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Operator: Thank you for standing by. My name is Jayle, and I will be your conference operator today. At this time, I would like to welcome everyone to the Delek US Fourth Quarter Earnings Call. [Operator Instructions] I would now like to turn the conference over to Robert Wright, EVP, Delek. You may begin. Robert Wright: Good morning, and welcome to the Delek US Fourth Quarter Earnings Conference Call. Participants joining me on today's call will include Avigal Soreq, President and CEO; Mark Hobbs, EVP, Chief Financial Officer; as well as other members of our management team. Today's presentation material can be found on the Investor Relations section of the Delek US website. Slide 2 contains our safe harbor statement regarding forward-looking information. As a reminder, this conference call will contain forward-looking information as defined under the federal securities laws, including statements regarding guidance and future business outlook. Any forward-looking statements made during today's call will involve risks and uncertainties that may cause actual results to differ materially from today's comments. Factors that could cause actual results to differ are included in our SEC filings. The company assumes no obligation to update any forward-looking statements. I will now turn the call over to Avigal for opening remarks. Avigal? Avigal Soreq: Thank you, Robert. Good morning, and thank you for joining us today. 2025 was a transformational year for Delek. We have made progress on all fronts, including improving the free cash flow profile of the company and increasing the economic separation between DK and DKL. The year also concluded with a strong fourth quarter results. In Q4 2025, excluding SRE, Delek reported an adjusted EPS of $0.44 and adjusted EBITDA of approximately $226 million. These results highlight the accelerating momentum at Delek and the stability of our strategy. Now I will cover some of the achievements in 2025 in detail. Starting with EOP, I'm proud of how we have created a culture of continuous improvement through our enterprise optimization plan. EOP drove substantial value throughout the year with a strong execution and measurable progress across all business units. As a result of continued success, we are once again raising our enterprise optimization plan target to at least $200 million on an annual run rate basis. Our sum of the parts initiatives continue to advance. 2026 is expected to have highest economic separation between DK and DKL. 2025 was a record year for DKL with approximately $536 million in adjusted EBITDA. DKL continued to build on its premier position in the Permian Basin through its full suite of service and strong organic growth. Continuing the momentum, DKL today announced its 2026 EBITDA guidance to be in the range of $520 million to $560 million. DKL is close to the finish line on its industry-leading comprehensive sour gas solution, including gathering, treatment, processing and acid gas injection, providing market access for residue gas and NGLs. These capabilities will provide DKL the ability to fully capitalize on its growth opportunity in the Delaware Basin and maintain its best-in-class EBITDA growth and yield. In 2026, on a pro forma basis, with continued growth in third-party cash flow, we expected DKL third-party EBITDA to exceed 80%. Achieving this level of economic separation has been cornerstone of our sum-of-the-parts strategy. We are taking additional action to ensure the strength of DKL third-party midstream service are fully reflected in the share price and unit price. As I always do, I will now give an update on our key long-term priorities. First, safe and reliable operations. We had a strong operational quarter in our refining system with solid performance from our 4 refineries. At Big Spring, our first quarter 2026 planned turnaround is progressing well and remains on track. The focus of this turnaround is to further enhance reliability and operational flexibility, positioning the refinery for improved cost structure and margin capture. We expect this enhancement to drive meaningful performance improvement once the refinery returns to full operations. This is our only planned turnaround in 2026, which sets our refining system up well for the remainder of the year. Second, I would like to add a little more context on our Enterprise Optimization Plan. As a reminder, we started EOP with an aim to improve DK cash flow by $80 million to $120 million on a run rate basis, starting in the second half of 2025. As a result of the strong buy-in from the organization, we have been able to continue to increase our EOP range. We are again increasing our expectation for EOP-related cash flow improvement to at least $200 million annually. During the fourth quarter of 2025, we estimate approximately $50 million of EOP contribution in our P&L. The success of EOP is clearly visible in the performance of El Dorado refinery supply and marketing results and G&A. This improvements are here to stay and have set us up for long-term success. I'm confident that EOP will remain a core strength well into the future. As mentioned last quarter, we pursued a proactive strategy to monetize the 2023 and 2024 RINs granted after the EPA cleared the backlog of pending 2019 to 2024 SRE petitions. I'm pleased to announce that we were able to monetize a large portion of our '23 and '24 RINs faster versus our original plan and have been able to use the proceeds to reduce our inventory intermediation agreement. The restructuring of the IIA will improve our free cash flow generation on the top of EOP by at least $40 million on a yearly basis. We remain actively involved in our effort to get full value for the 2019 to 2022 RINs for which we were provided invalid relief. Finally, we believe that the current administration, Senate, Congress and EPA realize the importance of SREs, not only for the refineries which qualify under the program but also to the local communities they serve. We believe SREs will remain a core part of the current administration energy policy as it advance its energy dominance agenda. The final piece of our strategy is being shareholder-friendly and having a strong balance sheet. During the quarter, we paid approximately $15 million in dividend and bought back approximately $20 million of our shares. Our strong balance sheet, improved reliability and confidence in EOP enable us to do countercyclical buyback in 2025. I'm proud to continue our strong shareholder return, dividend and buyback through the cycle. We remain committed to a disciplined and balanced approach to capital allocation and look forward to continue rewarding our shareholders. In closing, thank you for our team for their hard work and dedication through 2025. I'm proud of the progress in Delek over the last year and look forward to continue this progress in 2026. Now I will turn the call over to Mark, who will provide additional color on the quarter. Mark Hobbs: Thank you, Avigal. For the fourth quarter, Delek had net income of $78 million or $1.26 per share. Adjusted net income was $143 million or $2.31 per share, and adjusted EBITDA was approximately $375 million. Moving to Slide 5. We show the breakout of adjusted EBITDA and adjusted EPS for the fourth quarter. Excluding SREs, adjusted EBITDA and adjusted EPS were approximately $226 million and $0.44 per share, respectively. This removes the reduction in cost of materials of $75 million associated with prior year SREs and the impact of our RVO exemption recognition for the fourth quarter of $74 million. For the full year 2025, excluding SREs, our adjusted EBITDA was approximately $763 million. On Slide 19, the breakdown of adjusted EBITDA, excluding SREs from the third quarter of 2025 to the fourth quarter shows that there was one main driver for the decrease in EBITDA. The primary driver was in the refining segment, where adjusted EBITDA declined by $91 million, largely due to seasonality. Excluding SREs, supply and marketing contributed approximately $23 million in the quarter. Of that amount, approximately $35 million was generated by wholesale marketing. Asphalt contributed a loss of $4.2 million with the remaining contribution coming from supply. In the logistics segment, we continue to have another strong quarter, delivering approximately $142 million in adjusted EBITDA. Moving to Slide 20 to discuss cash flow. Cash flow provided by operations in the fourth quarter was $503 million. This includes our net income for the period adjusted for noncash items, monetization of SREs and a net inflow related to changes in working capital of $26 million. When adjusting for working capital and SREs, cash flow from operations was $119 million. This was an improvement of $211 million when compared to the fourth quarter of last year. This improvement was driven by an increase in net margin in the quarter versus last year and the continued success we are having with our enterprise optimization plan. Investing activities of $117 million in the quarter includes approximately $26 million for growth projects primarily at DKL. Financing activities of $391 million includes approximately $380 million related to the paydown of our inventory intermediation agreement and associated inventory financing, which will result in at least a $40 million reduction in annual interest expense. $20 million in share repurchases, approximately $15 million in dividend payments and approximately $22 million in DKL distribution payments to public unitholders. On Slide 21, we outline our fourth quarter capital spending with $82 million invested at Delek stand-alone and $31 million at DKL, largely for growth projects. Our net debt position is broken out between Delek and Delek Logistics on Slide 22. Excluding Delek Logistics, our Delek stand-alone net debt remained largely in line with prior quarters. Moving now to Slide 23, where we cover first quarter outlook items. Our throughput guidance for the first quarter of 2026 is 70,000 to 74,000 barrels per day at Tyler, 66,000 to 71,000 barrels per day at El Dorado, due to the planned turnaround Big Spring will run 22,000 to 28,000 barrels per day, and lastly, Krotz Springs will run 82,000 to 86,000 barrels per day. Our implied system throughput target for the first quarter in the 240,000 to 259,000 barrels per day range. In addition to throughput guidance for the first quarter, we expect operating expenses to be between $210 million and $220 million. Our guidance for the first quarter incorporates increased operating expenses associated with preparing for winter storm Fern. G&A to be between $47 million and $52 million. D&A is expected to be between $100 million and $110 million and net interest expense to be between $75 million and $85 million. With that, we will now open the call for questions. Operator: [Operator Instructions] Your first question comes from the line of Doug Leggate of Wolfe Research. Douglas George Blyth Leggate: I won't if -- it's great to see these SREs showing up. But I wonder if I could just ask a couple of questions relating to what you've already booked. So I guess I'm really looking for the cash inflow and what's remaining still to be recognized for the SREs that you've already been awarded. And maybe you could address how you -- what the path is to get the pre-2023 SREs recognized. That's my first question. My second question is on the go-forward SRE value because it's obviously massive. And there's a lot of other things we could talk about like the EOP and so on today. But the dominant issue, we think, is the value of the '25 through '28 RINs and any risks from legislative changes that you see there. So could you maybe offer any insight you can on why you continue to risk the 2025 RINs specifically? Avigal Soreq: Yes, absolutely, Doug. And with your permission, I will try to start with the future. And again, this is one person opinion about what the situation exactly. But when we are talking about the future, first of all, we need to understand it's not a Delek topic. It's a way broader topic than that. It's directly impacting close to 40 refineries and indirectly impact to the breadth, half of our industry. So it's a huge, huge topic. And I want to make it even more clear than that. The whole point of SRE is disproportionate economic harm, disproportionate economic harm. And that's -- and the essence of the law behind it is to maintain high-paying jobs, local -- to support local communities and to be able to have affordable fuel for those communities. So it's very, very, very important. SRE and small refineries are critical to meet the energy dominance policy of energy, critical in our mind and are here to stay. About the 2019 to 2022, you asked that as well. I want to say something that relief and eligibility are coming together. So we are obviously eligible for those SREs but we got invalid RINs. There is an acronym for those RINs lately, it's a zombie RINs. That's what the people just called them. And since those twins of relief and eligibility coming together, we believe in our case around that, and we believe that we'll get full value for what we already pay. So Mark, why don't you touch the proceeds? Mark Hobbs: Yes, yes, sure, Avigal. And Doug, I appreciate the question. And as Avigal mentioned in his prepared remarks, look, we're extremely excited and proud of the progress we made during the quarter. We saw an opportunity during the quarter to restructure and pay down our inventory intermediation agreement, and our team did a great job, and they were actually able to monetize a vast majority of the RINs from our prior year SREs from 2023, 2024, that $400 million that we mentioned on last quarter's call, much earlier than our original estimate of 6 to 9 months, raising approximately $360 million during the fourth quarter. And at the end of the quarter, near the very end, we used these proceeds and available cash to pay down approximately $380 million under the IIA and associated inventory financing, which was a large portion of what we actually had outstanding under the program. And these activities are going to reduce our annual interest expense associated with the IIA by at least $40 million. This further enhances our free cash flow generation. And as Avigal also mentioned in his prepared remarks, this is on top of and beyond everything that we've discussed to date with regards to our EOP initiatives. Mohit Bhardwaj: And Doug, just to Doug, one more thing -- yes, I just wanted to add to what Mark and Avigal just talked about. And I think you were mentioning and you're trying to touch upon this point about whether some of this value is reflected in our stock price or not. But if you look at just on a mid-cycle basis, preinventory intermediation agreement restructuring, we would have made $150 million of free cash flow. And Mark just talked about another $40 million on top of that. If you take that $190 million of value at 10% free cash flow, that's $32 a share. And if you look at our value of DKL, that's another $32 a share. So that's at least $65 a share that's missing. And that's got nothing to do with SREs at all. So we definitely agree with you that there's a lot of value that's still not reflected in our shares. And to answer one last piece of your question, yes, there's some more left beyond the monetization that we have done for 2023 and 2024 RINs, still left to be -- which we expect to be monetizing in the first half of 2026, most likely in the first quarter. Douglas George Blyth Leggate: Guys, I don't want to hog the question here but I want to make sure you understood my question about the forward. Slide 18, you're showing a range of 50% to 100%, $468 million on a 100% basis. But you're also giving us guidance that all 4 refineries are going to be under 75,000 barrels a day. So why should we risk that number in '25 or for that matter, '26 through '28? Mohit Bhardwaj: Yes. I think, Doug, again, a very good question. And I just want to make sure that this point about disproportionate economic harm comes across. Like you're absolutely right. So these RINs are not a windfall, right? So we -- the way if you are a refiner like us who stays in compliance, you pay for these RINs and then these RINs -- the cost of these RINs are returned to you a year later. So we cannot decide for the EPA. The EPA will decide how they will rule upon these petitions. But so far, all we can say is that EPA has done a good job in clearing the backlog that was created from 2019 to 2024. And they have been very good in creating a forward-looking guidance as well. So we just expect them to continue with this good work, and we'll see what happens as far as our 2025 petitions are concerned on a go-forward basis. For us, we just wanted you to have the $468.4 million RVO obligation on a 2025 basis, and that's what we have provided. What percentage of that is approved, that's in EPA's hands. Operator: Your next question comes from the line of Paul Cheng of Scotiabank. Paul Cheng: Yes, very good quarter. Avigal, just curious, what's left in the consolidation of the DKL and in terms of time line? And also ultimately, then what is the ownership that you think you need or you want to have in DKL? And second question is that in the Big Spring refinery, you're going to have a full plant turnaround currently going. So what initiative other than the normal turnaround that you are taking that will lead to the improvement of the performance going forward? What other than, say, the normal full plant turnaround that you typically would do every 4 or 5 years? What else are you doing in this turnaround? Avigal Soreq: Yes. Thank you. Paul, with your permission, I would start with a bigger discussion about sum-of-the-parts and deconsolidation and all of that topic. So I want to make sure that the point is coming across very, very clearly. The whole point of sum-of-the-parts is to make sure that the value of our business, the midstream business that we are building is fully reflected in the unit price and share price. That's the objective. Obviously, we have done a tremendous amount of work in the last 18 months around that. It's very visible to the market. We have sold retail in the past you liked. We have done 2 acquisitions of a midstream company before the market realized what the value is. We probably bought it around half of the market versus what it is today. We have done -- build a gas plant in a very, very good location with very good capabilities and develop those business very, very nicely, and we are very proud of that. Obviously, we reduced our ownership from close to 80% to around 60% now while doing that increase the distribution. So we checked many, many boxes around creating value for both unitholders and shareholders. At that junction, we are working extensively on 4 paths and maybe some of them we are working together. One is sell the entire asset for the right value. And when I'm saying the entire value, if you're looking on the intrinsic value of each business unit in DKL, you get to a 7 handle number on the DKL unit. We can always monetize one of the assets of DKL for the right price. We have the free tax between DK and DKL to allow DKL to buy units back from DK, and we always can do M&A and reduce our ownership like we have done so far. So we are working many angles. I think that there is a tremendous amount of activity that's visible to the market. And you need to remember that the lack of announcement is not lack of work or lack of progress. Stay tuned. Around the Big Spring, you had another question. So around the Big Spring, we are very happy with the team over there. The team -- it's also visible in the Q4 numbers. They made a very good progress. And I would focus the Big Spring after the turnaround in 4 areas, right? One, improve reliability; second, improve our crude slate and optimization; and third, improve the product slate. So we are very excited to see how Big Spring is going to perform after turnaround, and let's all stay tuned. Paul Cheng: Avigal, for Big Spring, is there any new technology being introduced or new unit being at or anything that we should be aware in this full plan turnaround? Avigal Soreq: No. It's a cycle turnaround. The last turnaround we've done in Big Spring was 2020. So that's on the cycle. We are not doing any huge capital projects but we are making sure that those 3 boxes that I've said are being very clear, the operational reliability, the crude slate and the product mix after that. And Mohit, you want to chime in, please? Mohit Bhardwaj: No, Avigal, I just want to add to what you just said. And Paul, you're asking the right question. For us, the most important piece about Big Spring is to improve its reliability. And once we improve the reliability, our cost structure is going to improve, and it has been -- we've been making great progress in improving its cost structure, and we expect after turnaround that cost structure will improve even more. And if you look at the product side, that will help with the margin capture as well. So I think we are very excited about this turnaround, as Avigal just mentioned, and we look forward to updating you about this at our next earnings call. Operator: Your next question comes from the line of Alexa Petrick of Goldman Sachs. Alexa Petrick: We wanted to ask a follow-up on the cash flow profile. Can you unpack the drivers of the raised cash flow guidance? And then how do we think about potential upside from that number, just given you've raised it a few times? Avigal Soreq: Yes. So Alexa, that's a very nice question. I will make a step back, and I will give a broader context because I think that the real discussion is EOP because EOP is all about free cash flow. That's the essence of the program, and that's what we got the organization laser-focused on. And I want to make it very clear. It's not just projects. It's a lifestyle. It's a language that the organization speak and everyone in this company speak that language, and it's bubbling from bottom up. So it's very exciting and pleasant to see how it's becoming part of our culture, and it's a cornerstone in our culture, and I'm very proud of that. So -- and if you think about it, where we started 1.5 years ago around BOP, we started with a guidance of around $100 million. Now we are saying it's at least $200 million. So we more than doubled that. And if you look at the rest of it, it's very rare that the company is able to increase time over time over time. But I want to tell another thing that you're probably going to be happy to hear that we are not stopping here. We are not stopping here. And we have a big plan about the future EOP, and more to come, and it's going to be in the gross margin, in the G&A, in supply and marketing in many other -- in many areas of the business that we are very excited for. So still more to come. Alexa Petrick: Okay. That's helpful. And then a follow-up on that. You've got EOP, SREs and IIA. As we think about the implications of incremental free cash flow, how should we think about the capital allocation priorities? Should we expect you to maybe lean more into buybacks? Or any thoughts there would be helpful. Avigal Soreq: Yes. So that's a great question. Thank you for asking that question. We are very proud of our capital allocation strategy. We said that we're going to maintain dividend through the cycle. We can check the box around that. We said that we're going to do a balanced approach between balance sheet and buyback. We can definitely check the box around that. We did in 2025, countercyclical buyback. And actually, our total return to shareholders is higher by 4% than the average of our refining peers. So our philosophy of capital allocation did not change. And we are very consistent about that. We communicate to investors very clearly, and we always take opportunity to reward investors. So that's the goal we have, and we'll keep doing it. Operator: Your next question comes from the line of Jason Gabelman of TD Cowen. Jason Gabelman: I wanted to ask on the supply line because it's now been 2 consecutive quarters where that supply and other part of the supply line has been above $50 million. And I know it includes kind of a grab bag of items. So you could just talk about kind of what drove the strength in 4Q? How much of it was EOP versus any onetime benefits? And how we should think about that subline item within the overall supply line moving forward? Avigal Soreq: Yes, absolutely, and thank you for joining our call this morning. We appreciate you. In reality, as I said in my prepared remarks and you probably listened, it's very visible that the EOP progress in the supply and marketing. We see that very, very clearly. We see that in other places. We've seen that in the G&A, basically cutting the cost by close to half versus what it used to be. You've seen that in El Dorado that we were able to increase -- to improve our capture by $2 a barrel on the top of the crack. So a great team over there, very proud of the progress. We still see more opportunities over there. And I will let Mohit touch the specific question about DKTS? Mohit Bhardwaj: Jason, good to hear from you. As far as supply and marketing is concerned, I think I talked about this last quarter as well. So the 2 specific businesses which are part of the supply and marketing are wholesale and asphalt, and we're making great progress in both. Especially as it comes to wholesale, we have been improving the business in 3 phases. The first phase was to have the right products available to supply the markets that we are serving. And second has been contract renegotiations and increased logistics, which has allowed us to access these markets. Currently, we are in Phase II where we are optimizing the markets we are participating in. So some markets, we are trying to put more product in and other markets, we are exiting. So that's the main reason why we are seeing reduced seasonality in the supply and marketing line item. This will not avoid the seasonality completely but we are trying to reduce the impact of that seasonality. And then market is going to help us as well. So if you look at what's happening later this year, Magellan is going to bring its pipeline online, which is going to clear -- start clearing the group and put more products into PADD 4. And once these West Coast pipelines come online, those West Coast barrels will be supplied by the group and the Mid-Continent. So the market is also helping us -- is going to help us, not helping us currently but it's going to help us as these pipelines come online. So we are very excited about the steps we are taking, and we'll take -- if the market also starts to help us, we'll definitely take that too. Jason Gabelman: Yes. I appreciate the detail. The question was more about not the wholesale or asphalt but the third part of that supply and marketing business, which has been, I think, above $50 million for a couple of consecutive quarters. And I was wondering if you think that's a good rate moving forward or you expect it to be kind of volatile quarter-to-quarter? Mohit Bhardwaj: Yes, Jason. So we did call out a $43 million onetime impact for the last quarter. That's for 3Q. This quarter, that line item is more in line with what we expect. But there would be some volatility in that line item but that's not a reflection of the core business. So I just wanted to focus on what our core business is and where most of the improvements are coming. And if you want to talk more about it, we can take it offline. Jason Gabelman: All right. Great. My follow-up is on DKL and the transactions you announced this morning, which were, I think, about $85 million. Wondering what the EBITDA contribution is going to be from those, the structure of the deal between cash and perhaps units and why the second part of the deal is closing in October 2027. Avigal Soreq: Absolutely. Robert, do you want to take it? Robert Wright: Yes, sure. Thanks. Great question. What we really completed here was furthering the economic separation of the 2 public companies. DKL now has 82% of their EBITDA on a third-party basis. But what really got accomplished here was DK materially is complete with putting the right assets under the right roof. And really, at a high level, these transactions from an EBITDA perspective are not material. And so I think -- and I guess the other piece of your question was the timing, and we've kind of laid out the 2 timing. That's really the phasing the cash flows between the 2 parties. Operator: Your next question comes from the line of Ryan Todd of Piper Sandler. Ryan Todd: Congrats on the result. Maybe just a question. I know you've touched on this in some of the things already but obviously, margin capture was very strong across multiple regions. I know some of that you've highlighted to some degree in terms of EOP drivers. But can you talk about what has gone well, what -- and how you see that sustainably going forward in terms of what may have been structural drivers versus what may have been some transient impacts and what you see in terms of margin capture going forward? Avigal Soreq: Yes. So I think that what you see is our strategy coming into a reflection in the results. That's the essence of that. And our strategy, there is a big component for a safe and reliable operation and EOP. So in order to have the right capture, you need 3 legs, right? You need a safe and reliable operation. You need very strong commercial activity led by our Chief Commercial Officer, Israel, that is here with us today, and you need a strong EOP. The combination of those 3 together improve capture over time. We are very proud of the results. You can see both in Tyler and KSR, post turnaround -- you see a meaningful improvement in capture, and that's something that we are very proud of post turnaround improvement before plan. Mohit, do you want to chime in? Mohit Bhardwaj: Yes. And Avigal, you rightly pointed out EOP as the reason for it. And because of EOP, we have been able to produce more high octane products and sell them all year round. So that is helping as well. We also have a very high distillate deal, which helped -- and we have increased our total liquid volume yield, which is also part of our enterprise optimization plan, and that is showing results in our capture. Operator: With no further questions, I'd like to pass it back to Avigal for closing remarks. Avigal Soreq: Yes. So I want to just say thank you for the team here that did a very good job to our Board of Directors that help and guide us and lead us to our investors that like the story and stay with the story and most importantly, to our great employees that make the company that great company. Thank you, and we'll talk again next quarter. Operator: This concludes today's conference call. You may now disconnect.
