comes to the project itself, the project itself is looking at starting in 2029. And so the heavy lifting in terms of the construction and so forth is still to come. And so within this year, there would be an expectation of the notice to proceed, which basically kicks off the formal development and projects. And from there, the piling works and then subsequently over the next couple of years, the balance of the plant. And so that CapEx as we would look at it would be spread across the next few years up until the planned operation date in 2029. Tak-Hei Chau: On PLP, the rise in gas price, if I remember correctly, I think back in 2023, when the gas price is up, we actually have a higher profit because of the nonfuel margin being higher. So I'm just wondering if this case, given -- I mean, given the case is not as bad as like the lack of supply in gas in the end. So I'm just wondering if there will be any positive read-through for PLP in this case or we are still cautious about our outlook? Stanley Yang: I think it's too early to make a call. I think the next couple of months will be critical. I think because the company has a strong position with respect to its retail customers for this year, then there is definitely visibility, but the impact of any supply disruption, not just for our company, PLP, but also for the entire market in Singapore. The question will be the balance of any gas that comes from the affected markets, for instance, Qatar and how that would impact the entire supply. As I mentioned before, that's not the majority of the supply. It's a minority small -- relatively small percentage, but it is one that we are monitoring because that clearly, the supply in aggregate into the market has to balance with what the generation demands will be for running the plants. John Ryan: Any more questions, Jeff? I think Jeff has another question. Jeff, please unmute and ask your question. Ming Jie Kiang: So maybe switching gear a little bit to MPI, just trying to figure out how should we think about maybe the water Maynilad that business in 2026. So just trying to -- if there's any tariff adjustment, can you remind us over there, but if not, I just want to hear your maybe general assessment on MPI's 2026. That's my first question. The second would be just talking about the FP Natural Resources, which we usually do not really focus on. Just trying to understand why the loss contribution diminished in 2025? And is there any one-off events there? John Ryan: Stan? Stanley Yang: Sure. On the question of the -- you're talking mostly on the water, was it? John Ryan: Yes. If we can expect some tariff increases in 2026 following the 10% last year. Stanley Yang: This year, it's going to be more muted than the last year in terms of the tariff impact. There have been following the revision -- the revised concession agreement, a series of adjustments over a few years. Those have had the benefit in terms of the flow into Maynilad and the system. This year, it would be 4% though, is the expectation in terms of the tariff adjustment. And the business itself will continue to grow. The supply of water and the management's efforts to improve that. I think they focused heavily on the non-revenue water, which is the losses in the system and bringing that down to levels that the company has not seen ever since our existence in owning the business. And so for us, that's a big savings that helps improve the cost of the water supply and efficiency in the system. And then the management themselves are focused on continuing to improve that along with the continuation of tariffs as part of their CapEx program, which was agreed as part of the concession agreement that they revised. Those would be the key imperatives to continue to build on that business. John Ryan: Okay. Thank you. And second question. Jeff, you remind us, please? Ming Jie Kiang: Yes, the FP Natural Resources, just trying to figure out what -- why did the loss diminished in 2025 compared with 2024 and just trying to check if there's any one-off events driving the narrow losses or anything happened there? That would be helpful. John Ryan: Chris? Hon Pong Ng: Actually, maybe I could take that. It's Joseph here. Yes, I mean, that operation -- the sugar operation has -- basically has stopped. And then basically, we are laying off all stock and trying to basically sell the residual assets owned by the operation. I mean, previously, the alcohol operation and then we are in discussion of selling this kind of final set of operating asset, refinery asset with certain investors, certain buyer. So with that, actually, the scale of the operation basically stopped. So that's the reason why you see the recurring profit line, there's actually no -- without any significant amount there. But we do make some impairment provision as a result of selling those refinery assets that I mentioned because now we have identified buyer, we're in final discussion with the buyer. So we know that the final selling price of the refinery part is lower than the book value. So there's certain impairment provision mix below the line under the nonrecurring item. But above the line, there's basically no operation anymore, no significant operation. That's why you see there is very little impact to the recurring profit line. Ming Jie Kiang: Just -- I would just want to take the chance to just have one more quick follow-up or just other question. So just I want to hear our plan for refinancing the head office borrowings. So John mentioned we have refinanced the repayable loan in 2026. And just trying to figure out how do we think about the current maybe the head office net debt, cash interest coverage ratio and also our maturities schedule down the next maybe 2 years. Hon Pong Ng: Yes. As mentioned by John, we finished the refinancing of the January 2026 bank loan. We actually signed up the commitment before the end of last year. So we just draw the facility and paid off the bank loan in early January. So that's all done as far as 2026 liability management initiative is concerned. So the next one coming up from this bar chart is the bond, $350 million bond due in September 2027. Now we still have, as of today, maybe 18 months to go. So it's still early, but as part of our usual prudent financial management, we are actively looking into that and talking to a number of banks. We are getting proposals on, say, refinancing the bond with another bond. So we have received quite a number of proposals with different quotes. Now we are not in a rush to say because the whole market is so volatile. You probably understand from the market that actually both the bond investor side and many issuers are actually waiting on the sideline to see how all these Middle East crisis will turn out and how that would affect the interest rate environment in the next 6 to 9 months. And for us, I think the plan is that we have 18 months to go, but we should get ourselves ready probably when we get into the second half of this year. We will probably kind of accelerate a little bit on the preparation process and see what will be the revised kind of terms and pricing that we could get from the different banks. And in parallel, of course, we will try to explore other alternatives like syndicate bank loan if we think that those terms and pricing are more attractive. But of course, I mean bank loans will not give you the tenor that we could get from the bond market, the 7 or 10 years. As you can see from the debt maturity profile here, if you get another 5 years, probably you get into the 2021, 2022 space, which may be a bit clouded. So our preference will be still a bond. For one, the tenor; two is to diversify the credit resources so that we don't 100% rely on the bank financing. So that's the initial thinking because we always try to strike a better balance between the bank credit resources and the bond credit resources. So the preference is to go for a bond if the market is there and if the terms and pricing are palatable to us, but we never say never. We just wait until the whole market comes down a bit and the whole bond market becomes active again. Ming Jie Kiang: Maybe can I have a real quick follow-up? I promise, this is my real quick. So just as of the end of 2025, I think you disclosed 54% of the debt is on a fixed rate basis at the head office level. So is this split some sort of optimal in your opinion? Or should we be targeting more fixed rate borrowings as we think for the next maybe 3 to 5 years, given the volatile interest rate environment, sometimes we rate cut, sometimes the expectations just bounce around. So just trying to figure out the thinking here. Hon Pong Ng: Yes, Jeff, these are difficult questions because the interest rate environment is actually shifting back and talk and sometimes they say, I mean there will be one interest rate cut this year and followed by 2 next year and now they are maybe shifting a little bit, given the fact we will be shifting the position, maybe not 2 rate cuts in 2027, maybe 1. I mean all these are subject to changes since the whole market is so volatile. So with that sort of volatile situation, it's really difficult to say that we should increase the hedge ratio to a higher level or we reduce it. As of now, I think we are quite comfortable with what we have. We're probably 50% thereabout because you can't win all and you will not lose all as of now. That's what I can say for now. John Ryan: Okay. And I believe, Timothy, please unmute and ask your question. Tak-Hei Chau: Yes, sorry. Management, it's me again. Just a really quick one on potential corporate events. I think this year, a lot of different conglomerates have been -- the theme has been capital recycling, unlocking asset values. I'm just wondering, given our very diverse and broad portfolio, are we -- do you have similar stuff that the management is looking to maybe divest some kind of non-core or at least partially divest like an IPO, for example, like a Maynilad kind of thinking to really unlock the asset value and maybe pocket some kind of funds as well. Especially, I think I've read somewhere in the news about potential IPO or list or private placement for Maya. And like back in the days, I think there were also some market chatters about the private placement for MPTC back then to help relieve the financial issues for the total assets. So I'm just wondering is there anything regarding corporate events that the company is thinking about now? Stanley Yang: Certainly, as a holding company, we look at a span of initiatives, both on the M&A side, which you've seen over the last few years and also in terms of capital markets, we raised the example of the Maynilad's IPO. When it comes to, as you pointed out, Maya, it's a business that has improved quite a bit. The growth of both the wallet and then subsequently after that, taking the leadership, both in the merchant acquiring and now in the digital banking side has really pivoted that platform from what was quite small a few years ago to now the leader and continuing to grow rapidly. Whether this is the year that at this time, a listing could be done, I think we would -- management and the shareholders are always reviewing the strategic options. I think actually an interesting similar case was there was the Japanese fintech recently PayPay that just listed earlier this month. And despite the challenges of the market, Iran and so forth, actually, the price held up quite well. So I think it's fair to say that we will continue to monitor if there is an opportunity. Of course, Maya is much smaller than the one that listed in Japan, but its growth and its trajectory are moving in a very positive direction. And so we would see this as a potential as it continues to grow. Really, the question is in terms of timing. And I would say with respect to other portfolio companies and across the group, I think we continue to evaluate how we can improve the positions of them in their respective sectors. And as and when decisions are undertaken to pursue things more formally, then, of course, we will provide more guidance at that point in time. John Ryan: MPTC? Stanley Yang: I think MPTC, at the moment, the business is continue to focus on delivering this year its projects. They have quite a number of projects within the Philippines that are looking to complete. And so that's really been the focus. Also some of the deleveraging efforts of management because of the acquisitions that they've undertaken in the last few years, those are the principal initiatives looking at partners and some capital into the business to help in terms of the debt reduction of the overall roads. And then with that, we continue to also consider whatever strategic opportunities are to further enhance our position as a platform and the shareholders of our roads business. John Ryan: Thank you very much, Stan. As there are no more questions and time is getting on, we'll wind up now beginning with a reminder that we will be visiting fund managers in Europe and North America after Easter holidays. If you would like to see us, please get in touch with me or Sara or my colleague, [ fionachiu@firstpacific.com ]. These meetings have historically been quite worthwhile for the fund managers who see us because we cannot hide our feelings on our face. You'll see us coming in and we'll be feeling really, really good, and that will be important to your perspective towards our company. And now to summarize how we feel and where we think we're going, I turn now to Chris Young, Executive Director. Christopher Young: Okay. Thank you, John, and thank you for joining us on the call today. The results, as you've seen for 2025 were good and a continuation of the trend that we've seen over the last 7 years or so. However, clearly, the outlook in the short to the medium term is somewhat uncertain. However, I think we remain cautiously optimistic that given the nature of our businesses, which I think are quite defensive given the consumer-facing nature of them, that we will be able to shelter the group really from these uncertainties over the next few months or so. So we look forward to updating you again on the half year results, which I think are at the end of August 28. So until then, we will keep you informed on a regular basis. And as John and Stan will be visiting Europe and the U.S., hopefully, you will get a chance to meet with them face-to-face before that. So turn you back to Sara. Sara Cheung: Thanks, Chris. Thanks again for joining today's online briefing, and you may disconnect now. Thank you. John Ryan: Bye-bye.
Operator: Good morning, everyone, and welcome to the Xtant Medical Fourth Quarter and Full Year 2025 Financial Results. [Operator Instructions] Please note that this conference is being recorded. I will now turn the conference over to your host, Kevin Gardner of LifeSci Advisors. Kevin, please go ahead. Kevin Gardner: Thank you, operator, and welcome to Xtant Medical's Fourth Quarter and Full Year 2025 Financial Results Call. Joining me today are Sean Browne, President and Chief Executive Officer; and Scott Neils, Chief Financial Officer. Today's call is being webcast and will be posted on the company's website for playback. During the course of this call, management may make certain forward-looking statements regarding future events and the company's expected future performance. These forward-looking statements reflect Xtant's current perspective on existing trends and information and can be identified by such words as expect, plan, will, may, anticipate, believe, should, intends and other words with similar meaning. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, including those noted in the Risk Factors section of the company's annual report on Form 10-K filed with the SEC and in subsequent SEC reports and press releases. Actual results may differ materially. The company's financial results press release and today's discussion include certain non-GAAP financial measures. Please refer to the non-GAAP to GAAP reconciliations, which appear in our press release and are otherwise available on our website. Note that the Form 8-Ks that we file with our financial results press releases provide detailed narratives that describe our use of such measures. For the benefit of those who may be listening to a replay, this call was held and recorded on March 31, 2026, at approximately 8:30 a.m. Eastern Time. The company declines any obligation to update its forward-looking statements, except as required by applicable law. Now I'd like to turn the call over to Sean Browne, CEO. Sean? Sean Browne: Thank you, Kevin, and good morning, everyone. Thank you for joining our fourth quarter update call. As has been our practice, I will begin with a few prepared remarks about our operations, and then Scott will provide a deeper dive into the financials. We will then open the call to your questions. Okay. We again turned in solid financial performance during the fourth quarter, highlighted by $32.4 million of revenue, representing growth of 3% over the fourth quarter of 2024. Now I want -- I would note that the Companion Spine transaction closed in early December, roughly a month ahead of our original assumption, which cost us about $2 million of revenue in the quarter. Scott will provide the details, but I want to flag it upfront so the headline number is properly contextualized. Importantly, we again generated positive cash flow, adjusted EBITDA and net income, a continuation of the favorable trends we have seen over the past several quarters. Before covering the quarter in more detail, I want to briefly recap our recent sale of our noncore Coflex interlaminar stabilization assets and the international Paradigm Spine entities to Companion Spine, which closed in early December. The final purchase price was approximately $21.4 million, and I'm pleased to report that the transaction is now fully closed and settled. We use those proceeds to reduce our borrowings and strengthen our cash position, and we do not anticipate any need to raise additional outside capital in the foreseeable future. More strategically, this transaction was transformational for our company. It further sharpened our focus on our core high-margin biologics business, which is where our competitive differentiation lies and where we intend to grow. So for the full year of 2025, we generated total revenue of $133.9 million toward the upper end of our previously stated guidance of $131 million to $135 million. Again, remember, that guidance also included a full month of Coflex and Paradigm Spine revenues. And this represented a growth of over 14% for the full year of 2024. Adjusted EBITDA for the full year was $16.3 million compared to a loss of $1.9 million in 2024, a result we are very proud of and one that reflects the sustained operational discipline our team has demonstrated over the past 2 years. Our biologics product family, which is the greatest potential for growth, both from a revenue and cash generation perspective, was essentially flat for the fourth quarter of last year. We have been direct with investors that our recent emphasis on self-sustainability, positive cash flows, tighter operating discipline, in-house manufacturing was intentional, and those goals are now achieved. The strategic initiatives we implemented, our sharpened focus on higher-margin biologics, our emphasis on in-house manufacturing to improve quality and control costs and our more disciplined approach to operating expenses were all pursued with self-sustainability in mind. We are pleased to have delivered on each of them. With that foundation now firmly in place, we are turning our full attention to driving top line growth, leveraging the strength of our biologics product family. On the commercial side, we have been making measured but meaningful investments to expand our reach. In 2025 and into 2026, we have doubled the number of regional sales reps in the field. Those reps are now deployed, ramping up and calling on accounts. This year, we plan to add significant resources to our national accounts team, which will expand our ability to drive institutional adoption at scale across hospital systems and large practice groups. Together, we believe these additions will have an accelerating impact on our biologics revenue as the year progresses. We continue to invest in R&D to bring innovations to surgeons and their patients, and we remain committed to the cadence of new product introductions that has characterized these past several years. So let's talk a little bit about new product launches. Innovation remains central to our strategy, and we continue to build out our portfolio during the quarter. In December, we announced the commercial launch of nanOss Strata, our next-generation synthetic bone graft manufactured from hydroxycarbonapatite, a material with higher solubility than traditional hydroxyapatite, which is the most commonly used synthetic material. Increased solubility enhances the bioactivity of the graft, allowing for better integration and remodeling with surrounding bone tissue during the healing process. Early surgeon feedback has been excellent, and we are encouraged by nanOss Strata's prospects. We also launched CollagenX, our bovine collagen particulate for surgical wound closure designed to promote healing, prevent distance and help mitigate surgical site infection risk. What makes CollagenX particularly compelling commercially is that it is a potential add-on to virtually every case type in our existing biologics portfolio, creating meaningful attach rate opportunity across our current procedure base as well as an entry point into adjacent surgical disciplines we do not currently serve. The size of that addressable market opportunity is significant, and we are very excited about what this product represents for both patients and for our business. As we have said before, but it bears repeating, we now offer and internally produce solutions across all 5 major orthobiologic categories, which includes Demineralized Bone Matrix, cellular allografts, synthetics, structural allografts and growth factors. Additionally, with our [ Amnio ] and collagen product lines, we are also well positioned to grow in the surgical repair and wound care markets. This breadth positions us as the partner of choice in regenerative medicine, a position that has been further reinforced by the very positive feedback we continue to receive from surgeons on these recent innovations. Turning now to guidance. Our 2026 revenue outlook reflects the impact of the Companion Spine divestiture and the expiration of license revenue from our Q-code and amniotic membrane agreements, both nonrecurring items that Scott will address in detail. Offsetting these headwinds is continued anticipated organic growth in our core biologics business, which we expect to accelerate as our expanded commercial team is fully deployed and our newest products gain traction in the field. With that context, we anticipate full year 2026 revenue in the range of $95 million to $99 million. On a pro forma basis, this represents solid organic growth in our core business. We are committed to maintaining positive free cash flow at these revenue levels. And as I noted, we do not anticipate any need for any outside additional capital. Story heading into 2026 is straightforward, a focus on our core business and expanding commercial footprint, an innovative and comprehensive product portfolio and a clean balance sheet. We believe we have the right strategy, the right team and the right foundation to deliver. Now with that, I will turn the call over to Scott for a more detailed review of our financial results. Scott? Scott Neils: Thank you, Sean, and good morning, everyone. I'll start first with our financial results and then conclude by sharing some specific amounts related to our recent divestitures and license revenue for the benefit of looking ahead to 2026. Total revenue for the fourth quarter of 2025 was $32.4 million compared to $31.5 million for the same period in 2024. The slight increase is attributed mainly to higher license revenue during the fourth quarter of 2025 that Sean alluded to earlier, partially offset by declines in biologics and hardware. As Sean mentioned a moment ago, we expect that the measured investments that we're making in our field sales force on both a regional and national basis should drive accelerating biologics growth in 2026 and beyond. Gross margin for the fourth quarter of 2025 was 54.9% compared to 58% or 50.8% for the same period in 2024. The increase is primarily attributable to favorable sales mix and greater scale, partially offset by a $1.3 million inventory charge associated with the launch of the Cortera Fixation System. Fourth quarter 2025 operating expenses were $18.7 million compared to $17.9 million in the same period a year ago. General and administrative expenses were $7.3 million for the 3 months ended December 31, 2025, compared to $5.7 million for the same period in 2024. The increase is primarily related to a $1.4 million of additional expense related to various compensation plans. Sales and marketing expenses were $10.9 million for the 3 months ended December 31, 2025, compared to $11.7 million for the same quarter last year. The decrease resulted primarily from a $0.9 million reduction in commissions. Research and development expenses were $459,000 for the 3 months ended December 31, 2025, a decrease from $522,000 in the fourth quarter of 2024. Net income in the fourth quarter of 2025 was $57,000 or $0.00 per share on a fully diluted basis compared to a net loss of $3.2 million or $0.02 per share in the comparable 2024 period. Adjusted EBITDA for the fourth quarter of 2025 was $1.9 million compared to adjusted EBITDA of approximately $0.4 million for the same period in 2024. Turning now to full year results. For the full year 2025, total revenue was $133.9 million, representing growth of 14% over $117.3 million for the full year 2024. Again, our revenue for the fourth quarter and the full year 2025 were negatively impacted by the closing of the sale of our Coflex assets and international hardware business to Companion Spine in early December, which is about a month sooner than we were anticipating. The assets of the businesses that were included in the transaction were generating about $2 million of revenue per month. Gross margin for the full year 2025 was 62.9% compared to 58.2% for the full year 2024. Of this increase, 530 basis points were due to sales mix and greater scale, partially offset by a decrease of 260 basis points due to increased charges for excess and obsolete inventory. General and administrative expenses were $29.5 million for the full year 2025 compared to $28.7 million for the same period in 2024. This increase is primarily attributable to $2.4 million of additional expense related to various compensation plans, partially offset by a $1.2 million reduction in expense for stock-based compensation. Sales and marketing expenses were $45.5 million for the full year 2025 compared to $49.2 million for the full year 2024. This decrease is primarily due to reduced commission expense, $3.9 million resulting from revenue mix and $2.1 million of reduced compensation expense related to headcount, partially offset by $2.9 million of additional consulting fees. Research and development expenses were $2.1 million for the full year 2025, a modest decrease from $2.4 million for the full year 2024. Full year 2025 total operating expenses were $77 million compared to $80.3 million for the full year 2024. Net income for the full year 2025 was $5 million or $0.03 per share on a fully diluted basis compared to a net loss of $16.5 million or $0.12 per share for the full year 2024. Adjusted EBITDA for the full year 2025 was $16.3 million compared to an adjusted EBITDA loss of approximately $2.3 million for the full year 2024. As of December 31, 2025, we had $17.3 million of cash, cash equivalents and restricted cash compared to $6.2 million as of December 31, 2024. As Sean alluded to earlier, our cash balance as of December 31, 2025, excludes the $10.7 million that we subsequently received from Companion Spine and satisfaction of the unsecured promissory note of $8.2 million issued to Xtant by Companion Spine related to the Coflex transaction, plus accrued interest and related working capital and other purchase price adjustments. Net accounts receivable was $17.8 million, inventory was $30.3 million, and we had $3.8 million available under our revolving credit facility as of the end of the year. Turning now to nonrecurring revenue and related expenses for 2026. Total revenue for the business sold to Companion Spine was $20.3 million for 11 months ended November 30, 2025. We will include disclosure of the 2025 quarterly revenue amounts on Xtant's investor website. Cost of sales and operating expenses for those disposed businesses were $6.6 million and $15.4 million, respectively, for the same period. Also, with respect to the $18.7 million of license revenue recognized during 2025, please note that the related sales and marketing expense was $3.7 million. That concludes the financial overview. Operator, you may now open the line for questions. Operator: [Operator Instructions] Your first question is coming from Ryan Zimmerman with BTIG. Iseult McMahon: Scott, this is Izzy on for Ryan. So I just wanted to start out on the outlook for 2026. I know guidance excludes Coflex, Cofix and the OUS business. But I was curious if you could kind of unpack what your thoughts are for underlying organic growth, especially in the core biologics business. . Sean Browne: Scott, I'll let you dive in, and I'll add any color. Scott Neils: Sure. I think as we look out through 2026, we're going to be looking for sequential quarter-over-quarter growth, which will reflect the growing contributions of the new product offering Sean mentioned as well as the expanding impact from additions to our commercial organization. I will note, though, that seasonality will still be present. So thinking of Q3, for instance, we're likely to see less sequential growth there than in other quarters. I think maybe setting Q1 as a baseline, for example, starting biologics or with biologics to your point, I expect biologics in the first quarter to be down low double digits compared to Q1 of 2025 in response to headwinds related mainly to lost Amnio product and for hardware to be down approximately mid-teens after adjusting for the revenue associated with the divestiture in 2025. Does that help, Izzy. Iseult McMahon: Yes, that's really helpful. And then you kind of touched on it already with the low double-digit decline for first quarter. But how much of a headwind are you expecting in 2026 from the loss of the license revenue relating to the Q codes? Sean Browne: I think it's more -- okay, so first of all, all of that, the Q code revenue all goes away. However, what we are waiting to see and is still shaking out is what is the base of that business now going to be because we still manufacture a really terrific product line that will be used in advanced wound care by distributors and others. Now what's going to be different is that as this continues to shake out, more of those distributors will be using our contracts, and it will be actually [ Xtant ] brand. So we expect as the year progresses, we'll see that business begin to ramp up, and we feel good about some of the discussions we've had with many of the groups that are out there today looking for a product to sell into hospitals because, as you know, in the advanced wound care world, we're going to see a lot more patients being shifted from the non-acute facilities to acute. And so we see an upside that's going to be coming our way really starting probably -- well, I guess, guys who are in this market a little more than we are, would tell you it's probably going to be looking more like sometime in the late second quarter to the second half of the year where we'll start to see the pickup on that. But in the first quarter, we [ OEMed ] a fair amount of product for guys last for manufacturer, I should say, distributors last year