Luis Fernando Amodio Herrera: Ladies and gentlemen. It's a pleasure for me to share with you like every year around this date, the results of the recently finished year. Please allow me to highlight that these figures that we will mention next are the result of the deep transformation that the company has experienced in the last few years. The OHLA Group has been able to leave behind old habits to advance the determination towards a more solid and better prepared model in a global and competitive environment. That's why today, I address you all with a full satisfaction of accomplishment and a job well done. And with the conviction of having worked rigorously, coherently and with determination in each decision made. The figures that the CEO will mention next are not only reflecting a positive and sustained evolution, they also comply with the forecast communicated to the market. They also prove the effectiveness of adopted strategic decisions and the discipline with which they have been followed. To sum up, they are the evidence of a strategic and operational advancement that has been deep, foreseeable and structural. An advancement that many people considered hard to reach that now can be seen clearly reflected. Please allow me to mention especially relevant milestone that I feel especially proud of, because of what it symbolizes in terms of transformation and financial responsibility. The leverage ratio of the group is now 1.7x net EBITDA. This achievement is significant for 2 reasons: first, because back in 2020, this ratio was 11x, a figure, reflecting the size of the challenge that we were facing, and the breadth of the effort we needed to make; secondly, because it's the clearest proof of our rigorous belief in financial discipline. This financial discipline has allowed us to settle more than EUR 563 million of debt in 6 years. In this regard, I'd like to highlight that our main target is to reduce debt. It hasn't been a simple process, reducing debt at this level while strengthening the global performance of the group has required determination, rigor and an extremely precise management. That's why this milestone goes beyond a strictly financial terms, symbolizing the ability of this organization to work with excellence and increase its pipeline even in the most demanding context. And therefore, it is a great reason of pride for all of us. 2025 has also been a year of corporate governance strengthening that has materialized amongst other initiatives. In the addition of 3 new independent directors recruited according to the most demanding criteria of professionalism and excellence. In this way, half of the Board is now made of independent directors, reaching 50% of representation. Let me remind you that this ratio exceeds the recommendations of the main codes of good corporate governance. And they are a clear proof of the highest standards of transparency and independence. These new additions are great and proven background profiles in financing infrastructures with a deep knowledge of strategic markets where we aspire to consolidate our position as a reference company. The arrival of Ms. Socorro Fernández Larrea, and Mr. Vicente Rodero Rodero, and Mr. José Miguel Andrés Torrecillas brings a strategic perspective that has been leading in the Board's decision-making. In this way, we're reinforcing the technical quality and the independence of our Board. We're also advancing in a more balanced and demanding governance framework, strengthening, therefore, the trust of our shareholders and investors in the institutional solidity of the company. In 2025, we have also settled definitely some judicial uncertainties such as the arbitration procedure of the Sidra Hospital that were sort of [indiscernible] for the company. With this, we anticipate the shadows affecting our feasibility, and we open for our company a new stage free of contingencies fully focused on growth and returns for shareholders. With the disappearance of these shadows, the group is now presenting a solid situation in the face of the stakeholders that for years, questioned our stability that on many occasions, wanted to condition the confidence of the market. With the best financial structure over the last few years and with a reinforced corporate governance once cleared the main uncertainties, OHLA has now a great status to approach ambitiously our strategic plan. This plan has been conceived to consolidate a more profitable corporate model, able to generate sustainable growth and fully aligned with the excellence and growth standards we want for OHLA. Due to all this, I can firmly state that OHLA is now a new company, more financially solid, demanding in its management and a leading example in its governance and more ready than ever to face the challenges of an increasingly competitive and changing environment. Personally speaking, I cannot hide my pride as a President for being catalysts of this change. I'm proud of the talent and effort of our staff and of the collective ability to get over obstacles that seem unsurmountable. Now, OHLA, our future is built every day with a commitment of 32,000 collaborators that advance together in the same direction. Therefore, we firmly believe that the potential of this company goes way beyond the circumstances of each moment. And we face the future with a firm determination that OHLA will keep growing and helping grow everyone who is part of this project. Thanks so much for your attention. And next, I'll give the floor to our CEO, Mr. Tomás Ruiz, who will present in detail the results of the last year. Tomas Jose Gonzalez: Thanks so much, dear President. Good day, everyone. It's a pleasure to address you all today to present the results corresponding to the year 2025. As the President just mentioned, the figures we are now sharing are the direct result of a deep transformation of the company, sustained in time and performed with determination. 2025 has been a decisive year for OHLA, a year where we have consolidated our pace, reaffirming our operational solidity and showing that this company is ready to compete, grow and create value for the shareholder. As you may see in this presentation, OHLA yet another year has complied with all the targets we have set. And that's important -- extremely important because when a company meets their targets, they're responding to the confidence given to it. That's why complying and exceeding with the forecast is not yet -- yet another year is not just good news. It's a strict level. And based on this, please allow me to focus on 3 indicators that better show that anything has the deep financial transformation of OHLA since 2020. First of all, as the President mentioned, the gross debt reduction. We have gone from a ratio of 11x EBITDA in 2020 to 1.7x nowadays. It is a great reduction, not very common in our industry, reflecting a combination of discipline, prioritization in strategic matters and rigorous performance. Few companies can show a deleveraging process of this size without sacrificing the portfolio, the margins or the operational capability. In parallel, the company has transformed its operational capability, and that can be reflected clearly in our EBITDA. In only 5 years, OHLA has managed to travel its operational results, going from EBITDA that was not even reaching EUR 65 million to reaching levels of EUR 208 million. Besides 2025 is a third year in a row of cash flow generation in our activity, an indicator that for many years was recurrently negative and that now shows that we're going back to normal. In this graph that we are showing, we are showing how OHLA has met and outperformed all objectives included in the guidance at the start of last year. We had sales for EUR 4 billion, which outperformed the objective and EBITDA grew by 19% compared to the commitment that we took at the start of the year and by 36.4% compared to 2024, which means EUR 208.1 million EBITDA result. We have another positive net result. So we're back to black with EUR 1.7 million. So we've met the objective. In terms of order intake, we have EUR 4.6 billion (sic) [ EUR 4.7 billion ] , which once again outperformed the objective, which was 2.2%. Cash -- activity cash generation was EUR 76 million generated, which once again confirmed that we are back to normal in terms of liquidity for our activity. Credit rating has improved as well. We obtained a B2 (sic) [ B- ] by Fitch Ratings, which is better than what we had in 2024. And our gross financial debt, this is easy easier said than done, but we canceled EUR 192 million in debt. Now concerning the performance of our order book since 2029 (sic) [ 2019 ], we have gone from EUR 5.5 billion to EUR 9.7 billion in 2025, which is an all-time high. This is an order book increase of 77%. This is it's geographically diversified, and it emphasizes our home market. We are following a strategy, which is focused on selecting projects based on strict risk control criteria to guarantee and achieve sustainability in the value of our projects. We're also focusing on projects that mean under EUR 400 million in risk for the company. Our book-to-bill ratio is over 1x, and our order intake ratio is above the industry's highest standards. Whilst the order book in the United States grew up by EUR 4 billion -- up to EUR 4 billion in 2025, the geographical distribution has increased the relative weight of Latin America, which partly explains the improvement of our EBITDA. Now concerning main projects in 2025, I would highlight stable geographies in which we're operating with risk profile, which is aligned with our risk the ones that we very strictly established for our company. The Port of Miami in the United States is one of the most relevant ports in the country; the Lo Ruiz Tunnel in Chile. This is a key infrastructure for metropolitan mobility around Santiago; the extension of the Pan-American highway, which is an essential corridor for the regional transportation in Central America. In Spain, the new hospitals of Malaga and Huelva. And I would also like to highlight the strategic boost of our awards portfolio with the award of a new highway in Brazil with over 45,000 vehicles of traffic, which is already operating. Now concerning the activities, cash flow generation. Just to go a bit more in detail. This is a key indicator to understand the evolution of the company in the last 5 years. 2025 was the third year in a row where we had positive cash flow. This confirms once again that we're back to normal. And it's important to highlight that this was complemented by capital increases and the good response of our shareholders, which allowed us to cancel debt as well as making capital investments, whilst also facing the abusive redemption of performance bonds in Kuwait. So all of this explains why in spite of positive cash flow generation, our liquidity has gone down to EUR 847 million. Now concerning debt reduction, this is the main change that we have achieved, as we have mentioned. It's very important to keep reiterating that compared to 2020, we have canceled EUR 563 million in gross debt. This is and has been and will remain our main priority objective. And this is a significant effort for an organization that works in such high operating demand. The leverage ratio is 1.7x nowadays compared to 11x in 2020. And this is something that you do see in the industry. It requires discipline and operating soundness. Concerning sustainability, I would highlight that we have met 85% of the objectives that we established in our sustainability plan, thus showing that the road map that we created was feasible, measurable and executable. We have also reduced work accident rate by 35% in the last 3 years. Three key aspects that I would highlight about 2025, one of them has already been mentioned and addressed by the President. We took a step forward in our corporate governance by reestablishing our Board of Directors. Secondly, in 2025, we applied a cost reduction plan that is part of our strategic plan for 2025 to 2029. And the main objective of this cost reduction plan is to reduce costs by EUR 40 million. Amongst savings measures, we have partially relocated our headquarters, and we have partially -- we have applied organizational restructuring to simplify our overhead. And these measures already mean 50% of the forecasted savings, and we expect to achieve 85% of savings by the end of 2026. So we'll be doing more with less. And something very important in 2025 was that we cleared some of the most important uncertainties the company was facing with the rulings of the litigations of hospital -- the Sidra Hospital and the Doha Metro, both in Qatar. And these have meant a positive impact of EUR 17 million for OHLA. And further, in 2025, we agreed asset division of the Centro Canalejas in Madrid, which will allow us to manage this asset more efficiently. And to conclude, I would like to highlight that in 2025, we have EBITDA margins for Construction of 7% that we have positive cash flow generation that we have strongly reduced our gross debt, and we have deleveraged as well. We have extended note maturity until December 2029 without interim maturities. We have also cleared the main uncertainties that the company was facing. We are undergoing cost -- overhead cost reduction plan. And so we can be optimistic for 2026, and we forecast sales for over EUR 4.1 billion. We want to keep reducing overhead costs. We will keep focusing permanently on increasing gross margin, and we will reach over EUR 215 million EBITDA, order intake of EUR 4.4 billion. We will reinforce our financial stability and operating stability, and we will keep rotating nonstrategic assets. Thank you very much for your attention. And we're going to open the Q&A session with Víctor Pastor, who is the Financial Director of the group; and Pedro Arellano, who is the Director of Investor Relations and Capital Markets. But we will take a few minutes and we'll have a break before moving onto it. [Break] Pedro Villanueva: Good afternoon, everyone. Thanks so much for being here. And let's begin with the Q&A session. Please allow me first to address you apart from saying thanks. We have Tomás and Víctor Pastor as announced. But if there are any questions remaining, we'll respond to them very kindly from the Investor Relations department. We're getting quite a few questions by e-mail and also on the app. Now that you registered. So Tomás, let me ask the questions. We've had a recurring question during the presentation, which was when does OHLA expect to go back to dividends and whether it is included in the company guidance? Tomas Jose Gonzalez: Well, regarding this topic, I'd say that, of course, for any company, one of the main targets is to give out dividends to the shareholders. But in our road map, this target needs to go through other stations first. We've been working for that. And our debt reduction effort is geared towards that. And as the President said, we're going to keep working in reducing that debt. But obviously, the aim is to go back to the dividend payout. Possibly, we might not see that this year, but it's our target for the next year for 2027. Pedro Villanueva: Thank you. I'm going to combine a few questions we're getting regarding a litigation that was pending but favorable to us, which was the recovery of the debt with the Villar Mir Group that has been quite competitive. I think we got that question 9 or 10 times. Tomas Jose Gonzalez: Regarding that topic, I'll just highlight that just like any other OHLA debt, we are very rigorously to get the recovery. As we have seen in more relevant litigations regarding the amounts, sometimes we're successful in the recovery. But in the case of that specific debt, the tranche of that pending debt, which is not all of the debt is now in the process of recovery that may materialize in the next few months. We depend on the times of the judiciary power there. Pedro Villanueva: There's another question regarding the litigations for the rest of pending litigations, when do we expect them to be recovered so that are material in the cash flow of the company? Tomas Jose Gonzalez: Well, this varies depending on the litigation we're talking about. In some areas, sometimes there are some additional complications, in the specific case of litigation such as Doha. And once we have met our obligations in that country in Qatar, where we have some with subcontractors, we will be able to have excess cash flow and possibly in the first quarter, the first 5 months of this year. Pedro Villanueva: Thank you. We have a general strategic question that has been repeated in different times, and I tried to sum it up, hinting to us a strong growth in the last quarter and a progressive improvement of results throughout the year. Will that be kept? And we have a guidance of EUR 215 million. Is that aggressive? Is it not? How do we see it? Tomas Jose Gonzalez: Well, in our guidance, we always try to be conservative. And at the same time, we try to confirm our full compliance record for the things we commit to. That's why we say it will possibly be above EUR 215 million, but we should not forget that in this year's results, the last year's results, we foresee the effort of the Construction division with a year with excellent results. We also have some extraordinary impacts. And we take into account the net balance of positive and negative elements because we have also had some extraordinary negative elements like any company in this industry. We may be talking about an amount between EUR 20 million and EUR 25 million. Therefore, the target is to be above EUR 215 million of EBITDA, but we might be able to exceed that. Pedro Villanueva: Thank you. Now we have some questions regarding the balance sheet regarding the factoring without the possibility of recourse company. You have it in the balance sheet part is being the same as in 2024, EUR 101 million. And then we have other questions regarding debt management. Basically, how are we going to keep reducing the leveraging of 2026, which was the target announced in the presentation and whether that's related specifically to the bonds? Tomas Jose Gonzalez: Well, the main debt, not to mention the only debt of this company are bonds. As people know, we had important refinancing that finished last year, given us a stability horizon up to 2029. Despite that, as the President mentioned it, we keep reducing the amount of these bonds, the amount of debt. So we are working to rotate nonstrategic assets, and we'll keep doing so, so that we may reduce this debt. And once this happens, we'll be able to look for refinancing in even more convenient terms for the company. I don't know whether Victor might like to add anything. Victor Pastor: Good day, everyone. Maybe just add that in that debt, there is a penalty clause quite damaging for the company until August this year. And if we take into account that rotation that Tomás has mentioned and the fact that until August, that clause might entail a big payout by the company. Right now, we are working on the 2 fronts, asset rotation on the one hand to reduce debt; and other alternatives with a different debt profile in different markets. And with the pace and the credit profile of the company, we should be able to reduce the financial cost of that debt, which is quite costly and keeps increasing as years go by. So that's our strategy. Pedro Villanueva: Next, we have 2 questions. The first one is which work is being done with the banking pool with different banks and whether we see any possibility of increasing the capacity of the guarantees? Tomas Jose Gonzalez: Well, I'd like Victor to complement this question, but the work with the financial and banking committee is permanent. As proof of that, this year, just in this very month of February that is just finishing. At the beginning of the month, we closed extension of main line of guarantees in Spain with the FSM in terms even more favorable than we have for yet another year. But we keep working individually with different banks to extend it. The important growth of the portfolio in the last 5 years that has been nearly 80% wouldn't have been possible if we didn't have a strong support of these guarantees, not just the banking guarantees, but also the caution policies that we use in certain geographies and for some customers as well as the North American insurers, the [ Bondi ]companies with whom we have around EUR 3 billion in guarantees. But Víctor, maybe you would like to complement on this. Victor Pastor: Sure. Thank you, Tomás. Just to extend on this, this is constant work by the financial management area. And first, I should say at the beginning of this month of February, we extended the so-called FSM line with the banking pool we currently have for yet another year. And sometimes, there is specific focus in Spain like this year, and it's pretty obvious that the company has a business also internationally. We have a strong subsidiary in the U.S.A., another one operating in the Czech Republic, another important business, as mentioned in the presentation in Latin America. And besides working extending the capacity with Spanish institutions, which has been done since the Fitch rating increase and also after these results that hopefully would allow us to have greater capacity with Spanish institutions. For example, in 2025, in the Czech Republic, we have extended our lines with European, Austrian and German banks in guarantee lines for up to nearly EUR 50 million. In the U.S.A., this was extended with American banks up to nearly EUR 80 million. We also have bilateral agreements in Latin America, where we have increased our credit lines. And in general, our capacity between banking guarantees and caution policies is nearly EUR 5 billion in the group, which really makes a lot of sense because otherwise, we'll be unable to run these projects for those EUR 4.1 billion and having that other portfolio EUR 9 billion. So we keep working and we also have increase our possibilities in our capacity in 2025 and the financial community confidence keeps increasing. It has allowed us to keep working on all this capacity that I just mentioned. Pedro Villanueva: Thank you, Víctor. We have some repeat questions regarding the non-strategic assets defined as such, mainly in the service in Canalejas divisions. And in Canalejas, there's another subreply asking whether the agreement reached would change the perspectives of sale or the sharing prices that we had regarding the management of that asset? Tomas Jose Gonzalez: Well, first of all, the elimination of the uncertainty regarding the Canalejas asset is the relationship we have with our partner generated certain complexity in managing this asset. That has eased to now have more control and availability on the OHLA asset. That will be possible in time to give more value to the asset of the Galería and the Canalejas park in site. And we might be able to unlink it. It would not be immediate that maturity process of the asset may take a few months regarding the services, we've gone through these unlinkage process before. And now we are giving value to the company, and we'll keep doing so. Also paying attention to that unlinking process if there is an offer corresponding to the value of the company. Pedro Villanueva: Thank you, Tomás. We just have two questions. I think we've replied to all of them. There may be some other specific ones regarding the balance sheet I will answer directly to the banks that are asking and the analysts. There's a question concerning the news that we have seen in some local newspapers in Latin America concerning our forecasted activities in some specific Latin American countries and more specifically in Chile. And the question is what do we have to say? Do we have any comments on these pieces of news and what's our perspective in the country? Tomas Jose Gonzalez: Well, Chile is one of the natural markets of our company. We've been working there for over 40 years. Our order book has increased. Our track record is actually spotless. And this is why I was asking what the question was exactly because in the short -- in the last few years, we have faced 2 situations, the concession of Biobío, and this was an arbitrated negotiation with the client with the Ministry of Public Works to improve the terms of our contracts. because there were some delays when starting these works because we were lacking some permits. This is a highly technically complex project because this is about building 4 different hospitals in 4 different locations in one specific portion of the country in the Biobío region, which makes implementation very difficult. So these are delays that are non-attributable to the company, but rather to the lack of permits. And so the execution was delayed, as I was saying, but we have reached an agreement with the Chilean government, and we will move forward with this important award and the building of these 4 hospitals. There was another piece of news recently, and I don't know if that's the one that people are asking about, which is related to a small subsidiary that we have in Chile. This is a subsidiary that is hardly in operation. It was within the industrial -- our Industrial division, and it has lost traction and content in the last few years because it was in charge of projects that we're not really working on anymore. So we decided to wind it down in a petition. This is a normal process, and it will be continued in the next few weeks. But it doesn't imply as some newspapers wrongfully said that we are going to cease having a presence in that country. Pedro Villanueva: And now another specific question concerning -- the question says the severe deterioration of our Industrial division in this year, what are perspectives for 2026 and further in the future. Tomas Jose Gonzalez: Yes, the Industrial division had a complex situation this year for different reasons. First of all, because the renewable energies market, which is our specialization in this division is facing in some locations, specifically in Spain, saturation process or maybe if it's not saturation, at least a decrease in growth, which at the same time meant that projects were being slowed. We, at the same time, have started penetrating other markets, specifically in Latin America, and we will see a rebirth of these activities for 2026. So we hope we will outperform the situation in 2025. This was a situation which was due to market and company circumstances, and the situation of the different locations, but we are moving forward with this and in other locations. Pedro Villanueva: Okay. And we have one last question because we haven't received any more. And if we receive any further questions, then they will be answered by our department. So what sunk cost has this overhead reduction plan had? And what were they more specifically? Tomas Jose Gonzalez: Yes. So far, sunk costs were about EUR 10 million to EUR 11 million, and they are mostly related to some layoffs that we had to do. But these were very specific layoffs, more generalized layoffs where we are trying to eliminate redundancies and to, as I was saying in my presentation, do more with less because this is at the end of the day, what we will do to improve the results of the company. Pedro Villanueva: Okay. We just have another question. This is a very generic question, but the same is very specific. And it's Tomás, where do you think the company value or the objective price should lay? Tomas Jose Gonzalez: Well, this is a question for which we could have many answers. But in our opinion, our stocks are undervalued, because we are starting to see some value more clearly. But if we add up the assets of the company, I think everyone could reach that conclusion. I don't want to commit to a number, absolutely. But I think the reality will show what it is and that our share price will reach the position that we think you should have. Pedro Villanueva: Thank you very much. And I would just like to reiterate that this presentation will be recorded and available for 1 week, and it will be available as soon as possible, and we are at your disposal. Thank you very much. Tomás, I don't know if you'd like to say a few more words. Tomas Jose Gonzalez: No, just thank you very much for your attention. Thank you very much. Pedro Villanueva: Víctor? Victor Pastor: Same. Thank you very much to everyone. Pedro Villanueva: Thank you for joining us.