under their brands. And so that business has gone away. But now the business that will come back will most likely be product that will sell under our brand, and it will be into hospitals. Does that answer your question? Iseult McMahon: Yes, that's really helpful. And then just the last one for me. I was curious how quickly you guys are expecting to see a decline in the hardware business throughout 2026. Sean Browne: I think the best way of looking at hardware is we will see a slow decline throughout the year. So yes, so I'll just leave it at that. Scott, do you want to add any color to that? Scott Neils: Yes. I'd simply say that we've already seen a decline in the hardware that remains post divestiture, and we expect that, that decline will continue at a reasonably steady rate approaching high teens in 2026. Operator: Your next question is coming from Chase Knickerbocker with Craig-Hallum. Chase Knickerbocker: Maybe I just wanted to start on kind of that cadence of biologics growth that's kind of implicit in all that commentary that you just gave. It calls for, call it, kind of last 3 quarters kind of acceleration and kind of organic year-over-year biologics growth. Sean, can you maybe just walk us through kind of which products in particular you kind of expect to support that kind of the -- just help us, I guess, bridge to their kind of by product as far as what you see accelerating growth? And then kind of same question as far as how much of that comes from your distribution network versus kind of white label contracts, white label business that you have visibility on? Sean Browne: Sure. So starting off with the different products. So all of the advanced biologics products that we're now manufacturing. So when you think about our OsteoVive Plus, which is the stem cell product, our OsteoFactor Pro which is our growth factor product, the CollagenX product we just rolled out our Trivium product, which is an advanced demineralized bone matrix product. Those are the ones that I see, quite frankly, all of them expect to grow, but those are the ones that are going to be the big drivers. And those are the ones that if you look at our funnel today, which I'm really excited about because this is something with the added sales people new opportunities that we're looking at these days is substantially greater than what we've had really, quite frankly, ever. And with this advanced portfolio, we're touching on a lot more -- a lot of areas in and around spine. So when we start looking at the number of trauma, foot and ankle and other opportunities that have come our way, it's become substantially greater. So those would be the product lines that I would say that will be driving what we see as our growth. Chase Knickerbocker: And then just as far as channel, Sean, white label versus your own distribution network? Sean Browne: So yes. So when we think again about the biologics business, we'll look at our channel or our OEM channel about 20%. Scott, is that right? About 20% of our growth this year or 5% of our overall biologics business will be in the OEM channels that maybe a little higher, like 22%. Is that about right, Scott? Scott Neils: Yes, that is about right, Sean. Sean Browne: Yes. Chase Knickerbocker: And then a couple as we think kind of longer term, Sean, as we think about kind of direct -- your distribution network, white label, potentially kind of some larger contracts with institutions, like where do you see over the medium term, your business kind of showing the most growth? Is it these white label contracts? Is it continuing to be in your distribution network? Just some thoughts there as far as kind of where you're really leaning in. Sean Browne: Yes, especially given the fact that we had -- it will definitely be the Xtant branded product working through our independent agent networks, mostly because, quite frankly, that's where we had the most significant reduction over the 2024, 2025 years in way of we lose a person didn't replace them. And so we had -- and that was strategically a choice we made. Strategy is about choices. And our strategy was we need to get to self-sustainability and that meant building products internally, being able to have our own products that we feel really good about that are advanced, give us the much higher ASPs and better margins. And so these are decisions we made. Now we've replaced and then added basically doubled the size of the sales force. And that sales force is focused on our Xtant branded products. And so when you see the growth that will be coming out, it will be coming from really what I see has been a down to flat independent agent network. We have a real opportunity to really start growing that world again. And so we're feeling really good about where that's going. Chase Knickerbocker: And then two, just to finish for me on -- maybe on hardware. That business is obviously a lot smaller than it has been for you in the past. You expect it to decline. What are your kind of plans there over the medium to long term? Is that a little bit of a melting ice cube for the business that's obviously kind of drawing down growth on the overall top line? Just kind of give us your strategic thoughts there. And then just with kind of all the movement in the portfolio, can you give us a little bit more kind of color on gross margin in 2026? And sorry if I missed that during your prepared remarks, Scott. Sean Browne: I'll let Scott address the 2026. I'll address the hardware issues. So hardware for us, where we are good in hardware, we're really good. Like we have this new Cortera line, which is outstanding. We have a cervical offering that is as good as -- it's actually better than almost anything else that's out there. So we do adult degenerative spine really well. The question is, at what point in time does this become something that becomes a strategic distraction. And at this point in time, it's still helping to set the table for some of our biologics business. So I guess the point is at what point do we kind of look at this and say, when doesn't it? And does the, I guess, the drag on growth become more than it's worth. And so we're not there right now. And -- but it is something we're looking at. So I'll -- without getting too deep into that, but that is clearly high on our strategic list of things to choose or decide. And so that's something that we'll be working on over the course of the next year or so. Scott, do you want to answer the gross profit margin question? Scott Neils: Sure. I think over the course of 2026, we're probably going to be running low 60s in terms of gross margin. As far as the puts and takes within that, -- the new product launches, these higher-margin biologics launches that we've done have had the desired effect in terms of what they've done to our overall biologics product margins. However, what we've seen out of hardware is that really the nonproduct costs, say, excess and obsolete charges, for example, have offset to some extent, the positive contributions from those new biologics product offerings. So net-net, I think we're probably running low 60s in way of gross margin during the course of 2026. Operator: Thank you, everyone. This does conclude our Q&A session at this time. This also concludes our conference call. You may disconnect your phone lines at this time, and have a wonderful day. Thank you for your participation. Sean Browne: Thank you.
Operator: Good morning, and welcome to the Genel Energy plc investor presentation. [Operator Instructions] The company may not be in a position to answer every question received during the meeting itself. However, the company can review all questions submitted today and publish responses where it's appropriate to do so. Before we begin, I'd like to submit the following poll. And I'd now like to hand you over to Paul Weir, CEO. Good morning, sir. Paul Weir: Good morning. Good morning, everybody. My name is Paul Weir, as you've just heard, I'm the CEO of Genel Energy, and I'm joined as usual by our CFO, Luke Clements. Welcome to our 2025 results presentation. We published our annual report and our full year results last week. And in my statements, then we broadly reiterated the key messages and guidance provided in our January trading statement. Obviously, the big change since January is the security situation in the Middle East, which has resulted in our production effort being temporarily suspended on a precautionary basis since hostilities began almost 4 weeks ago. Understandably, the operator's priority since then has been the safety of its personnel. Steps have been taken, however, to maintain a state of readiness for a prompt restart, but the security situation in the region remains very dynamic and very uncertain. The focus of this presentation then is not to provide you with the Middle East security update, which wouldn't likely add to the understanding you've already had from mainstream media. Instead, we will take you through the key elements of the performance of the company in the last year, the current position of the business and the catalysts and priorities for '26. Luke and I will work through these slides. I think there's 10 or 11 basically. We'll work through those fairly briskly, and then we will be very happy to take any questions that you submit during the course of the presentation. We start with an overview of the business, and this slide pulls together some key metrics to outline the building blocks we now have in place. We ended the year with a daily average working interest production rate of around 17,500 barrels per day. Net 2P reserves of 64 million barrels and a net cash position of $134 million. EBITDAX was $43 million. Our barrels are low cost with a low emissions rate, well -- industry average target rate for 2025, which was 17 kilos per barrel and with world-class operating costs at around $4 a barrel. Even in a year that included significant production disruption at Tawke and continued domestic market pricing, the business has remained resilient, cash generative and well funded and with the potential for very significant value uplift. The key building blocks for that significant value uplift are listed at the foot of this slide. The Tawke PSC, our world-class production asset generating material free cash flow even at domestic sales prices, a significant cash holding of more than $220 million at year-end and about the same right now, ready for deployment and a portfolio with significant organic upside potential from exports resuming, Tawke drilling resuming, Oman appraisal and Somaliland drilling, all of which supports our ultimate objective of getting back to a regular dividend in time. Once we've established some geographical diversity and the further resilience that follows that diversification and repeatable cash. On to the next slide, please. This slide sets out our strategy and strategic objectives in the way that we think about them every day. The 3 familiar boxes on this slide represent our objectives in simple terms, and I've spoken about many times before, so I won't dwell on them too much. Firstly, maintaining a strong balance sheet; secondly, maximizing cash generation from the assets we have, which means investment in Tawke and resuming exports from Kurdistan. And finally, adding some new sources of cash flow in a disciplined and value-accretive manner. That order matters, but we need to do a good job in all 3 of those areas if our eventual aim to return value directly to shareholders in a regular way. Let's move into the detail on the platform now. The world-class characteristics of Tawke are well known, but 2025 again demonstrated the resilience of the combination of the assets and its operator, DNO. If you look at the production graph on the right-hand side of the slide, you can see quite clearly the effect of the drone attacks in Q3 of last year. And thereafter, you can see just how quickly production was restored to a production rate at the [indiscernible] of the year of around 80,000 barrels a day. It's also worth noting that production in the months not impacted by the drone event was actually higher than the 2024 average despite no new wells contributing to that production rate. Drilling restarted then in Q4 of '25. First Tawke well was spudded in December and immediately started delivering results. A second good production well followed in the same month, but the 2026 drilling campaign for which 2 more rigs have been mobilized to site has now been suspended given the security situation. So today, we're in a position where both production operations and the drilling campaign are temporarily suspended, and we remain on standby until such times as the operator determines that it's safe to reestablish a full presence at site and resume activity. We remain close to and very supportive of the operator on that. All that aside, when we talk about Tawke as a world-class asset, we mean 254 million barrels of gross 2P reserves, very low operating costs, low emissions, long reserve life and clear upside from drilling. Right, I'm going to pass you on to Luke now for the next couple of slides. Luke Clements: Thank you, Paul. Good morning. This slide provides the buildup of what we call production business netback. Production business netback is revenue less production asset spend. That's both OpEx and CapEx, less G&A. It tells us what funding our business is generating and making available for capital allocation outside of the Tawke PSC. And you can see that it has been double-digit millions for 2 years in a row now, having been negative in 2023 despite similar levels of revenue. So you can see that we've been working hard on our spend. So what was the income side of that double-digit production business netback made up of last year? Firstly, while Brent averaged $69 a barrel in 2025, our realized price sold was $32 a barrel with all production sold domestically. If we were exporting, we'd expect that realized price to be close to Brent. Secondly, working interest production averaged 17,500 barrels a day, lower year-on-year only because of the drone-related interruption in Q3 that Paul just mentioned. And finally, EBITDAX of $43 million. You can see our underlying EBITDAX is back to more normal levels for domestic sales at around $35 million for the past 3 years now. This underlying number excludes movement on arbitration cost accruals, which negatively impacted '24 and positively impacted '25. So the key point here is that the production business is now delivering consistent double-digit netback even at domestic sales pricing, while still funding all production activity and investment on the Tawke license and so building our balance sheet cash position and available funding. That is the product of Tawke resilience and the discipline we've applied to the business since 2022 in simplifying the portfolio, stopping non-value accretive spend, exiting licenses and reducing cash G&A. Next slide, please. This slide illustrates our balance sheet strength. We finished the year with $224 million of cash, the net cash of $134 million and gross debt of $92 million. Our cash is about the same today as it was at the end of the year, so it's around $225 million. In April last year, we issued a new 5-year bond maturing in 2030, replacing the bond that had been due to mature in October 2025. That issuance was oversubscribed, and we continue to see good support and appetite for our bonds. That issuance has reduced funding risk around delivery on our strategic objectives. This remains a very underleveraged balance sheet with significant headroom to fund investment. That matters because the cash and capacity for further debt provide us with significant optionality. We can fund the appropriate Tawke program, progress our organic growth assets and pursue value-accretive acquisitions without being forced into decisions by capital structure pressure. Next slide, please. This slide shows our primary capital allocation options when we consider the best way to deliver shareholder value. Our first consideration is to maintain the strength of our balance sheet. Then the best place to invest our capital, providing the instant significant returns is the Tawke PSC. Then we think about how best to diversify our cash generation. All 3 building blocks have to be properly managed to establish a sustainable dividend. That means not every potential project will automatically be funded and not every acquisition opportunity will be pursued. Every value creation opportunity has to compete with others within our strategic framework. The Board reviews capital allocation on an ongoing basis, and we take care to remain disciplined. I'll hand back to Paul now to talk about our acquisition strategy. Paul Weir: Thank you, Luke. So look, we want to add resilient cash-generative production or near production assets that reduce our reliance on one asset in one geography. We want something that complements what we already have and supports long-term shareholder value. During 2025, we were very active. We originated, developed and actually bid on a number of opportunities. We were involved in bilateral discussions and in broader processes, too. We've looked at opportunities within our current region and further afield. And to be entirely frank, although it's early days still, 2026 is already shaping up to be as active as 2025 was. Having said all of that, there isn't an abundance of suitable opportunities, and there's a great deal of competition for the good ones that are available. So we continue to diligently scan the deal horizon. We're trying to avoid being distracted by the current unsettling events. Patience and discipline are key. Finally, on this, and again, as we've made clear in previous presentations, we will resist overpaying to get short-term positive market reaction only to find over time that the assets that we buy are unable to deliver the value that we need. We remain very confident that we will secure the right opportunity in time. On to Oman then. On Block 54, the initial activity set did exactly what it needed to do. The reentry and testing of the legacy Batha West-1 discovery well was completed safely ahead of time and under budget. That was a low cost and very useful first step in understanding the block better. Our block is adjacent to the prolific Mukhaizna field, and we are targeting reservoirs that are proven in that neighboring field on another adjacent block, Block 4 and on legacy well logs from Block 54 itself. The immediate focus now is not to rush to a drilling location decision. Instead, we will use the data from Batha West properly to reprocess existing seismic and to acquire new 3D seismic in the most efficient and cost-effective way that we can, so that the joint venture can identify the best locations for the 2 commitment wells that we will now drill on the block. That's the right technical sequence, and it's also the right capital allocation sequence. And based on current planning, we expect those commitment wells to be drilled early in 2027. So Block 54 is exactly the kind of exactly the kind of organic opportunity that we like, modest initial capital outlay, a clear work program, data-led decision-making and meaningful upside if the subsurface case continues to strengthen. And on Somaliland on the next slide. In Somaliland, the opportunity remains for a material discovered resource addition from our existing portfolio, and we've seen steady progress towards drilling the highly prospective Toosan-1 well. Toosan-1 targets best estimate prospective resources of about 650 million barrels across multiple stacked reservoir objectives. As the first mover, the commercial terms are also very attractive, meaning that even a modest discovery would likely be commercial. Of course, wherever we find logistically will benefit from proximity to the Berbera Deep Water Port on the Gulf of Aden. In terms of drilling preparedness, the majority of the civil engineering work is complete and most long lead items are already held in inventory, but we will remain quite measured in how we talk about this. There's still work to do. That work is ongoing, and there is still a need for operational, commercial and geopolitical elements to all come together. The key takeaway for today is one of continued progress towards drilling, while we continue to invest in the well-being of our host communities there to further strengthen our social license to operate. On the next slide, we'll -- we can see -- we can sort of give you a flavor of the work that we carried out last year and through into the first quarter of '26. We've been proactive in the areas of mother child health care, educational facilities and conservation projects. And we've been reactive. Very importantly, we've been reactive in response to the very severe drought conditions that the region is now suffering. Genel has recently distributed around 9 million liters of fresh clean water in the area of our SL10B13 license. Okay. So I think we can wrap up now. This closing slide returns to our 3 strategic pillars. Firstly, maintaining a strong platform. That means protecting the balance sheet, keeping the business efficient and being careful about how we spend our money. Secondly, maximizing cash generation. That means cost consciousness, executing the Tawke drilling program well, pursuing the net amounts that are owed to us and positioning ourselves to participate in exports when the conditions are in place -- when the right conditions are in place. And finally, diversifying production and free cash flow. That means finalizing and executing the right plan for Block 54 and continuing to progress Toosan-1 and Somaliland. Most importantly, it means continuing the disciplined pursuit of value-accretive acquisitions. Those are the building blocks. They're fairly straightforward. They are mutually reinforcing and they remain the right framework for Genel's value delivery. If we execute well, we continue the journey towards a business with resilient cash flows that can support a regular dividend for our shareholders. That's our clear objective, and we are determined to get there. So thank you. That was a relatively brief run through the slides, but I want to thank you for your time this morning. Luke and I will now be happy to take any questions that you might have. Operator: Paul, Luke, thank you both very much for your presentation. [Operator Instructions] Guys, as you can see we received a number of questions throughout today's presentation. Could I please hand back to Luke to read out the questions and give responses where appropriate to do so, and I'll pick up from you at the end. Luke Clements: Thank you. So there's a few questions on security in Kurdistan, Paul, and how quickly we can restart production. I think as you said at the start, we're not really going to comment on security in the Middle East and Kurdistan because it kind of changes all the time. There is a question about once you do restart production, how quickly can you get back to pre-conflict production levels? I think it is worth you answering, Paul. Paul Weir: Well, I think we can get back to preproduction -- pre-conflict production levels very quickly indeed. I mean it's worth pointing out, and there is a little bit of an overlay here into the security question. We've shut down as a precautionary measure. We haven't been targeted, and we haven't suffered any damage during the course of the current conflict, although obviously, there's been quite a lot of ordinance heading into Kurdistan. It's not been headed at us. The point being that when we do sense that the time is right to restart all the equipment there and functional. The operator has been working cleverly to make sure that we maintain a state of readiness. And as soon as we can get boots back on the ground, we can get production away quite quickly. So I'm confident that we can resume production levels pretty quickly within a week or 2 of giving ourselves a green line. Luke Clements: Okay. So staying Kurdistan on exports. We understand that the Tripartite deal has been extended to the end of June. Has Genel approached MNR to join the deal? Paul Weir: The answer to that is no, we have not approached MNR to join the deal. I think we've made our position on the current export arrangements quite clear, but I'll repeat them just now. A number of our peers elected to participate in that arrangement. We chose not to do so. We wanted to make sure that all of the conditions within the deal were on fully before we felt able to commit to that. Primarily amongst those conditions, of course, is the top-up payments that would actually render the participants hold with respect to the PSC. So we would want to see that before we elected to try and join the current arrangements. In the meantime, we would continue to sell our product locally. Luke Clements: And there's a kind of related question, which you've kind of answered, how are other operators being paid through the pipeline. I mean, for me, Paul, that's really for others to comment on. It looks like the first part of that is working okay. But as you alluded to, we -- the top-up payment hasn't been expected yet and hasn't been paid yet, I think, is the right way to think about it. Paul Weir: Agreed. Luke Clements: Are you still a member of APIKUR? Paul Weir: Yes, we are still a member of APIKUR. Obviously, when some of the APIKUR members elected to participate in the export or the arrangements that were in place up until the facility stopped. When some of the APIKUR members elected to participate in that arrangement and others chose not to, APIKUR essentially divided into 2 counts, but APIKUR remains the trade association. It remains the forum where all of the IOCs within Kurdistan can talk together. And we have a directorship there, and we remain a part of APIKUR. Luke Clements: Okay. Moving outside of -- sorry, one more on Kurdistan. Any update on court case costs? Paul Weir: No, there isn't. And next month, our appeal against the award of the other side's costs goes to court, and we're waiting to see the outcome of that appeal before we engage with the authorities on that matter. Luke Clements: Okay. So now as on Kurdistan. How quickly can new assets? And I don't know if that means the organic portfolio or newly acquired assets, but how quickly can new assets meaningfully reduce reliance on Kurdistan? Paul Weir: Well, those new assets, if we're able to secure the kind of asset that we're looking for, those new assets can immediately reduce our reliance in Kurdistan because it's a production asset, then we benefit from a new income stream immediately. So certainly, first prize for us is securing an arrangement that gives us an alternative cash flow as soon as the transaction is completed. As far as the other -- as far as near production assets are concerned, if we were to go down that route, then it would be entirely dependent on the nature of the deal we were considering. I couldn't give a time line on that. Luke Clements: Yes. I'd just add, we've always said we want to do a bigger deal rather than a smaller deal. And you can see the cash pile we have on the balance sheet. And you can assume that an asset we acquire would have debt capacity on it as well. So you can see if you're spending that kind of money, you should be able to achieve some meaningful diversification of your cash generation. I think you probably already answered it, but can you provide an update on Toosan-1 in Somaliland? Any specific milestones before spud? Any specific time line that we want to set out? Paul Weir: No. I think I appreciate there'll be a great deal of curiosity around our progress in Toosan-1 because we talk about it and from an outside-in point of view, it may at times be difficult to see progress, but work does continue, and we are quite active on that front. Engineering work continues and procurement work continues. We've been looking at the market to -- we have most of the long lead items in place, but we've been putting together a project execution plan. We've been putting together a project plan. We've been trying to determine who are the best people to come in and help us manage that drilling campaign. And all of that continues as we speak, and we have people in-house dedicated to that task. And as with all projects of that nature, we have a stage gate process in place. So we will convene with the executive every time we reach a stage gate, and we will convene with the Board every time we reach a stage gate. And we will take a conscious decision to embark on the next stage of the process and be prepared to spend the money that's associated with that particular stage. We can't commit to a particular time line at the moment. As I said in the presentation, a number of commercial, operational and geopolitical pieces of the jigsaw need to fall into place together before we can actually define with certainty when things are going to happen. But work does continue, and we are committed to the cost. Luke Clements: Okay. Back to Oman. What is your estimate of drilling costs concerning the 2 wells in Oman? Paul Weir: Well, the wells are relatively shallow wells, and we're in an area that's well serviced by the oil industry. So services are readily available. We're competitive and they're relatively low cost. I wouldn't want to put a figure right at this moment for the well cost because, of course, that's determined to some extent by precisely where we want to drill, and we haven't determined precisely where we want to drill yet. But what I can repeat is what the cost of this entire project is going to be, and that's around $15 million over a 3-year period to Genel. That obviously started last year. So all the work that's taken place so far has been extremely well planned and very clearly executed and it's below budget. But we're expecting to spend a total of around $15 million over a 3-year period starting last year. Luke Clements: Okay. It looks like we are through the questions. Operator: Thank you both for answering those questions you have from investors. And of course, the company can review all questions submitted today, and we'll publish those responses on the Investor Meet Company platform. Just before redirecting investors to provide you with their feedback, which I know is particularly important to the company. Paul, could I please just ask you for a few closing comments? Paul Weir: Yes. I mean I'll close, first of all, by thanking everybody for taking -- continuing to take an interest in Genel and for taking the time to listen to us talk about our business today. I just want to close basically by reiterating the 3 main points that we wanted to land during the course of this presentation and in fact, in all our recent presentations. The first is that we have a very resilient business, and our strategic priority is to maintain that degree of resilience, protect the balance sheet. The second is to emphasize the extent to which we have potential within the organic portfolio. Oman and Somaliland, both represent very exciting potential value builders for the business, and we continue to push forward with those. But of course, the biggest story and the biggest strategic thrust at the moment is making use of our cash pile. We've been sitting on that quite patient and are waiting for the right deal. But we continue to be very, very active in the M&A space, and we continue to be extremely confident that in time, we are going to find the right deal that's going to allow us to deploy that cash. So thanks, everyone, for your time. Thanks very much for the questions, and we look forward to talking to you with more good news. Operator: Paul, Luke, thank you once again for updating investors today. Could I please ask investors not to close this session as you'll now be automatically redirected to provide your feedback in order that the management team can better understand your views and expectations. This will only take a few moments to complete, and I'm sure it will be greatly valued by the company. On behalf of the management team of Genel Energy plc, we would like to thank you for attending today's presentation, and good morning to you all.