Bernd Pomrehn: Good morning, everyone, and welcome to Holcim's Full Year 2025 Results Presentation. My name is Bernd Pomrehn, Head of Investor Relations, and I'm pleased to be joined by our CEO, Miljan Gutovic; and our CFO, Steffen Kindler. After their presentations, as usually, you will have the opportunity to ask questions. If you join us on this sunny day, Friday in Zurich, then just raise your hand, and we will hand you a microphone when it's your turn. And our colleague from Chorus Call will now instruct you how to ask your questions via the webcast. Sandra, please. Operator: [Operator Instructions] The conference is being recorded. [Operator Instructions]. Bernd Pomrehn: And with this short intro, I directly hand it over to Miljan. Miljan, please. Miljan Gutovic: Thank you, Bernd. Good morning to all of you, and a warm welcome to Holcim's 2025 Full Year Results Analyst and Investors Conference. Steffen and I are pleased to be presenting our earnings to you today. And of course, there will be a time afterwards for your questions. We delivered strong profitable growth in 2025 with an acceleration in the fourth quarter as we achieved all our targets. As you can see, we accelerated the growth of our recurring EBIT in Q4. It was up 12.2%, taking us to a 10.3% for the year, exceeding our guidance. Our industry-leading margin increased by further 80 basis points to 18.3%. Margin expansion was driven by our high-value strategy, which includes scaling up our sustainable offering as well as continuously exercising strong cost discipline while enhancing operational efficiency. We generated CHF 2.2 billion in free cash flow with a cash conversion of 54%. Due to our excellent results and the confidence in the outlook, our Board of Directors has proposed a dividend of CHF 1.7. That represents a payout ratio of 53%. With these excellent results, we are setting guidance for '26 that is fully aligned with our midterm targets, and I'll take you through the guidance in details at the end of this presentation. Now let's turn to the region highlights. Very proud to report excellent results in Europe. Europe for Holcim continues to deliver strong margin expansion, which is driven by our high-value strategy as we are scaling our sustainable offering and accelerating initiatives in decarbonization and circular construction. In terms of the outlook, very positive on Europe. We expect strong activity in infrastructure. For instance, take, for example, Switzerland, we already communicated that we are supplying our products and solutions to Gotthard Tunnel. Now we have landed another big tunnel Axenstrasse, and we will start delivering soon. Also in residential building permits have increased across the whole Europe in recent months, even in the big markets like Germany and France. Let's look now in more detail on how we have made sustainability a driver of profitable growth in Europe. By scaling our sustainable offering, accelerating, decarbonization and circular construction as well as investments in value-accretive M&A, we have achieved a consistent multiyear margin expansion of 430 basis points between 2020 and 2025. That is a period that includes COVID crisis, high energy crisis, challenging economical cycles, market condition and also significant volatility in carbon price. Leading in decarbonization, we are using innovative formulations and alternative fuels to continue to expand our margins, so too with recycling of construction and demolition materials into the new building solutions. During this period, we have also created excellent value through our disciplined M&A approach, closing 66 acquisitions at very good prices, which were on average just around 5.3x EV EBITDA at signing, including synergies. These acquisitions are increasingly focused on expanding less carbon-intensive high-value building solutions from foundation and flooring to walling and roofing. All of this demonstrates our agility, our resilience based on our proven business model. I'm sure that we will get on to discussions on the EU ETS in our Q&A. So let me say a few words on this topic. The European Commission already announced its work program in 2025. So this is not new. This included a review of ETS to provide clarity for the post-2030 period with a proposal expected in Q3 this year. I would like to emphasize that we do not expect any major changes in short term before 2030. Holcim, of course, welcomes the work that EU Commission is doing to provide clarity for the post 2030 period, including for topics important -- that are important to decarbonization of our industry. If there are any changes to EU ETS allowances in the mid- to long term, this will simply provide more time to build effective business cases and partnerships to evolve the carbon management value chain, including transportation and storage as well as decreasing our costs. Once again, this slide shows that Holcim has made sustainability a driver of profitable growth regardless of the CO2 price. And more importantly, we have the strategic agility to adapt to different scenarios in our decarbonization road map with levers that expand our margins independent of the carbon price. Strong cost discipline and operational excellence are part of Holcim's DNA. Next, in LatAm, we delivered double-digit net sales growth for the full year with recurring EBIT margin above 30%, even after absorbing the integration costs of our newly acquired businesses. Disensa, the largest construction materials retail franchise in the region continues to grow strongly. We opened 460 new stores to take us to total 2,360. We expect the strong performance in LatAm to continue with 1.8 million new homes and the start of the next wave of infrastructure projects to accelerate growth in Mexico as well as significant demand in residential, but also in infrastructure to boost Argentina and Central America. Asia, Middle East and Africa delivered outstanding double-digit increase in recurring EBIT in '25 and really outstanding margin expansion of 220 basis points. We saw strong growth in North Africa, driven by public spending and also very, very good momentum in residential market. For this year, as a whole, we expect the strong demand in North Africa to continue with public and infrastructure projects in Egypt, Morocco and Algeria. We also see Australia as another bright spot where our team has secured important precast contracts for roads and tunnels. With that, I would like to hand it over to Steffen to talk through the financials in more detail. Steffen? Steffen Kindler: Thank you, Miljan, and a warm welcome to you all also from my side. It's a pleasure to be with you today for the full year results. Turning first to the net sales bridge. You can see that organic growth was the main contributor to a 3% rise in local currency as we achieved our 2025 guidance. While there was a contribution from acquisitions, we also divested Nigeria in the fourth quarter, which is categorized as a large transaction. The foreign exchange effect on sales was negative CHF 810 million or 5%. Just a note on our guidance that you may have picked up from the presentation and press release as a technical simplification and a move to the more common terminology of organic growth, we will be guiding on organic growth for 2026. OG for 2026 is expected to be very similar to the LC definition used so far. For the full year, on the next chart, EBIT, on the full year, we delivered 10.3% growth in recurring EBIT in local currency, excluding large M&A. Now you know why we go back to OG, and even 12.2% organic growth, significantly exceeding our 6% to 10% targeted range for the year. Despite foreign exchange headwinds of CHF 200 million or 7%, we managed to grow our absolute EBIT in Swiss francs by 1.4%. Next, let's look at the progression of our recurring EBIT and recurring EBIT margin over the last 4 years. This graph here shows that we have been consistently expanded both our recurring EBIT margin and our recurring EBIT, now well above CHF 2.8 billion. As Michael said earlier, our margin expansion is driven by our high-value strategy as we scale up our sustainable offering while keeping a strong focus on cost discipline and operational excellence. We saw strong recurring EBIT contributions from all the regions, around CHF 1.5 billion in Europe and more than CHF 900 million in each of LatAm and EMEA. Europe delivered strong EBIT growth with margin expansion of 140 basis points. Net sales growth was double digit in Latin America, and we maintained a recurring EBIT margin of above 30%. In Asia, Middle East and Africa, there was double-digit growth in recurring EBIT at 14.1%. The strong performance overall shows the benefits of our regional diversification playing out well. Our deeply embedded performance culture and disciplined financial management ultimately drives the growth of our earnings per share or EPS, which is up 5% in Swiss francs from 2024. This shows that we pay equal attention to operational performance and financial discipline. And as you see here also on the lines below EBIT, obviously. You can see that by all measures of the bottom line, we are producing superior profitable growth. Next, you can see the development of our free cash flow in 2025, which exceeded our target of around CHF 2 billion -- in the last 5 to 6 years, Holcim reliably delivered superior free cash flow with cash conversion rates consistently above 50%. This is driven by strong EBITDA, our focus on working capital, financing costs, other cash relevant items and last but not least, a very disciplined approach to CapEx, prioritizing those projects with the highest returns. On this chart, you see our net debt leverage ratio, which closed 2025 at a comfortable 0.9x. This will provide Holcim with sufficient financial flexibility and the ability to navigate all economic cycles while continuing to invest in profitable growth through CapEx and M&A and to offer attractive shareholder returns. We remain committed to a healthy balance sheet and net leverage below 1.5x over the long term, a reiteration to what we said at the Capital Markets Day. Holcim is investing for growth while delivering steadily increasing ROIC. Our return on invested capital continues to tick up year-on-year, reaching 11.2% in 2025. And following our strong value creation for shareholders in 2025, the Board of Directors has proposed a dividend per share of CHF 1.7 to be proposed to our AGM. This will be paid out of foreign capital contribution reserves of more than CHF 7 billion, which amount to 17% of our market capitalization, and these are not subject to Swiss withholding tax. This represents a payout ratio of 53% and very important, a post-tax dividend yield of 2.4% after tax. This next slide is a bit of a reminder of our growth-focused capital allocation out to the year 2030, which we frequently discuss in smaller group meetings with our investors. The execution of our NextGen Growth 2030 strategy will provide Holcim with a total capital deployment capacity of up to CHF 22 billion until 2030. In order to ignite further growth, we will deploy this capital strategically, focusing on growth as well as shareholder returns. We remain committed to a progressive dividend and returning substantial value to our shareholders. We will return a total of CHF 7 billion until 2030, corresponding to a payout ratio of approximately 50% or higher per year. An additional CHF 4 billion to CHF 6 billion from proceeds of larger divestments or available debt capacity can be used for large strategic M&A or to opportunistically execute share buybacks. We believe that our growth-focused capital allocation will further accelerate profitable growth while delivering attractive returns to shareholders. And with that, I'll close, and I'd like to hand it back over to Miljan. Miljan Gutovic: Thank you, Steffen. So for NextGen Growth 2030, as you have seen, we are delivering superior performance and margin expansion focused on 5 pillars. We are scaling up our sustainable offering powered by our premium brands. We are accelerating initiatives for decarbonization and circular construction, driving profitable growth. A key part of NextGen Growth 2030 is expanding our high-value building solutions. With our impeccable track record of value-accretive M&A, we are focusing on the most attractive markets. And all of this, this is all driven by our deeply embedded performance culture, which we are proud to have at Holcim. Let's look more closely at some of these priorities. Customer demand for our premium brands, ECOPact and ECOPlanet continues to grow. These are being used at scale in large projects like the CityWave in Italy, which was built with ECOPact made from ECOPlanet that is even more sustainable because we use calcine clay and Mohammed Tower in Morocco, which was built with our ECOPlanet low-carbon cement and our insulation form Airium. We're also seeing a strong growth in ECOCycle, our circular technology that is being used to recycle construction and demolition materials and put it back into our products. A recent project completed using ECOPact and ECOCycle was this housing project on the outskirts of Paris in France, which consists of 220 social housing units. This is the first and first in the world, 100% recycled concrete building in which all the components used, cement, concrete, even water are 100% recycled. Overall, this concrete with ECOCycle saved more than 6,000 tons of primary materials. It is a demonstration of what we can achieve by partnering with forward-looking cities to evolve building standards and building norms. We are advancing circular construction to build cities from cities and also to drive profitable growth. In 2025, we made 3 acquisitions, and we also invested organically to grow our circular construction hubs. We are establishing them in all the major metropolitan areas in which we operate to a total of 109. Over the same period, we grew our net sales from circular construction to close to CHF 500 million. And as you can see, we are well on the way to hit CHF 800 million by 2030. Organic investments make up an important part of our growth-focused capital allocation, and Steffen also mentioned this. And in 2025, our capital expenditure amounted to around CHF 400 million. You can see some recent examples on this slide across different geographies. They give you some idea of our priorities, grinding investment, calcined-clay production or expanding our building solutions in Australia. You will see in our press release that we have signed an agreement with Air Liquide to deepen our collaboration on one of our flagship projects, GO4ZERO for carbon capture and storage in Obourg, Belgium. We are in full execution of the first phase of this upgrade, which will make Obourg a really state-of-the-art plant, not only in Holcim World, but globally. And all these growth investments have a very attractive returns and a very attractive paybacks. Next, M&A. We closed 21 value-accretive transactions in 2025, of which 18 were acquisitions and 3 were divestments. We made 9 acquisitions in Building Materials and also 9 acquisitions in Building Solutions. We also have closed divestments of Jordan, Nigeria, and we sold our Karbala plant in Iraq. Just a reminder that we signed in October an agreement to buy Xella, a growth platform in a highly attractive European walling market. It brings us sustainable and energy-efficient solutions powered by the premium brands that are really great fit to Holcim's existing product portfolio. It will also help us to accelerate the expansion of Holcim's high-value building solutions, which is in line with our next-gen growth strategy. This transaction is subject to customary conditions and approvals and is expected to close in H2 this year. In December, we also signed the agreement to acquire a majority stake in Pacasmayo. The company is a leading producer of building materials in Peru, and this transaction will probably close, of course, subject to all the regulatory approvals in H1 this year. Finally, a note on our deeply embedded performance culture. You can see on this slide, statistics, but our results are not down to statistics. Our results are thanks to our people that work at Holcim. We want Holcim to be the best workplace where talent is nurtured, where performance is awarded and where innovation is encouraged. Our commitment to this vision has been reflected in Holcim being recognized as a global top employer by the Top Employers Institute. And through Holcim University, which is our in-house business school, we are providing our people with really best-in-class trainings. With our focus on accountability and also empowerment through Holcim spirit, our more than 45,000 of employees are delivering value across all economical cycles and across all market conditions. And now to the outlook. Well, net sales and recurring EBIT growth fully in line with our NextGen Growth 2030 targets. Net sales, 3% to 5%. And as mentioned by Steffen, we are moving to organic growth. Also EBIT, 8% to 10% organic EBIT growth. We are committing to further increase of recurring EBIT margin. We estimate cash flow to be around CHF 2 billion. And of course, we will continue to invest in circular construction with 20-plus percent volume growth in 2026. Bernd, you can now open it for questions. Bernd Pomrehn: Thank you so much, Miljan. Thank you so much, Steffen. With this, we're starting our Q&A session. The first question is coming in from Martin Husler, who is joining us here in Zurich. Please wait until you get the microphone, please. Martin Huesler: I have 2 questions. Maybe first, coming back to the ETS rumor scheme, and thanks for your elaboration so far. But maybe how much have you already invested, let's say, for example, in CCUS projects, which might stand at risk if CO2 prices came down below EUR 50 over the next couple of years. So just an indication on what's here at stake? And what would it mean if you start to delay CCUS projects for your CapEx for the next couple of years? That's the first question. Miljan Gutovic: Okay. Thank you, Martin, and thank you for your question. So on ETS, the answer is negligible investment so far. I mean, we are -- for instance, in Obourg, we are building a brand-new plant, but we would do that without CCS. This will be the state-of-the-art plant best-in-class when it comes to cost efficiency and also when it comes to the sustainability KPIs. We talk here about a few million across the projects. So investments so far, negligible. If the projects are delayed, and I did discuss on what happens after 2030, I think if there is a delay, we will have more time to find more cost competitive solutions for these projects. I'll give you a perfect example. 3 years ago, most of these carbon capture projects were based on offshore storage, means we take -- capture CO2, we take it somewhere in the sea. Now the momentum, especially in the last year, 1.5 years, has accelerated to move from offshore to onshore. So the cost advantage is enormous. So even if nothing happens on EU ETS, CO2 prices continue to go up, I might delay a project 6 to 12 months in order to move from offshore to onshore storage because cost advantage, as I said, is enormous. So when it comes to the CCUS projects, what we do at Holcim, and this is DNA, it's the discipline regardless, cost discipline on pricing, on cost and cost discipline on M&A and also CapEx projects. Martin Huesler: And then a second question because you faced some integration costs you mentioned for Latin America, for example. Now thinking about the acquisitions that you announced, Pacasmayo, Xella, et cetera, which roughly add 10% to group sales on an annual base. How much as a ballpark number, how much EBIT contribution could that be? I mean, could EBIT also be impacted by integration costs, just 10% on sales? How much is this roughly on EBIT? Miljan Gutovic: I'll start and then maybe Steffen can continue. So these 2 acquisitions in LatAm, they were different than Pacasmayo, let's say. Pacasmayo will run as a stand-alone company. So integration costs, they will -- there are always integration costs. Are we synchronizing ERP system? We will definitely invest in safety -- health and safety because this is the core of what we do, but I would expect negligible impact. And the same applies for Xella. On Xella, I think I would even like to spend more to accelerate this cross-selling between us to invest, for instance, in additional sales force so we can move faster on specification selling. So I would not expect significant impact on these 2 deals and the integration costs. Steffen Kindler: You're completely right, Miljan. Just to give you a feeling the scope in for these large acquisitions, Xella, Pacasmayo and Alkern for this year is going to be in the range of CHF 120 million to CHF 150 million on EBIT level. But the difference to a smaller acquisition -- in a small acquisition, you often need to go in and change a lot of things to bring it up to Holcim standard from safety to IT to accounting. Here, we're acquiring very mature companies. And so the initial cost to bring them to our standards is much, much lower. We can basically use almost everything they have. And then we change the accounting standards to completely communicate with ours. But the cost and the effort we have to do is much lower. Bernd Pomrehn: Next question comes from Lothar Lubinetzki from Octavian. Lothar Lubinetzki: Let me follow up on the CO2 issue. What is more important for your margin progression, price or mix? And with regard to price, what is the current premium you're getting for ECOPact ECOPlanet in Europe and LatAm? Miljan Gutovic: So everything is important. Don't get me wrong. But on the -- what is the -- what's driving our margin expansion is our whole high-value strategy, where pricing is important to offset the cost inflation, but margin expansion is coming from sustainable offering. I'll come to that later. It's coming from our incentives -- initiatives in decarbonization and circular construction. And you saw the slide on Europe, 66 acquisitions in the last 5 years at multiples of 5.3 after synergies. And so all of this is driving margin expansion. Now on sustainable offering. This is something that I'm really proud of the way we handle the whole launch of these products and where we are today. We do have a modest price premium on ECOPact, ECOPlanet, and this could be between low to mid-single digits. Probably in some countries, we are closer to 5%. In some countries, we are between 1% and 2%. But as I said this before, these products, we have a cost upside. Thanks to Holcim's innovation, our production know-how, our formulation know-how on these products, we are reducing cost. We are replacing expensive raw materials with less expensive. For instance, you saw that we are now scaling up calcined clay production even in LatAm. This is exactly the point. By doing this, we will be replacing clinker with calcined clay. Calcined clay has lower CO2, but also has a lower cost. So the story was about Europe. But a few weeks ago, I had a privilege to visit Egypt. I mean, country -- emerging market where the team took me to a project, National Grand Museum of Cairo, quite impressive, the whole development. And what was specified -- architects specified ECOPlanet. They demanded low-carbon cement and concrete solutions on these products. And this is a project in Egypt, not in Zurich or Hamburg or London. So potential for these products is increasing. And we are seeing more and more demand even in the developing markets. Another great example that you find might -- we published this actually 2 quarters, Ecuador. By far, I think it's the biggest residential development complex in the whole Latin America, houses for 180,000 people, all done with ECOPlanet and ECOPact. Lothar Lubinetzki: And in terms of recycling CDM, I think you reached 8 million tons this year. Is there anybody else in the industry who is even getting close to that number? Miljan Gutovic: So just to clarify, this market is big. What we're currently seeing that this market is fragmented. So there are many players. For us, where our advantage is, we are focusing on metropolitan cities, big cities from Zurich to London to Paris, Lyon, where we have a strong Holcim footprint. Buying these companies or building recycling hubs from scratch, we have excellent synergies. That's why we are faster than the others. I'm being modest. Bernd Pomrehn: Thank you, Lothar. One more question from the room. It's Remo Rosenau from Helvetische Bank. Remo Rosenau: What kind of price increases did you already announce in Europe ahead of all these certificate discussions? And when should they take effect? Steffen Kindler: It varies by region, so probably the most important regions. Miljan Gutovic: So we talk about Europe -- Remo, thank you for the question. I know the pricing question always comes at some stage. First of all, very pleased with the pricing dynamic in Europe this year. We had an excellent exit price in December. And I think from what I have seen, and I have spent a lot of time with my dear colleagues at the back on pricing topic, we do have a very healthy momentum. I maybe too early to say, but it depends from market to market. Maybe we are talking about mid-single digits. Remo Rosenau: In percentage points. Miljan Gutovic: Yes. We will stick before or after all of this. Remo Rosenau: Well, that's the question, how much of that will stick because the announcement is one thing and then the reality is the other one. And this is the slow season. So it only comes really -- I mean, the proof of the pudding will be in March, April, right? Miljan Gutovic: Once again, depending from market to market, we are already seeing something -- some contracts have been secured. I am optimistic and positive that we will get there. Remo Rosenau: We stay tuned. Bernd Pomrehn: Thank you, Remo. We are now switching to questions from the webcast. The first one is Julian Radlinger from UBS. Julian Radlinger: So a couple for me. So first of all, the -- so you're guiding to 8% to 10% organic EBIT growth, which is higher than what you guided to last year. And last year, you delivered, I think, 12%. So I'm not going to ask whether or not you think you could do even better than 10%. But if that were to happen, what would the drivers for that be? What's likely to be different in 2026 versus 2025 in your mind in terms of demand, volumes, price or costs? And then secondly, and I'm really sorry to ask this, but I think a lot of investors right now are really nervous about this topic, obviously. In a scenario in which something really draconian were to happen to this whole ETS mechanism. Let's just hypothetically say it actually -- they actually push the whole thing to the [right] or they cap CO2 prices on a very low level. What do you think happens to cement pricing dynamics in Europe or the level of competition? How would you -- what would you -- how would you think about that? Miljan Gutovic: Julian, thank you for your question. I'll go to the second, and maybe you can answer the first one. We already addressed it on the guidance. So first of all, Europe slide is there, Julian, you can see what we have done in the last 5 years. And this is across some really challenging market conditions. We had COVID. We had -- remember in 2022, we had high energy prices going 300%, 500% overnight and so on. Pricing was disciplined in Europe, and that helped us offset all these costs. So I do not perceive any significant impact, on the pricing dynamic will remain positive and healthy. There is more discipline. And Holcim, this is where we differentiate. We will continue with our pillars of our high-value strategy, sustainable offering, decarbonization, circular construction, M&A and so on to continue with margin expansion. So regarding just one on these big projects that I would like -- there are derisking mechanisms already in place in some countries that can help us mitigate the CO2 price volatility. So these projects on carbon capture can go ahead. Steffen Kindler: Look, we simply narrowed the guidance, right, from 6% to 10% to 8% to 10%, which is a sign of our confidence that we're really going to sit again at the upper end of that frame that we gave at the Capital Markets Day. So you should interpret that as a sign of confidence. Last year, we had above 12%. And again, we're aiming for the upper end of this guidance. Now what drives it? Leverage through a bit volume, as Miljan described before, operating leverage. And we're still on the journey to reduce our corporate costs, as you know, and to readapt to the regional footprint also after the spin-off. We have positive price over cost. We have good contribution from our JVs, a bit offset through the Nigeria divestment. So -- and I would also say the margin progress and the EBIT growth progress is probably a bit back-end loaded given the volume recovery pattern. But it's a sign of confidence, I would say, that we narrowed this guidance to the upper end. Miljan Gutovic: Maybe one I mentioned in the presentation, Switzerland. So we are a Swiss company, proud to be a Swiss company. The amount of infrastructure projects we have in Switzerland today is significantly higher than versus 3 years ago. I mentioned Gotthard, okay, but this new one, Axenstrasse connecting Schwyz and Uri. This is a new project that will go on for years and where Holcim has secured the contract to supply. Also, once again, I would like to reiterate, residential sector was hardest hit in the last few years. For the first time, we are seeing bottoming down. Maybe it will not go skyrocketing, but we are seeing positive signs in this market segment where we took the hardest hit. Bernd Pomrehn: The next one on the line is Ben Rada Martin from Goldman Sachs. Benjamin Rada Martin: My first is on the 2026 free cash flow guidance. Your comments around, I guess, expecting CHF 2 billion in '26 versus the CHF 2.15 billion you did in 2025 despite some really strong earnings growth in terms of EBIT. Can you talk through, I guess, what would bring you down towards the CHF 2 billion mark? Is it CapEx, tax, any working capital impacts, just so we can understand some of the key buckets? And then the second would just be on carbon capture. It's worth noting some headlines around potentially a Belgium project moving beyond 2030. Would you be able to touch on how you see the other project time lines within the next few years? And how much you expect to be online before the end of the decade? Miljan Gutovic: Thank you for your question, and thank you for joining us. I'll go with the second question, and then Steffen can address the first on cash flow. So this morning, Air Liquide has made the announcement that we entered into partnership for the second phase of this project, Obourg, carbon capture. So as you can imagine, we have been dealing with the media recently a lot. Nothing to do with us. Phase 1 is progressing well. I had the opportunity to bring our Board members to see how the state-of-the-art project will look like when it's commissioned in H1 next year. Very happy with the development on that front. Once we complete commissioning in H1 next year, we will start working on Phase 2, which is with carbon capture with Air Liquide. Steffen Kindler: Ben, good to talk to you. On the cash flow guidance, look, over the last couple of years, also before the spin-off, Holcim has always delivered an above 50% cash conversion. And we've always had a very conservative cash flow guidance. Now why is that? Because cash flow is a time frame number, but it's also a snapshot number at the end of the year, depending on the fall of certain payments at the end of December or the beginning of January. This is why we give ourselves some flexibility here with this number. But you shouldn't read a message that we're reducing cash flow or that the strength of our cash conversion is weakening at any degree. It's just we give ourselves some flexibility in order not to be pushed into unsustainable measures at the year-end. That's it. Bernd Pomrehn: And the next one on the line is Luis Prieto from Kepler Cheuvreux. Luis Prieto: A couple of them for me. The first one is I would like to come back again for a moment to the European Commission's overhaul of the EU ETS. The significant amount of noise around the subject has taken the CO2 price down, if I'm not mistaken, by almost 25% over the last 6 weeks. Could you provide us with a rough idea of what is the minimum price for the average project in your CCUS pipeline to be economically viable just to understand a bit better. And second one is from a conceptual perspective only, what could be a reasonable assumption for medium-term volume growth in Europe if the German infrastructure, defense investments, residential recovery and data center themes pan out as expected? In other words, if all these things fire on all cylinders? Miljan Gutovic: Thank you for your question. On the volume -- I'll start with the volumes just to shake it up a little bit. On the volumes, we do not comment on the volumes, but I would say that construction activity can increase mid-single digit if all of this happens. On the ETS, well, the price can be even EUR 50, EUR 60 if you have derisking mechanisms in place. For instance, Germany has CFD, which is a carbon contract for difference, where they are helping the companies to offset the CO2 price volatility. So if we have that in place, then these projects can go ahead regardless of the CO2 cost. However, for us to be comfortable has to be EUR 100-plus per tonne. Bernd Pomrehn: The next one on the line is Elodie Rall from JPMorgan. Elodie Rall: So first of all, on LatAm to change a bit from Europe. We've seen margin down 320 bps. I think you mentioned impact from integration of recent acquisitions. What kind of margin direction should we expect there for '26? Do you think we can get that back as soon as this year? Second question is on FX. Sorry, but could you give us your expectations for FX on top line and EBIT? And last question is on your view on capacity consolidation in Europe, if there is any update on this? I mean you were talking previously about further consolidation likely to happen by 2030. So has anything changed in particular with the potential for ETS reform? Miljan Gutovic: Thank you for the question. On the capacity consolidation, we are not seeing any significant changes. I still believe that we might -- even this year, we might see some opportunities. As I said last time, we are interested. However, there are markets where we will not be able to participate. But overall, if there is a possibility, definitely, we would be interested in capacity consolidation. For us, I said this also in the past, there could be a possibility that in the next few years, some of our existing clinker producing plants will be converted to produce something else, for instance, calcined clay. And the teams are working on this, and we already have a few of these projects underway. On LatAm, I think I am expecting margin expansion this year. I will not put the number, but all the signs -- positive signs are in place all the way from Mexico to Argentina. We are seeing a positive strong momentum in some of the countries in Central America. So I am expecting margin expansion in LatAm. Steffen Kindler: FX? Elodie, first of all, we expect headwinds to normalize from FX at around -- number one, first, I have to say, I don't have the crystal ball, okay? This is a disclaimer. And then after that, we expect headwinds to normalize as of the second quarter. The first quarter will still be a bit challenging. But if you have to put my best guess for this year, you have an FX headwind on sales of around 3% and an FX headwind on profit of around 4% to 5% with big disclaimer marks all around this information, okay? Bernd Pomrehn: The next one in the line is Arnaud Lehmann from Bank of America. Arnaud Lehmann: I have 3 questions, if I may. Just a follow-up on Latin America and Mexico, in particular, there's been a bit of unrest. Can you confirm that there wasn't any major disruption to your operations so far? And if you don't mind commenting a bit more on the volume outlook and pricing outlook for Mexico for 2026? That's my first question. My second is on North Africa. I believe the momentum was pretty good in Morocco, Egypt, et cetera. Can you -- do you see a continuation of the positive volumes momentum in '26? And lastly, you end 2025 with a very strong balance sheet. The share price has been a bit more volatile and obviously has come back down a little bit recently. Do you see opportunities for buyback? Miljan Gutovic: I'll go on LatAm, Mexico and North Africa, and you address share buyback. Mexico, we are monitoring situation. There have been unrest in 20 out of 32 states in Mexico. Today, we still have some tension in 4 states, but Holcim operations have not been affected. And in -- other than these 4 states, most of the states are back to normal. On the whole Mexico volumes and trends, so as I said, last year, probably we were expecting these big infrastructure projects to start earlier, they started late in Q3 and they continued in Q4. So I expect good momentum on infrastructure projects this year. And I already mentioned, it's on the slide that the first wave of social housing projects, 180,000 homes out of 1.8 million has started. So I'm optimistic about Mexico. On the North Africa, really, really strong momentum in '25. I am very happy what I'm seeing this year, what we have in the pipeline. You mentioned Morocco and Egypt. I would like to add Algeria. These countries -- these 3 countries' margins are now even higher than what we have in Latin America. Momentum is strong. Probably, we are expecting even better year than '25 in these markets. Steffen Kindler: Share buyback. Maybe I'll take a little step back to answer your question. So we announced the deals of Xella and Pacasmayo, which we will close in 2026. So the cash out will be in this year. We announced the dividend. And then there are some smaller portions that we do. We do bolt-ons again and so on and so on. So we will end up with a debt leverage of below 1.5 again, as we announced at our Capital Markets Day, we're going to move a bit closer to that number in 2026. Now also, as we've shown on our chart before, capital allocation until the year 2030, we have a clear priority of the dividend, the M&A, the CapEx, and we always said that share buyback is something we do with -- in exceptional opportunistic cases with excess cash. But if you look at what I said before, we still have so many opportunities to do M&A on top also of Xella and Pacasmayo. There are still a lot of interesting opportunities out there for us in 2026 that you might hear as we go through the year. So that we -- for this year, we don't announce a share buyback. But as we also said in our capital allocation in a year where we don't have so many opportunities to drive very good returns with M&A, then we might also revert to a share buyback as a means to deploy our cash. Bernd Pomrehn: The next one on the line is Ephrem Ravi from Citi. Ephrem Ravi: Again, only 2 questions left. Firstly, the Asia, Middle East and Africa, obviously seeing some of the strongest EBIT growth in local currency of all your regions. But it feels to me from the commentary that's almost entirely North Africa and maybe a little bit of Australia. So is it possible to unpack that region a little bit more in terms of what proportion of the growth in EBIT is coming from Morocco, Algeria and Egypt and maybe even Australia compared to Bangladesh, Philippines, et cetera, which is probably breakeven and obviously, Huaxin, we can look from public figures. Second question on the -- back to carbon, I'm sorry for that. Is there any opportunity for you with lower carbon prices, i.e., can you sort of sell some credits before prices come down in the future if the rate of allowances given is going to be higher than expected in the future? And secondly, are you looking at hedging mechanisms on carbon? Because obviously, you could hedge currency and energy, but I haven't heard much about hedging carbon cost in the future because I suppose it was all seen as a one-way trade-off. But now that it's more volatile and range bound, is that something that you would be considering? Miljan Gutovic: I'll tackle EMEA and you tackle the second one. Ephrem, thank you for your question. Yes, EMEA outstanding margin expansion, very good growth and most of it is coming from North Africa, Australia and GCC. We didn't mention it's a small position, but UAE is booming. Our position in Philippines, Bangladesh, it's relatively small. Philippines, if I can say one market where there are really challenging market conditions, that's Philippines and -- but relatively small position in the grand scheme, so it's not impacting. As I said, most of the margin, most of the contribution comes from North Africa, GCC and Australia. Having said that, Australia in H1 last year was a little bit softer, but we have seen a very good momentum in starting Q3 and continuing in Q4. Steffen Kindler: Carbon, Ephrem, we do not usually comment on that of what positions we take or don't take. It's highly sensitive. But we can be opportunistic in certain cases. We can look out into the future. We can make estimations that in certain years, the allowances we have will not cover our needs and then we might take positions at low markets. But be aware, what is very important to understand, we always view this as an industrial company. We never view this from a point of view of a trader who is trying to make a benefit on the carbon trades. We deal with the CO2 market like a raw material, okay, and not as a tool to make an additional gain with hedge positions. I think this is very important to understand. Miljan Gutovic: So my view is even simpler. If I have CHF 1 million to invest, would I go and buy CO2 credits or would I invest in the circular hub or decarbonization initiative? Definitely. I would invest in a project where I can reduce the CO2. So we are -- as you said, we are not in the trading business. Bernd Pomrehn: Doing something good for shareholders and the planet. We've got a couple of written questions. The first one is from Pujarini Ghosh from Bernstein. She's asking, have you seen any change to the demand or willingness to pay a slight premium for your decarbonized products because of the ETS noise? Miljan Gutovic: The answer is no and not only in Europe, but outside Europe as well. Bernd Pomrehn: Very simple. And the second question from Puja is, could you split the LatAm margin decline between what is driven by acquisition integration costs and how much could be operating leverage and underlying business impact? Steffen Kindler: Look, a couple of drivers here. Number one, we said that there were some onboarding costs for acquisitions. There was a big mix effect also, some countries that are very high profitability were a bit softer. Then we went through a bit of a slump in volumes also in 2025 in the second quarter, especially. And naturally, it takes a few months until you adapt your fixed cost structures. And then lastly, we did a lot of maintenance, as I said, in the third quarter. So all of these things, as Miljan said before, we were quite positive that this is behind us. And for the full year 2026, we plan a very nice margin progression back to the levels of where we've been before. We're not guiding margin on one region specifically, but you can expect that the margin will come back up because there's nothing fundamentally -- there's nothing fundamentally that drove this where we are today. It was a couple of instances. Bernd Pomrehn: Then we've got 3 questions from Paul Rogers from Exane BNP Paribas. The first one, are you now happy with your portfolio in Latin America? Or are there still either new countries to enter or bigger gaps to fill? Miljan Gutovic: I would simply -- last one was Peru. Peru now with Pacasmayo, we are gaining market leadership, and that would be it. LatAm story will be on bolt-ons, especially on Building Solutions side and the full, full acceleration in increasing number of sales points, number of Disensa stores. Bernd Pomrehn: Second question from Paul is how much debt capacity is left for larger M&A this year after Xella and Pacasmayo? Steffen Kindler: Yes. Paul, same question I gave to Arnaud before. We're going to close the deals on Xella. We're going to close the deal on Pacasmayo. We're going to pay a dividend. That leaves us at the end of the year roughly below 1.5. This is a long-term commitment. Now what we can do in order to maintain our credit rating, we can go up to -- up to 2 for a certain period of time. So there is a lot of debt capacity still left for us if we find it opportunistic to do other M&A. So financing will not hold us back. Bernd Pomrehn: And let me ask a third question. I think more or less we tackled this one. It's again update on Obourg modernization and CCS. Are there other big capital projects proceeding to plan? Miljan Gutovic: All in all, I mentioned already Phase 1 commissioned in H1, really state-of-the-art plant. And I hope that once we are up and running, I will be able to send invitation for you to come and see the plant with the latest technology advances in cement industry. Bernd Pomrehn: Perfect. The next set of questions came also in by e-mail from Ebrahim Homani from CIC. Latin America, we already also tackled that one, I think, more or less. Is it possible again to reach the 2024 level in Latin America in the future? Yes. Very simple. Then the second question, weather conditions are currently bad in Europe since the beginning of the year. Not today in Zurich, but what's the impact on the expected organic growth for this year? Miljan Gutovic: Look, Q1 is the smallest quarter in the year. January and February are the smallest months in the year. I say I cannot control the weather. But for me, what's important in January and February, Remo, this is what we discuss pricing momentum. So in the meetings these days, when it comes to activity, we only talk about pricing momentum. So even January was cold, February was wet, but this is only start of the year. Bernd Pomrehn: Perfect. The next question came in from Harry Goad from Berenberg. Do you expect to see positive organic volume growth in France and Germany this year? Miljan Gutovic: To be highly conservative, I would say flattish. I would not commit to growth. Bernd Pomrehn: I think we demonstrated last year that we can achieve growing EBIT even in weak volume environments. Miljan Gutovic: Well, the slide on Europe is suggesting activity was going down and the margin expansion was going up. Bernd Pomrehn: Somewhat related question from Stefano Donati from BlackRock. In your guidance, what volume assumptions are you using for Europe? And how much of the German infrastructure stimulus is in them? Steffen Kindler: [indiscernible] flat probably on 2 very large countries. And then up in Eastern Europe, I would say we have a low to mid-single-digit volume guidance in Europe positively. Miljan Gutovic: I would -- on infrastructure in Germany, I would not expect anything in H1. We might see some positive signs in Q3, but I would not bet on anything big from German infrastructure spend. Bernd Pomrehn: Perfect. Then we are switching again to live questions from the webcast. The next one in the line is Harry Dow from Rothschild. Harry? Harry Dow: Just I think 2 questions left for me. I think, firstly, on the cost picture for 2026. I maybe you could take us through some of the assumptions around the raw materials, energy, employee sort of wage inflation sort of thinking about maybe in Europe? And then also just back on Northern Africa, I just wondering how much sort of spare capacity there is left in some of those markets for further volume growth? Or is it more sort of around pricing gains beyond sort of this year? Miljan Gutovic: What was the second question? Can you please repeat the second question? I didn't hear it well. Harry Dow: Yes. It was just on North Africa, again, coming back on that. I just wondered how much spare capacity there was in that market for more sort of volume growth from here in terms of... Miljan Gutovic: I'll go to North Africa, you tackled the cost topic. So North Africa, there is an excess capacity in all of these countries, especially in Algeria, but these countries are also export hubs. I mean, Algeria, currently, we are producing products to export to Europe, West Africa and also North America. Similar situation is with Egypt. There is a capacity if local demand is increasing, then exports will start reducing. Steffen Kindler: On cost, look, I would say energy, low single-digit impact, but we're always guiding carefully on energy. And then what nonvolume-related costs we're definitely going to go down this year. I said this before. We are still working on the fine-tuning of organization, which we do all the time. It's an ongoing topic at Holcim. We never have a big restructuring program or give it any name, but we're always working down on our structure. So this will continue here. We see positive impacts. Distribution, hard to say, maybe a bit up by also low to mid-single digit. And then most importantly, I think what we said before and for you to take into account, there will be positive price over cost. So this is for us, it's the main topic. There will be positive price over cost, and there will be margin progress. Bernd Pomrehn: Perfect. The next one on the line is Isaac Ocio from On Field Investment Research. Isaac Ocio: So first one, I have 2. The first one would be, so in Asia, what additional EBITDA could you expect from Huaxin in China after they acquired Nigeria? And second question, so in Europe and Mexico, we're seeing mid- to high single-digit price increases successfully sticking. CEMEX announced 10% hoping to get mid-single digit in Mexico, and it looks like we could see some better volumes on top of that. So given the relatively limited cost inflation on the energy side, how much potential do you see for organic EBIT growth to really exceed the high end of your guide as the price costs expand? Miljan Gutovic: Thank you for the question. Look, we probably go a little granular if we want to now break the Nigeria impact into Huaxin. I don't know, maybe 10% more conservatively -- 10% more contribution from Huaxin. And then Mexico, how much potential for organic growth? Well, double digit. Bernd Pomrehn: And the last question today in the line is an add-on question from Julian Radlinger from UBS. Julian Radlinger: I just wanted to ask, so judging from the slides, it looks like the ECOPlant mix has kept growing about 1% per half year through '25, but ECOPact has stayed at 31% of ready-mix sales since last summer. And obviously, as you explained, the increasing mix of these products has been a consistent price and margin driver for you guys. So how -- I know you have targets for that for 2030, but how should we think about that going forward? Is that -- are both of those products going to keep increasing? Miljan Gutovic: Julian, very simply, it's not a linear relationship. For instance, I believe ECOPlanet will accelerate now because we are seeing a huge momentum in countries like Egypt, Morocco, all the way to Mexico and Argentina. So probably the ECOPlanet will start increasing over proportionally versus ECOPact. And ECOPact, this is more in mature market. We are seeing a growing demand across all markets, but at a slower rate. Anyhow, we do have a commitment by 2030. We are sticking to this commitment. I would say that probably ECOPlanet will be above that. Bernd Pomrehn: Perfect. Thank you, Julian. So with this, we are finished. Thank you so much for joining us today. If there are any further questions, obviously, the Investor Relations team is more than happy to support you. Everyone who is joining us in Zurich today, we are happy to invite you for a small lunch and the analysts which were not able to join us today and investors, we hope to see you soon in the coming weeks when we are going on roadshow. And with this, I hand it back to Miljan for some closing remarks. Miljan Gutovic: Thank you. Thank you all for joining us. Really a pleasure this morning to present these outstanding results. I can assure you that we are at the full speed. Our performance culture delivered and will continue to deliver outstanding results. This performance culture, if I can use one word, that word is discipline. We will continue to exercise strong cost discipline, pricing discipline, discipline when it comes to M&A, discipline when it comes to CapEx projects. And I'm looking for another successful year in 2026. One big thank you to all Holcim employees, 45,000 of them for your outstanding efforts.
Operator: Good morning, and thank you for joining Becle's Fourth Quarter Unaudited Financial Results call. During this call, you may hear certain forward-looking statements. These statements may relate to our future prospects, developments and business strategies and may be identified by our use of terms and phrases such as anticipate, believe, could, estimate, expect, intend and similar terms and phrases and may include references to assumptions. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those in forward-looking statements. Before we begin, we would like to remind you that the figures discussed on this call were prepared in accordance with International Financial Reporting Standards, or IFRS, and published in the Mexican Stock Exchange. The information for the fourth quarter of 2025 is preliminary and is provided with the understanding that once financial statements are available, updated information will be shared in the appropriate electronic formats. [Operator Instructions]. Now I will pass the call on to Becle's CEO, Mr. Juan Domingo Beckmann. Juan Legorreta: Good morning, everyone, and thank you for joining us today as we discuss Becle's Fourth Quarter and Full Year 2025 results. 2025 was a year of navigating challenges across our key markets. However, we defended or expanded our leadership position in Tequila across our main regions, protected pricing better than the industry average by leveraging our strong brand equity, and delivered solid financial performance supported by the decisive actions and disciplined execution. We are proactively assessing market conditions to reinforce our strong foundation for sustained long term growth. At the same time, it is important to put the current environment into perspective. Spirits continue to take share from other alcoholic beverages, underscoring the structural strength of the segment. Within that context, Tequila continues to outperform other full-strength spirits categories with solid price mix growth, and premiumization trends remaining intact, favoring our core strengths. Cautious of shifting consumption trends, we believe the current slowdown is mostly cyclical, driven by macroeconomic headwinds and inflationary pressures. Historically, the spirits industry has experienced periods of expansion and contraction, and we expect demand to recover as consumers' confidence improves. In the U.S. and Canada, we are implementing changes to better capture both portfolio and route-to-market opportunities. We recently announced a full realignment of our U.S. distribution network with the transition beginning on February 1. In Mexico, we continue to advance premiumization, strengthening our on-premise capabilities and sharpen marketing through innovation. Even in a cautious demand environment, we remain confident in our ability to defend our market leadership and compete effectively. In Rest of the World, we are focusing on our core brands and strengthening our premium portfolio. We continue to execute with discipline as we navigate evolving consumer behavior and macro conditions, and we continue to capture a relevant position in strategic growth markets in the region. 