Operator: Welcome to the earnings call of Aumann AG regarding the full year figures for 2025. The company's CEO, Sebastian Roll; and CFO, Jan-Henrik Pollitt, will guide you through the presentation and the figures shortly, followed by a Q&A session via audio line and chat box. Having said this, I'm handing over to you, Sebastian. Sebastian Roll: Good afternoon, everyone, and thank you for the kind introduction. I'm pleased to have you with us today. And for those I haven't met yet, my name is Sebastian Roll, and I'm the CEO of Aumann. So joining me in the call today is our CFO, Jan-Henrik Pollitt. So we really appreciate your time and your interest in Aumann. In the next few minutes, we will guide you through a brief overview of Aumann, the latest developments in our E-mobility and Next Automation business and of course, our financial performance in 2025, where we delivered strong results in a challenging market environment. So let's start with a quick look at our business model. So we design and build high-end fully automated production lines tailored precisely to the needs of our international customers. With decades of experience in automation, industry leaders around the world trust Aumann to deliver innovative solutions. One of our competitive advantages is staying ahead, especially in fast-growing markets, enabling us to quickly provide customized solutions. This is why the automotive market, especially the E-mobility sector remains so attractive to Aumann. In addition, the robotics and automation market is growing rapidly, driven by demographic change, labor shortages and cost pressure. These trends also drive our Next Automation segment, allowing us to use our automation expertise in many industries beyond automotive. So let's take a quick look at Aumann's solutions. So our portfolio ranges from modular solutions and complex process solutions to fully integrated large-scale production solutions. At the modular end, we provide standardized cell systems. They enable our customers to adapt quickly and cost efficiently to changing market demands. Building on this, Aumann designs production lines for more complex processes, including technologies such as winding, coating and testing. The aim is to implement special process steps in the most efficient way. Moreover, Aumann offers fully customized large-scale solutions built to maximum output while ensuring high quality. Thanks to Aumann's wide range of solutions, we can fully support different production strategies of our customers. So this slide here shows how Aumann became a technology leader in E-mobility. Starting from the traditional automotive business, E-mobility was identified as a growth market. Through targeted M&A, Aumann took the first step into E-motor technologies. Building on our know-how, we developed different solutions for the rotor, quickly followed by solutions for the stator and finally, full E-motor assembly. After the E-motor, we leveraged our expertise to develop large-scale production solutions for battery modules and packs. In addition, we introduced our own modular systems, for example, in inverter assembly, but also very useful in the field of Next Automation. Furthermore, we have expanded into converting technology, enabling us to offer, in addition, production solutions for electrode manufacturing. Aumann is a leading provider of turnkey solutions in E-mobility. This illustration here shows the drivetrain of a fully electric car and most of these components can be produced on Aumann production lines. From the outset, we have focused strongly on the E-drive unit. Even today, our customers still use different approaches to stator and rotor design. As a turnkey provider, we offer the latest production solutions for both. Beyond that, we have expanded our portfolio with modular production systems, for example, for electronic components such as sensors or, for example, such as inverters. This enables us to offer flexible and scalable solutions perfectly tailored to each customer's needs. Let me now turn to our battery portfolio. Here, Aumann benefits from its strong position in energy storage. We cover the full range from battery modules and packs to cell-to-X solutions. This expertise allows us to meet customer needs and develop new solutions for next-generation battery technologies. Let's look at the E-mobility market today and in the future. BEV, or battery electric vehicle sales continues to gain traction. In 2025, more than 13.7 million were sold worldwide. So this means a plus of 30% in comparison to 2024. China stays in the lead with 9 million units, but Europe follows with strong growth, reaching more than 2.2 million units with 26% increase compared to 2024, including Germany with an impressive 43% growth. The U.S. market, which currently shows the lowest volume in comparison, remains at least stable at 1.2 million units. By 2030, BEVs are expected to make up 40% of sales by 2035, even 2/3. So overall, rising BEV sales and a more stable geopolitical situation are expected to drive new investments in the near future. So let us now turn to our key commercial focus in 2025. As mentioned earlier, we are expanding beyond the automotive sector and focusing more on industries that need greater efficiency, higher productivity and less manual work. At the same time, rising labor costs and the shortage of skilled workers are accelerating the shift towards automation. In this context, we have moved, as you know, our Next Automation segment from an opportunistic to a strategic approach. This segment focuses on growth industries beyond automotive, such as defense, aerospace and life science. So let's take a closer look. In our Next Automation segment, we have defined 3 strategic growth areas. Aerospace, as you know, is gaining momentum. Demand in civil aviation is rising. Boeing and Airbus are forecasting more than 40,000 new aircraft over the next 20 years. Against this backdrop, Aumann is preparing its reentry into aviation, offering solutions to support production ramp-ups with initial orders already secured in early 2026. At the same time, defense budgets are boosting. Drones combines exactly what we do best: electric motor, battery packs and full system integration, including end-of-line testing just like in E-mobility, same technology, new applications. Therefore, we easily developed integrated drone assembly lines and secured our first orders in 2024 (sic) [ 2025 ]. Besides aerospace and defense, clean tech is also good. Here, Aumann has acquired a double-digit million order in energy infrastructure, delivering flexible assembly and test lines for medium voltage circuit breakers. Finally, life science. So this sector benefits from long-term trends such as an aging population, strong investment levels and attractive margins. In 2025, Aumann entered the pharma market with solutions for producing skin delivered patches and oral thin films. Now I would like to hand over to Jan. Jan-Henrik Pollitt: Yes. Thank you, Sebastian, and also a warm welcome from my side. I would now like to share with you the financial figures of the year 2025. Let me start with a brief overview. We entered the year aware that revenue would face a decline, primarily due to a softer order intake in 2024. At the same time, we remain fully committed to implementing every possible measure to protect our margins and sustain strong profitability. It is also important to highlight, particularly in the automotive sector, that investment behavior continues to be very cautious. This trend is visible across the full spectrum of OEMs and suppliers. Against this backdrop, in 2025, revenue reached EUR 204 million, 35% below the previous year. Profitability remained strong with a double-digit EBITDA margin of 13.8%. Order intake totaled EUR 147 million, down 26% year-over-year. Order backlog decreased from EUR 184 million to EUR 122 million at year-end 2025. And our balance sheet remains robust with a net cash of EUR 148 million. With this foundation, let us now dive into the details. Across segments, we achieved a revenue of EUR 204 million, representing a year-over-year decrease of 35%. The main driver of this decline was the E-mobility segment, where revenue decreased by 37%. Revenue in the Next Automation segment also declined from EUR 53.8 million to EUR 40.2 million, mainly because the prior year included a larger contribution from a major photovoltaic project. For 2025, we had initially expected revenue of approximately EUR 210 million to EUR 230 million. Based on early projections in January, this estimate was refined to EUR 205 million. With the audited figures now available, we ended the year 2025 at EUR 204 million, closely matching this guidance. Looking ahead, we will now turn to the profitability and earnings performance to provide a complete picture of the financial results. Despite the decline in revenue, our profitability remained robust, demonstrating the resilience of our business model. EBITDA came in at EUR 28.2 million, down 21% year-over-year. EBITDA margin increased from 11.5% to 13.8%. This reflects the strong execution, especially in our E-mobility segment. Key drivers of this solid performance include a high-quality and well-diversified order backlog, strict cost discipline across all projects, capacity adjustments aligned with the subdued market environment, and an above-expectation Q4 with some larger E-mobility orders completed ahead of plan. Based on these dynamics, we raised our initial EBITDA margin guidance of 8% to 10% in January to 14%. With the final margin at 13.8%, we outperformed last year by 2.3 percentage points, underlining the operational strength of our segments. With profitability well established, let's now turn to order intake. As already mentioned, the overall investment climate remains challenging. Our business relies on our customers' CapEx, and especially for large-scale projects, long-term forward-looking decisions are essential. Many industries, particularly automotive, are currently not making these kinds of commitments, which affect our markets. However, we are not standing still. Internally, we continue to optimize costs and adjust capacities. Externally, we are actively developing new sales opportunities and pursuing M&A leads. We see clear opportunities to grow, and we are confident these initiatives will deliver value. In 2025, total order intake declined 26% year-over-year to EUR 147.5 million. The Next Automation segment is showing strong progress. Order intake increased 54% year-over-year to EUR 56.5 million. Our sales pipeline is also growing, demonstrating the potential of the Next Automation initiatives to drive future revenue. As a result, total order backlog declined from EUR 184 million at year-end 2024 to EUR 122.2 million at year-end 2025. However, the Next Automation segment continues to gain momentum with its order backlog increasing 39% to EUR 47.9 million. While the overall backlog is below our desired level, both volume and quality of the backlog are solid. And we have, of course, continued to account for this backlog conservatively in our financial statements. Let me now move to the next slide and walk you through the segment figures, starting with the E-mobility segment. In the E-mobility segment, order intake of EUR 91 million is 44% and under the previous year due to the mentioned market conditions. As a result, order backlog decreased by 50% to EUR 74.3 million. At the same time, revenue decreased by 37% to EUR 163.8 million. EBITDA is declining at a slower rate than revenue by minus 21% to EUR 26.6 million, which means a strong margin of 16.2%. In the Next Automation segment, order intake increased year-over-year to EUR 56.5 million as the new positioning is opening new markets. End of 2025, order backlog amounted EUR 47.9 million. Revenue decreased 25% year-over-year to EUR 40.2 million. And the EBITDA margin increased by 2 percentage points to 12.8%, which leads to a total EBITDA of EUR 5.1 million. Before we take a closer look at the balance sheet, let me provide a brief overview of our group cash flow in 2025. Cash flow from operating activities reached EUR 38.4 million, reflecting the strong results for the year and the EUR 50 million reduction in working capital compared to 2024. Importantly, we returned EUR 23.3 million to our shareholders through dividends and the share buyback program, underlining our commitment to delivering value to investors. As a result, cash and cash equivalents, including securities, remain at a record high level of EUR 152.8 million. By the end of December 2025, our balance sheet continues to be in a good shape with an equity ratio of 66.7% and EUR 153 million cash, of which EUR 148 million are net cash. Our financial foundation will continue to allow us to respond flexibly to market opportunities, to drive the expansion of the Next Automation segment, both organically and through M&A activities, and to ensure further shareholder participation through share buybacks and dividends. Following the successful year 2025, we will propose a dividend payment of EUR 0.25 at the AGM, which is a further modest dividend increase compared to the previous years. And of course, we currently have an existing authorization to acquire treasury shares up to 10% of share capital. This provides the company with flexibility to act opportunistically in the market, and at the same time, it ensures that we can continue to participate our shareholders in the company's success. To conclude, we would like to provide our guidance for 2026. We expect a mixed, but well balanced development across our segments. E-mobility revenue is likely to decline due to a lower starting order backlog. In Next Automation, we see continued positive momentum. Overall, the group enters 2026 with an order backlog of EUR 122.2 million. We expect total revenue of around EUR 160 million with an EBITDA margin of 6% to 8%. Our diversified business model provides stability and supports a resilient and profitable year. Let me now hand over to Sebastian again. Sebastian Roll: Yes. Thanks, Jan. So let me briefly summarize. 2025 was a challenging year for Aumann. Revenue dropped to EUR 204 million as investments across the European automotive sector remained weak. So despite these headwinds, we delivered a strong operating performance. We reduced capacity, further increased the flexibility of our cost structure and achieved additional cost savings in project execution. As a result, we reached EUR 28 million EBITDA, achieving an EBITDA margin of 13.8%, a strong indication of improved efficiency and profitability despite lower volumes. Thanks to these, we proposed a dividend of EUR 0.25 per share, continuing to provide an attractive return to our shareholders. Looking ahead to 2026, we are facing a decline in revenues again. Nevertheless, we are targeting a profitable EBITDA margin of 6% to 8%. So also in 2026, as Jan mentioned, our financial position is strong with high liquidity. That clearly sets us apart from most of our competitors and gives us the freedom to shape 2026. Last year, Next Automation developed strongly. This confirms that our diversification is working. Our clear goal is to accelerate this growth, both organically and through M&A. So thank you very much for your attention. We are happy now to take your questions. Operator: [Operator Instructions] What will be recurring revenue after sales services next year and in year 2025? Jan-Henrik Pollitt: Yes. The recurring revenue from after sales and services is approximately 10%. What we see in investment reluctance phases like 2025 and maybe also in '26 that some customers have higher volumes of retrofits of production lines, and this could, as long as the general CapEx is low, give maybe an additional increase on the aftersales side. Operator: How do you view Aumann's competitive position in the European EV ecosystem? And to what extent our increasingly aggressive Chinese entrants reshaping pricing, technology and market share dynamics? Sebastian Roll: Maybe starting the question with the question of competition out of China. So I mean maybe in comparison to other sectors, so we are dealing with China competition, I would say, the last 10 years. So there's nothing new. I also would add that there are not any changes concerning the competition out of China. Our business model is to be the front runner for the first very important, let's say, 1 or 3 lines, especially start of production of new EV is very important, for example, like it was in the new class for BMW. And I mean, in this area, the customer still is buying, let's say, more or less confidence, and this is our business model. So for the fourth, fifth, sixth line, there might be competition out of China. But then normally in normal market conditions, we are already ahead in new projects. Operator: And could you please give us more details on M&A environment and activities in Americas, which can give us inorganic growth? Sebastian Roll: Yes. So M&A, as you know, is an important pillar of our strategy, that's for sure. That's not new. So as we said also in other calls before, so we switched a little bit the direction. So we are now looking especially for targets in the area of Next Automation. That's where we would like to expand our portfolio, and that's clear our target for 2026 to acquire a company in this area. Operator: And the next question is slightly similar. Could you please elaborate further on the target focus, the size, geography and technology? Sebastian Roll: Yes. So geographically, it is still, for sure, the United States. So that's something we would like to enter. Therefore, we need a hub which is close to our technology, maybe a little bit similar. Within the European area, we are more searching, as I said, for additional technology and for additional customer relationships within the Next Automation. So looking in, as we said before, aviation, defense or, for example, life science as well. Operator: And with our large M&A, your capital structure looks rather inefficient and the share price level low. Any further buybacks to be expected? Jan-Henrik Pollitt: So there is no current decision on further buybacks. But as we have shown in the presentation, we have authorization for another 10% buyback of our share capital and we will decide if necessary on that topic. Operator: What is the potential revenue that can be achieved with the current personnel and corporate structure? Jan-Henrik Pollitt: Yes. So we adjusted capacities during 2024 and 2025. We didn't adjust directly on the EUR 160 million revenue guidance, which we have for '26. We still have a bit more capacity in-house so that we can hope for the rebound in order intake and scale up fast again. So if we don't see a positive effect, then of course, we will also use 2026 to further adjust capacities. We will also have the one or other topic in '26 where we see a few adjustments necessary but not larger ones. And as soon as the market rebounds again, that we are able to do like EUR 160 million to maybe EUR 240 million, EUR 250 million revenues again. Operator: You already answered one of the next questions. Have you continued to reduce the number of employees year-to-date? Jan-Henrik Pollitt: Yes. As said, we had some smaller adjustments, not like bigger topics, but small adjustments here and there. So we continue to make some homework, but no big issues. Operator: And there are 2 questions left. Any new strategic industries, markets, or processes that Aumann is looking on? And can you say something about order intake in Q1 and the sales pipeline? Sebastian Roll: Yes. I think what we tried to show in the presentation in a little bit more detail to give to give some ideas in Next Automation. So Next Automation for us is important. For us, it was important, especially that we had this growing market or that we had really acquired one big project, but also some minor projects in the fourth quarter of 2025. So I think you have seen that I think in the middle of the year, we are roughly 20% higher in order intake in Next Automation. After the third quarter, it was roughly 35% higher. And now after the last quarter, overall, we are 55% higher. So that means that the sales pipeline, especially in Next Automation is rising. This takes a little bit of time step by step. But as I said, for us, really important was to have, for example, this big project within the infrastructure area, yes? So in our point of view, a really nice project in the infrastructure, but also in clean tech and also in aviation. So in all these areas, now we have the first projects. In infrastructure, we even have this big project. So this is important for us. And you have to have in mind that, unfortunately, this order intake in Next Automation takes more time than in E-mobility because, as I said, the industry is new. We have the customers that are new or the products are new. And this will take a little bit of time also in 2026. So we will not see the big recovery in the first quarter, but we will see step-by-step a very increasing Next Automation. Operator: Thank you very much. And with an eye on the time, we have the last questions. There are 3 questions in a row, and I will take them one by one. The first is, Aumann reports EUR 12.2 million in securities apparently in the form of bonds. What specific type of bonds are these? Jan-Henrik Pollitt: These are government bonds and corporate bonds, but each with good credit ratings. Operator: And can you provide any information regarding order intake in the first quarter of 2026 broken down by segment? Jan-Henrik Pollitt: Honestly speaking, not yet. Operator: We expect significant working capital effects in cash flow in 2026? Jan-Henrik Pollitt: Yes. We finished the last 2 or 3 years at relatively low working capital levels. So each year, we expected a little bit working capital increases, but managed to hold the working capital at that low level. For '26, from today's perspective, I would see some working capital increases maybe back to a level of 15% to 20% of revenue. Operator: And the last question, can Next Automation reach similar EBITDA margin levels at the currently higher ones of 16% E-mobility? Sebastian Roll: Yes, in general, of course. So we had this high EBITDA margins, especially in E-mobility in 2026 (sic) [ 2025 ]. As said, we finished a project better than expected, which boosted the EBITDA margin end of the year, especially in Q4. For 2026, both segments will be a little bit lower in margins due to the decline in revenue. But in general, we are trying to maintain a good and profitable margin level in both segments. And as we said in the other segments like -- or the other industries like aviation or life sciences, there are also good margins to reach and achieve. Operator: Thank you very much. Ladies and gentlemen, we have come to the end of today's earnings call. Thank you very much for your interest in the Aumann AG. A big thank you also to you Sebastian and Jan-Henrik for your presentation and your time. Should you have any further questions, ladies and gentlemen, you are always very welcome to place them to Investor Relations. I wish you all a successful day around the world, and handing back over to Sebastian for some final remarks. Sebastian Roll: Yes, I hope that we have shown that Aumann will stay strong also in 2026, in unfortunately another challenging year for our industry, but we are focusing on what we can control. So that means internally, we are continuously optimizing our cost structure, we are building our sales opportunities in Next Automation. And for sure, we have an eye on M&A activities. So thank you very much for your interest.
Operator: Welcome, ladies and gentlemen, to the earnings call of Friedrich Vorwerk Group SA regarding the full year figures of 2025. The company's CEO, Torben Kleinfeldt; and CFO, Tim Hameister, will guide you through the presentation and the figures shortly, followed by a Q&A session via audio line and chat box. Having said this, Torben, the stage is yours. Torben Kleinfeldt: Yes. Thank you very much, and also a warm welcome from my side. Welcome to the Friedrich Vorwerk Earnings Call 2025. I will, for everybody who is not in detail familiar with Friedrich Vorwerk, run you very quickly through the main topics of our company and then give you a short market update about the latest developments in our main markets. Then I will hand over to Tim for, of course, the financial figures, which are key to this meeting here. And then I will give you a business update about our current projects we are running at the moment, at least the large ones. So yes, Friedrich Vorwerk has been active since founding in 1962. So with more than 60 years of experience in the business of engineering and constructing energy infrastructure here in Germany, mainly. We can look back at numerous very successful projects in our highly attractive main market, which is natural gas transition, electricity transition, clean hydrogen transition, and of course, adjacent opportunities where we sum up our activities in district heating, CO2 treatment and transport and treatment of biomethane. Today, we are operating from 14 locations within the north, mainly in the north of Germany with more than 2,200 well-trained employees. And yes, due to the energy transition, which is still going on here in Germany, we can look back at a very strong order intake already also in 2025. So we were able to acquire projects in a total volume of almost EUR 1 billion in 2025, which is an increase of 27% compared to the figures of the year 2024. Yes, where do these order intake come from? Main customers here in our 3 markets are, of course, the large TSOs operating the energy transport grids, not only in Germany, but also in the middle of Europe. So it could be in terms of electricity transition companies called TenneT and Amprion in looking at the market in clean hydrogen transition and natural gas transition, we have customers like Open Grid Europe, Gasunie and others. But of course, you can also find petrochemical companies and cable manufacturers within our customers. Yes. So what's the latest market update. First, I want to focus on the development of -- since German government has agreed with the EU Commission to set up new power plants in Germany. These very flexible power plants are necessary to support the production of renewable energy, mainly driven by wind and solar farms. And at times, you don't have wind and solar available. You need to have an energy source, which can be ramped up very quickly. So Germany is planning to install roughly 10 gigawatts of capacity in terms of gas-driven power plants. And that, of course, is an opportunity also for Friedrich Vorwerk Group, both in pipeline construction to run new natural gas pipelines and later on also hydrogen pipelines towards these gas-fired power stations. But also, we have a division in our plant construction department, which can supply the necessary fuel gas systems to supply those turbines delivered by companies like Siemens, GE or others. Other latest developments since we have all heard that the hydrogen economy has been struggling a bit over the last month. German Parliament has passed a so-called Hydrogen Acceleration Act. Main part of that is, of course, to install the so-called core grid for hydrogen transport in Germany, which could be the nucleus to develop the hydrogen industry in Germany because it will cut off costs for transport of hydrogen when the core grid is available and consumers and also producers of hydrogen can be easily connected to this grid. But also they want to secure and make investments in hydrogen production here locally in Germany easier and more reliable for the investors. And of course, all our other businesses like natural gas transition is also still ongoing since new LNG terminals are still developed on the coast of Germany. So the Bundesnetzagentur has just published the first draft of the new grid development plan, combining the investments in natural gas grid development and hydrogen grid development. And this plan looks out to the year 2035 with still investments in the natural gas grid of roughly EUR 3 billion. And they also found out that probably developing the core grid for hydrogen will be more costly than predicted 2 years ago. So the revised plan for setting up the hydrogen core grid roughly sketches out investments of EUR 25 billion instead of EUR 20 billion, which was estimated before. So also here, in the market of natural gas and hydrogen, huge potential for our company's group. And therefore, I would like to hand over to Tim for last year's financial figures. Tim Hameister: Thanks a lot, Torben. And also a warm welcome, everyone, from my side to today's earnings call. Overall, 2025 was a fantastic year for Friedrich Vorwerk. We achieved record-breaking results across all KPIs, successfully completed 2 acquisitions, secured numerous new major projects. And last but not least, we launched our proprietary welding robot in collaboration with our subsidiary, 5C Tech. Therefore, I'm very pleased to now present these strong results in detail. In terms of revenue, we've steadily increased over the course of the financial year and delivered a fantastic final quarter, which despite the seasonal nature of the business, nearly matched the strong performance of Q3. Overall, we benefited from favorable weather conditions in fiscal year 2025, not only in Q4, but especially in the first quarter when we were able to resume work after a short winter break on many projects as early as mid-January. This point, I would also like to briefly note that the first quarter does not always benefit from good weather conditions. This year, for example, in 2026, we've seen a harsher winter again after a long time with plenty of ice and snow, particularly in Northern Germany, resulting in a question of production stoppages even in February. However, depending on weather conditions in the next quarters that are more relevant in terms of revenue and earnings, we expect to be able to offset at least parts of this effect over the course of the year. For the full year 2025, we generated revenue of EUR 704 million, representing a remarkable 41% increase over the previous year. This was primarily due to our continued success in recruiting new employees, which led to a 15% increase in the average number of employees as well as an increase in productive hours per employee, higher equipment utilization and, of course, some pricing effects. The electricity segment's share of revenue has contributed -- has continued to rise, now standing at 52%, making it the primary driver of growth in 2025. While this is largely attributable to A-Nord, we are simultaneously working on several medium-sized projects in this segment, such as BorWin6, the Baltrum HDD project and several converter stations as well. 2/3 of the current order backlog is attributable to this segment. So continued growth is expected here. At the same time, we anticipate a significant growth momentum from the Clean Hydrogen segment as larger subprojects on the hydrogen core grid are also expected to be put out to tender in the foreseeable future. Furthermore, we expect additional growth in the adjacent opportunity segments in 2027 and the following years due to the German government special fund. The development of profitability was particularly impressive in the fourth quarter with an EBITDA margin of almost 29% and EBIT margin of almost 25%, even taking into account the dilutive effect of the cost plus fee contract in our major A-Nord project. In addition to the favorable weather conditions already mentioned in Q4, our success in claim negotiations, which typically take place in the fourth quarter was a key factor in the exceptionally high margin, along with higher earnings from joint ventures, which increased by nearly EUR 10 million compared to the same quarter of previous year. Accordingly, we also concluded the 2025 financial year as a whole, thanks to our high-quality order backlog and a flawless project execution were successful. We increased the EBITDA margin by 7 percentage points from 16.2% to 23.2% and more than doubled EBIT from EUR 59 million to EUR 137 million. Despite the tremendous 40% growth, we still managed to further reduce trade working capital, which along with the higher profitability, played a significant role in improving the net cash position. As a result, we were able to increase net cash by more than EUR 100 million compared to previous year, bringing it to EUR 262 million at year's end. It should be noted, however, that the trade working capital is always at its lowest level at the end of the year and rises as the construction season progresses. These swings between summer and winter can amount up to EUR 80 million or even EUR 90 million. With regards to capital allocation, our top priority remains investing in organic growth, specifically in the purchase of new pipe layers, drilling rigs, cranes and excavators and of course, our welding robots. We've budgeted approximately EUR 50 million for this in 2026. Furthermore, we will certainly be open to pursuing a larger M&A deal again provided we find the right target and of course, at a reasonable price. And finally, we would like to share the company's success with shareholders in form of a significantly higher dividend payout, consisting of EUR 0.70 base dividend and a EUR 0.40 special dividend. Let's now take a look at the development of order intake. In addition to the conventional order intake figure, we've already introduced a new KPI last year, the total project volume acquired. This new KPI also includes a proportionate project volume from the joint ventures in which Vorwerk is involved. And therefore, in our opinion, provides a more transparent view of the actual order situation regardless of the structure of the contract. The total project volume acquired rose by 29% to EUR 991 million in 2025, while conventional order intake at EUR 538 million is around 20% below previous year. The main reasons for this are, on the one hand, a shift in the order structure towards more joint ventures, especially in H1 2025. And on the other hand, our already well-filled order book, combined with a limited capacity of our resources. The order backlog, which corresponds to the conventional order intake figure declined, therefore, slightly to EUR 1 billion for the reasons stated before. We've learned from several investors that the communication regarding order intake and the contract structure is not yet clear enough. Therefore, we are currently working on reporting an order backlog KPI that includes our share of joint venture projects as well, starting with the Q1 report. And I expect that this additional metric will provide a transparent picture for all shareholders by then at the latest. Yes, and then based on our consistently high-quality order backlog, we expect our growth trajectory to continue in 2026 with revenues in the range of EUR 730 million to EUR 780 million. It should be noted that following 2 years of very high employee growth, we intend to slow down the expansion of our workforce somewhat in 2026 to give the organization and the administrative functions the opportunity to grow at the same pace while simultaneously focusing our recruiting efforts on attracting senior construction and project managers. At the same time, revenue growth is somewhat slower in 2026 due to the higher proportion of joint ventures. And this change in the project mix also means that we are now forecasting absolute EBITDA instead of EBITDA margin, specifically in the range of EUR 160 million to EUR 180 million for 2026 as this number is unaffected by the order structure. This guidance also takes into account the slightly softer Q1 2026 due to the adverse weather conditions. With that, I'd like to hand back to Torben for the business update. Torben Kleinfeldt: Yes, Tim, thank you very much. And of course, we did pick for this meeting our most outstanding projects at the moment. Please remember that during the year, we are operating on more than 500 smaller, midsized and also large projects. So we can, in this meeting, only give you a glance of the most outstanding projects. And I would like to start with the natural gas business here. It's a project we've already been working on last year. It's the so-called EWA pipeline, which is a 48-inch pipeline running from the caverns of Etzel towards compressor station of Wardenburg. This pipeline will continue in size of 40-inch towards the station of Drohne, which is more to the Rhine-Ruhr area, so in the south of the area. We have already finished the construction on EWA last year with a pressure test and the handover to the customer. So there's already gas on this pipeline. And the WAD pipeline is construction progress at the moment. We have already started in January with the first wells on site using our new welding robot, PX2 developed by our subsidiary, 5C Tech. We have completed roughly 400 wells on the project this year. And again, with very, very low mistakes in the wells. So it's -- the repair rate is definitely under 2%, which is very good in terms of fully automatic welding. Yes, changing actually over to the next natural gas pipeline project, which is, at the moment, our still largest project executed in a joint venture between the Habau Group and the Friedrich Vorwerk Group, compromises of 2 pipelines. First, the ETL 182 with a diameter of 56-inch and the ETL 179.200, which is a 36-inch pipeline. Altogether, a mid-3-digit million euro project and both pipelines are being executed by the same joint venture combination. As you can see in the picture below, we have already started some civil works to erect the pipe yards that has been done already in 2025, and we have already received most of the project pipes, which are purchased by our customer Gasunie. And we've actually started in the latest weeks to make preparations for the first loading procedures, so for the tunnel crossings and for the horizontal directional drilling, operations are already in place and will be executed in due course of this year. And then maybe next slide, we are not only active in pipeline cable laying, but our plant division construction is also very busy with a new project at a gas metering station called Groß Koris. This is the main metering and supply station for the company, ONTRAS. Here, we have a project to renew the full installation at Groß Koris with a volume of mid-2 million-digit range. And we have to deliver the full scope of engineering and also construction activities and will then commission the new plant as is foreseen at the moment in 2028. And the system will already be constructed in a hydrogen-ready way. So later on, once the usage of natural gas in the system is over, it can be easily converted to use for clean hydrogen and meter and also regulate the hydrogen being transferred in the grid. Next project is also a hydrogen project, which we have already been working for 1.5 years. This is the so-called HH-WIN project. So the city of Hamburg is trying to set up a hydrogen grid in the Port of Hamburg. Key figures here is an electrolyzer plant, which is located at the former power -- electrical power station of Moorburg, where about 100 megawatts equality of hydrogen is being produced and then fed into the Habau Grid, so the HH-WIN grid. And Friedrich Vorwerk has already executed 3 lots of this newly established hydrogen grid. And we have been recently awarded with 2 new lots to set up this hydrogen grid. The first lot involves actually a micro tunnel of almost 200 meters where we later on install the piping DN 300 for the transfer of hydrogen. And the following lot compromises of roughly 1,500 meters of new build hydrogen pipeline. But besides those existing projects where we've already started execution, we are, of course, still busy in our estimation department working on new estimates for new projects. Just to give you a small idea what could be coming up over the next years. In terms of pure natural gas transition, we are at the moment, working on estimation for the so-called Spessart-Odenwald-Leitung, which is also DN 1000 pipeline, about 115 kilometers long for Terranets and also other projects coming up from Open Grid Europe, setting up the core grid for hydrogen here in Germany. And also for Gasunie, new projects like ETL 187, which is directly in conjunction with the current project ETL 182, is at the moment in tendering phase and execution and commissioning would then be in '27, '28. But also still very attractive is the electrical market, where we are now facing the so-called second wave of large-scale electricity highways, projects like NordOstLink Section 2, SuedOstLink and SuedOstLink+ are being tendered out over probably end of this year and beginning of next year. And these projects will be commissioned in the mid-2034s -- in the mid-2030s. So also here, a huge potential also after 2030 for our company's group. And under adjacent opportunities, we were able to already win lot of the Rheinwater transport pipeline. This is a very large diameter pipeline, 2.2 meters in diameter that will later on transfer water from the river Rhine to flood the coal mines of RWE. And at the moment, we are working on the next lot to establish this water transfer pipeline. And also a very new business to our company, the transport of CO2 is ongoing. So the first tender we have received is the CO2 link from Lagerdorf, where Holcim is operating a cement factory towards the port of Brunsbuttel is on the table at the moment. Commissioning is foreseen for 2029 and tendering phase ongoing and probably construction phase will be '28 to '29. So this, of course, can only be done if we can establish to grow our headcount and our number of employees where we were very successful last year. So today, we can look at a workforce of more than 2,200 employees. Of course, the labor market within Germany, especially due to the low capacity in building construction, we were able to employ a lot of new blue-collar workers we could integrate in our projects. And probably during this year, we will definitely have a focus on growing our engineering staff and our overhead staff on the construction site. So challenge will be also to look for well-educated project managers and construction managers to manage all the blue-collar employees we were able to attract over the last month. Yes, that's it from our side. We are happy to receive your questions either by phone or by chatbot, and happy to answer them. Operator: [Operator Instructions] And the first hand is up from Lasse Stueben. Lasse Stueben: I wanted to ask just on the Q1. Is there any more color you can give roughly in terms of what we should expect in a year-on-year comparison just to avoid any sort of nasty surprises. The second question would be, what should we expect for headcount growth broadly in '26? And then the third question is, you mentioned sort of slowing down headcount growth, but then you also said that you would be willing to do a larger M&A or potentially do a larger M&A transaction. So how do we kind of square those 2 kind of comments? Because I guess a larger M&A deal would also involve many new employees. So just any color there would be great. Tim Hameister: Well, we've seen compared to the year before, some weeks of weather-related production stoppages in February, combined with the growth of the headcount could be possible to see a rather flat Q1 in 2026 in terms of revenue growth. And as I said, which could potentially partly be offset by stronger quarters in Q2 and Q3 as the overall share of Q1 on the full year revenue isn't that relevant. Regarding the headcount growth, when we talk about slowing down recruiting efforts, this is only in terms of organic growth, meaning directly hiring people, not including any M&A. From organic growth side, we expect to grow headcount by 5% to 8% in 2026 and any M&A would be add-on, on that. And of course, usually, we also acquire project managers and the respective engineering and administrative functions when doing a larger M&A deal. Operator: And additionally and slightly regarding question in the chat. Friedrich Vorwerk is guiding for a slightly lower margin in 2026 compared to a strong 2025, midpoint of 2026 guidance at 22.5% versus 23.1% in 2025 despite continued revenue growth. Could you provide a margin bridge for 2026 versus 2025 and outline the key driving factors? Tim Hameister: Well, we've always communicated that we see the margin potential in the mid- to long term at our company between 20% and 22%. However, in particularly strong years as in 2025, it's also possible to achieve an even better margin, more than 23% due to basically a flawless project execution, good weather conditions and so on. But on the long run, we feel pretty confident with 21%, 22%. Operator: And the follow-up from the person. Could you please provide more details on the Nord-A project, specifically regarding the recent delays and their potential impact on bonus malus payments. Additionally, is there any bonus or malus effect already factored into the 2026 guidance? Tim Hameister: Yes. As we already communicated last year, A-Nord project is expected to be slightly delayed with completion now anticipated in summer 2027 instead of end of 2026 due to missing permits. We are still in discussions regarding adjustments to the bonus-related milestones. And these discussions have been ongoing for some time. We do not yet have a definite outcome on these discussions, but we remain still confident and hope to sign their respective contract amendment in the course of the second quarter 2026. And based on this information, at least a portion of the contract liability we've already included into the books since and accrued over the project duration. Part of that could be reversed once this amendment is signed in the second quarter. However, we did not factor in any positive impacts from that amendment as it is not signed yet. Operator: And for now, we have no further questions. Ladies and gentlemen, I will hold the room for another moment in case someone might be typing right now. And there is a hand up from Lasse Stueben, again. Lasse Stueben: Great. Just a follow-up on sort of -- you mentioned kind of the JV share of projects is obviously going up. Should we expect that kind of level of the JV income you saw in '25 to be roughly the same in 2026? Or how should we think about that? Tim Hameister: All the new JVs we entered into last year, we expect to -- that the net earnings of the JVs will even increase compared to 2025. Operator: And another hand up from Leon Muhlenbruch. Leon Muhlenbruch: I have a quick question regarding to the current geopolitical situation. With the energy crisis already on the way and inflation likely to rise similarly to 2022, which had a significant impact on Friedrich Vorwerk, how are you prepared for such a scenario? Torben Kleinfeldt: Well, first of all, we were able to have a better negotiation position in most of the contracts that are in the order backlog at the moment. So most of the contracts have included price escalation clauses. So we can -- on the most bigger projects, we can forward the price escalations to our customers, although, of course, not to 100% because they are mainly bound to indexes which are more general, for example, the steel index or the crude oil index, which is not always 100% equivalent to the products we are actually using in our projects. But in the end, we can at least -- we are at least in a way better position this year than in 2022. Also in 2022, most impact was from a plant construction project where we had to bring a lot of material to the project. If we look at the current large-scale projects we are operating on, it's mainly the pipeline projects where the bare pipe is supplied by our customers. So we are mainly supplying equipment and personnel, so services, which are, at the moment, not that much affected as back in 2022. Operator: Another hand up from [ Lueder Schumacher ]. Unknown Analyst: I've got a few questions on margins. One is, are there any kind of older projects which have lower margins in them that which are running out and should be supportive to the group margin outlook once they do? And what about the margins implied in the order intake? Can we assume that they should be at a premium to the margins you've seen in 2025? Or should it more be in the region of the long-term potential of 20% to 22% you've been hinting at? Tim Hameister: Well, there are currently no such legacy projects in the current order backlog, although we still have the dilutive effect from our major project A-Nord, which will run until summer 2027, where the base margin is definitely lower than the group average. Apart from that, there are no legacy projects with low margins. And well, I mean, we have already seen such strong margins in 2025. We do not expect that we can further increase this margin profile. And therefore, rather to suggest that you can assume the long-term potential at around 21%, 22% for the next years. Unknown Analyst: In your order intake you had in 2025, we should already assume this? Or is this still at the margins you've seen in '25? Tim Hameister: Well, the margin profile calculated in those projects is roughly on the same level as we've seen the year before. However, on the one hand side is the calculated margin. On the other hand side, is the actual project execution on the fields. And this has also a major impact on the earnings in the end. Operator: And we're moving on to 2 questions in our chat. Are you planning any buybacks? What are the key impacts for the Iran war for you? And what are you doing to hedge against it? For example, natural gas inflation, diesel? Tim Hameister: At the moment, there are no plans for any share buybacks. We've decided to instead increase the dividend and to also pay out the special dividend of EUR 0.40 per share. Adding on the answer from Torben regarding Iran, the major impact for us at the moment is, of course, the higher cost for fuel, especially diesel. To give you some color on that, the total cost of diesel last year was around EUR 12 million. So it's not the largest position in our P&L statement. And we've, of course, already hedged some of the amounts needed already before the war in Iran. So there will be, of course, some effect, but not a significant one. Torben Kleinfeldt: But on the other hand, the crisis also has a positive impact on the market because at the moment, customers are really pushing the projects and trying to get more LNG receiving capacity in Germany, which then, of course, also means constructing new pipelines and constructing new plants, which is then also good on the market side for us. Operator: Can you discuss your appetite to revisit medium- to long-term guidance? And what milestones would trigger an upgrade? Tim Hameister: Well, that's definitely a thing to consider this year as we are pretty well on track on the older mid- to long-term outlook. So maybe we can expect to see a new outlook in the second half of this year. Operator: Ladies and gentlemen, we still have a minute for your questions left. And if there should be no further ones, you can always get in contact with Investor Relations. And this is it. With no further questions, we come to the end of today's earnings call. Thank you very much for your interest in Friedrich Vorwerk Group SE. A big thank you also to you, Torben and Tim, for your presentation and your time. I wish you a successful day around the world and giving the last words to Torben again. Torben Kleinfeldt: Yes. Thank you very much for listening. I think especially this year, we can look at some very, very interesting projects we can execute for our customers. And please stay with us and hear the latest news from our projects in the future. Have a good time around the world. Bye-bye. Tim Hameister: Bye.