2025 evidenced an unusually complex global spirits sector likely to remain in 2026. However, we've consistently shown that we can drive competitive advantage through uncertain times by focusing on what matters most, the strength of our brands, the discipline of our strategy and the quality of our people. We are entering 2026 with a healthy mix of realism and optimism as we anticipate that the years ahead will continue to require bold adjustments to position us better for 2027 and beyond. Thank you. And with that, I'll turn it over to Mauricio to discuss our U.S. and Canada results. Mauricio Herrera: Thank you, Juan, and good morning, everyone. Our fourth quarter performance in the U.S. and Canada region reflected a combination of continued industry-wide headwinds and delivered commercial actions taken to position the business for long-term success. As full-strength spirits demand decelerated through the back of the half year, we remain focused on the areas firmly within our control: execution, disciplined pricing, targeting investment behind our brands and a thoughtful management of shipments and inventory across the system. U.S. spirits trends deteriorated sequentially in 2025, with a slowdown, particularly evident to our year-end. Against this backdrop, tequila continues to stand out as the most resilient full-strength spirits category, delivering volume growth of 2.3% in the year, according to Nielsen data. While growth in the broader spirits market has skewed towards prepared cocktails, tequila has transitioned from a high-growth phase to a more normalized stabilization phase. It remains an attractive category and continues to outperform other spirits. Within this environment, our own portfolio continues to outperform the market, excluding prepared cocktails. [indiscernible] data for the 3-month period ending in November shows that Proximo continued to outperform the broader industry in value growth within full-strength spirits and more specifically within the tequila category. Nielsen data for 2025 further supports this performance showing that Proximo's volume declined 2.5%, outperforming the overall market by approximately 100 basis points. Pricing discipline remains a defining feature of our approach in the quarter. As demand moderated, competitive behavior intensified with the overall tequila category experiencing a price decline of approximately 9.2%. By contract, our average pricing decline was limited to 5.1%. While this discipline can create short-term volume pressure, we believe avoiding aggressive discounting is critical to protecting long-term brand equity and margin integrity, particularly in an environment where several competitors have leaned more heavily into aggressive pricing actions. At the same time, we continue to invest behind our brands. Our advertising and marketing investment as a percentage of sales remains above peer levels. Reflecting our conviction and sustained brand support is essentially in peers of category softness. These investments are tightly focused on expanding points of distribution, opening new on-premise accounts and improving in-store performance. From a category standpoint, strengthening our leadership position in Tequila continues to be our top priority. At the same time, RTDs represent one of the most attractive growth opportunities where we are currently underrepresented. During the second half of 2025, we increased our focus and investment behind RTDs and delivered solid double-digit growth. To further accelerate performance in this segment, we are building a stronger innovation pipeline and evaluating route-to-market alternatives that enhance coverage and execution. Turning to shipments and inventory. We took deliberate actions during the quarter to ensure healthy alignment across the system. In response to the broader slowdown in consumer takeaway, we adopted a measured approach to shipments with the aim of avoiding further inventory build. This resulted in shipments declining more sharply than depletions on a quarterly basis. Our inventory levels vary significantly across distributors with our highest level sitting in what were RNDC markets. We will actively be working on balancing inventory levels as part of the transition into our new distributors during the first half of 2026. In the quarter, retailers continue to reduce inventory to historically low levels. And in turn, distributors also actively work to reduce their own inventory levels. In addition, we had already anticipated our planned exit from RNDC, well ahead of the formal announcement, and we made a conscious decision to moderate shipments into RNDC during the end of the year to facilitate a smoother transition and mitigate disruption at the time of execution. As previously announced, we have recently completed a comprehensive review of our route-to-market strategy across the United States. As a result of this evaluation and while we value the relationships and history we've built with RNDC, we decided to transition our distribution away from them in all current markets, except for Georgia and New Mexico, effective February 1, 2026. This decision reflects our performance first mindset, aligning our brand with partners who demonstrate strong execution, focus on accountability. And while these transitions may introduce some near-term volatility, particularly in the first half of the year, we believe this change will significantly strengthen our commercial foundation and position us to compete more effectively in an increasingly dynamic U.S. marketplace. Looking beyond current market cycles, the long-term fundamentals of the U.S. spirits market remains strong. We believe tequila is positioned to be the industry's main growth category over the next decade, a trend that directly benefits Proximo as a category leader. We continue to see durable consumer appetite for premiumization and authenticity, reinforcing our confidence in the long-term trajectory of the business. I will now turn the call over to Olga Limon to discuss Mexico and the Latin America results. Olga Montano: Thank you, Mauricio, and good morning, everyone. Moving to our performance in Mexico. I would like to frame our 2025 results within the context of the broader industry landscape. While the spirits industry remained in contraction, it is important to highlight that the pace of decline moderated meaningfully compared to 2024. Within this context, Tequila continues to prove its status as a clear outperformer. Our brands not only held their ground, but consistently gained market share across both Tequila category and Total Spirits. According to [ NisCom ] data through November, our performance in Mexico clearly outpaced the industry. While Total Spirits volume declined 1.4%, our portfolio delivered a 2.5% volume increase. In value terms, we grew 2.0% against an industry decline of 1.6%. The Tequila category specifically remains a growth engine. While the category grew 2.5% in volume, we outperformed with 3.9% growth. These results underscore the continued strength of our portfolio and our undisputed leadership position in our home market. When evaluating our performance, it is essential to look beyond the quarterly volatility and focus on a full year trajectory. Additionally, moving forward to provide a more accurate reflection of our underlying business, it is important to look at results, excluding the b:oost brand. On a full year basis and excluding our b:oost brand, Mexico delivered a 1% volume growth, broadly in line with depletions. We which decreased 1% versus the previous year. While our fourth quarter volumes decreased by 10.3%, depletions declined 7.1%. These figures follow an exceptionally strong third quarter where depletions grew by 5.2%. We evaluated -- when evaluated on a second half basis, shipments increased 0.5%, while depletions decreased by 2.5%. It is also important to note that we are lapping a particularly strong fourth quarter seen in 2024, which created a high bar for comparison. In response to softer depletions observed late this year, we intentionally moderated shipments to ensure that we close 2025 with healthy inventory levels across the system. This disciplined approach to inventory management provides us with a clean runway as we enter 2026. Throughout the year, our shipments and depletions remain well aligned confirming that the underlying consumer demand for our brands remains robust. Looking at the global picture, Mexico continues to be one of the best performing regions for Tequila and for the company as a whole. Overall, our leadership in Tequila and our ability to gain share in a challenging market gives us great confidence. By prioritizing disciplined execution and protecting the long-term health of our equity, we believe we are well positioned to continue building value in Mexico and across the region. I will now turn the call over to Shane Hoyne, Managing Director of EMEA and APAC region. Shane Hoyne: Thank you, Olga, and good morning, everyone. In the fourth quarter of '25, the region sustained its positive momentum with both shipments and depletions growing. APAC continued to deliver double-digit depletions growth while EMEA recorded positive depletions compared to the same period last year. For the full year '25 shipments in the EMEA and APAC region were flat versus '24, while depletions increased by 1.5%, reflecting continued underlying demand despite a challenging trade environment. Inventory remained a key factor throughout the year. Particularly in the first half, elevated inventory levels across the broader industry impacted shipment patterns as distributors and retailers focused on reducing working capital and operating with lower inventory levels. These dynamics were evident across multiple markets and remained a consistent theme over the course of the year. Pricing conditions in '25 remained highly competitive with aggressive discounting across money markets as peers sought to defend volumes. While pricing pressure remains elevated, discounting activity appears to have largely stabilized. From a category standpoint, Tequila is gaining momentum across the region, driven by growing consumer interest and a deeper understanding of the category. And increasingly, tequila expanding into new occasions positioning itself as a more sophisticated option for cocktails and early evening parties. We also see tequila switch consumers from traditional brand spirits such as cognac and whiskey with many entering directly into the aged tequila segment, reinforcing the category's long-term premiumization opportunity. Overall, while the region is operating in a complex and uncertain environment, Becle continues to perform resiliently and underlying category dynamics remain constructive. Looking ahead to '26, we remain optimistic with Tequila offering significant long-term volume and value growth potential across multiple markets. Our portfolio strength and established route-to-market strategy position us well to capitalize on these trends. I'll now hand you over to Rodrigo, who will take you through the financial results. Rodrigo de la Maza Serrato: Thank you, and good morning, everyone. I will now walk you through the financial results for the fourth quarter and full year 2025. In the fourth quarter, the company reported consolidated net sales of MXN 11.1 billion, reflecting a 14% decline year-over-year and an 8.4% decline on an FX adjusted basis. This and other reported results were negatively impacted by the appreciation of the Mexican peso in Q4. Operationally, results were impacted by deliberate inventory rebalancing actions in the U.S., mainly due to a softer demand environment into the year-end. Our price/mix increased 0.4%, reflecting our ability to sustain pricing even under extreme competitive environment, leveraging our brand equity and portfolio. However, this was more than offset by 5.7 points of unfavorable currency translation. This quarter marks our eighth consecutive quarter of year-over-year gross margin expansion, a significant achievement given an unfavorable regional mix and the appreciation of the Mexican peso, which represented a significant drag on margins. We continue to benefit from lower agave-related input costs and ongoing cost efficiencies from strategic sourcing and manufacturing operations, resulting in a gross margin of 55.2%, an expansion of 110 basis points versus a year ago. While net sales remained under pressure, we maintained investment behind our brands to protect long-term equity and ensure we are well positioned for a better time. We have done so while remaining highly selective and focused on investment efficiency. Turning to operating expenses. Distribution costs declined 6.5% and SG&A expenses decreased 6.2%, reflecting continued discipline on overheads and strong cost control across the organization. Other income increased by MXN 438 million during the quarter, primarily driven by anticipated contractual settlements related to U.S. distribution agreements. As a result, EBITDA for the fourth quarter was flat year-on-year, with EBITDA margin expanding 340 basis points to 24.4%. Net income for the quarter was MXN 1.4 billion, benefiting from MXN 148 million year-over-year foreign exchange gain as the appreciation of the Mexican peso positively impacted our net U.S. dollar debt exposure. This benefit was partially offset by a retroactive full year effective tax rate increase to 27%, which was recorded in the fourth quarter. As of December 31, 2025, cash and cash equivalents totaled MXN 10.8 billion, while total debt was MXN 18.9 billion, a decrease of MXN 7.4 billion compared to the prior year. In 2025, the company generated MXN 8.1 billion in net cash from operating activities driven primarily by the setup in underlying operating profit and continued working capital and CapEx discipline. Our balance sheet remains very strong with adjusted net leverage of 0.9x, slightly below our targeted range of 1 to 1.5x. We remain confident in our long-term free cash flow generation and have ample balance sheet capacity to execute our capital allocation agenda, which prioritizes reinvesting in the business and returning capital to shareholders. Before moving to guidance, I want to take a step back and highlight the progress we have made over the past several years. Using 2019 as a pre-Covid reference point, net revenues are up 45%, driven by 10% volume growth and a 35% increase in average price per case. This reflects the significant premiumization of our portfolio with average price per case growing at a 5% CAGR since 2019. Importantly, our Rest of the World business has doubled in size since 2019 in net sales value, reinforcing that tequila remains a high-growth category with substantial long-term potential, particularly in markets where penetration remains low. Gross profit has grown at a 7.5% CAGR since 2019 and gross margin is now 320 basis points above 2019 levels. At the same time, marketing expenses as a percentage of net sales have declined by 90 basis points versus 2019 while consolidated net sales value has grown at a 6.4% CAGR, reflecting a more efficient and disciplined investment approach. Importantly, these improvements were not driven by foreign exchange movements as the average effects in 2019 was broadly the same as in 2025. From a working capital standpoint, we have improved our cash conversion cycle. Total inventory days are back to 2019 levels, even though we have significantly premiumized our portfolio since then. Payables have improved from 36 days to 56 days and receivables have shortened from 110 days to 100 days as of year-end 2025. CapEx has also declined both in absolute terms and as a percentage of net sales from 6.9% to 3.4%. We have continued to deliver consistent dividends and free cash flow has strengthened, improving from a 4% free cash flow yield in 2019 to 14% at the end of '25. When you look at our performance over the past 6 years, the company has evolved into a more mature and resilient business, one that has strengthened its ability to premiumize consistently, invest efficiently, improve cash conversion and capital return to shareholders through a sustainable and disciplined financial model. Finally, moving on to 2026 guidance. This will be a transition year for our business as we execute the previously announced realignment of our U.S. distribution network. Changes of this scale take time to fully stabilize and may create temporary disruptions, shipment volatility, inventory realignment and added complexity. Our priority is to start this new partnerships the right way by maintaining clear communication, aligning closely on execution standards and managing inventories carefully to avoid unnecessary stock build. At the same time, we expect the broader operating environment in 2026 to remain challenging with limited visibility given macroeconomic volatility and continued consumer uncertainty. Considering these factors, we expect net sales value to decline in the low single-digit range in 2026 on a constant currency basis. Additionally, we expect A&P as a percentage of NSV to be in the range of 19% to 21% and our capital expenditures to be in the range of $90 million to $110 million. We are not providing specific guidance on operating income, particularly as we will be lapping nonrecurring gains recorded in 2025 related to the sale of b:oost and distributor contractual settlements. While we recognize the near-term complexity, we believe the actions we are taking are necessary to build a more effective commercial platform positioning us for improved performance in 2027 and beyond. I will now turn the call back to the operator for questions-and-answer session. Operator: [Operator Instructions] Our first question comes from the line of Lucas Mussi. Lucas Mussi: I have one on margin performance this quarter. Gross margin was up about 100 bps year-over-year. And as you mentioned, Rodrigo, on your remarks, it was still heavily impacted by FX dynamics in the quarter, geographical mix. So I wanted to see if you could share more details on the drivers behind the quarter. That would be my first question. So how much could we think about as it pertains to agave contributing to your margin on a year-over-year basis? How much came from headwinds related to FX? So any color on that front would be welcomed. And my second question still on margin is how to think about 2026 from your main drivers, mainly raw material related. As we think about agave, how you're thinking about the spot price in the market today? Has it been stable throughout the year? Do you see -- do you still see more downside to market prices? So any color on how you're thinking about your raw materials into 2026 would also be very helpful? Rodrigo de la Maza Serrato: Thank you, Lucas, for the question. From a gross margin perspective, which was your focus, what I can share is that foreign exchange was a drag in terms of our ability to expand further by 170 basis points. So pretty much all components of gross margin equation worked favorably, the most important driver being the agave input costs which continue to be favorable to us, plus the productivity initiatives that I did mention on my script. So other than FX, the gross margin expansion could have been 280 basis points in the quarter. And looking forward, at this point in time, we don't expect major changes to this environment. Obviously, we rely on volatility from FX, which could continue to play a role. Operator: Our next question comes from the line of Nadine Sarwat. Nadine Sarwat: This is Nadine Sarwat from Bernstein. Two questions from me. The first on your guidance, you talked about this being a transition year to set up your business for the future. So related to that, can you unpack that transition that you referred to? How much of that is a weak macro versus deliberate strategy. And then if we look beyond 2026, are you expecting to return to solid growth? And then just one additional shorter-term question. In the Nielsen data over the last couple of weeks, we've been seeing an underlying improvement in the U.S. spirits market. Are you seeing that in your business? And if so, what do you think is behind that? Rodrigo de la Maza Serrato: So thank you, Nadine. On your first question, I think the way we see it in -- why we mentioned this is a transition year is mostly related to the realignment of distributor network in the U.S. It's mostly that where we expect conditions in terms of macro, et cetera, to remain challenging. Having said that, I'll pass it along to Mauricio to take you through the transition and expectations for 2026 and beyond. Mauricio Herrera: Nadine, it's Mauricio. From a transition perspective, I would make reference to the distributor changes we're making. So I do believe those changes, even though I have stated during the script will cause short-term disruption, they are definitely setting us for sustainable growth in the future. We are aligning with what we believe are the best distributors in each of the states. So as we go through that transition in H1, I think as we go into the second half of the year and especially into 2027, that should actually be reflected in improved performance in a sustainable way for the future. Regarding your question on share, we do see it. What I would say is if you could see the second semester of the year in the U.S., tequila started to decelerate even further. One of the things we have remained extremely disciplined is in managing prices. If you look at our average price has decreased a lot less than our competitors, and we continue to invest behind our brands ahead of industry benchmarks. So I think the combination of 3 things: very disciplined focus on execution, driving investment behind our brands and being able to balance pricing through promotional activity to stay competitive while still not being as aggressive to undermine long-term rapid equity, I think those things combined is what is actually driving our improvement in share in the short term. Nadine Sarwat: Got it. And just to clarify on that medium term looking past 2026, potential to return to growth. I appreciate everything you said on the distributor transitions and distractions this year. But just thinking longer term, you had that slide up that showed your historical growth. So trying to get a sense of what investors can expect after the transition? Mauricio Herrera: So look, from the U.S. perspective, leaving aside the transition in terms of distributors, I think what we will continue to do in 2026 and beyond, we'll continue to invest behind the brands to be perfectly positioned to capture growth as the category returns into growth. We do expect that in 2026, the category will continue to see compression. And what we want to do is make sure we're setting all the fundamentals in place in terms of route-to-market, brand health investment and being very strategic on pricing to actually start capturing, I would say, or disproportionate growth of the industry as it returns into growth, which I do believe we should start to expect happening in 2027. Operator: Our next question comes from the line of Rodrigo Alcantara. Rodrigo Alcantara: I guess the first one would be -- it's Rodrigo Alcantara at UBS. The first one would be follow-up on the RNDC transition in the U.S. We get this transition period, right? But any rough estimate or any number you can give us in terms of how much volume we're talking about that could be impacted just as a way of trying to quantify this transition period. That would be my first question. And the other one, if we could reflect a bit on the performance in Mexico, right? I mean you gave the figures there from a sell-in perspective, right? Just judging looking at performance of beer in Mexico in 4Q, it was not that -- the contraction was not as high, right, as what we saw today. So I mean, if you can help me here, understand, reconciliate the difference in the magnitude of contraction of other categories like beer versus the one we saw at spirits in Mexico? Those will be my 2 questions. Mauricio Herrera: Thank you, Rodrigo. On the first question you had in terms of the RNDC transition, I think providing a number would be very difficult to really estimate what the impact from a number perspective would be. All these transitions really have a very short-term impact, that we will manage. We have a PMO -- very disciplined PMO office in place to try to minimize the disruption. We did see, as I mentioned in my script, that because of this lower depletion, especially in RNDC markets at the end of the year, that's where our highest level of inventories were. So we will be working as part of this transition to rebalance that as we go to the new distributors. So that, combined with a very volatile environment in an industry that continues to actually experiment contraction, it's very difficult to understand or predict what volume impact will be from the transition, industry contraction and competitive dynamics. So for now, what we're focused on is executing this transition in the most disciplined way, making sure that -- and actually, we feel very confident that we have the right distributor in each market. In each of the new distributors, we are, if not the biggest, one of the biggest suppliers there that will guarantee more focus and attention behind our portfolio that gives a lot of confidence that once that transition is behind us, we should start to see improved performance. Olga Montano: Rodrigo, this is Olga. From the Mexico part, regarding the 7.1% decline in Mexico depletions this quarter, I would like to reinforce that we are seeing an improvement in consumer trends. In fact, the industry remains -- while the industry remains in contraction, the pace of decline has moderated significantly compared to 2024. And we continue to gain market share within this context. But I would like to talk about 2 factors that bridge the gap between the minus 7% and the reality of our business. There are 2 specific factors that accounted for nearly the entire decline. As we finalize the exit of the b:oost brand, we focused on clearing remaining inventory rather than commercial prioritization. These brands decline alone created a 200 basis point drag on our total Mexico depletions. The second factor is that we are being disciplined in not engaging in value-destroying activities. We intentionally chose not to participate in specific [indiscernible] promotions where we felt discounting in depth compromised our brand equity. This disciplined approach to price integrity impacted our quarterly depletions by almost 500 basis points. So when you strip away these 2 tactical factors, we are effectively flat. So basically, that would be my answer. Rodrigo Alcantara: That's a good point. So just to clarify, excluding the -- I mean, not participating in [indiscernible] had this 500 basis points impact. Did I get that correct? Olga Montano: Yes, that's correct, Rodrigo. Operator: Our next question comes from the line of Antonio Hernandez. Antonio Hernandez: This is Antonio Hernandez from Actinver. Just wanted to get a sense on nonalcoholic beverages and others that are also declining. Are these following similar trends, a competitive environment? How are you seeing there? And maybe you could provide an outlook on those? And if there are any organic or inorganic opportunities there? Mauricio Herrera: Sorry, Antonio, thank you for your question. If I understood correctly, you're talking about nonalcoholic beverages and how they may be... Antonio Hernandez: Exactly. Yes, how they performed this last quarter and throughout the year underperforming as well and your expectations going forward? Bryan Carlson: Antonio, this is Brian. So that's probably related to the b:oost brand. That was a significant impact for us in the quarter, and that's within the nonalcoholic beverages part that we report in the press release. That's a big portion of it. So it's probably related to that. Antonio Hernandez: Okay. And going forward, do you expect more stable, of course, excluding that comp from the b:oost brand? Olga Montano: Yes, we do. Operator: Our next question comes from the line of Froylan Mendez. Fernando Froylan Mendez Solther: Froylan Mendez from JPMorgan. On the gross margin effect during the quarter and going forward, I read the transcript from 1 year ago, and we were speaking about positive effect from agave. 2025, you also have positive effect from agave. So it's 1 year with positive effects from agave. Should we assume that the positive impact from lower agave in 2026 should be much lower than what we have seen in the past 2 years given just the lapping of the benefit now that your inventory probably reflects a much lower average cost of agave. That's my first question. And secondly, can you provide with some directional color on your top line guidance if it is coming from volume drops similar to last year, but with better pricing or the other way around. And within the different regions, which one are the ones growing a little bit better than the other? Which one is dragging? How you created that guidance of low single-digit drop for next year, please? Rodrigo de la Maza Serrato: Thank you, Froylan, for those questions. Regarding your first on gross margin, yes, in fact, we -- since last year, second -- last quarter of last year, we reported benefits on agave. As you see, overall, agave cost continues to benefit result this year. Excluding FX, as I mentioned, it was a significant contributor to positive gross margin expansion. We don't provide specific guidance on this topic. However, what I can say is that a lot of the -- let's say, extra benefit we've had this year and in particularly Q4, is related to simply higher agave sugar content on agave. And we expect that, that trend should continue going forward. So there is no changes necessarily expected there on agave cost from the market. And regarding your second question on top line guidance, the guidance, it's a combination, of course, in terms of volume, price mix, et cetera. So the guidance is general. We would like to stick with that guidance as it is because considering the volatility in the environment, we continuously manage those levers to deliver on the low single-digit decline that we announced. Fernando Froylan Mendez Solther: And sorry, my ignorance, but the low -- the higher agave sugar content, does that mean that, I don't know, the crop that you are having from agave, it contains higher sugar and so it will remain -- like you have an inventory with high efficiency for the next year? So how does that work? I'm sorry if this is a stupid question. Just to understand. Rodrigo de la Maza Serrato: Yes, no problem, Froylan. I think what's important to say is that market conditions on agave should remain similar. Internally, we do expect some further pressure on agave cost. As we balance the equation out, we have some, let's say, extraordinary, let's say, benefits this year that may not be replicable next year. So we should not expect, let's say, improvement over this year necessarily. But this is obviously something we manage on a day-to-day basis, and we expect to deliver the best possible results given that the market conditions will be similar. Operator: Our next question comes from the line of Nicolas Rodrigues. Nicolas Rodrigues: Nicolas Rodrigues from Citibank. My first question is regarding GLP-1. As the adoption continues to expand across key markets such as U.S., have you observed any change in consumption behavior, particularly in tequila. And my second question is about GLP-1 -- not GLP-1, about development in Jalisco. Could you comment how and if these events have any impact on Cuervo operations? Mauricio Herrera: Thank you, Nicolas. It's Mauricio. And I'll take a question on GLP-1. Look, it is very difficult, almost impossible to estimate what an impact on tequila is on GLP-1. We do see evolving consumer trends. I think there's a lot of different things happening in the market at the moment that consumers are looking for different alternatives. We see the emergence of RTD, we see changes in patterns of consumption. So attributing any sort of impact to GLP-1 becomes, I would say, almost impossible. So it's something that we do monitor closely, but at this point, attributing any impact to that is really difficult. Regarding the incidents in Jalisco, as of today, we have not seen any impact in our operations, and we don't foresee that happening. . Operator: [Operator Instructions] We have not received any further questions at this point. So that concludes today's call. You may now disconnect.