Operator: Ladies and gentlemen, welcome to the SoftwareOne Full Year 2025 Results Conference Call and Live Webcast. I'm Valentina, the Chorus Call operator. [Operator Instructions] The conference is being recorded. [Operator Instructions] The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Kjell Arne Hansen, Head of Investor Relations at SoftwareOne. Please go ahead. Kjell Hansen: [Audio Gap] presentation. My name is Kjell Arne Hansen, and I'm the Head of Investor Relations at SoftwareOne. Joining me today are our Co-COOs, Raphael Erb and Melissa Mulholland; and our CFO, Hanspeter Schraner. In terms of agenda, Melissa and Raphael will start with a summary of the year and the Q4 performance. Hanspeter will then take us through our detailed financial performance. And finally, Melissa will take us through the final section covering our AI opportunities within the business model as well as our financial outlook for 2026. Before handing over, please let me draw your attention to the disclaimer regarding forward-looking statements and non-IFRS measures on Slide 2 and 3. And with that, I will hand it over to Melissa. Melissa Mulholland: Thank you, Kjell Arne. Welcome to our full year 2025 presentation. 2025 was transformational. With the combination of SoftwareOne and Crayon, we have created a global software and cloud leader with unmatched reach and capabilities. Today, combined gross sales amount to CHF 14 billion. We serve over 70,000 clients across more than 70 countries, supported by 13,000 highly skilled colleagues. Our ecosystem is equally strong with more than 10,000 vendors and a network of 12,000 channel partners, providing reach to the SMB segment. This scale matters. It shows how we are one of a kind and a truly global partner for hyperscalers and ISVs. In addition, both Gartner and IDC have recognized us as a leader in software asset management. We are well positioned to capture the structural growth opportunity and customer demand based on our global scale and market position. Overall, we have delivered. We returned to growth with revenue up 1.4% year-over-year on a like-for-like basis, ahead of our initial expectation of broadly flat development. Profitability remained strong with an adjusted EBITDA margin of 20.9%, in line with our commitment to stay above 20%. At the same time, we maintained discipline on adjustments coming in below our guidance on below CHF 30 million, excluding the Crayon-related costs. Lastly, we made good progress on synergies, delivering CHF 43 million of run rate by the end of 2025. As of today, total run rate cost synergies amount to CHF 64 million. This was a year where we delivered on our promises while building the foundation for further improvement. Growth improved steadily throughout 2025, and by Q3, we were back to positive territory. And in Q4, we reached 11% revenue growth. We will continue to build off the foundation laid in 2025. The actions we are taking are working, putting us in a stronger position to drive momentum in 2026. Let me briefly comment on the full year performance. I'll focus on the combined like-for-like numbers as this best reflects the underlying development of the business. As stated earlier, we delivered 1.4% revenue growth for the full year, with a clear acceleration into Q4 where growth reached 11%. At the same time, profitability improved and we delivered an adjusted EBITDA margin of 20.9% for the year, an improvement of 0.5 percentage points compared to 2024. The key message is clear. We are improving our growth momentum, combined with continued strong margins. Hanspeter will explain the detailed IFRS numbers shortly. But as you can see, our business is on a path of continued growth. Looking at our 3 segments, we see a clear pattern of improving momentum across the business. In direct, the full year performance was impacted by the Microsoft incentive changes. However, we saw a clear rebound in Q4, supported by multi-vendor and continued CSP growth. Going forward, we see significant growth opportunities driven by our broad partner ecosystem across global software vendors, including AWS, Google, VMware and Adobe. Furthermore, the push for EU sovereign cloud increases demand for multi-cloud compliant cloud solutions, playing directly to SoftwareOne's strength in navigating complex vendor ecosystems and regulatory requirements. In channel, growth was strong at 18.7% for the full year, driven in particular by APAC, which represents 60% of the total channel revenue. At the end of February 2026, we became the first global authorized distributor for Google Cloud, enabling channel partners to access and resell Google. This is a strategic milestone allowing us to significantly expand our channel business through authorized distribution of Google Cloud services across 10 markets, covering Australia, India, the Nordics, Germany, France and the U.S., with additional countries to follow throughout the year. In services, we see solid momentum, supported by demand in areas like cloud and cybersecurity. Across all business lines, growth reflects our ability to capture new incentive opportunities introduced by Microsoft across CSP and services. While EA-related incentives were reduced, we have partially offset this by leveraging our combined service portfolio and strong CSP offering. Profitability improved across all business lines, driven by stronger growth, impact from cost savings and synergy realization. We see a strong and encouraging development with solid growth in channel and services and a recovering direct business entering 2026. I will now hand it over to Raphael to walk you through the regional performance. Raphael Erb: Thank you very much, Melissa. Welcome to everyone from my side. I will now take you through the regional performance. First, I want to highlight the change in our segment reporting going forward. Following the acquisition of Crayon, our operating segments have been reassessed. Given our significant presence in the Nordics and the CEE, the rest of Europe region has been restructured into 3 new operating regions: Nordics, Western Europe and CEE. In DACH, revenue grew 2.8% in 2025, driven in particular by a strong Q4 growth of 15.4%. Headwinds from Microsoft incentive changes on enterprise agreements negatively impacted revenue during the year, but this was offset by a successful transition to CSP as well as strong multi-vendor and public sector growth. Revenue in Western Europe increased 3.3%, driven by strong growth in multi-vendor sales and services, while also here partly offset by changes in Microsoft incentives. Similar to the performance in DACH, the year ended strong with 12.2% revenue growth in Q4. APAC grew 11.4%, driven by strong results across the region, with India performing particularly well. The largest contributor to growth came from services business as was driving by strong demand with data and AI and cloud services. I'm also pleased to share that during Q1 2026, payments commenced from a public sector customer in the Philippines on Crayon's previously outstanding receivables with USD 22 million collected as of today. The remaining amount is expected to be collected shortly, bringing this long-standing matter to a close. Nordics revenue grew 0.7% in 2025. During the year, growth in the direct business was positive and accelerated to double digit in the fourth quarter as the impact from Microsoft incentives ease. 2025 was a disappointing year in North America with revenue declining 12.6% year-over-year. The 2025 performance reflects the previous GTM-related sales execution challenges as well as impact from Microsoft incentive changes. The previously initiated turnaround measures are gaining traction, with internal sales metrics improving sequentially, supporting a recovery and return to growth in 2026. LATAM declined 4.4%, driven in particular by weakness in the direct business. We see strong growth opportunity across key markets like Brazil, Mexico and Colombia, and are confident in our capability to achieve profitable growth in the region. As part of the portfolio review and to support improved future performance, the company has decided to exit 4 nonstrategic countries in the region: Argentina, Uruguay, El Salvador and Nicaragua. Finally, CEE grew revenue with 14% in 2025 driven by strong double-digit growth across both the direct business and services business. Now I want to present a good example of our Google Cloud capabilities and how we support customers in a cloud migration and modernization project. Barton Peveril, a U.K.-based college with more than 5,000 students partnered with us to migrate to Google Cloud. They were facing a significant increase in on-premise hosting costs, alongside the need to modernize their IT environment and support new AI-driven learning tools. Together with SoftwareOne, they executed the full cloud migration over a relatively short period, followed by a managed service agreement to support ongoing operations. The outcome was solid, where they achieved meaningful cost savings, reduced operational workload and significantly improved the performance and security of their systems. Importantly, this also led to a 5-year managed service agreement where we support and maintain their cloud infrastructure going forward. This is a great example on how we combine cloud migrations with long-term services, creating both immediate customer value and recurring revenue streams for us. With that, I will now hand over to Hanspeter to walk you through the 2025 IFRS financial update. Hanspeter Schraner: Thank you, Raphael, and a warm welcome to everybody joining us today. In this section, we are presenting the IFRS figures in reported currency. As a reminder, the income statement includes 12 months of SoftwareOne and 6 months of Crayon. Year-over-year revenue growth of 22.5% mainly reflects the acquisition of Crayon closed on 2nd of July 2025. Reported EBITDA margin improved -- improvement is driven by benefits of the previously initiated cost reduction program and continuous cost control. The increase in depreciation, amortization and impairments from CHF 72.7 million to CHF 123.7 million is related to the acquisition and includes depreciation on fixed assets, amortization of intangible assets [Audio Gap] of right of use assets and CHF 17.8 million of impairments. The impairments comprise CHF 3.8 million on intangible assets, CHF 8 million on LATAM goodwill and CHF 6 million on right-of-use assets related to office closures due to integration. Net financial expense increased to CHF 54.4 million, significantly higher than prior year. This was mainly due to lower finance income and higher finance expenses. The decrease of finance income is largely reflecting a CHF 12 million lower fair value gain on Crayon shares in 2025 compared to prior year. Finance expenses increased driven by higher interest costs from acquisition financing and higher factoring costs in line with the increased use of factoring. In addition, other finance expense includes a one-off CHF 5 million make-whole payment related to the early redemption of Crayon bonds following the acquisition. Income tax expense is CHF 28.1 million, implying an effective tax rate of 95% compared with the expected average group tax rate of 23%. The main drivers of this gap are nondeductible expenses for tax purposes as well as unrecognized tax losses. Net profit for the period is CHF 1.4 million. In this slide, I will take you to the adjusted to reported EBITDA. Our reported EBITDA ended at CHF 207.6 million in 2025. 2025 adjustments to reported EBITDA of CHF 69.4 million in total were primarily related to Crayon transaction and integration costs totaling CHF 48.3 million. Excluding these costs, adjustments to reported EBITDA were CHF 21.1 million, well below the CHF 30 million target. Overall, we saw a significant reduction in adjustments with 2025 adjustments constituting around 30% of reported EBITDA in comparison to around 90% in previous year. The adjusted EBITDA margin in Q4 2025 was 23.4%, down 1.5 percentage points year-on-year, mainly due to significantly lower EBITDA adjustments compared with Q4 2024. Let me now walk you through the developments in adjusted OpEx on a like-for-like basis. This bridge shows the development on a combined like-for-like basis which we believe is the most relevant way to assess the cost development. Overall, OpEx remained broadly stable year-on-year, declining slightly to CHF 1.2 billion, reflecting strong cost discipline despite inflationary pressure and continued investments in the business. In '25, realized CHF 74 million of cost savings from the legacy SoftwareOne cost-saving program, which was completed in Q2 2025 as well as 16 million of in-year synergies corresponding to CHF 43 million of run rate synergies. Synergies from the Crayon acquisition are primarily driven by the elimination of publications, simplification of the organizational structure and efficiency gains across corporate functions. These effects helped offset underlying cost increases during the year. Compensation increased by CHF 42 million mainly due to salary inflation across the existing global workforce and the catch-up of social security contribution in India following legislative changes. In addition, we continue to invest selectively in sales and delivery capabilities to support future growth. Importantly, these investments are funded by realized synergies, allowing us to strengthen go-to-market and delivery capacity without diluting margins over time. We also saw higher third-party delivery costs in line with increased activity levels as well as some nonrecurring and other costs, and foreign exchange had a positive impact of approximately CHF 4.6 million. Overall, this reflects a balanced cost development with tangible synergy delivery, disciplined cost management and continued investment to support sustainable growth. Turning to the balance sheet. The most significant year-on-year changes reflect the impact of the Crayon acquisition, which is clearly visible across several line items. Cash and cash equivalents increased to CHF 419.1 million, while financial liabilities rose to CHF 788.4 million, mainly reflecting the CHF 575 million term loan, CHF 100 million utilization of the revolving credit facility at year-end and the CHF 100 million bridge loan, which was repaid in January 2026. As a result, net debt amounted to CHF 369.3 million compared to a net cash position in the prior year. Net working capital on 31st December 2025 was negative at CHF 564.4 million, primarily driven by the inclusion of Crayon and the continued use of factoring. The increase in intangible assets is mainly driven by the recognition of acquired technology and customer relationships from the Crayon acquisition as well as an increase in goodwill which primarily reflects the value of the assembled workforce and the expected synergies from combining the operations of Crayon. Equity increased to CHF 981.4 million driven by the acquisition of Crayon. Overall, this balance sheet reflects the step up in scale following the acquisition. Before I walk through the trade receivables 2025, I would like to briefly comment on a matter we decided to disclose proactively in today's press release. Preliminary legal proceedings have been initiated into potential forgery of documents by individuals relating to SoftwareOne's recording of certain overdue trade receivables in the first half of 2024. The proceedings are not directed against SoftwareOne, and they were triggered by allegations raised by a third party. I want to make it very clear. Internal audits performed an extensive retrospective assessment of trade receivables and related provisions of the first half of 2024 and concluded that they were accurately recorded. The assessment also confirmed that provisions were appropriate and consistent with subsequent write-offs and provisions. The slide presents the aging of trade receivables and the corresponding lifetime expected credit loss for 2025 and 2024. The acquisition of Crayon led to a material increase in trade receivables in '25. In accordance with IFRS, acquired trade receivables are recognized at fair value net of expected credit losses. The implied bad debt amounts to CHF 33 million included in the respective fair value and is largely allocated to receivable past due by more than 181 days. For like-for-like comparability, and on a cross presentation of the acquired trade receivables, the expected credit loss in the bigger than 180 days bucket would be approximately 50%, broadly comparable to the previous year. As of December 2025, Crayon's acquired trade receivables included USD 37 million related to a public customer in the Philippines. As Raphael already mentioned, USD 21.5 million of this amount was collected in March 2026. At year-end 2025 and next to the standard closing procedures, internal audit again performed an additional assessment of the trade receivables and related provision recognized at year-end 2025 and again concluded that they were accurately recorded. Further, the statutory audit of the 2025 full year accounts, which included a focused review of revenue recognition and the provisioning of overdue trade receivables provided further independent assurance regarding the appropriateness of the provisions recognized in the 2025 accounts and their compliance with applicable standards. Turning to the net working capital. Net working capital after factoring decreased by CHF 411.6 million year-on-year, mainly reflecting increased use of short-term factoring of approximately CHF 282 million as well as the positive impact from acquiring the negative working capital from Crayon. Given our business model, characterized by high gross sales volume and seasonal volatility, effective working capital management is key. As part of this, we use nonrecourse factoring as a flexible and economically attractive liquidity management tool applied in a disciplined manner. However, it's important to state that our primary focus remains on structurally improving underlying working capital over time. Net working capital before factoring decreased by CHF 129.5 million year-on-year, driven largely by the acquisition and consolidation of Crayon. Crayon entered the group with a strong negative working capital position which contributed positively to the balance sheet and reduced net working capital at the combined company level. On the right-hand side, we outlined key operational levers we are addressing across the end-to-end order-to-cash cycle, including faster and more accurate invoicing, reduction of overdue receivables, strong credit entry billing processes and better alignment of payment terms with vendors and customers. Together, these measures support our ambition to structurally strengthen working capital and, in turn, improve cash flow over time. Now turning to our cash flow statement. Working capital changes gave a cash inflow of CHF 130.6 million. However, as mentioned on the previous slide, this is significantly impacted by the use of factoring. Noncash items of CHF 169.6 million mainly reflect depreciation, amortization and impairments, together with the add back of the net finance results. CapEx came in at CHF 65.5 million, primarily driven by investments in internal IT, systems and platforms. The cash outflow related to the Crayon acquisition amounted to CHF 290.2 million, as presented in the cash flow statement, and shown net of cash acquired. Gross cash consideration totaled to CHF 504.8 million comprising CHF 419.4 million for the acquisition of Crayon shares and CHF 85.4 million for the subsequent squeeze out. This was partially offset by cash acquired of CHF 270.3 million. The remaining CHF 2.7 million relates to earn-out considerations to be paid in cash for Medalsoft and Predica acquisitions back in 2024 and 2022, respectively. Financing contributed a net inflow of CHF 273.4 million, driving by debt funding, partially offset by 2024 dividends of CHF 45.6 million and interest costs. We ended the period with a cash of CHF 419.1 million, giving us a solid liquidity position. Turning to the net debt development. The increase over the year was primarily driven by the cash outflow related to the acquisition of Crayon. The Crayon acquisition reflects net cash outflow of CHF 405 million as well as the impact of the derecognition of the Crayon shares. Excluding the acquisition effect, the underlying cash generation was driven by a positive contribution of CHF 277 million from adjusted EBITDA and the further CHF 130.6 million inflow from changes in working capital. Other cash outflows mainly relate to cash-effective portion of EBITDA adjustments, capital expenditures, interest and tax payments as well as dividends. As a result, net debt stood at CHF 369.3 million at year-end. Leverage measured on as net debt divided by adjusted EBITDA on an IFRS basis remains at a comfortable level of 1.3x. On a like-for-like basis, leverage would amount to 1.2x. Finally, let me turn to the dividend. Our dividend policy targets a payout ratio of 30% to 50% of adjusted net profit for the year. As a reminder, at our H2 '25 earnings release, we refined our policy by excluding transaction and integration costs related to the Crayon acquisition when calculating adjusted net profit used for dividends. This was made to better reflect the underlying earning power and dividend capacity of the business in a year of integration. For 2025, we proposed a dividend of CHF 0.15 per share, corresponding to a total distribution of CHF 33 million and the payout ratio of 37% of reported adjusted net profit. Excluding Crayon-related transaction and integration costs, the implied payout ratio is 71%. This dividend proposal reflects our continued commitment to delivering attractive shareholder returns while maintaining a balanced capital allocation. It also underlines our confidence that the actions implemented to strengthen net working capital and improve operational execution will translate into improved cash generation in 2026. With that, I will hand it back to Melissa, who will provide further insights in how our business model benefits from AI, followed by her closing remarks. Melissa Mulholland: Thank you, Hanspeter. Before I go into our outlook and closing remarks, I would like to address how we are positioned in a market that is now rapidly and fundamentally being changed by AI. AI is increasing software and cloud consumption, but also complexity, driving a much greater need for governance, optimization and services. At the same time, AI adoption is forcing customers to upgrade their software estates and invest in new tools while accelerating cloud migration and usage. This plays directly into our model. We thrive in helping our customers in maximizing return on investment in IT and simplifying complexity. We support customers across the full life cycle from sourcing and procurement to migration and cloud services to optimization and cost management and increasingly into data and AI solutions. And as customers become more AI ready, we see a clear increase in demand for higher-value services. From a hyperscaler perspective, the vendors see us as a clear driver of AI solutions. Given our customer proximity, AI capabilities that have been established since 2017 and our agility to market, we are uniquely positioned to help customers manage the complexity and spend through our AI solutions. AI is not just a technology shift. It is a structural growth driver for our business. Let me finally turn to our outlook for 2026. We expect revenue growth to accelerate to mid-single digits on constant currency on a like-for-like basis. We see growth driven by CSP, multi-vendor expansion, increasing demand for higher value services and continued channel growth. Expanding our AI capabilities alongside the sales force enables us to build and deliver AI-driven customer solutions, further accelerating consumption growth. At the same time, we expect further margin improvement with adjusted EBITDA margin above 23%, driven by operating leverage, synergies and continued cost discipline. On synergies, we remain on track to reach CHF 100 million run rate synergies, building on the strong progress already delivered in 2025. As already mentioned, by the end of March, the total realized cost synergies amounted to CHF 64 million. We enter 2026 with improving momentum, clear drivers for growth and a strong path towards higher profitability. Let me close with a few key takeaways. 2025 has been a transformational year, while the performance also demonstrates the strength of the combined company. We have executed with discipline, successfully integrated the business and delivered ahead of our synergy targets. At the same time, we have delivered on our financial commitments and strengthened our position and customer offering. Finally, we are uniquely positioned to capture the continued growth in software and cloud, supported by our global scale, strong vendor relationships and clear commercial focus. This is a business with improving momentum, a stronger platform and a clear path forward, and I'm looking forward to sharing more about our strategy and priorities on the Capital Market Day in June. Thank you. I'll hand it now back to the operator. Operator: [Operator Instructions]. The first question comes from Mao Ines from BNP Paribas. Ines Mao: Congrats for the strong result today. I have 2 questions. So the first one is the company is guiding for mid-single-digit revenue growth next year. Does this include a recovery of North America region already? My second question is, can you give us more color on why profitability improved so much year-over-year in Q4 in the Services segment? So we expect this margin level as the new normalized level, so to stabilize from here? Or is there more scope for margin expansion in the Services segment? And my final question is... Raphael Erb: Sorry, somehow your voice is not so clear. We can hardly understand. Ines Mao: Can you hear me better? Raphael Erb: Yes, now it's clear. Ines Mao: Okay. I'll restart. So my first question is about next year revenue growth guidance. Does this include the recovery of the North America region in this guidance? My second question is on the profitability level in the Services segment, which has improved quite significantly year-over-year in Q4. Should we expect this margin level as a new normal level, so to stabilize from here or more margin expansion in the Services segment? And my last question is, can you discuss the growth prospects for the Services segment in 2026? And any new offerings that will drive growth? Typically, in Microsoft E7, I understand it will be a readiness assessment conducting by SoftwareOne team. Would you recognize this as the Services revenue going forward? Raphael Erb: Thank you. Maybe I kick off with the first questions around North America. For sure, as we all know, 2025 has been a disappointing performance for us. However, we are making, as mentioned, also step-by-step progress, especially also around our GTM turnaround. Our internal sales metrics and KPIs clearly show that we are making progress. And with that, to answer your question, we are positive that 2026 is going to be more resilient actually and a more predictable year for us in North America, and we are positive that in that region, we will return into revenue growth for the full year 2026. Around the services margin, maybe also, I think if you look into the numbers and the development from 2024 into 2025, it has been a positive progress. So the margin overall has been increasing, and we are positive that this will continue. It will continue as our service portfolio is shifting more and more towards cloud-native capability, also higher value advisory and managed services and support services, which we are having in our offering. I think this will help to further improve and accelerate our overall margins in the services business. Melissa Mulholland: Thanks for your questions. Regarding E7, you're right to call it out. We see this as a strategic opportunity with our Microsoft portfolio as it combines, let's call it, the SKU capability along with AI through Copilot to simplify this for our customers. And we see this to be particularly attractive in the high end of corporate into the enterprise segment. So we're well positioned to capture additional growth opportunities from this. In terms of additional service areas of growth that are implied, certainly, we're going to continue our focus around AI as well as agents and continue to improve the, let's say, the efficiency of the overall services line, which is implied in terms of the overall margin improvement in Q4. Operator: The next question comes from Christian Bader from Zurcher Kantonalbank. Christian Bader: I have 3 questions, please, and I'd like to do them one after the other. First of all, you mentioned several times new business with Google Cloud. And I was wondering what is the revenue potential here? And is this business going to be margin accretive? Melissa Mulholland: Thanks for the question. So with Google and with our channel business in general, this is a new opportunity for us. As we've seen with our AWS channel expansion, it will take time for this to be able to really take effect in terms of the P&L. So we expect this to deliver additional upside in the back half of H2, but more likely in 2027 from a materiality perspective. From a margin standpoint, this is very accretive to our overall channel margins as the channel business is very highly dependent on our platform, Cloud IQ, which gives us more efficiency and scale. So we see this to be particularly attractive across the markets that we are ready to launch with more countries to come. From a margin standpoint, this is very accretive to our overall channel margins as the channel business is very highly dependent on our platform, Cloud-iQ, which gives us more efficiency and scale. So we see this to be particularly attractive across the markets that we are ready to launch with more countries to come. Christian Bader: Okay. My second question has to do with LATAM because you said that you exited 4 countries, Argentina and 3 others. So I was wondering how much of revenue is lost due to the exit of these 4 countries. Raphael Erb: The revenue impact is not significant because those markets are very, very small markets already. There actually the revenue impact from the revenue of 2025 has been very insignificant. Christian Bader: I see. All right. Okay. And then my last question is, is it possible to get some guidance for your investments, both in tangibles and intangibles for 2026? CapEx guidance, any CapEx guidance, please. Hanspeter Schraner: So as we are continuing to invest in our technology, especially in the platforms, the investments will maybe slightly increase, but for sure, have a similar level as in 2025. Operator: The next question comes from Florian Treisch from Kepler Cheuvreux. Florian Treisch: My question is around the Microsoft incentive changes, EA changes. I mean we discussed at length last year being a headwind for SoftwareOne. So the first question would be, have you actually, let's say, delivered better than expected on these kind of headwinds as you have mentioned or flagged that Q4 has clearly been driven by the CSP transition? And then looking into '26, how much of a tailwind can it become? Or would you still assume it's a slight negative impact on the overall business? Melissa Mulholland: Thank you so much for asking. So great question. In terms of Q4 and what we saw for the full year for 2025, yes, we delivered better than expected given the, let's say, negative effect of the EA changes. This was driven by the focus to CSP realization, which I'm pleased to say we delivered. In addition, we also saw the shift to services-based incentives as particularly accretive, and that's also demonstrated in the Q4 profitability improvement overall for services. As we go into 2026, we do not see any headwinds effect with related to the EA incentives. If anything, there will be stabilization of incentives as indicated also by Microsoft. So with that, we will further, let's say, accelerate the growth that we've had around CSP and services as we see that to drive more potential. Operator: The next question comes from Christopher Tong from UBS. Christopher Tong: Maybe 2 from my side. I was just wondering on exceptionals in 2026. What should we expect over here? Obviously, you'll have to take some further cost synergies, but is there anything else we should be mindful of? Hanspeter Schraner: I mean, look, as we already stated, our goal is to narrow the gap between the reported and adjusted EBITDA. So we said it's below CHF 30 million. And of course, you always have certain items to adjust which are non-recurring, but we stick to the below CHF 30 million and with a clear ambition to further decrease. This does not include the Crayon acquisition cost or cost related to the integration, to be clear. Raphael Erb: And maybe to add on, on the cost synergies, as we already mentioned, to date, we are at the CHF 64 million, and we are making further progress on that. We are very committed on our CHF 80 million to CHF 100 million target, which we mentioned. And through that, we should also -- this should also help to make a positive impact also going into H2 on our overall OpEx situation. Christopher Tong: Got it. And I guess maybe on just the outlook and the cadence of revenue growth for the year. You mentioned that profitability would probably be more weighted towards second half. I was just wondering if you think revenue growth would also be sort of second half weighted as well. Melissa Mulholland: Yes. I mean with the seasonality of our business, Q4 is the largest quarter. So you could certainly see that implied growth pick up on towards the back half of the year. Operator: Next question comes from Marc Burgi from Finanz und Wirtschaft. Marc Burgi: I only have one question concerning North America. You already talked about it in length, which is about the growth. Can we expect that in the second half? Or could you maybe be more precise about when that should occur? And just about the general market situation, how is the market -- how is your market position? Hanspeter Schraner: In general, as mentioned, I'm very confident that in North America 2026, we will return into growth overall as a company again, which is very good, given where we are coming from. I also expect in Q1 a better performance than in Q4. So from this perspective, I'm positive that the trajectory is going to improve, and we should see an improvement already in Q1 compared to Q4. Overall, I think the market for us is -- remains to be an attractive market. And again, with the combination of Crayon, I think we have a good chance now with a better overall setup also with the channel business as an additional business line for us. So we continue to be very focused on North America. Operator: The next question comes from Andreas Wolf from Berenberg. Andreas Wolf: Congratulations on the strong Q4. I have several questions. The first one is related to the assessment of the individual regions. Have you already fully assessed the region's performance? Or is there a possibility of impairments also in 2026? The second is related to AI and the adoption of use cases? Do you see opportunities associated with the deployment of on-site engineers to drive use case adoption and ultimately, your business? Question number three. How are AI providers such as OpenAI or Anthropic dealing with resellers? Does this -- does their growth offer business opportunities for you as well? And the last one is related to Microsoft price increases. What do you believe will be the tailwind from those in 2026? Hanspeter Schraner: Let me take the first question regarding the impairments. So what we did in 2025, we do the impairment test on CGU levels, which are the 7 regions. And obviously, there were no impairments based on the current business plans for all regions with the exception of LATAM. LATAM we impaired CHF 8 million. And we believe this is the right number based on what we know today. So based on what we know today, there are no further impairments expected in 2026. Otherwise, you would have impaired already at the end of 2025. Melissa Mulholland: Thanks for your question regarding AI. So I'll start with the first regarding the adoption of use cases. So this is something that we are very much focused on. We always believe that it's important to test internal use cases before we take them to market. And we're also finding ways to drive AI through internal adoption to increase more efficiency and scale also to reduce cost to make us quicker to market to customers. So this is something that, yes, we are focused on, and yes, we are also looking at ways to deploy our internal AI capability to both support customers, but also ourselves. In terms of your question regarding Anthropic, OpenAI, certainly, this is something that is quite exciting to see in the market. Anthropic is certainly an area where we see additional partner opportunity as they need partners like us to be able to deploy and also to help customers manage which AI models should they actually consider. This is where our business model really thrives around complexity. So we help guide our customers around which model makes sense for their data environment, but also how to implement and build those solutions. So we see business opportunity to come out of that. In terms of the Microsoft price increases, I always say Microsoft price increases help our business. So there's certainly a carryforward from that. It also positions us well to be able to support our customers in navigating that price increase as our business has always been focused around cost management overall. Hard to say what the actual implied impact will be, but certainly, we see this to be positive for 2026. Operator: Ladies and gentlemen, that was the last question. I would now like to turn the conference back over to Kjell Arne Hansen for any closing remarks. Kjell Hansen: Thank you, and thank you, everyone, for joining the call. And as always, please don't hesitate to reach out to the IR team if you have any further questions. Thank you. Operator: Ladies and gentlemen, the conference is now over. Thank you for choosing Chorus Call, and thank you for participating in the conference. You may now disconnect your lines. Goodbye.
Operator: Welcome, ladies and gentlemen, to the earnings call of Friedrich Vorwerk Group SA regarding the full year figures of 2025. The company's CEO, Torben Kleinfeldt; and CFO, Tim Hameister, will guide you through the presentation and the figures shortly, followed by a Q&A session via audio line and chat box. Having said this, Torben, the stage is yours. Torben Kleinfeldt: Yes. Thank you very much, and also a warm welcome from my side. Welcome to the Friedrich Vorwerk Earnings Call 2025. I will, for everybody who is not in detail familiar with Friedrich Vorwerk, run you very quickly through the main topics of our company and then give you a short market update about the latest developments in our main markets. Then I will hand over to Tim for, of course, the financial figures, which are key to this meeting here. And then I will give you a business update about our current projects we are running at the moment, at least the large ones. So yes, Friedrich Vorwerk has been active since founding in 1962. So with more than 60 years of experience in the business of engineering and constructing energy infrastructure here in Germany, mainly. We can look back at numerous very successful projects in our highly attractive main market, which is natural gas transition, electricity transition, clean hydrogen transition, and of course, adjacent opportunities where we sum up our activities in district heating, CO2 treatment and transport and treatment of biomethane. Today, we are operating from 14 locations within the north, mainly in the north of Germany with more than 2,200 well-trained employees. And yes, due to the energy transition, which is still going on here in Germany, we can look back at a very strong order intake already also in 2025. So we were able to acquire projects in a total volume of almost EUR 1 billion in 2025, which is an increase of 27% compared to the figures of the year 2024. Yes, where do these order intake come from? Main customers here in our 3 markets are, of course, the large TSOs operating the energy transport grids, not only in Germany, but also in the middle of Europe. So it could be in terms of electricity transition companies called TenneT and Amprion in looking at the market in clean hydrogen transition and natural gas transition, we have customers like Open Grid Europe, Gasunie and others. But of course, you can also find petrochemical companies and cable manufacturers within our customers. Yes. So what's the latest market update. First, I want to focus on the development of -- since German government has agreed with the EU Commission to set up new power plants in Germany. These very flexible power plants are necessary to support the production of renewable energy, mainly driven by wind and solar farms. And at times, you don't have wind and solar available. You need to have an energy source, which can be ramped up very quickly. So Germany is planning to install roughly 10 gigawatts of capacity in terms of gas-driven power plants. And that, of course, is an opportunity also for Friedrich Vorwerk Group, both in pipeline construction to run new natural gas pipelines and later on also hydrogen pipelines towards these gas-fired power stations. But also, we have a division in our plant construction department, which can supply the necessary fuel gas systems to supply those turbines delivered by companies like Siemens, GE or others. Other latest developments since we have all heard that the hydrogen economy has been struggling a bit over the last month. German Parliament has passed a so-called Hydrogen Acceleration Act. Main part of that is, of course, to install the so-called core grid for hydrogen transport in Germany, which could be the nucleus to develop the hydrogen industry in Germany because it will cut off costs for transport of hydrogen when the core grid is available and consumers and also producers of hydrogen can be easily connected to this grid. But also they want to secure and make investments in hydrogen production here locally in Germany easier and more reliable for the investors. And of course, all our other businesses like natural gas transition is also still ongoing since new LNG terminals are still developed on the coast of Germany. So the Bundesnetzagentur has just published the first draft of the new grid development plan, combining the investments in natural gas grid development and hydrogen grid development. And this plan looks out to the year 2035 with still investments in the natural gas grid of roughly EUR 3 billion. And they also found out that probably developing the core grid for hydrogen will be more costly than predicted 2 years ago. So the revised plan for setting up the hydrogen core grid roughly sketches out investments of EUR 25 billion instead of EUR 20 billion, which was estimated before. So also here, in the market of natural gas and hydrogen, huge potential for our company's group. And therefore, I would like to hand over to Tim for last year's financial figures. Tim Hameister: Thanks a lot, Torben. And also a warm welcome, everyone, from my side to today's earnings call. Overall, 2025 was a fantastic year for Friedrich Vorwerk. We achieved record-breaking results across all KPIs, successfully completed 2 acquisitions, secured numerous new major projects. And last but not least, we launched our proprietary welding robot in collaboration with our subsidiary, 5C Tech. Therefore, I'm very pleased to now present these strong results in detail. In terms of revenue, we've steadily increased over the course of the financial year and delivered a fantastic final quarter, which despite the seasonal nature of the business, nearly matched the strong performance of Q3. Overall, we benefited from favorable weather conditions in fiscal year 2025, not only in Q4, but especially in the first quarter when we were able to resume work after a short winter break on many projects as early as mid-January. This point, I would also like to briefly note that the first quarter does not always benefit from good weather conditions. This year, for example, in 2026, we've seen a harsher winter again after a long time with plenty of ice and snow, particularly in Northern Germany, resulting in a question of production stoppages even in February. However, depending on weather conditions in the next quarters that are more relevant in terms of revenue and earnings, we expect to be able to offset at least parts of this effect over the course of the year. For the full year 2025, we generated revenue of EUR 704 million, representing a remarkable 41% increase over the previous year. This was primarily due to our continued success in recruiting new employees, which led to a 15% increase in the average number of employees as well as an increase in productive hours per employee, higher equipment utilization and, of course, some pricing effects. The electricity segment's share of revenue has contributed -- has continued to rise, now standing at 52%, making it the primary driver of growth in 2025. While this is largely attributable to A-Nord, we are simultaneously working on several medium-sized projects in this segment, such as BorWin6, the Baltrum HDD project and several converter stations as well. 2/3 of the current order backlog is attributable to this segment. So continued growth is expected here. At the same time, we anticipate a significant growth momentum from the Clean Hydrogen segment as larger subprojects on the hydrogen core grid are also expected to be put out to tender in the foreseeable future. Furthermore, we expect additional growth in the adjacent opportunity segments in 2027 and the following years due to the German government special fund. The development of profitability was particularly impressive in the fourth quarter with an EBITDA margin of almost 29% and EBIT margin of almost 25%, even taking into account the dilutive effect of the cost plus fee contract in our major A-Nord project. In addition to the favorable weather conditions already mentioned in Q4, our success in claim negotiations, which typically take place in the fourth quarter was a key factor in the exceptionally high margin, along with higher earnings from joint ventures, which increased by nearly EUR 10 million compared to the same quarter of previous year. Accordingly, we also concluded the 2025 financial year as a whole, thanks to our high-quality order backlog and a flawless project execution were successful. We increased the EBITDA margin by 7 percentage points from 16.2% to 23.2% and more than doubled EBIT from EUR 59 million to EUR 137 million. Despite the tremendous 40% growth, we still managed to further reduce trade working capital, which along with the higher profitability, played a significant role in improving the net cash position. As a result, we were able to increase net cash by more than EUR 100 million compared to previous year, bringing it to EUR 262 million at year's end. It should be noted, however, that the trade working capital is always at its lowest level at the end of the year and rises as the construction season progresses. These swings between summer and winter can amount up to EUR 80 million or even EUR 90 million. With regards to capital allocation, our top priority remains investing in organic growth, specifically in the purchase of new pipe layers, drilling rigs, cranes and excavators and of course, our welding robots. We've budgeted approximately EUR 50 million for this in 2026. Furthermore, we will certainly be open to pursuing a larger M&A deal again provided we find the right target and of course, at a reasonable price. And finally, we would like to share the company's success with shareholders in form of a significantly higher dividend payout, consisting of EUR 0.70 base dividend and a EUR 0.40 special dividend. Let's now take a look at the development of order intake. In addition to the conventional order intake figure, we've already introduced a new KPI last year, the total project volume acquired. This new KPI also includes a proportionate project volume from the joint ventures in which Vorwerk is involved. And therefore, in our opinion, provides a more transparent view of the actual order situation regardless of the structure of the contract. The total project volume acquired rose by 29% to EUR 991 million in 2025, while conventional order intake at EUR 538 million is around 20% below previous year. The main reasons for this are, on the one hand, a shift in the order structure towards more joint ventures, especially in H1 2025. And on the other hand, our already well-filled order book, combined with a limited capacity of our resources. The order backlog, which corresponds to the conventional order intake figure declined, therefore, slightly to EUR 1 billion for the reasons stated before. We've learned from several investors that the communication regarding order intake and the contract structure is not yet clear enough. Therefore, we are currently working on reporting an order backlog KPI that includes our share of joint venture projects as well, starting with the Q1 report. And I expect that this additional metric will provide a transparent picture for all shareholders by then at the latest. Yes, and then based on our consistently high-quality order backlog, we expect our growth trajectory to continue in 2026 with revenues in the range of EUR 730 million to EUR 780 million. It should be noted that following 2 years of very high employee growth, we intend to slow down the expansion of our workforce somewhat in 2026 to give the organization and the administrative functions the opportunity to grow at the same pace while simultaneously focusing our recruiting efforts on attracting senior construction and project managers. At the same time, revenue growth is somewhat slower in 2026 due to the higher proportion of joint ventures. And this change in the project mix also means that we are now forecasting absolute EBITDA instead of EBITDA margin, specifically in the range of EUR 160 million to EUR 180 million for 2026 as this number is unaffected by the order structure. This guidance also takes into account the slightly softer Q1 2026 due to the adverse weather conditions. With that, I'd like to hand back to Torben for the business update. Torben Kleinfeldt: Yes, Tim, thank you very much. And of course, we did pick for this meeting our most outstanding projects at the moment. Please remember that during the year, we are operating on more than 500 smaller, midsized and also large projects. So we can, in this meeting, only give you a glance of the most outstanding projects. And I would like to start with the natural gas business here. It's a project we've already been working on last year. It's the so-called EWA pipeline, which is a 48-inch pipeline running from the caverns of Etzel towards compressor station of Wardenburg. This pipeline will continue in size of 40-inch towards the station of Drohne, which is more to the Rhine-Ruhr area, so in the south of the area. We have already finished the construction on EWA last year with a pressure test and the handover to the customer. So there's already gas on this pipeline. And the WAD pipeline is construction progress at the moment. We have already started in January with the first wells on site using our new welding robot, PX2 developed by our subsidiary, 5C Tech. We have completed roughly 400 wells on the project this year. And again, with very, very low mistakes in the wells. So it's -- the repair rate is definitely under 2%, which is very good in terms of fully automatic welding. Yes, changing actually over to the next natural gas pipeline project, which is, at the moment, our still largest project executed in a joint venture between the Habau Group and the Friedrich Vorwerk Group, compromises of 2 pipelines. First, the ETL 182 with a diameter of 56-inch and the ETL 179.200, which is a 36-inch pipeline. Altogether, a mid-3-digit million euro project and both pipelines are being executed by the same joint venture combination. As you can see in the picture below, we have already started some civil works to erect the pipe yards that has been done already in 2025, and we have already received most of the project pipes, which are purchased by our customer Gasunie. And we've actually started in the latest weeks to make preparations for the first loading procedures, so for the tunnel crossings and for the horizontal directional drilling, operations are already in place and will be executed in due course of this year. And then maybe next slide, we are not only active in pipeline cable laying, but our plant division construction is also very busy with a new project at a gas metering station called Groß Koris. This is the main metering and supply station for the company, ONTRAS. Here, we have a project to renew the full installation at Groß Koris with a volume of mid-2 million-digit range. And we have to deliver the full scope of engineering and also construction activities and will then commission the new plant as is foreseen at the moment in 2028. And the system will already be constructed in a hydrogen-ready way. So later on, once the usage of natural gas in the system is over, it can be easily converted to use for clean hydrogen and meter and also regulate the hydrogen being transferred in the grid. Next project is also a hydrogen project, which we have already been working for 1.5 years. This is the so-called HH-WIN project. So the city of Hamburg is trying to set up a hydrogen grid in the Port of Hamburg. Key figures here is an electrolyzer plant, which is located at the former power -- electrical power station of Moorburg, where about 100 megawatts equality of hydrogen is being produced and then fed into the Habau Grid, so the HH-WIN grid. And Friedrich Vorwerk has already executed 3 lots of this newly established hydrogen grid. And we have been recently awarded with 2 new lots to set up this hydrogen grid. The first lot involves actually a micro tunnel of almost 200 meters where we later on install the piping DN 300 for the transfer of hydrogen. And the following lot compromises of roughly 1,500 meters of new build hydrogen pipeline. But besides those existing projects where we've already started execution, we are, of course, still busy in our estimation department working on new estimates for new projects. Just to give you a small idea what