Operator: Good morning. This is the Chorus Call conference operator. Welcome, and thank you for joining the doValue Preliminary Full Year 2025 Financial Results Presentation. [Operator Instructions] At this time, I would like to turn the conference over to Mr. Daniele Della Seta, Investor Relations. Please go ahead, sir. Daniele Seta: Good morning, everyone. I'm Daniele Della Seta, Head of Investor Relations at doValue. I'm joined by Manuela Franchi, our Group CEO; and Davide Soffietti, our Group CFO, as we present our preliminary full year 2025 results. Manuela will begin with an overview of our performance, including key insights into market and business trends. Next, Davide will provide a detailed analysis of our financial results for the period. We'll conclude with a Q&A session to address any questions you may have. Thank you for joining us today. I will now hand over to Manuela. Manuela Franchi: Good morning, everyone. Let me start clearly and concisely - we delivered. We met our 2025 business plan targets for both cash flow and EBITDA, our seventh consecutive year of delivery on the 3-year business plan, and we reached several milestones even earlier than planned. And we achieved this in a particularly challenging phase of our industry while also executing 2 major M&A transactions that will shape the future of our company. Before walking you through the results, which together presented solid and consistent picture, I want to thank all the people at doValue. Their commitment and hard work have enabled us to accomplish what many in the market doubted would be possible. Commercial momentum remains strong with new business intake closing at roughly EUR 15 billion, 1.8x the annual business plan target and a pipeline that continues to support the visibility into 2026. Profitability strengthened with EBITDA ex NRI reaching a record EUR 217 million and margin at 37%, up 3 percentage points year-on-year. The near completion of the Gardant integration is now contributing to improved efficiencies across the platform, setting the strong foundation for the next year. Cash generation was also very strong with free cash flow at EUR 76 million, well above guidance. These results supported both deleveraging and the return to dividend payment in accordance with dividend policy. On a recurring basis, free cash flow was EUR 93 million, bridging the gap towards the 2026 EUR 90 million target. Net leverage stood at 2x at year-end, fully in line with guidance, even after accounting for extraordinary payouts linked to the M&A activities, such as EUR 6 million cash out for Alba Leasing, which was not contemplated when the guidance was announced. As for coeo, I know that just like us, you are eager to see the performance reflected in our numbers. The transaction is expected to close shortly with no execution issues. Coeo delivered another year of strong double-digit organic growth with files intake up 23% in '25 and well ahead of our buyer case but also seller case. Altogether, we entered '26 with a stronger business, a clearer trajectory and the foundation to deliver our next set of targets, including coeo. If you follow me on Page 3, let me start from the bigger picture. DoValue today plays a system-level role in Europe's financial stability. We operate at a scale that very few players in Europe can match, managing over 4.3 million position across individuals and businesses, all of this before coeo, which will more than double the number of data points with a broader scope. This gives us one of the largest behavioral and credit database in the market, an asset that allow us to anticipate patterns, tailor strategies and support the functioning of the financial system with evidence-based decision-making. This is the context in which our portfolio proves sustainable across cycles. It is diversified by design and managed by specialized professionals operating in areas where AI alone is not enough. First, diversification. Our portfolio is no longer a single asset NPL story. Alongside NPLs, we manage a large UTP perimeter, about 1 million positions, where we act as a structuring partner to protect value early. And we are developing a growing reperforming base currently of 400,000 positions that extracts value from proactive debt management. Second, runway and capacity. Look at '25 impact indicators at the bottom, 58,000 positions recovered from individuals, 21,000 from businesses, 12,000 positions restructured and 3,000 [ reperforming ] positions collected. All these figures show a substantial annual throughput. But when you said that against the overall stock of 4.3 million outstanding positions, it's clear there is ample embedded opportunity in the existing book, a lot still to convert, which underpins visibility for the coming years. Third, AI resilience. 88% of our portfolio is made up by loans above EUR 50,000, typically complex, bespoke and legal intensive. Here, AI augments our execution capabilities, but outcomes are driven by highly specialized asset managers who cannot be replaced by AI-only models, also due to the proprietary nature of our data set, which encompass decades of data and is not available to third-party models. In short, our scale, our dataset and the complexity we manage make doValue one of the few players that truly matter for Europe's financial stability, and they give us a long predictable and AI resilient path of value creation. With that foundation, let me turn to the '25 new business inflow on Page 4. In '25 GBV from new business reached almost EUR 15 billion, 1.8x our initial business plan targets, confirming the strength of our commercial engine. New Mandates continued to grow in the fourth quarter by nearly EUR 1 billion, including around EUR 600 million from [ Banco ] Project in Italy and EUR 200 million from the new contribution fund launched in December by doValue through its asset management platform focused on state guaranteed loans. Spain also added EUR 200 million in the quarter with mandates from a major banking institution. We also saw sustained forward flow from existing customers, which totaled EUR 4.3 billion for the year, covering around 80% of collections. This performance was mainly driven by solid contribution across countries with continued acceleration in flows from Santander in Spain, up 60% year-on-year, which has been recently renewed for an additional year without any front payment. If we take a step back, the scale of what we have achieved over the past 2 years becomes even clearer. While bank boost NPE ratios and cost of risk at historical lows, we secured EUR 24 billion of cumulative new business, nearly EUR 11 billion of which from banks. This is not just commercial success. It's a tangible demonstration of the systemic role of our industry in Europe's financial ecosystem. Banks, funds and institutions rely on our and our competitor platform through the cycle, and this is precisely what underpins the long-term sustainability of our business. Let's now turn to Page 5. Here, we outlined our pipeline, already reflecting the broader scope and diversification of the group after the coeo acquisition. What you see on this page is not just the net flows of inflows -- the net wave of inflows, but the shape of a business that is becoming structurally wider, more diversified and more balanced across products and geographies. The NPE pipeline is large and diversified. This pipeline amounts to EUR 50 billion, well distributed across countries and asset classes with almost 1/4 being UTP. I would like to take a moment to clarify the tax credit opportunity in Italy. As part of the '26 budget law, the government has introduced a new framework to recover unpaid tax and property revenues from local authorities with AMCO pointed to orchestrate the collection efforts. A decree expected in March will define the operational parameters, including the potential outsourcing to license operator, a key enabling step for volumes to flow. We are currently working on obtaining a license in order to be among the selected subservicers. For now, the initial stock identified as recovered amounts to roughly EUR 20 billion, and we are prudently including EUR 4 billion of what in our pipeline as the share realistically attainable by the value. But it's important to be clear, these figures represent only the first phase of the opportunity, specifically the local authority receivables that were already assigned to the [ Agencias delle Entrate ]. If the model proves effective and scalable, the pipeline would expand materially, potentially including local authority receivables currently handled by smaller local operators, central government receivables today managed exclusively by [ Agencias delle Entrate ]. Parallelly, on the coeo side, the pipeline is extremely strong with potential for additional annual revenue of over EUR 250 million. This means that with the current dip in the market, coeo could effectively more than double its annual revenue and largely diversified customer base. Indeed, 2/3 of the pipeline comes from sector beyond e-commerce, including telcos, insurance and mobility. All this comes from opportunities in markets where coeo is currently present. Once we look at expanding coeo into doValue, this opportunity further expands. We included a deep dive for Italy and Spain, and you can see there are plenty of sectors with small ticket receivables that coeo could tap with its highly automated digital recovery processes. Let's now turn to Page 6. Here, we have shown the market backdrop. Insolvency have been rising across the EU with bankruptcy declaration up 18% year-on-year in '24 and the '25 run rate reaching the highest level since '19. In Q4 '25, seasonally adjusted declaration were once again up quarter-on-quarter, underscoring that the trends remain live. By country, the picture is fully designed with what to be observed on the ground. Greece recorded an average plus 20% quarterly increase through 2025. Italy is expected to exceed the pre-pandemic insolvency levels. Germany started its upswing later, but is expected to continue. And Spain showed insolvency levels contained but higher versus 10 years ago across most markets. Now an important point of context. Our business plan '24-'26 was built without assuming any macroeconomic shock or deterioration. Despite that, we have delivered new business significantly above expectation in both '24 and '25, even while banks were reporting historically low new NPE ratios and cost of risk. What this means is that in an already benign credit environment, doValue still capture strong inflows and commercial traction. And if the current insolvency trend persists or broadens, it represents potential upside versus the intake assumed in our plan with the usual time lag between filing and onboarding and with the same discipline on mix and pricing, guiding what we choose to service. Now on to a more cheerful note, let's move to Page 7 for an update on coeo. '25 has been another really strong year for them despite management being largely involved with a long and complex sales process to doValue. Coeo grew New Files by 23% to 9.6 million files, reflecting both in-market client growth, notably in telco across Germany, Sweden and the U.K. and client-driven expansion into 3 new markets: Switzerland, Norway, Finland without M&A. On the digital engagement and service quality, coeo is running AI-enabled interaction across Germany, the U.K., the Netherlands, Austria, Sweden and Norway, delivering over 1 million customer interaction completely digital whilst maintaining excellent customer satisfaction metrics. On the financial side, coeo delivered around EUR 60 million EBITDA in 2025, excluding EBITDA coming from the hybrid model with a 35% increase in portfolio investments, which fuel future collection revenue growth. It's important to note that this 35% increase in portfolio investment was entirely funded through the strong cash generation of the business, evidence of the sustainability of the hybrid model. Moving to Page 8. We have initially hoped to close the coeo transaction by January. The closing is still pending without any issues. I'd like to give you some color on the process. The transaction is clearance by 4 major authorities in several countries where coeo operates. We are awaiting clearance from just one last authority in Germany. The time line was extended due to the document collection and examination requirements across multiple jurisdictions and counterparts and administrative multiparty review that simply taken longer than anticipated. Importantly, there has been no change to the perimeter on terms agreed, and we remain fully engaged with the authority on the remaining steps. From an execution readiness standpoint, we are prepared to move quickly once clearance arrives. We have already agreed the integration plan structured along 7 work streams; governance, finance, HR, IT, procurement, AI and business expansion with clear owners detailed checklist and no disruption expected for clients. The AI work stream is set to make coeo, the group AI app for small tickets, digital first growth while presenting our high-touch approach on complex exposures. We will close promptly upon receipt of the final clearance and are operationally ready to integrate from day 1. First, we operate in 2 very different arenas. Now you can see it on Page 9. Here, we want to comment upon the recent noise about what the AI winners and loser will be, and we want to be very concrete about how AI touches our business. On the one hand, we manage mid-large secured loans. Our [ core ] book with an average ticket of around EUR 70,000, where AI mainly improves cost efficiency and workflow orchestration, but outcomes still require experienced asset managers. Here, AI is an enabler with limited impact on economics, not a substitute for human expertise. On small and secured tickets, AI matters more because full automation is needed to make unit economic work. That is exactly why we choose to enter this segment through coeo, a digital AI-driven platform built for scale. In practice, we are already using AI where it moves the needle. Digital debtor portals and channels are live in Greece, about 30% of 0 to 90 days collection are handled digitally. We are also using modeling and advanced analytics for segmentation and propensity to pay, virtual agents to support our teams on [indiscernible] responses and call wrap-ups and document analytics to extract facts from judicial and notarial files. The impact is visible. With the initial adoption of the digital platform in Greece, small ticket EBITDA margin increased from roughly 53% to 89%, a step change that illustrates how automation can lower the cost to collect without compromising governance. It's equally important to explain why we are structurally protected as AI adoption accelerates in 3 ways. First, regulation. Our activities require licenses and human oversight. AI cannot hold a servicing license or assume legal responsibility under certain regulation. So human-in-the-loop is mandatory in our markets. Second, data. AI needs domain-specific training data. DoValue owns one of the Southern most -- Europe's most expensive proprietary credit recovery databases, which is private and not available to third-party models. Third, complexity. Corporate and secured recoveries are bespoke and legal intensive. Local courts filing, multiparty negotiations are at the heart of our business. Automation can manage low-value, high-volume cases. Experts drive outcomes on complex scales. Our strategy is clear: automate at scale where automation wins small ticket by coeo and augment human expertise where value is created. Secured and complex claims add to value, all under a road map with a clear roadway. Regulation, data and complexity will continue to be durable moves as AI promises. Let's now turn to Page 10 with an overview on the German market, which will become very important for us. Germany is now the #2 NPL market in Europe by stock held on bank's balance sheet at EUR 46 billion, up 24% versus 2019 and 21% larger than the current Italian size. Importantly, this EUR 46 billion figure covers banks only. It excludes position held by investors, fintechs and debt purchasers and receivable from nonfinancial entities served by coeo. So the true addressable market is materially larger than on balance sheet number. Yes, the servicing market is underdeveloped. It's highly fragmented with servicers typically specialized by client segments and not meaningfully consolidation to date, leading limited scale platform and clear scope for a consolidator to bring multi-client, multiproduct capabilities. On execution, the regulatory bar is also a differentiator. Since '24, Germany requires a CSI license to operate in credit servicing. We have secured the license, established doValue Germany, onboarded project staff and identified key hirings, completed the first market analysis, upgraded system to run NPL workflows and onboarded an initial client, aiming to make profits already in '27. All these are concrete tangible steps and not simple intention. Strategically, this expansion is the first synergy of the coeo acquisition. Germany is coeo largest market. Sweden ahead of closing. We are not standstill. We are leveraging coeo footprint and digital stack to accelerate entry, demonstrating that we are proactive and already putting the model in motion to scale quickly once consolidation is completed. To sum up, a large and growing German NPL pool plus the fragmented servicing landscape creates room for a sizable opportunity. We are in markets licenses and building capacity using the coeo's first synergy of the deal to ensure that once consolidation is completed, we can scale delivery from day 1. Before I hand over to Davide to walk you through the financials, let's turn to Page 11 and look at the progress made so far on the business plan horizon. This is our second consecutive year of delivering this guidance, and we are ahead on the 2024-'26 business plan. Cumulatively, we have already reached the full 3-year new business target in just 2 years, more than EUR 24 billion of GBV from new business in '24 and '25 only. Engine 2 of growth is delivering. The digital platform is live in all countries. Our alternative asset management company is above EUR 1 million of fee-generating AUM with 2 new funds launched in recent months. FinThesis has already intermediated 2,000 mortgage applications and our advisory unit continues to expand. With the consolidation of coeo, Engine 2 will become the group main business and represent the majority of group revenue from day 1, not over time, shifting the group revenue mix as outlined at the Capital Markets Day. On capital structure, we delivered as well. We refinanced the '25-'26 bonds by summer '25. And in October '25, issued the 350 2031 notes at a coupon 160 bps lower than the February issuance despite the longer maturity. Our bonds trade at a yield to maturity around -- below 5%, sorry; the lowest in the industry, and we still see room to optimize interest costs through further refinancing. Finally, financial performance is in line with guidance. GBV of EUR 136 billion, EBITDA of EUR 217 million ex-NRI, free cash flow of EUR 76 million, net leverage of 2x. So overall, we are delivering what we said. We are ahead on the transformation, and we are doing it with a capital structure and the financial profile that supports the next phase. Actually, we didn't just deliver on the numbers, we overdelivered on our strategic position. We expanded our geographical footprint, strengthened our AI capabilities and broadened our product scope with an acquisition that will open a new chapter for doValue at the next Capital Markets Day. And we did all this while keeping leverage in check and delivering on every stand-alone target. I will now hand over to Davide, who will take you through the financial results in more detail. Davide Soffietti: Thank you, Manuela, and good morning, everyone. Let me start by saying that 2025 was a year of tangible progress and strong financial execution as is clear from the summary of our preliminary full year results on Page 13. 2025 stands out as a year where we delivered strong results and materially enhanced profitability with double-digit increases in both revenues and EBITDA. Gross revenue in 2025 was EUR 580 million, showing a solid double-digit growth of 21.1% versus the prior year. Despite temporary timing effects related to the ramp-up of the collection process on the new Greek portfolios, the underlying momentum remained strong with growth sustained by non-NPL revenue, which continue to expand their contribution to the group's mix as indicated in our plan. Net revenue rose to EUR 524 million, mirroring the gross revenue growth in the presence of a stable impact of outsourcing costs year-over-year. EBITDA ex-NRI reached EUR 217 million, up 31.8% versus 2024. Synergies expected for the Gardant acquisition are playing out exactly as expected in Italy with integration now largely completed. Cost discipline across the other regions continue to support high margin, up by 3 percentage points from the 2024 level. Net income ex NRI increased to EUR 25 million, more than tripling from EUR 7 million in 2024 despite higher financial costs and higher D&A following the consolidation of the Gardant perimeter. This is fully consistent with our M&A philosophy. Every transaction must be EPS accretive, and the performance we are showing confirms exactly that. The coeo acquisition will show in our figures in 2026, and it will be a synergy. Moving now to Page 14, we can find breakdown of gross revenue per region. At group level, gross revenue grew by 21.1% year-on-year, driven by continued growth in non-NPL revenues, both UTP and recurring with [indiscernible]. Non-NPL revenue represents now 36% of gross revenues, up 1 percentage point from 2024, in line with the group strategy shift towards higher growth, lower volatility segments. This will expand further following the completion of the coeo acquisition. In the Hellenic region, as mentioned, revenues in Q4 accelerated due to timing effect in the ramp-up of new portfolios, which we expect to contribute fully to revenue in 2026. Other than that, the regions continue to show sustainable activity across all of the business segments with healthy collections underpinned by different markets. In Italy, gross revenue grew 61% year-on-year, supported by the combined contribution of Gardant and the strong growth in non-NPL revenue, which will continue to expand even excluding Gardant. It is important to highlight that even on a stand-alone basis, both doValue and Gardant recorded low single-digit growth, confirming that the stabilization of GBV and the increasing weight of non-NPL revenues are already shaping a new positive growing dynamic even in a mature markets such as Italy. In Spain, revenue declined EUR 41 million as weakness in REO was mitigated by circa 60% growth in UTP servicing. Revenue in the future will be driven by new business intake in a still fragmented market. On Page 15, you can see the result of the continuous cost discipline efforts at the group level and of the successful integration of Gardant, delivering all the synergies promised 1 year ago. In 2025, operating costs increased only by 14.6% year-on-year, 6.3 percentage points less than revenues despite the inclusion of the cost base of Gardant. More in detail, HR costs grew 17.3%, leading to an incidence on revenues lower by more than 130 basis points, mainly thanks to effective release of synergies in Italy as well as cost savings across all geographies. As for IT, Real Estate, SG&A expenses, we recorded an increase of only EUR 42 million with the incidence on revenues falling 170 basis points as the group listed savings in all markets. On Page 16, we find by country details of EBITDA ex-NRI, which reached EUR 217 million at group level, up by 31.8% year-over-year and landing at upper end of our guidance for 2025. In Hellenic region, EBITDA ex NRI reached EUR 121.4 million with a reduction versus 2024 that mirrors the revenue dynamics, although partially mitigated by cost discipline measures. The region continued to be a key profitability driver for the group, contributing 56% of total EBITDA ex NRI with a solid 51% margin. In Italy, EBITDA increased 50% to the contribution of Gardant as well as the effective release of synergies. Indeed, the Gardant integration has been progressing really well, and the synergies are evident. In Italy, the EBITDA margin increased by 13 percentage points year-on-year with more value extracted from the acquisition than originally expected. This remarkable results demonstrate the high value-creating nature of our M&A activities. In Spain, we achieved a positive EBITDA as cost savings contributed to offset negative trends observed in REO. Nonrecurring items were limited to negative EUR 8 million, originating mainly from consultancy costs related to the coeo acquisition and cost to release Gardant synergies. Moving to Page 17. We show very positive dynamics in net income evolution, which, excluding nonrecurring items, more than tripled to EUR 25 million and increased by EUR 19 million compared to 2024. Analyzing the most impactful items between EBITDA and net income, depreciation and amortization and net impairment on PPE & intangible increased EUR 36 million year-over-year. The increase versus last year is mainly related to incremental D&A from Gardant and its PPA. Net financial interest and commission were higher, reflecting the normal impact of the larger gross debt following recent M&A activities. This includes the term loan paid in 2024 to fund the Gardant acquisition, currently circa EUR 300 million outstanding and amortizing EUR 53 million per annum, EUR 300 million bond due 2030 issued in February and EUR 350 million bond due 2031 issued in November and currently held in escrow until closing of the coeo transaction. Income tax decreased on a recurring basis by 17% year-on-year, while reported tax increased due to adverse comparison effect related to an extraordinary EUR 20 million positive effect in 2024 from a tax claim won in Spain. Net income attributable to noncontrolling interest increased EUR 6 million in 2025 to EUR 18.1 1million due to Gardant minorities. Nonrecurring items for the period amounted to EUR 34 million, up by EUR 29 million, mainly due to the aforementioned EUR 20 million positive effect from the tax claim in Spain related to 2024 and the nonrecurring financial costs related to the 2 recent bond issuance and early redemption of the '26 bonds. As a result, net income, excluding nonrecurring income items, reached EUR 25.3 million, up by EUR 19 million paving the way for dividend payout in line with our dividend policy. Moving to Page 18. Let's have a look at the cash flow dynamics, which, as anticipated in our plan, improved significantly. We are pleased to see the group being back to its previous high cash generation levels with cash flow from operations up EUR 99 million to EUR 181 million in the full year, thanks to positive EBITDA contribution and working capital dynamics and tighter control over the change in other asset and liabilities. Capital expenditure increased by EUR 11 million versus last year, higher than previously guided due to AI and automation initiatives to unlock efficiencies, investment in data strategy, investment to strengthening the group's cybersecurity perimeter as well as investments linked to the Gardant integration, namely the unification of system across the company. Net working capital released EUR 32 million, mainly linked to the recovery of past invoices in Greece and some nonrecurring expenses related to the coeo, which will be paid on closing. Lease payments under IFRS 16 amounted to EUR 17 million, including Gardant perimeter, in line with previous messaging. Payment for redundancy were EUR 11 million, slightly down versus 2024 as the group successfully limited redundancy by relocating personnel across the wider doValue Gardant perimeter, limiting the use of external asset managers. Other change in other asset and liabilities reflect the expected reversal of the MBO effect and include a positive effect related to the coeo transaction which will be reversed in 2026. Minorities were unchanged versus 9 months results as expected. Investments in equity and financial assets accounted for EUR 18 million, mainly from nonrecurring payments for the