could be coming up over the next years. In terms of pure natural gas transition, we are at the moment, working on estimation for the so-called Spessart-Odenwald-Leitung, which is also DN 1000 pipeline, about 115 kilometers long for Terranets and also other projects coming up from Open Grid Europe, setting up the core grid for hydrogen here in Germany. And also for Gasunie, new projects like ETL 187, which is directly in conjunction with the current project ETL 182, is at the moment in tendering phase and execution and commissioning would then be in '27, '28. But also still very attractive is the electrical market, where we are now facing the so-called second wave of large-scale electricity highways, projects like NordOstLink Section 2, SuedOstLink and SuedOstLink+ are being tendered out over probably end of this year and beginning of next year. And these projects will be commissioned in the mid-2034s -- in the mid-2030s. So also here, a huge potential also after 2030 for our company's group. And under adjacent opportunities, we were able to already win lot of the Rheinwater transport pipeline. This is a very large diameter pipeline, 2.2 meters in diameter that will later on transfer water from the river Rhine to flood the coal mines of RWE. And at the moment, we are working on the next lot to establish this water transfer pipeline. And also a very new business to our company, the transport of CO2 is ongoing. So the first tender we have received is the CO2 link from Lagerdorf, where Holcim is operating a cement factory towards the port of Brunsbuttel is on the table at the moment. Commissioning is foreseen for 2029 and tendering phase ongoing and probably construction phase will be '28 to '29. So this, of course, can only be done if we can establish to grow our headcount and our number of employees where we were very successful last year. So today, we can look at a workforce of more than 2,200 employees. Of course, the labor market within Germany, especially due to the low capacity in building construction, we were able to employ a lot of new blue-collar workers we could integrate in our projects. And probably during this year, we will definitely have a focus on growing our engineering staff and our overhead staff on the construction site. So challenge will be also to look for well-educated project managers and construction managers to manage all the blue-collar employees we were able to attract over the last month. Yes, that's it from our side. We are happy to receive your questions either by phone or by chatbot, and happy to answer them. Operator: [Operator Instructions] And the first hand is up from Lasse Stueben. Lasse Stueben: I wanted to ask just on the Q1. Is there any more color you can give roughly in terms of what we should expect in a year-on-year comparison just to avoid any sort of nasty surprises. The second question would be, what should we expect for headcount growth broadly in '26? And then the third question is, you mentioned sort of slowing down headcount growth, but then you also said that you would be willing to do a larger M&A or potentially do a larger M&A transaction. So how do we kind of square those 2 kind of comments? Because I guess a larger M&A deal would also involve many new employees. So just any color there would be great. Tim Hameister: Well, we've seen compared to the year before, some weeks of weather-related production stoppages in February, combined with the growth of the headcount could be possible to see a rather flat Q1 in 2026 in terms of revenue growth. And as I said, which could potentially partly be offset by stronger quarters in Q2 and Q3 as the overall share of Q1 on the full year revenue isn't that relevant. Regarding the headcount growth, when we talk about slowing down recruiting efforts, this is only in terms of organic growth, meaning directly hiring people, not including any M&A. From organic growth side, we expect to grow headcount by 5% to 8% in 2026 and any M&A would be add-on, on that. And of course, usually, we also acquire project managers and the respective engineering and administrative functions when doing a larger M&A deal. Operator: And additionally and slightly regarding question in the chat. Friedrich Vorwerk is guiding for a slightly lower margin in 2026 compared to a strong 2025, midpoint of 2026 guidance at 22.5% versus 23.1% in 2025 despite continued revenue growth. Could you provide a margin bridge for 2026 versus 2025 and outline the key driving factors? Tim Hameister: Well, we've always communicated that we see the margin potential in the mid- to long term at our company between 20% and 22%. However, in particularly strong years as in 2025, it's also possible to achieve an even better margin, more than 23% due to basically a flawless project execution, good weather conditions and so on. But on the long run, we feel pretty confident with 21%, 22%. Operator: And the follow-up from the person. Could you please provide more details on the Nord-A project, specifically regarding the recent delays and their potential impact on bonus malus payments. Additionally, is there any bonus or malus effect already factored into the 2026 guidance? Tim Hameister: Yes. As we already communicated last year, A-Nord project is expected to be slightly delayed with completion now anticipated in summer 2027 instead of end of 2026 due to missing permits. We are still in discussions regarding adjustments to the bonus-related milestones. And these discussions have been ongoing for some time. We do not yet have a definite outcome on these discussions, but we remain still confident and hope to sign their respective contract amendment in the course of the second quarter 2026. And based on this information, at least a portion of the contract liability we've already included into the books since and accrued over the project duration. Part of that could be reversed once this amendment is signed in the second quarter. However, we did not factor in any positive impacts from that amendment as it is not signed yet. Operator: And for now, we have no further questions. Ladies and gentlemen, I will hold the room for another moment in case someone might be typing right now. And there is a hand up from Lasse Stueben, again. Lasse Stueben: Great. Just a follow-up on sort of -- you mentioned kind of the JV share of projects is obviously going up. Should we expect that kind of level of the JV income you saw in '25 to be roughly the same in 2026? Or how should we think about that? Tim Hameister: All the new JVs we entered into last year, we expect to -- that the net earnings of the JVs will even increase compared to 2025. Operator: And another hand up from Leon Muhlenbruch. Leon Muhlenbruch: I have a quick question regarding to the current geopolitical situation. With the energy crisis already on the way and inflation likely to rise similarly to 2022, which had a significant impact on Friedrich Vorwerk, how are you prepared for such a scenario? Torben Kleinfeldt: Well, first of all, we were able to have a better negotiation position in most of the contracts that are in the order backlog at the moment. So most of the contracts have included price escalation clauses. So we can -- on the most bigger projects, we can forward the price escalations to our customers, although, of course, not to 100% because they are mainly bound to indexes which are more general, for example, the steel index or the crude oil index, which is not always 100% equivalent to the products we are actually using in our projects. But in the end, we can at least -- we are at least in a way better position this year than in 2022. Also in 2022, most impact was from a plant construction project where we had to bring a lot of material to the project. If we look at the current large-scale projects we are operating on, it's mainly the pipeline projects where the bare pipe is supplied by our customers. So we are mainly supplying equipment and personnel, so services, which are, at the moment, not that much affected as back in 2022. Operator: Another hand up from [ Lueder Schumacher ]. Unknown Analyst: I've got a few questions on margins. One is, are there any kind of older projects which have lower margins in them that which are running out and should be supportive to the group margin outlook once they do? And what about the margins implied in the order intake? Can we assume that they should be at a premium to the margins you've seen in 2025? Or should it more be in the region of the long-term potential of 20% to 22% you've been hinting at? Tim Hameister: Well, there are currently no such legacy projects in the current order backlog, although we still have the dilutive effect from our major project A-Nord, which will run until summer 2027, where the base margin is definitely lower than the group average. Apart from that, there are no legacy projects with low margins. And well, I mean, we have already seen such strong margins in 2025. We do not expect that we can further increase this margin profile. And therefore, rather to suggest that you can assume the long-term potential at around 21%, 22% for the next years. Unknown Analyst: In your order intake you had in 2025, we should already assume this? Or is this still at the margins you've seen in '25? Tim Hameister: Well, the margin profile calculated in those projects is roughly on the same level as we've seen the year before. However, on the one hand side is the calculated margin. On the other hand side, is the actual project execution on the fields. And this has also a major impact on the earnings in the end. Operator: And we're moving on to 2 questions in our chat. Are you planning any buybacks? What are the key impacts for the Iran war for you? And what are you doing to hedge against it? For example, natural gas inflation, diesel? Tim Hameister: At the moment, there are no plans for any share buybacks. We've decided to instead increase the dividend and to also pay out the special dividend of EUR 0.40 per share. Adding on the answer from Torben regarding Iran, the major impact for us at the moment is, of course, the higher cost for fuel, especially diesel. To give you some color on that, the total cost of diesel last year was around EUR 12 million. So it's not the largest position in our P&L statement. And we've, of course, already hedged some of the amounts needed already before the war in Iran. So there will be, of course, some effect, but not a significant one. Torben Kleinfeldt: But on the other hand, the crisis also has a positive impact on the market because at the moment, customers are really pushing the projects and trying to get more LNG receiving capacity in Germany, which then, of course, also means constructing new pipelines and constructing new plants, which is then also good on the market side for us. Operator: Can you discuss your appetite to revisit medium- to long-term guidance? And what milestones would trigger an upgrade? Tim Hameister: Well, that's definitely a thing to consider this year as we are pretty well on track on the older mid- to long-term outlook. So maybe we can expect to see a new outlook in the second half of this year. Operator: Ladies and gentlemen, we still have a minute for your questions left. And if there should be no further ones, you can always get in contact with Investor Relations. And this is it. With no further questions, we come to the end of today's earnings call. Thank you very much for your interest in Friedrich Vorwerk Group SE. A big thank you also to you, Torben and Tim, for your presentation and your time. I wish you a successful day around the world and giving the last words to Torben again. Torben Kleinfeldt: Yes. Thank you very much for listening. I think especially this year, we can look at some very, very interesting projects we can execute for our customers. And please stay with us and hear the latest news from our projects in the future. Have a good time around the world. Bye-bye. Tim Hameister: Bye.
Operator: Good day, and thank you for standing by. Welcome to the Inventiva Full Year 2025 Financial Report Webcast and Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, David Nikodem, Head of Investor Relationship. Please go ahead. David Nikodem: Good morning, good afternoon, everyone, and thank for joining Inventiva's Full Year 2025 Financial Results and Business Update. Our press release was issued yesterday evening, and this webcast and slides will be available in the Investors section on our website following the call. Joining us on the call today are Andrew Obenshain, Chief Executive Officer; Jean Volatier, Chief Financial Officer; and Dr. Jason Campagna, Chief Medical Officer and President of R&D. I would like to remind everyone that statements made during today's conference call and during the Q&A session may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Please refer to Slide 2 of the slides and our SEC and AMF filings for a discussion of associated risks. These statements reflect our views as of today and should not be relied upon as representing our views at any later date. With that, I will now turn it over to Andrew, starting on Slide 3. Andrew? Andrew Obenshain: Thank you, David. Good morning, good afternoon to everyone, and thank you for joining us. Since joining Inventiva 6 months ago, I've been struck by the depth of scientific conviction behind lanifibranor and the dedication of this team. Today, every resource, every decision and every member of this team is now aligned behind a single objective, advancing lanifibranor towards approval for patients with MASH. Let me start with our main focus, our global Phase III clinical trial NATiV3. Enrollment was completed in April 2025 and represented a landmark operational milestone for this company. Today, we are updating the expected timing of our top line readout to Q4 2026, reflecting the disciplined sequencing of our clinical and biostatistical milestones. We believe the data from the NATiV3 trial, if positive, has the potential to carry weight with regulators, physicians and most importantly, with patients. And we believe we are running this program with the rigor and precision all stakeholders deserve. On our pipeline and organizational focus, in the first half of 2025, we made the strategic decision to concentrate all of Inventiva's resources on lanifibranor and MASH. As part of this plan, in Q4 2025, we sold our global rights to odiparcil to Biossil and we may receive up to $90 million of potential regulatory and commercial milestone payments, as well as potential high single-digit royalties on future net sales if approved. While this transaction frees up our internal resources to fully focus on lanifibranor, we are pleased that odiparcil has found a new home where its development can continue, potentially in offering patients with MPS VI an opportunity for treatment. At the same time, we strengthened our leadership team to align with the level this opportunity demands. Jason Campagna joined as CMO and President of R&D. Martine Zimmermann joined as new EVP and Head of Quality and Regulatory Affairs; and Nazira Amra joined as our Chief Commercial Strategy Officer. We are building towards launch in a lean and targeted way, advancing our readout and NDA preparations while laying the early groundwork for commercialization in anticipation of potential approval of lanifibranor. And the opportunity is real. MASH has been underdiagnosed and undertreated for too long, but that is changing. More patients are being identified, more being diagnosed and entering care. Awareness is growing, screening is improving and metabolic disease is finally getting the attention it deserves. The numbers tell that story clearly. There are an estimated 18 million people in the U.S. living with MASH, but only around 10% have been diagnosed, and that number has grown by 25% compared to 2024 estimates. Among those diagnosed with clinically actionable F2 or F3 disease, only around 40% are currently under the care of a treating position. So while diagnosis rates are improving and the market is evolving, far too many patients with significant fibrosis remain without the care they need and face a real risk of progression to cirrhosis and liver failure. If our NATiV3 trial can replicate the 18% fibrosis improvement seen in Phase II, we believe lanifibranor could be well positioned as a potential best-in-disease oral therapy with significant commercial impact. Ultimately, our goal is to make a meaningful difference for patients and that is what drives everything we are doing. I will now turn the floor over to Jason, who will give a brief update on lanifibranor, our differentiated oral anti-fibrotic, and a potential new treatment option that we believe addresses the remaining unmet medical needs in MASH. Jason Campagna: Thank you, Andrew. Good morning and good afternoon, everyone. Let me start by reminding you of the mechanism of action and the development pathway of lanifibranor. Lanifibranor is a small molecule designed to induce anti-fibrotic, anti-inflammatory and beneficial vascular and metabolic changes by activating all 3 PPAR isoforms, alpha, delta and gamma in a balanced manner. This broad mechanism of action is designed to target the hepatic and extrahepatic drivers of MASH simultaneously and in one oral therapy. Lanifibranor was the first asset to achieve statistically significant improvement in the composite endpoint of both fibrosis improvement and MASH resolution in our Phase IIb NATIVE trial, after just 24 weeks of treatment with a favorable safety and tolerability profile. On the basis of these results from our Phase IIb the FDA granted lanifibranor breakthrough therapy and fast track designations. NATiV3, our pivotal Phase III clinical trial was designed to confirm and extend those findings in a larger, more diverse global population over 72 weeks and is intended to provide the data to enable successful marketing authorization in the United States and Europe. NATiV3 is a randomized, double-blind, placebo-controlled trial in patients with biopsy-confirmed MASH and stages F2 or F3 fibrosis, the core of the MASH treatment population. Those with significant disease burden and a high risk of progression to cirrhosis, liver failure and liver-related mortality. We specifically chose a clinically meaningful primary endpoint for NATiV3, fibrosis improvement and MASH resolution. And at 6 months in our Phase IIb the 1,200-milligram dose of lanifibranor showed a 24% treatment effect. NATiV3 was also deliberately designed to mirror the patient population of our positive Phase IIb and the real world as it exists today. A meaningful proportion of our patients have type 2 diabetes and other metabolic comorbidities, and a number are on background GLP-1 and/or SGLT2 inhibitor therapies, mirroring the patient's physicians actually see in their clinics, which we believe will ensure that we generate clinically meaningful data to support both NDA and MAA submission. In April of 2025, we completed enrollment, exceeding our original targets with over 1,000 patients in the main cohort and additional 410 patients with MASH and fibrosis stages F1 through F4 in an exploratory cohort. We anticipate sharing the top line results of our pivotal Phase III trial in Q4 of this calendar year, a moment, I believe, will be significant for the field and for the patients who need new treatment options. I will now turn the floor over to John for our financial review. Jean Volatier: Thank you, Jason. Good morning and good afternoon, everyone. So yesterday evening, we issued our press release with our full financial results for the year ended December 31, 2025. I will focus on the highlights. As of December 31, '25, we held EUR 230.9 million, close to EUR 231 million in combined cash, cash equivalents and short-term deposits. This position was built by 2 significant financing events in '25. First, the execution of the second tranche of our 2024 structured financing in May generating approximately EUR 108 million in net proceeds. And second, our U.S. registered public offering in November generating approximately EUR 139.4 million in net proceeds. We estimate that we are funded beyond our anticipated NATiV3 readout. Based on our current operating plan and cost structure, we estimate that our cash runway extends to the middle of Q1 2027 and to the middle of Q3 2027, assuming the full exercise of our tranche 3 warrants, which could generate up to an additional EUR 116 million. We confirm this way the cash guidance provided earlier. Our R&D expenses for the full year were EUR 87 million, primarily reflecting our pipeline prioritization and, to a lesser extent, the completion of NATiV3 enrollment in April 2025. Marketing and business development spend increased to EUR 5 million primarily due to expenses related to a planned pre-commercial investment as we prepare for a potential launch of lanifibranor if approved. G&A expenses of EUR 47.9 million include approximately EUR 20.3 million of noncash share-based compensation tied to the governance and organizational transition we implemented this past year. I will now turn the floor back to Andrew for closing remarks. Andrew Obenshain: Thank you, Jean. Inventiva enters 2026, well-funded, operationally focused and ready for a consequential chapter in this company's history. NATiV3 is fully enrolled. We've built a leadership team with deep medical, regulatory and commercial expertise, and our regulatory and commercial readiness work is progressing in parallel. Our anticipated top line readout in the fourth quarter of this year represents a genuine inflection point, not just for Inventiva, but for the millions of patients living with MASH, who still have no adequate treatment options. We are truly executing with the discipline and urgency this moment demands. Thank you for joining us today. We will now open the floor for questions. Operators, please go ahead and provide instructions for the Q&A session. Operator: [Operator Instructions] We will now take our first question. And our first question for today comes from the line of Seamus Fernandez from Guggenheim. Seamus Fernandez: Just a few quick questions. First, can you update us on how the performance of the trial has been in terms of dropouts? I know that there were some requirements from the tranches that were coming in that were successfully completed. But just wanted to get a sense of where the dropout rate was as you were kind of wrapping up enrollment. Second question is, can you help us understand how you're thinking about the performance of the 800 versus the 1,200-milligram dose in terms of both weight gain and then ultimately on fibrosis? Is the sort of change from a more typical 12-month endpoint to the 18-month endpoint geared to have the 800-milligram dose catch up to the 1,200 but also manage the potential tolerability or weight gain issues? And then to the last question is just what you're seeing in terms of the overall market interest. Madrigal continues to see very strong uptake in the U.S. How are you thinking about the opportunity to compete with Madrigal? What do you think is the threshold necessary? Andrew, you mentioned 18%. Just interested to know if you think 18% is the threshold where the impact is going to be substantial or is that more reference to the powering of the study? Andrew Obenshain: So, Morning, Seamus. Thanks for the questions. I'm actually going to take your third one first and then hand the first 2 over to Jason. So yes, just to be really direct, we think that if we replicate the Phase II trial and have an 18% effect on a fibrosis, we have an excellent drug. That is the clearing efficacy that we need for in order to have a very attractive market opportunity. We continue to see a lot of market growth, thanks to the entry of the 2 approvals and a lot of awareness around MASH. And there still continues to be unmet need, especially we see in that F3 diabetic patient population, where we think there'll be a very good entry point for lanifibranor. And then at 18% of fibrosis effect with our HbA1c lowering, we have a very good profile for that. Let me then turn the question over to Jason first on the drop-offs and what we've last discussed publicly there. And then the second question about the 800 catching up the 1,200 dose. Jason Campagna: Seamus. So let's take the first one. So you are correct. As part of the structured financing from 2024, there were covenants in there around the release of follow-on tranches that the early termination rate for the trial needed to be below 30%. That number was selected because the original powering analysis from the trial was built allowed for up to a 30% dropout rate. So that was the metric that was used, and we have disclosed publicly at the time of both the first and the second tranche release, which would have been in April of 2025, that we were below that threshold. I think now that we're tightening the guidance to Q4 of this calendar year, I think we were able to confirm we are well within that range and feeling quite good about where we've landed and are reaffirming that the trial is well powered to detect the primary endpoint with the size of the trial that we have and the early termination that we've seen. So the second question you asked about the 2 doses, I think you're landing sort of in the right mixture of elements that are important to us. So we agree with you that in theory, with additional time just because of the way PPARs work and the biology of the liver that that 800-milligram dose will have time to sort of catch up to the 1,200. It was already quite a good dose back in NATIVE, as you recall. But 6 months is relatively thin for a PPAR, which is a transcriptional modulator to sort of do its work. So the idea that you could see a deeper effect with that 800 dose at 18 months, it's very reasonable. But I think where you're landing around the potential dose responsiveness of the tolerability concerns, that is also very important to us. So take weight gain, which you mentioned. Weight gain is a traditional PPAR gamma mediated fluid retention event, and we know that, that fluid retention is highly likely to be dose dependent just from what's been shown with other PPAR agonists and our own data from NATIVE. So we think that potential to have really strong efficacy with both doses, which we were able to show in NATIVE, but may have a different tolerability profile at the lower dose could be meaningful for patients. So it's our hope that both will be positive, and we'll have that opportunity to discuss that with regulators. Operator: Our next question comes from the line of Yasmeen Rahimi from PSC. Unknown Analyst: This is Dominic on for Yas. The first one, we know that NATiV3 is a very large data set. As we're getting closer to top line data in 4Q, what are some of the quality control, I guess, protocols going on in the background to analyze the biopsy samples and what procedures are in place to ensure timely and thoughtful assessment of these biopsies? And then our second question is, can you just talk or help us understand, I guess, how you have how -- if you had any recent safety monitoring committed? And are you seeing anything on a blinded basis on the safety profile? Any color there would be helpful. Andrew Obenshain: Good morning, Dominic. So 2 questions. Let me take the second one first, and the first one over to Jason. Just on safety