earnout in Greece and investment in Alba Leasing. Taking all this into account, free cash flow before debt repayment or dividend landed at EUR 76 million, above our EUR 60 million to EUR 70 million guidance range. On a recurring basis, excluding M&A-related effects such as earn-out for doValue Greece, Alba Leasing investment free cash flow for debt repayment would have been EUR 93 million, bringing the gap towards the 2026 free cash flow guidance. Based on the results achieved, doValue currently trades at a free cash flow yield of around 18% or 21% on a recurring basis. To conclude, let's now move on Page 19 and take a look at our financial structure. Net financial leverage at the end of December stood at 2x, down from the 2.4x level at December 2024, reaching the target for the 2025 despite an additional extraordinary M&A related to Alba Leasing. Even after the EUR 53 million term loan repayment, the group maintained a solid liquidity buffer of EUR 277 million, made up of EUR 145 million cash on balance sheet and EUR 152 million undrawn revolving credit facility, including a EUR 20 million new facility agreed in January '26, which remains completely undrawn. Overall, we closed the year with a solid capital structure, BB credit rating, strong performance in the bond market with our bonds trading at the lowest yield in the industry, below 5% and no refinancing needs until 2030, given the recent November issuance to finance the acquisition currently held in escrow. As we continue on our delevering path, we also see further opportunities to optimize our cost of debt by refinancing instruments issued at higher coupon. Importantly, this structure gives us significant flexibility in future capital allocation and shareholder remuneration; topics that will be addressed in detail as part of the next Capital Market Day. This is all our side for today. Thank you all for your attention. We will now take your questions. Operator: [Operator Instructions] The first question is from Tommaso Nieddu of Kepler Cheuvreux. Tommaso Nieddu: I have a few. The first one on free cash flow, which was clearly the main positive surprise. On working capital, the EUR 32 million release in 2025 was, I believe, materially ahead of your prior guidance and our expectation. Can you help us understand with more details what structurally changed there and also beyond the EUR 5 million temporary benefit from coeo? And given the 2025 net working capital release, as we think about 2026, should we assume a broadly neutral working capital? Or do you see scope for further structural release? The second question is on dividends. While you reiterated that the proposal will be in line with policy, could you give us more clarity on how you think about positioning within the 50% to 70% payout range? And for now, the last one on Gardant. You originally guided for EUR 5 million of synergies in 2025 and EUR 15 million at a full run rate. My question is, could you quantify how much has been realized to date and whether there is any incremental upside beyond the EUR 15 million target? Davide Soffietti: Tommaso, I will take your first question. Free cash flow, EUR 32 billion were coming as anticipated mainly from Greece as we guided EUR 15 million to EUR 20 million, the higher level of our guidance. Then we have also a contribution, as I was saying, from coeo, we have roughly EUR 3 million that has been included in the reported EBITDA that will be paid in 2026 at closing. And then we have also positive impact from Italy, both on working capital and also because we were able to use our tax credit that has been transformed in tax credit has been used to pay related to the working capital. For '26, we still expect a positive contribution from working capital, we still need to recover advanced payment we made in Greece. So we would expect still a double-digit contribution of working capital in 2026. Manuela Franchi: On the dividend front, we will propose to be on the high end of our guidance in terms of percentage, probably rounding the numbers up. On the Gardant integration, about 2025, we closed between actual synergies of around EUR 9 million to EUR 10 million. We confirm still the run rate of EUR 15 million, hoping to do better. All the actions have been put in place. The technical aspects to be executed will complete by June. So by June, everything is really closed. And the team is running ahead of guidance on the cost efficiency side. Operator: The next question is from Antonio Gianfrancesco of Intermonte. Antonio Gianfrancesco: Congratulations for these set of results. I have 2 questions. The first one is on new business because new business intake reached EUR 14.5 billion in 2025, exceeding already the cumulative business plan target, a very good figure. But I would be -- it would be useful to better understand your expectation for inflows in 2026, both in terms of volume and product mix and how confident you are in maintaining this commercial momentum in a market where NPE inflows remaining for sure, structurally low, but insolvency trends appear to be rising? The second question is on coeo, because I understand that BaFin approval is the final step before closing. And you have confirmed your guidance for 2026, which includes coeo's contribution. So considering that the actual closing will now take place at least 2 months later than planned or something like that, it will be useful to understand whether you expect this delay to have any potential impact on execution in 2026? And the third one is on the German expansion. You highlighted Germany as a fragmented and consolidated market with CSI licensing obtained and operations starting, if I don't understand worse in January 2026. So some additional color on the medium-term ambition in that geography, let's say, in terms of scale, investment intensity and potential margin profile would be very, very helpful. Manuela Franchi: Thank you for your question. On the business volumes, clearly, there were major transaction this year that we had embedded as probability in our pipeline. But obviously, they all realize in a positive manner that probability will become 100%, and this has brought to doubling the level. Clearly, the level of primary transaction across the core markets, the Southern European one, we see them less in the traditional NPL business, while they will be mostly focused on the UTP and Early Arrears part. And also the pipeline regarding nonfinancial claims from there is quite big given that it's a market we don't touch today or at a very limited extent in Spain and that for us is an open opportunity. So we confirm -- we reiterate still what we had in the business plan of EUR 8 billion. Clearly, this EUR 8 billion is composed by forward flows and the new contracts. On a positive note, the forward flow this year only contributed more than EUR 4 billion. Clearly, this includes UniCredit that has finished in terms of forward flow last October and that is replaced by Sondrio that obviously it's smaller that will start after April. And the renewal of Santander, which this year has done more than EUR 1 billion over our budget. So this brings us to positive expectation also on the forward flow contribution of 2026. If you remember, our original mix in the EUR 8 billion was EUR 2 billion from forward flow and EUR 6 billion from the rest and also this component is much higher. This is without coeo. Obviously, coeo has an end market which is different. And in that sense, is a growing market. And this is all assuming in our core business still not substantial increase in the default rates, which is instead happening. So we prefer still to be conservative on this front. Also because you might remember that the time between winning the contract onboarding and the actual pickup of the activities takes a bit of time. And so it has a more dilutive effect over time. Now on the coeo side, the -- in terms of execution of the integration, we don't see impact on the execution. Why? We have already defined the integration plan, and we are already moving ahead with the business opportunity without waiting the closing. So coeo team has built a division to manage NPL and has already deployed a system which allows them under our guidance to manage our traditional NPL. And they already got new clients from January for which they are managing NPL bank. So we are talking to banks. I was actually in terms of for a conference with banks just 2 days ago because the regulator is telling them to prepare themselves for this increasing weight because they have not used those internally to manage more NPL. And to do it more efficiently based on other models and Italy was portrayed as a reference model for the servicing industry. So that activity is developing. On the other side, we are deploying in Italy and in Spain, the coeo models and system. And we can say that already from April, we will start managing 2 of the major clients in our jurisdiction. So this is major results. Then if you look from a pure accounting standpoint, clearly, the figures we have given are pro forma, and it depends on the timing of close, we will consolidate from that point in time. But in terms of free cash flow generation and the targets, we feel confident given that the contribution of coeo in '26 was pretty much somehow offset most extent from the transaction costs, while the full effect on the free cash flow side is from the year after. So because we already achieved this year, clean for the extraordinary elements, the EUR 90 million guidance, the target for the EUR 2.2 billion, it's pretty much sustainable despite this delay. Now going back to your last question on the German expansion. Clearly, our history in Germany is different now from Southern Europe, where we bought a legacy platform that we will go to make more efficient, more modern. In Germany, we start with a model which is extremely light doesn't have legacy, and we would like to grow our market share, keeping that approach. So we will look to M&A in a very thoughtful and selective manner, but we prefer the organic growth strategy in that specific sector, given that it has proven very successful and the AI-driven collection model in the German market has taken a lot of market share from traditional players in the small ticket business, and we hope to do the same also for the NPL. Obviously, adding the more human-intensive piece that we have explained is critical for when you manage larger tickets. But on that front, as I said, the team has already hired a few people, has already [indiscernible]. So -- and all of this is -- all these costs are included already in the guidance we have given. Operator: The next question is from Davide Rimini, Intesa Sanpaolo. Davide Rimini: Just a few. One is on cash flow. I was just wondering, you mentioned already your guidance in terms of working capital contribution for this year. I just wonder whether you might mention a few other building blocks to get to a rough guidance for this year versus the EUR 76 million reported today? The second question would be just a clarification on the pro forma confirmed guidance for this year. I just wonder whether you might add on coeo business, whether there is any seasonality in the business that we should be aware of within the year? And that might affect sort of this message? And the third question, still on coeo. I noticed that you put sort of a slide on the potential pipeline in the 18 months forward on EUR 250 million. And at the same time, you highlighted the opportunities in extended the business in countries like Italy and Spain. I just wondered whether the EUR 250 million is including these opportunities or is excluding those? Davide Soffietti: Davide, I will take your first question. '26, as we mentioned already in 2025 shows that we are able to -- excluding nonrecurring items to be at EUR 90 million. So in 2026, we still have CapEx that will be quite in line with this year, probably around EUR 30 million. We will have a positive contribution from working capital between EUR 20 million and EUR 25 million. We'll have change in other asset liabilities that are always the IFRS EUR 70 million plus redundancy that expected around EUR 60 million. We have tax income to pay around EUR 30 million. Financial charge expected roughly EUR 36 million, EUR 38 million. And we still have the earnout to the grid that is the last one we need to pay this year is EUR 12 million. The next one will be in 2030 of EUR 60 million and minority that is quite in line with this year, so roughly EUR 8 million. On coeo, as Manuela was mentioned, we get free cash flow that will be mainly compensated by the transaction cost and by higher financial charge. But from 2026, we will benefit from the cash flow. This is why we are confirming EUR 90 million. Then we will have the benefit of the proceeds for the portfolio sales that this is in line with our guidance. So we reduced the gross debt. Manuela Franchi: On the guidance for '26, if I understood the question correctly, -- this year, we closed for the doValue Group at EUR 217 million. In terms of EBITDA, we indicated in the guidance last year that the EUR 300 million included the bottom end guidance we had given before of EUR 240 million to EUR 250 million. And in coeo, there is no seasonality effect. There are some mild effects related to [ an uptick ] of e-commerce transaction around Christmas and the like, but nothing as typical as the [ core ] activity in the traditional business. In relation to your last question, if you're looking to Page 5, the pipeline of the EUR 250 million does not include the expansion to Southern Europe. Davide Rimini: And if I may just have a follow-up sort of on the CapEx that you mentioned, the EUR 30 million is -- could you give us sort of a sense why sort of it should be off versus the EUR 35 million sort of spend this year? Davide Soffietti: Sorry, can you say it again? Davide Rimini: I just wonder, if I picked up correctly, sort of you are pointing to EUR 30 million CapEx this year off versus the EUR 35 million reported today. I was wondering whether there's any reason for... Davide Soffietti: The main [delta ] this year we included all the costs mainly related to the Gardant synergies that was a one-off to integrate platform to have the positive effect of the synergies. So from next year, we will save this money. So we continue to spend our Gardant CapEx plus investment in technology... Manuela Franchi: Yes. Just to be clear, we don't expect a lot of cost from the integration of coeo because it's a different platform. So we will have some integration of unification of back-end platform, but it's more deployment and it's much more contained than in the Gardant case, which included a significant, obviously, FTE reduction effort and related integration of in-market platforms that in this case, we are not going to have. Clearly, you have some costs related to the development of the -- of their platform in our countries and of our platform in their country. The second one has already been expanded in their P&L in 2025, given that we moved ahead just after signing. So this impact of integration is much less. Another important point is differently from -- with an increasing trend vis-a-vis the past, the component of development, new technologies, AI projects as part of the CapEx has materially increased. Last year it was probably around 30%. This year will be more than 50%. This is obviously a function of bringing better processes, better technologies in our core system rather than integrating what we had. Operator: The next question is from Davide Giuliano of Equita. Davide Giuliano: I have 4. The first one on gross revenues. Revenues were a touch below your guidance, but more than offset by remarkable efforts on costs. Can you give us some color on the like-for-like trend in revenues? And are you seeing a more pronounced slowdown in recent quarters compared to your guidance? Where do the difference come from? The second one on Greece. In the release, you reported that there are still slowdowns in the onboarding of portfolios, I guess, still related to the Alphabet tranches. In addition, we have also seen a market drop -- a marked drop, sorry, in the collection rate compared to last year. Why are you experiencing these difficulties in onboarding? And in general, what trajectory do you expect for the Greek business going forward? The third one on tax credits. Has there been any relevant developments for state tax credits? And can you give us your expectation on profitability of local tax credit servicing, which will be assigned to AMCO? And the very last one is just a quick comment on coeo results were very good in 2025. And I was wondering in light of Klarna's recent results, if your long-term assessment of the coeo business model or concentration risk with Klarna has changed? Davide Soffietti: Davide, I'll take your first question on revenues. As we anticipated in Greece, the reduction is not a -- tax reduction is mainly correlated to the -- as you mentioned, we have onboarded a huge amount of portfolios in 2025, very big, more than EUR 5 billion. So all the portfolio are onboarded, and we are managing those portfolio. The only difference is when you onboard this big portfolio, you need to work on those portfolio to have up and running revenue. So the expectation was to anticipate revenue during 2025, but because they are very, very big portfolio, we need to work on those portfolios, start the judicial action to also reach an autologous agreements with the borrower. So this created a temporary delay of those revenues from 2025 to 2026. And this is also impacting the collection rate you were mentioned because for sure, we [ existing ] portfolios that are still not having a run rate collection rate. So the first year will be lower, then we will pick up and go back to the previous collection rate. So we will consider this only really temporary effect that will not be any more in 2026. And then we have also, as I mentioned, in Spain, the reduction of revenue arrears, but that one has been also a choice for us because that part is not high margin. So we prefer to reduce these revenues, increasing other type of credit to manage that have lower revenues, but higher profitability. Manuela Franchi: On the tax credit, we are waiting or waiting the operating metrics and that the laws to be published by March will indicate on how to execute what was in the budget law. So based on that, they are defining the operating model on which the services they will use will work on. And we assume that after June, that type of business will be moved to them and they will allocate to subservicers. We have, as you know, a good relationship with them, given that we even increased last year or we even doubled the amount of portfolios that we were managing for them after they reassessed the number of services they work with. So we are keeping ourselves for -- to manage that business, which is not included in our budget estimates. And the margin we are hoping for is driven not by the type of receivable, but the operating model that we want to create on the back end on our side, we should be a digital model. So to confirm the margin we have on the rest of the business in Italy. Now on the coeo results, maybe Daniele can comment. Daniele Seta: Klarna results, you mean? Manuela Franchi: Yes. Daniele Seta: We watch very closely the quarterly results of Klarna, of course, because it is a key customer of coeo. First, let me begin by saying that as you have seen from the pipeline, coeo is diversifying much from Klarna. Nevertheless, it is still an important customer. What we watch for in the quarterly results of Klarna is the growth in the transacted volume. And this is growing very healthy across all of the regions where coeo operates. Specifically, the most important are Germany, U.K. and Sweden. In those regions, Klarna is already very profitable with its flagship product which is Pay in 3 installments. But a good news is that they launched recently the Klarna card. It's a debit card that sits in your phone and allow you to purchase in normal brick-and-mortar shops, with buy now pay later installment. And this is already producing an increase in purchase frequency by 8x in Germany. And this is driving a solid growth of transacted volume in U.K. by 40% and in Germany by 20%. So we are happy about Klarna growth. Of course, their profits are suffering from expansion in other products such as consumer financing in the U.S. We think that there's a clear rationale in expanding in those products. And we hope that at a certain point, coeo will be able to expand its product offering towards the more profitable products. Operator: The next question is from Simonetta Chiriotti of Mediobanca. Simonetta Chiriotti: Looking at the guidance for 2026, excluding coeo, you projected growth from EUR 217 million to EUR 240 million. Could you elaborate a bit more on the trends in the various markets? So should we expect growth in the Hellenic region, for example, and a further growth in Italy? And my second question is on tax receivables. In the past, I think that you have mentioned that there is an opportunity also in Greece on this segment. Could you just give us an update on this? Manuela Franchi: On the Hellenic front, we see 3 type of growth. One, the full action on the EUR 7 billion new portfolio onboarded in 2025 will have a collection effect on certain younger vintages that we didn't have before. And this was what Davide was explaining that you need to put activities in place before you see the actual results. On the other side, don't forget that Greece is probably the country where we are diversifying more the product offer. We have the real estate company, the mortgage broking company, the advisory company. We are offering a data proposition out of the advisory company from this year. We have created another company which they manage small ticket unsecured starting from next year, which is called doServe and will open the market for nonfinancial receivables and also the tax receivable opportunities you were mentioning where the process shall start next month. But this is as an upside is included in a very small amount in our budget given that it's a public tender process, and it might take a bit longer. On the Italian front, the extra value perimeter, but also the Gardant one have been growing this year, mildly vis-a-vis last year. And we are now deploying at full speed also the revenue synergies that we had in the Gardant perimeter. Then in Italy, we have the asset management company. So that falls under that perimeter where we have developed now 2 new funds recently actually 3, and we have a pipeline for next year, too. And last, on the data side, we think we will increase significantly the product offer to noncaptive clients. We have already developed the products. And remember, we also are launching in Italy the Stage 2 product, which has now might be -- we might be closing with 2 banks contract. So this is in our assumption. So it's exploring as much as possible the stocks we have and the inflows from BPM, doValue and Sondrio, but also to grow these other revenue lines. While in Spain, apart from the fact that we have developed digital collection now in all the countries with the marginality increase, which is very strong. We mentioned -- I think Davide mentioned that on the 0 to 90 days past due, the margin on the digital channel is more than 80% versus less than 40% before. There, we are deploying a JV, but we will discuss in more details in the next call on the legal servicing side because the structure of the legal services in the Spanish market allow us to develop this type of proposition. So it's really professional services type of revenues, which -- where we are going to use the capacity we have inside with strong lawyers with expertise in this sector for other sectors, which are not NPL related. Operator: Mr. Della Seta, there are no more questions registered at this time. Daniele Seta: Thank you all. We wish you a good day. Operator: Ladies and gentlemen, thank you for joining. The conference is now over. You may disconnect your telephones.
Operator: Good morning, everyone, and welcome to Pearson's 2025 Full Year Results. Today's session will consist of a presentation followed by a Q&A. [Operator Instructions] And with that, I'll hand over to Omar. Omar Abbosh: Thank you, Alex. I've been looking forward to seeing you all. Welcome, and thank you for joining. We appreciate you being with us. Let me begin with the three things I want you to take away from today's presentation. First, we continue to be very excited for the future of Pearson, thanks to mega trends driving strong secular demand for exactly what Pearson offers and because of Pearson's unique characteristics and enduring competitive strengths. Second, 2025 was another good year of financial delivery and significant strategic progress. Third, we will continue to make progress on our strategy in 2026 with a financial profile that improves further on 2025. I will outline our business progress before handing over to Sally to provide an overview of our financial results for 2025 and expectations for 2026. And then we'll move to Q&A with Aarti, Tom, Sharon, Vishaal, Anthony alongside Sally and me. For those of you in person, we have a series of product demos focused on our most recent releases that will be available after the main presentation just out there. Let me now tell you why I'm confident for the future of Pearson and why we are positioned to succeed. Two factors provide the foundation for our confidence. The first is that mega trends will continue to drive strong secular demand for exactly what Pearson offers. We've spoken before about the ongoing demographic shifts and the advance of AI. These mega trends are already driving major demand for skilling and the validation of skills. How do I know this? Because we have valuable revenue commitments from 9 of the world's leading technology and services companies for exactly these services. And these trends will continue to reconfigure whole industries, occupations and educational systems. Enterprises will need to upskill workforces at pace to keep up with rapid technology changes and institutions will need to provide alternative skilling pathways for vocational and career and technical education. Pearson as the world's lifelong learning company is perfectly positioned to benefit from this massive wave of human skilling over the next several years. Second, we will succeed due to Pearson's unique characteristics and enduring competitive strengths. I feel the need to elaborate. Over 80% of Pearson's profit comes from assessments and virtual schools. These businesses are driven by human-led services where complex interconnected physical and digital workflows enable large-scale delivery in highly regulated markets. Our services must meet a very high bar for accreditation authorities and regulators, meaning that strength and operational delivery matters. And together, our services act as verification infrastructure for companies, industry associations, states and government agencies. Examples of workflows include physical and biometric security, supply chain with secure custody of assessments materials and incident response, statistical proof of maintaining standards alongside capacity management to enable millions of tests to be taken through our network of 20,000 secure physical facilities. Even in today's AI world, some countries or customers are not ready for digital at any scale. So there will continue to be need for print-based products for the foreseeable future. That means that about 90% of Pearson's profit stream is coming from operationally complex, interconnected hybrid physical and digital services alongside print, all demanding uncompromising quality levels and trust. The remaining 10% approximately comes from -- the remaining 10% about -- of our profits come from primarily digital courseware. For example, in higher ed, here, we're deeply integrated in the critical workflows that decision-makers use to perform their roles. These customer relationships have been nurtured over many years built on a foundation of quality, and that comes with high switching costs. We love seeing the progress that AI labs and others are making in the tools that can benefit learners. And as you know, we're embedding much of their progress directly into our offerings, but our products are not just learning content. They're designed to manage a course end-to-end and are tightly integrated with the learning management and student information systems at the university level as well as the course curriculum and assessments at the individual professor level. These characteristics are very unique and are supported by enduring competitive strengths. Specifically, our unique deeply embedded position in the learning ecosystem gives us petabytes of proprietary data that we use to improve learning experiences and outcomes. We have data from billions of student engagements and submissions and hundreds of thousands of instances of instructive feedback occurring on our platforms every year, and that allows us to build ever more effective products. Pearson holds leading positions across almost all our businesses. This leadership provides scale economics and strong operating leverage at an individual business level and a breadth