monitoring, there are periodic monitoring committee meetings every 6 months. You would know if they had said anything. Other than that, we really can't say anything about those meetings. Go ahead, Jason, on the biopsy. Jason Campagna: Yes. Thanks, Andrew. Dominic, so quality control and biopsy. Let me start by saying that the team we have here is outstanding. The clinical operation, the clinical development team have been immersed in the world of MASH clinical trials for the better part of a decade. So this is something that they know well and we carried that expertise forward. So you could think of quality control biopsy around 3 issues. Are we hurting the patient? Meaning at the bedside, are we doing the right things. Second, are we capturing the biopsy according to standard practice? So that's the length of the biopsy, the overall quality of the core, if you will. There's measurements and things that sort of go in and say check or not check. We have reviewed all of those and continue to do so right up until when we get to last patient, last visit later this year. And then lastly, finally, when the slides are sectioned prior to going off and being read, there's a quality control set there that looks at what actually gets made on to the slide. Afterwards, at that point, we are obviously blinded to all of that information. But there is a quality check in terms of are the reviewers, the readers staying on time and on track reading biopsies in the paired matter that's specified both in the protocol and the analysis plan. So I like the teams that we have in front of it and more importantly, I think that they are doing exactly the right work to keep us on track. Operator: Our next question for today comes from the line of Ritu Baral from TD Cowen. Ritu Baral: I want to drill down a little bit more upon final powering. You guys disclosed the over 1,000 final patient number. I think it's 1009 and the 90% powering. What's the effect size that, that powering is for on the primary combined endpoint? And what are your expectations for potential movement around placebo of that, I think it was 7% at the 6 month upon the final primary endpoint? And then I have a follow-up on market expectations around that F3 diabetic population that was mentioned. Andrew Obenshain: Thank you, Ritu. Jason, why don't you go ahead and answer that question? Jason Campagna: On the first one, we are not guiding to the actual effect size, but I can reiterate for you and for everyone what we have been saying. So first, we are with the sample size of over 1,000 patients. We are powered to over 90% on a primary endpoint of the composite fibrosis improvement 1 stage or more MASH resolution. That one has a higher placebo response than we showed in NATIVE, which as you know, was 7%; and two, a smaller treatment effect than we showed in NATIVE data about the 1,200 milligram dose. So that means the overall effect size that we are powered to is smaller. So a much more conservative view than the actual data that we showed in the Phase II program. We just talked earlier with Seamus that, that alongside our comfort with the early termination rates we have, we feel very good that the trial is structurally sound and that will give us an answer to the question one way or the other. Did lanifibranor work first at the 1,200-milligram dose? The testing is hierarchical. We can't get to the 800, unless you went on the 1,200. But that is the core question. We think the trial was well set up to deliver an answer to that question that is well powered and highly confident. I think to your second question around placebo response. The individual endpoints of fibrosis alone. I think everybody on the call knows this, fibrosis alone improvement or MASH resolution alone can be quite noisy. It's not clear after all these years of study why that is, but we do know that they're noisy. On the other hand, the composite endpoint, the primary endpoint of NATiV3, are with us and other sponsors have shown that, that endpoint is much less prone to placebo response. And that makes sense, Ritu, biologically, right? You have in 1 patient, they may on a placebo response move their fibrosis stage by 1 point or more, but the idea that they can also resolve their MASH spontaneously. What that 7% tells you was that in the wild, in the real world, that's incredibly uncommon and that makes total sense with the actual way that patients walk in. It's unusual if you leave them sort of sitting along without treatment, that both of those things will get better on their own. So the placebo response there actually reflects, we believe, the underlying biology, and it should remain very low. We've seen it by precedent, and it's our expectation for the trial that we're running. Ritu Baral: Very helpful. And then, Andrew, a question on how you guys and your own market research is viewing that F3 diabetic population. Do you have an approximate patient number? How is the diagnosis rate in that population changing versus the overall MASH population given the ADA focus on MASH and its messaging to diabetologists? Andrew Obenshain: Thanks for the question, Ritu. So in terms of size, there's about 375,000 patients total F2, F3, in under treatment of care right now. The largest segment is -- one of the largest segments is that F3 diabetic patient population, being 55% to 65% of the patients are diabetic, and about it splits roughly 50-50 in our market research between F2, F3. So that patient population is quite a large patient population overall. In terms of growth, we don't have the granularity down to that segment. However, I would just know anecdotally that F4 is one of the fastest-growing segments. And I think the diagnosis rates are increasing quite a bit overall for F2, F3, F4, just to the number of entrants into the market. So they are growing a minimally proportionate with the market in that segment. Ritu Baral: To that point, Andrew, can you tell us of the 410 expansion cohort patients, how many are F4. Do you know at this point? Andrew Obenshain: I'll pass that question. Jason Campagna: Yes. Confirming you're talking about the exploratory cohort, correct? Ritu Baral: The exploratory cohort, yes. Jason Campagna: We do have F4s in that cohort. They would have screen failed in that case, by histology, potentially other lab values for the actual main cohort in NATIVE. So they represent a sort of range of F4 from. They're all compensated by definition, meaning they have no clinical outcome events, decompensation events. But the range of severity with portal hypertension can be from none to evidence of clinically significant. And those -- that data is going to be quite interesting to us. We're not yet guiding on when we'll have an opportunity to get those data out. It's unclear right now if we have them at top line per se, or in the weeks that follow it in one way or another. But I think as we get closer to top line data, we should be guiding on that more tightly. Operator: Our next question today comes from the line of Thomas Smith from Leerink Partners. Thomas Smith: Just wanted to follow up on that F4 population. And I know you're capturing some of those patients in the exploratory cohort. Can you just expand a little bit on what you hope to learn from that exploratory cohort and how you're thinking about planning for the outcome study in F4s pending the NATiV3 data and perhaps how you're thinking about perhaps how some of those plans could change. We know we're going to get F4 outcomes data for Rezdiffra also in 2027. So some interesting timing around that data set relative to when you're planning on starting this F4 outcome study. Andrew Obenshain: Thanks for the question, Tom. Jason, go ahead. Jason Campagna: So there's a lot there. Let me make sure I get it all for you. So one, just in general, what are we expecting to learn from that cirrhotic population in the exploratory cohort. First, above all safety of lanifibranor in that population. Clearly, right, if you're going to bring in a new therapeutic into a more, let's say, sicker population, you want to obviously want to have safety headroom to do that. So approximately 75 patients we have in that cohort safety above all else. Second, it's not that, as you know, that cohort is not tracked systemically -- systematically, excuse me, for efficacy. That being said, we do anticipate having data of things on like LFTs, transaminases and other things that would point directionally towards whether the drug is biologically active. So really a pharmacology question, very important. We have done hepatic impairment studies with the drug, but looking at it in a real world and a clinical trial would be incredibly helpful. And I think lastly, it will give us a sense in our own hands of how those patients progress over time to later-stage disease. You could read about it, you can model it, you can look at other people's trial, but in your own trial we will see how many of those patients go on to actually have liver related or other events. And that will be incredibly helpful as we think about powering and sizing of an outcome-driven trial, which is what we're right now calling NATiV4, for lack of a better term. But make sure that, that gets to your question, Tom, on the value of that cohort to us? Thomas Smith: Yes, that's helpful. Jason Campagna: Great. So now look, you know the Madrigal data coming. I think yet we acknowledge that. We agree. I think our view is that positive data, if Madrigal were to show it, would only be helpful for the field period, full stop. The idea that we have now finally shown that the surrogate endpoint does correlate with clinical outcomes would be an enormous one for the field. Look no further than what happened in the cardio renal division with proteinuria in the last 6 years. Proteinuria was issued as a surrogate in 2019. I have 5 or coming 6 approved therapeutics for IgAN, that's an enormous win for patients. So we expect something like that would hope would happen here. But clearly, that would influence our thinking about how we think about populations and the ones that are most likely to develop liver-related outcomes because we want to get more of them since we know that the sort of door is open to show that the histology will map to clinical outcome. Operator: Our next question comes from the line of Michael Yee from UBS. Michael Yee: I have [ 32 ] myself. First question is on weight gain, can you remind or confirm the views that based on the phase II also, I think what you're sort of said in the ongoing Phase III that there is some initial weight gain, but that it plateaus and that you don't really see anything beyond a modest increase in some patients, at least in the phase II, and that plateaus and that was initially seen in the Phase III, and therefore, no concerns. The second question is, is there any view that either because of other drugs or because of longer time duration of 18 months versus 6 months here that, that could actually come down in some of those patients or at least come back down to baseline, is that possible? And then the third question is around getting the regulators comfortable with that, what I guess fluid retention effect in some patients and that there would be presumably no at least initial cardiac imbalance in any of the arms that you see and which you'll be able to talk about no imbalance in any cardiovascular events numerically or any SAEs of that nature when you disclose the data in the fourth quarter? Andrew Obenshain: Mike. You were a little soft, so I'm just going to repeat some of it. So there was a question about does weight gain indeed plateau and number one, if in the Phase II. Number two, does that weight gain -- is there a chance of that weight gain would actually go down in the Phase III, either due to concomitant medications or longer treatment? And then number three, some of the weight gain do -- if the weight gain is due to fluid is there any concerns about a cardiac imbalance in the trial. So for those 3 questions, I'll hand it over to Jason. Jason Campagna: Yes. Mike, good to talk to you again. So we have previously said and we'll reaffirm it here that the data that we have previously shown from the blinded look at NATiV3 back in September of 2024, and that we also disclosed at that time the FASST clinical trial in systemic scleroderma, which was a year trial with treatment of lanifibranor same doses in NATiV3, 800, 1200 milligrams, that the weight -- the fluid retention weight gain appear to plateau. I think we don't have any additional information to guide on that publicly, but I think that is what we've seen in both of the clinical trials so far. I think second, do we expect the weight to come down? It's well possible. I think there are a couple of factors at play. Take the LEGEND study, for example. We show that when patients are given SGLT2 inhibition in parallel with lanifibranor that there's almost no weight gain at all. There are many patients in the trial that are on SGLT2 inhibition and do not have the number for you off the top of my head. And we know that patients can be started on those therapeutics for management of diabetes or any other reason. So it is entirely possible and reasonable to believe that if patients are getting SGLT2 inhibitors or other diuretics to manage blood pressure, et cetera, that, that weight gain either the fluid retention, could be blunted or resolved so that the final landing spot, if you will, for any patient, might be lower than the peak weight gain that they had in the trial. But I think we'll see what the data show. Lastly, in terms of regulators, I think I can't speak for the FDA, but I can only speak to what I've read of everything they've put out. The fluid retention is a known phenomenon with PPAR gamma agonism, the thing about lanifibranor is it was designed to be different than other PPAR gammas, and we'll see what the data show. Our view is that it is a very different type of PPAR agonist. But that being said, the PPAR gammas is a known effect. It is on target. It is not idiosyncratic in any way. So FDA has shown with labeling and other work that they are comfortable with fluid retention, I think you're hitting on the right point, the cardiac. And as we've talked about and guided publicly over the years, we are not seeing congestive heart failure as a clinical issue in our program. It doesn't mean that we don't follow it. And it doesn't mean that you're thinking about how fluid retention may lead to that. That's certainly in the PPAR labels today, the gamma agonist, but it is just not something that we are generally seeing in our program, but we will be paying careful attention to it, and it's a dialogue we'll have with FDA. Operator: [Operator Instructions] Our next question comes from the line of Ellie Merle from Barclays. Unknown Analyst: This is Jasmine on for Elie. So as kind of a follow-up to Ritu's question. You talked about the overlap of MASH in type 2 diabetes as a segment where lanifibranor can be particularly attractive. But do you have a specific bar for what competitive data would look like in this population? And then specifically, how many type 2 diabetes patients do you think have undiagnosed MASH, and how do you plan to work to increase the diagnosis in this population and unlock that segment? Andrew Obenshain: So I'll take those 2 questions. First of all, just the diabetes and overlap with MASH, it is enormous, right? And there's -- I think there's about 18 million patients in the U.S. with undiagnosed MASH. At least half of those or more have diabetes at it's obviously way, way more than 375 under the treat or care. The way we see the market evolving is we've seen since about 2004 that market has grown about 20%. So it's clearly quite robust growth, and we do anticipate that to grow nicely. We, as a company, probably will not be pushing diagnosis, at least initially, there are enough patients coming in that we can focus on the patients being diagnosed -- the existing patients being diagnosed. That would obviously, maybe a later marketing strategy would be to actually increase diagnosis. And then your first question about -- I'm sorry, I forgot your first question already. Unknown Analyst: Just if you have like a specific bar in that population for what competitive data looks like? Andrew Obenshain: Yes. So the -- in terms of competitive data, the way we look at this is that the differentiated profile that we have is we work both on the liver and we're extrahepatic. We work on the body and we work on the liver. So we have direct anti-fibrotic effect. Again, as I said, that an 18% effect size, if we duplicated that in the Phase III trial, we feel it's a very competitive drug. And then the other thing we'll be looking at is HbA1c lowering, which was on average across the whole patient population, diabetic and nondiabetic in the Phase II, with just over 0.5 point, that would be an approvable diabetes medication years ago. So that combination of HbA1c lowering, combined with triglyceride lowering, HDL raising and the fibrosis effect, we think, has an extremely attractive profile for that diabetic F3 patient. Operator: Our next question comes from the line of Lucy Codrington from Jefferies. Lucy-Emma Codrington-Bartlett: Just one left, please. Regarding the confirmatory trial, just wanted to confirm, do you have an understanding with the FDA in terms of what underway means when it comes to granting accelerated approval? Is it enough just to have started that trial? And does this need to be by the time you file or by the time you get to approval? And then related to that, is starting that trial included in that mid 3Q cash runway with the third tranche of warrants? Andrew Obenshain: Yes. So yes, it is included. Starting that trial is included in the cash runway of that mid-Q3 runway. Jason, you want to talk about what's necessary for the trial? Jason Campagna: Yes. Lucy, I think you have the broad brushstrokes of it, right, but just something on the language. So accelerated approval is only at the time of the review. What we're looking to get is conditional approval under Subpart H, which is you've got marketing authorization and then the trial, as you note, confirms your surrogate and then you get full approval. Whether accelerated is only a question of how long it takes the FDA to actually review the file. With that, I'm just trying to make sure that we're all clear on that, that we -- you have the broad brushstrokes, right? But the individual rules are discussed with each sponsor at the time of the pre-NDA meeting and then during the mid-cycle review. But the general framework is you need to have most of the trials structurally in place, protocol approved at the time you were filing the drug and it needs to be moving on the definition of moving is going to be something FDA will define for us. We will be prepared. We have our CROs selected, the protocol is approved, may even have sites open. All of that is in the future. But at the time we file, we will meet the FDA position of trial meaningfully underway. And then at the mid-cycle review, you need to show continued progress on that. So they will check again that made a much more detailed look around enrollment nerves, site activation curves, et cetera. Again, each sponsor has their own detailed agreement with FDA on that, and it is our plan, of course, not only to have those conversations, but to make sure that we're meeting those requirements. So that when we are offered if we're fortunate enough to make it there, and we offered, the conditional approval, that trial will be well underway at that point. Lucy-Emma Codrington-Bartlett: Got it. Thank you, and thank you for clarifying on the terminology. Operator: Our next question for today comes from the line of Annabel Samimy from Stifel. Jayed Momin: This is Jayed on for Annabel. Congrats on the progress. Just 2 for me. The first one is around the use of background GLP-1 in the trial. What are your expectations on the potential impact of having that background GLP-1 use on [ lani ] effect size of those patients? And my second question is around the AIM-MASH tool that was nearly FDA qualified as a supportive tool to help with histological assessments. Do you have any plans to maybe leverage that to control or minimize variability? Andrew Obenshain: Yes. Thanks, and thanks for the question on the impact on the lani effect size based on background GLP-1 and the tools. So go ahead, Jason. Jason Campagna: Yes. So in confirming we do have, and we've previously shared that we have about 14% or so of the population in NATiV3, that's across both cohorts, that have background GLP-1 use at the time of randomization. That could be semaglutide, older drugs, liraglutide, dulaglutide, et cetera. So it's not only limited to the modern GLP-1. And I think its effect on treatment response should be minimal, and that should -- it will sound tongue in cheek, it's not intended to be. It's because that when you enter the clinical trial independent of what drugs you're on, whether you've lost weight by any other measure, independent of a GLP-1, you're entering the trial issue have that F2, F3 disease with active MASH. So whatever it is, one, those drugs are not doing it for you or your lifestyle modifications; and second, that the doses that we're using are really the diabetic doses. So they don't -- they are not anticipated to have much of an effect at all. We're simply seen that in the clinical trial data. I think to the second question about the tools, are you talking about PathAI specifically or just more general non-invasives? Jayed Momin: Yes, no, it's the PathAI tool. Jason Campagna: Yes. It's an interesting idea, right? But if you -- looking at it really simply, what PathAI lets you do is substitute one human pathologist for a digital pathologist and then you need a second pathologist to read. It's still the same idea of 2 plus 1 consensus. In this case, 1 of the 2 is PathAI. It's interesting. It's not something that in NATiV3, we anticipate taking much advantage of. But it is something we're thinking very closely about for NATiV4, potentially using that as the -- in the exploratory cohort presently from NATiV3 to see how we may be going to pull more data out of those patients that happen to have a biopsy. Operator: Our next question for today comes from the line of Rami Katkhuda from LifeSci Capital. Rami Katkhuda: I guess can you remind us of lanifibranor's FC and F2 versus F3 patients in the Phase II study and how those differences may impact expectations for NATiV3 just given the higher proportion of F3 patients enrolled? Andrew Obenshain: Go ahead, Jason. Jason Campagna: Rami, just to qualify, you want the proportion of patients in NATiV2 or the responses of the F2, F3? Rami Katkhuda: The responses, please, between the F2s and F3s. Jason Campagna: The sample sizes are simply too small to break out what we have done. We think the analysis that's more helpful, it's in our corporate materials, is that when you strip away the F1s in that trial. You get down to about 188 F2, F3 across all 3 arms. You can see that the effect size actually slightly goes up. What we guide to is that it remains unchanged. So the drug seems to work equally well in more advanced fibrosis in patients with earlier disease. So you're not getting much of a free glide on those F1s, if you will. I think second, when we look at NATiV3, as Andrew talked about earlier, this is a contemporary MASH market. The majority of patients showing up and clinics today that have F3 disease, will have diabetes. So we think that aligns pretty well with the outside world. And we're pretty comfortable with what we've seen from our Nature publication back in 2024, that the drug not only works equally well in earlier and late-stage disease, but the adiponectin levels actually go up equally well across all cohorts and it's that adiponectin that's really driving, we think, well correlated with the clinical response. So we like where we're landing with NATiV3 and the likelihood of efficacy in both those F2 and F3 patients. And as a reminder, we're stratified by fibrosis stage and diabetes and NATiV3, so we're going to cut those data in a number of different ways to sort of get where you're headed with your question. Operator: Our next question comes from the line of Srikripa Devarakonda from Truist Securities. Unknown Analyst: This is Anna on for Kripa. So 2 questions from us. First, looking ahead a little bit in terms of the MASH guidelines, would you expect an update on the MASH guidelines this year? And how are you thinking about getting [ lani ] into the MASH guidelines? And then second question, in terms of cash, what kind of needs to happen for you to have access to that third tranche? Is it based on kind of Phase III success only? And are you looking at any other non-dilutive sources of funding such as partnerships? Andrew Obenshain: Thanks for the questions. So on the MASH guidelines, I think we will wait -- we need to get data first before we have any conversations about putting lanifibranor into the MASH guidelines. On cash, the tranche 3 is a positive endpoint, and we hit a positive endpoint in our trial, and then when those 77 million shares of EUR 50 become exercisable, and the investors have 45 days to exercise them. So that's how that mechanically works. So positive trial equals cash coming in, so as long as the stock price is above the EUR 50. We are always looking for ways to increase our cash runway. And we've obviously in a very strong cash position right now. In terms of partnerships, right now, our plan is to commercialize lanifibranor ourselves. Going forward, we think that there's plenty of access to capital, either in the equity markets or other kind of capital sources that we don't necessarily need to partner lanifibranor. Operator: Our next question comes from the line of Sushila Hernandez from Van Lanschot Kempen. Sushila Hernandez: Could you elaborate on your regulatory and commercial infrastructure? What steps are you taking to act with speed once the data is here, also considering your cash runway? Andrew Obenshain: Yes, good question. So yes, so we are being very careful stewards of our capital right now before data. So a lot of -- the regulatory team is fully staffed, and I would include the quality team on that, too, because that's necessary, to make a really good filing with the FDA. So we have invested. We've increased the size of that team and the talent on the team in the course of this year. From a commercial standpoint, really focused on strategic commercial execution. So being led by Nazira Amra, really focused on market access, the market research. I'm going to include in the broad commercialization medical affairs there. So the strategic role that won't really set us up for success in the future. We will not staff up aggressively in commercial until we have positive data. Operator: This concludes today's question-and-answer session. I will now hand the call back to Andrew Obenshain, CEO of Inventiva for closing remarks. Andrew Obenshain: Thank you so much. Thank you, everyone, for joining the call this morning. We certainly have an exciting remainder of the year coming up for Inventiva, and we look forward to engaging with you all as we go forward. Thank you. Operator: This concludes today's conference call. Thank you for participating. You may now all disconnect.