of offerings that is unmatched globally. The diversity makes the business model robust. And our trust underpins all of these strengths. This has been gained through a long track record of operational excellence in our large-scale services businesses and through our quality IP, expertise in how people learn and how to deliver evidence of learning outcomes with formal education institutions. Trust is valuable and plays to our unique strengths because the closer you are to the teacher and the learner, the more trust you need to operate. And trust in verified skills is even more important in an AI era. Taking a step back, what does this all add up to? The mega trends of demographics and AI will continue to be major demand drivers for skilling and the validation of skills and Pearson as the world's lifelong learning company is perfectly positioned to benefit. Our unique characteristics of trust, infrastructure level quality, operational strength and breadth of services that are embedded deep in the learning ecosystems, alongside our investments in AI-driven innovation delivers strong durable cash flows and profitability. And our deep and enduring competitive advantages provide us a unique platform for future growth. You'll remember that we set out three priorities in 2025, and I'm pleased to say that we successfully delivered on all of them. Thank you to the focus of our people, on our customers and on execution. First, we have again delivered a financial performance in line with expectations with revenue growth increasing 4%, profit up 6% and strong free cash flow, demonstrating the attractiveness of Pearson's business model. Second, we continue to embed AI-based innovation across our products and services, allowing us to deliver more engaging, personalized learning experiences. Importantly, we're seeing continued tangible improvements in both learner engagement and outcomes. And third, we're making great progress on enterprise. Our new go-to-market strategy is delivering results, and we see clear financial momentum with a growing revenue backlog now totaling hundreds of millions of dollars of incremental sales to 2030. This means the enterprise business is on a journey towards delivering meaningful shareholder value, underpinning an acceleration in our growth over the medium term. You'll remember our strategy outline, our why, what and how that we first shared in 2024, and that framework continues to guide us. We're motivated by our purpose to help people realize the life they imagine through learning. We'll show a video at the end of our presentation, which is part of a series highlighting the real-life impact learning has on real people, playing directly into the unique role of Pearson in the world. Next, our what. It remains clear. We're the global leader in assessments and verification. That is our core. And we're implementing our strategy to drive performance in our core businesses, realizing execution synergies while also investing in the faster-growing segments of early careers and enterprise skilling. And finally, our how consists of our internal capital allocation process, prioritizing innovation to deliver better learning outcomes and embedding a high-performance culture top to bottom. Let me share some details on our progress in 2025, starting with driving performance in our core businesses. Here, our progress and execution focus gives us confidence that each business unit is on a clear path to improved growth, benefiting from strengthening our sales muscles and developing our product road maps to be ever more competitive. First, assessment and qualification growth increased in 2025, thanks to our team's clear focus on executing for our customers. Clinical Assessment and our Qualifications business performed strongly, benefiting from digital growth and international expansion. Pearson Professional Assessments secured scope extensions and new awards with enterprises such as Google, ACCA and others that we have won and will communicate in the year ahead, which will contribute to faster future growth. U.S. Student Assessment made progress, unlocking adjacent market growth through our partnership with McGraw Hill, and we expect continued momentum in 2026 with ongoing growth in enterprise, international markets and new product innovation. Second, English Language Learning, Sharon and the team continue to execute strongly with customer wins in key institutional markets, for example, in Latin America and market share gain in PTE, where we maintained our revenue level even while global market volumes declined by about 15%. We will build on the momentum in upskilling enterprise talent with English skills and drive further market share gains contributing to higher growth in 2026. Next, in higher education, we delivered faster growth in 2025 despite the K-12 transition and trading conditions in international markets. We progressed our early career strategy, operationalizing our direct K-12 sales team to take advantage of the fast-growing career readiness opportunity. Our core U.S. Higher Education business performed solidly with continued strength in inclusive access. And at the same time, we see value upside as we know we can do better, especially in channel execution to improve inclusive access growth and accelerating platform convergence and simplification in 2026. Now turning to Enterprise Learning and skills. Vishaal and the team continue to lay the foundations for growth, building our global enterprise sales team, securing a series of long-term meaningful strategic relationships with blue-chip names, and I'm going to say a bit more about that in a few minutes. And then finally, Virtual Learning had a standout year. We're now seeing the benefits of the execution improvements that we told you about this time last year, including our new enrollment portal and targeted marketing investments to capture strong demand. We've enhanced our early careers offering with new industry partnerships, which are now embedded across the entire school network. And we're excited about the potential for this business in 2026 and beyond. We are a leader and gaining share in a market that has strong demand plus opportunities to add capacity to our school network. And we can drive further business unit-specific improvements with execution synergies driving value to Pearson as a whole. We're driving synergies across our business units, supported by AI-enabled cost optimization opportunities and ongoing process improvements while enabling faster product innovation. These synergies are providing additional capacity to invest in the business, supporting future growth. In 2025, we generated about 200 basis points of margin through cost savings. which, of course, we are reinvesting. Expect us to continue to optimize our business, enabling ongoing investment and margin progression within our P&L envelope. Let me give you a little update on our progress across our key synergy areas. First, we've consolidated our suppliers and deepened our relationships with a smaller number of key partners to create customer impact, drive efficiencies and grow our businesses. Our latest partnership with Salesforce provides all of these benefits. We've deepened our sales intelligence capabilities at an optimized cost while supporting Salesforce's own reskilling priorities with our suite of enterprise products. Second, we are improving our operational systems, leveraging new AI technologies to provide better customer service, faster routes to market and improved data capabilities to support our decision-making. Teams using our AI content development tools saw content editing time reduced by at least 40%, translation costs reduced by nearly 1/3 and content alignment costs down by 1/4. Our AI customer services agents handled over 130,000 customer interactions, delivering an approximately 40% reduction in volumes where our agents have been deployed. And we'll unlock further value as we move from these pilot stages to wider internal scale and develop new workflows with agentic technologies. Through our newly established revenue operations function, we now have a single standardized sales pipeline across Pearson and a simplified sales incentive framework, improving forecast visibility and sales disciplines. Now turning to brand. If you went online to look for all the Pearson properties and assets and products, you would have been met with this kind of brand soup. We are creating a more unified Pearson presence, allowing for a simplified and intuitive product portfolio, enabling easier selling and purchasing and, in my opinion, an improved signal-to-noise ratio. You will have seen this in the new Pearson branding that we launched last year as well as through our product portfolio, for instance, Pearson Learn and Pearson Career Ready. Finally, we're making progress on implementing a modern software development approach. These Pearson-wide set of tools and methods maximize the value of our sector-leading product and technology cash spend, which totaled approximately GBP 1 billion last year, which means we're investing in innovation for the future while building on our core competitive strengths. Through our efforts, we're accelerating the rate of innovation across the company, leveraging shared capabilities to embed best-in-class AI-enabled tools and functionality across the business units, supporting their market position. As usage of our AI tools scale among end users, we continue to demonstrate clear benefits, including for educators who are freeing up time to spend on teaching and for students who are actually improving their learning outcomes. Let's now show the breadth of our AI offering in higher education and how we're improving student outcomes. [Presentation] Omar Abbosh: And what this highlights is not just the pace at which we're innovating, but how deeply embedded AI now is in our capabilities to improve outcomes. Let me shift now to sharing our progress on our two medium-term growth vectors, starting with enterprise skilling. When I speak to CEOs, the message is consistent. AI is shortening the half-life of skills, and there is no positive outcome with AI transformation to be achieved without real investment in human learning. Therefore, there's increased urgency around reskilling, closing productivity gaps and preparing for the AI-driven reconfiguration of jobs. The scale of change is moving enterprises away from traditional learning and development approaches with discrete tools that show little or no ROI and towards partners who can co-develop learning experiences and connect skills, data and talent intelligence into a unified ecosystem. The strengths of Pearson play into this opportunity, and we're making good progress unlocking it. Our newly established go-to-market approach has led to 9 important partnerships that you can see on the slide. The common thread across each of these logos is that these enterprises matter in the future of technology. They have large workforces with significant reskilling needs, and they share our conviction about the importance of skills in the AI era. And they chose Pearson because we're the world's lifelong learning company. Let me remind you of the scope of these long-term partnerships and then go on to tell you why these deals matter. First, they commit our partners to being Pearson customers. We've created significant sales opportunities already, such as the integration of our learning products to support Amazon's workforce development, English Language Assessments for TCS, certifications at scale for Google through Pearson Professional Assessments, Credly as a key credentialing partner to Microsoft's new skilling platform and sales skilling through a combination of assessments and personalized content for IBM and Cognizant. And there are clear parts and commitments with each partner to do more. Second, Pearson is also a customer of their engineering skills and services, for instance, through the deployment of AI tools for content generation or the use of Azure and Bedrock capabilities in our AI-enabled products. And third, we're engaging in the joint innovation and go-to-market activity that unlocks new opportunities for instance through complementary solution models and access to industries or geographies. Examples of progress here, including partnering with HCLTech on a skilling initiative for a major U.S. retailer and embedding our enterprise product suite and assessments and learning content in the Deloitte Academy, which is Deloitte's comprehensive skills transformation offer that they offer to their clients globally. Microsoft was a key strategic partnership early on, and we've made significant progress in 2025. We're excited by the innovation alongside them, very excited. We now offer personalized adaptive learning experiences directly in the flow of work. Let's introduce you to communications approach. Please roll the video. [Presentation] Omar Abbosh: We're just at the start of what we can do with our partners as we combine Pearson's proprietary content, data and assessment capabilities with their scale, enterprise selling and reach. Our enterprise business will contribute meaningful shareholder value over the medium term, and we're pleased by the progress so far. I know I have a finance audience in the room. So from a financial perspective, the contracts we signed in 2025 lock in revenues of hundreds of millions of dollars with existing customers, and they add incremental cumulative revenue commitments to Pearson of hundreds of millions of dollars through to 2030, with value being realized in AMQ, ELL and ELS. Now let's turn to our second growth vector, early careers. In an AI-driven economy, concerns are particularly acute around entry-level roles. That makes job-ready and vocationally aligned skills more important than ever. We estimate the early careers market is about a $6 billion opportunity in the U.S. alone. It is fragmented with no clear winner and has been underserved historically, presenting a clear adjacent opportunity for Pearson given our strengths. We had an early presence through our career offerings within virtual schools and relevant IP in higher education and career-ready certifications in Certiport. We're augmenting these areas with significant investment. For example, we improved our channel access through a direct Salesforce to deepen and expand our relationships with U.S. school administrators. And we expanded our capabilities through the acquisition of eDynamic Learning, North America's largest provider of digital career and technical education. So by optimizing our model across these areas, we're driving new growth here and are energized by the progress in unlocking this attractive adjacent market. I now want to shift gears a little and come back briefly to the topic of power metrics. These are a small number of metrics of leading indicators that we want to report to you on a go-forward basis. We chose these metrics because they signal clearly the future health of the business, and we want also Pearson's people to be laser-focused on these as part of their incentives as well. First, our renewals metric. The renewal rate was strong at 96%, reflecting the competitive strength of our businesses. While Pearson Professional Assessment continued to drive near perfect retention, the metric was impacted by New Jersey and U.S. student assessment, although we were successful in another 38 competitive renewals in that business. And our renewals metric will be supported by our second growth metric, which shows the average annual new contract value signed across our core large-scale assessment businesses. In 2025, our metric was GBP 33 million, benefiting from large wins such as Google with Pearson Professional Assessment and our formative assessments contract with McGraw Hill. And given contracts in this space are long term in nature, you should think of this metric as cumulative over a 3- to 5-year period. Lastly, we extended our major customer metric to 49 in 2025, reflecting both new customer wins and expansion within existing relationships, demonstrating our momentum in enterprise. As you can see, we have now made a lot of progress in our business while delivering on our commitments, which will contribute to an even stronger 2026. Our unique business model, continued progress against our strategy, plus our strong focus on execution means that we're guiding to a further improved financial profile in 2026. This builds on our track record of financial progression and meeting market expectations each year since COVID. I'd like to now hand over to the wonderful Sally to break down in more detail our financial performance for '25 and the financial outlook for '26. Sally Kate Johnson: Thanks, Omar, and good morning, everybody. 2025 delivered another year of good financial performance. Sales grew 4% with a 6% increase in underlying profit and margin expansion from 16.9% to 17.2% despite currency headwinds. Adjusted EPS increased 4% to 64.5p, reflecting that solid trading performance and a reduced share count from the share buyback, partially offset by higher interest costs. It's worth noting that EPS grew 9% at constant FX rates. Cash performance continues to be strong with free cash flow conversion of 125%, including the state aid recovery, 98% without. This strong performance, combined with our balance sheet strength, supports a 5% increase in the dividend. We also recently commenced a further GBP 350 million share buyback, demonstrating proactive capital allocation to drive incremental shareholder value. Before we get into the detail, we've updated the slide we shared last year, demonstrating historical financial progression for 2025 data. We have a track record of consistent progress with underlying sales, profit, free cash and return on capital growth. This demonstrates the momentum in the business and underpins our confidence in both our 2026 outlook, which I'll come to in a minute, and our medium-term guidance. But first, a recap on our 2025 sales performance with group underlying growth of 4%. By business unit, Assessments and Qualifications delivered a solid performance with growth accelerating in H2, particularly in Q4 and all sub-business units contributing to that growth of 4%. Virtual Learning delivered a strong performance, particularly in H2 when sales were up 18%. Fall enrollments were up 13%, supported by enhancements to our enrollment platform, improved retention, the rollout of our career academies, targeted marketing and strong underlying market growth. Higher Ed growth improved as expected versus 2024. Our core U.S. Higher Ed business delivered a solid performance with anticipated offsets from K-12 and international, both of which are expected to improve in 2026. English Language Learning continued to grow, driven by institutional, while PTE was flat year-on-year, outperforming a challenging market. And Enterprise Learning and Skills grew 6% with another solid performance from Vocational Qualifications and momentum in Enterprise Solutions, who grew 20% in Q4. Group adjusted operating profit grew 6% on an underlying basis to GBP 614 million. This was driven by operating leverage from sales growth and continued cost savings, partially offset by investment and inflation. FX also impacted the headline movement. Adjusted operating profit margin increased to 17.2%. Again, by business unit, Assessments & Qualifications margins remained at 23% with margin benefits from sales growth offset by investment, inflation and currency movements. Virtual Learning margins increased to 16%, driven by operating leverage on strong sales growth. Higher Ed margins remained flat as sales growth was offset by investment, inflation and currency movements. English Language Learning margins also remained flat with cost savings offset by inflation and currency movements. And Enterprise Learning and Skills margins increased to 10%, driven by margin on sales growth. Statutory profit declined 6%, predominantly due to a noncash one-off impairment relating to our Higher Ed platforms, partially offset by vacant property provision reversals following sublets in 80 Strand and Hoboken. As Omar mentioned, in 2026, we plan to accelerate the conversions of our Higher Ed platforms to streamline and modernize our courseware offering and reduce support costs. A consequence of this is an impairment of GBP 87 million in some of our assets, which is one-off and noncash in nature. This write-off now generates a mechanical circa GBP 15 million per annum profit improvement in Higher Ed on average over the next 6 years. Free cash flow increased by 8% with a conversion of 125% due to the recovery of state aid taxes. Conversion, excluding that state aid recovery was still a strong 98%. Operating cash conversion was 93% with an increase in working capital in the year given high Q4 sales growth and slightly increased investment. Our balance sheet remains strong with a leverage at a comfortable 1.3x at the end of the year, below our medium-term cap of 2x EBITDA, maintaining optionality to make value-enhancing investments and/or shareholder returns. Net debt at the end of the year was GBP 1.1 billion, a GBP 0.2 billion year-on-year increase with free cash flow more than offset by the share buyback and acquisition of eDynamic Learning and dividends. Return on capital increased 80 basis points to 11.3%, more than 250 basis points ahead of post-tax WACC. Turning to guidance for 2026 and beyond. As we've previously guided, in the medium term, you can expect mid-single-digit CAGR underlying sales growth, sustained margin improvement, equaling an average of 40 basis points per annum and strong free cash conversion in the region of 90% to 100% on average across the period. As you've heard from Omar, we have strong confidence in our ability to deliver in 2026. And therefore, we're laying out specific guidance. At a group level, you can expect mid-single-digit sales growth and adjusted operating profit in the range of GBP 640 million to GBP 685 million at FX rates as at the end of 2025. The mechanical improvement driven by that 2025 impairment I discussed earlier is included in this range, and free cash conversion will be 90% to 100%. The effective tax rate will be circa 25% and interest will be circa GBP 80 million following the commencement of our further GBP 350 million share buyback. Included within this guidance is new investment to support our strategy and drive growth, including higher-than-average transformation costs, which are weighted to H1. This investment is more than offset by the margin on sales growth and operational improvements, which drive the group's margin expansion and our GBP 0.01 equaling GBP 5 million FX profit guide still stands. On a business unit basis, A&Q will grow low to mid-single digit, driven by new contracts, products and pricing. Virtual Learning will grow even more strongly than in 2025, given a full year of enrollment growth. Higher Education will grow more than 2025, supported by continued product and platform innovation, pricing and inclusive access in U.S. core as well as improvement in the K-12 channel. English growth will be higher than in 2025 with PTE returning to growth, market share gains and pricing. And Enterprise Learning and Skills growth will be driven by a solid performance in BQ and strategic account growth in Enterprise Solutions. In terms of phasing growth is again H2 weighted, but not as markedly as in 2025. At a business unit level, A&Q will decline in Q1 given the loss of the New Jersey contract and PDRI headwinds, but will then turn to growth in subsequent quarters, supported by new business and recently awarded contracts. Virtual Learning will see strong growth, particularly in H1. English growth will again be Q4 weighted given the seasonality of the business and HE and ELS growth is expected to be relatively steady. Our disciplined capital allocation policy remains the same with a focus on maintaining a strong balance sheet, investing both organically and inorganically, paying a progressive and sustainable dividend and then returning surplus cash to shareholders. The slide you see now illustrates how consistently we've applied this policy over the past 6 years. We continue to invest behind the business with meaningful organic cash investment during the year alongside inorganic investment through the $225 million acquisition of eDynamic Learning. Since 2020, we have returned GBP 1.4 billion to shareholders through share buybacks with a further GBP 350 million program commenced in January, underpinned by another year of strong cash performance in 2025 and our confidence in 2026 and beyond. Going forward, we will continue to apply this disciplined approach. And through our strong cash generation, we'll continue to invest behind opportunities to drive further growth and create long-term value for all our stakeholders. And with that, I'll hand back to Omar. Omar Abbosh: Thank you, Sally. Okay. So let me wrap up with a quick look at our 2026 priorities. These are simply an evolution of what we focused on in 2025. Firstly, once again, we will deliver on our financial targets. Second, we will continue to lead in the application of innovative technologies, including AI across our products and services. And third, we will deliver against our core business and enterprise power metrics. As I said at the beginning, there are three takeaways from today. First, we continue to be very excited about the future of Pearson because of these mega trends driving strong secular demand for exactly what Pearson offers and because of Pearson's unique characteristics and enduring competitive strengths. Second, we successfully met our goals in 2025, demonstrating another good year of financial delivery and significant strategic progress, thanks to our rigorous focus on execution. And finally, you can count on us to do even better in 2026. Now let me say a few words about Sally Johnson. I want to congratulate Sally on her fantastic 26-year career at Pearson and the wonderful contributions she has made throughout her journey and for being a wonderful fantastic partner. I am also going to be very excited to introduce you to Simon Robson, previously Group CFO at Sky in the coming months. Now let us play a little video that I mentioned earlier before Sally and I and the team here take your questions. We're going to hear from Savannah. She is a real Pearson Connections Academy graduate, who outlines in her own words the life she's realizing through learning, which plays directly into the unique role of Pearson in the world. Please roll the video. [Presentation] Omar Abbosh: Neuroscience at NYU, pretty cool. Omar Abbosh: Alex? James Tate: It's James Tate from Goldman Sachs. I've got three questions, please. I guess, firstly, please, could you provide a bit more detail on the moving parts of A&Q growth in 2026? If you didn't have the New Jersey contract loss and PDRI was, say, stable, then would it be fair to assume the division would grow more mid- to high single digits, around 6% rather than the 4% you've broadly guided to? Is that the right way to think about it? And you've also announced a number of contract wins over the last year with major tech companies in professional assessments. Does there still remain a strong pipeline for potential new contracts going forward? Secondly, on EOS, your guidance for 2026, I think, is somewhat vague in terms of you're clearly growing the number of large blue-chip logos you're working with in Enterprise Solutions. Should this not lead to improved revenue growth this year versus '25? Or are there some other dynamics offsetting this that we should be aware of? And thirdly, I guess, Omar, building on your comments about the significant opportunities from generative AI for Pearson, what are the primary risks that you identify? For example, do you see any risk from evolving student learning behaviors impacting demand for Pearson's courseware content in Higher Ed? Omar Abbosh: Great. Thank you. This is just a very light collection there, James. We appreciate that. We appreciate that very much. I'm sure the other analysts are like Damn, and I wanted that question. But anyway, it's good. So I think on the A&Q dynamics and what's going on under the hood. I mean maybe, Sally, like say a little bit about how you think about the numbers, and now particularly James is asking ex PDRI, ex New Jersey, and maybe add a little bit to what you're seeing, the overall landscape of how that business is performing. Sally Kate Johnson: Yes. So I'm going to start and then I'll pass over to Aarti. So low to mid for A&Q in 2026, and you've called out the right pieces. So yes, you can see the impact of New Jersey from a retention point of view. I've called that out because it impacts Q1, and I want you to be ahead of Q1. But then through the rest of the quarters of the year, we bought new contracts online. You heard of Omar calling out the number of them. So we've got a new contracts in Maryville. We've got a new contract in other states. We've got a new contract with Google in Pearson Professional Assessment. And we've got some new contracts that we can't talk to you about yet because we haven't got the contracts signed, but which we've been verbally awarded. Alongside new products that we're bringing online, pricing and all those sorts of things as well. So we've got really good confidence in the A&Q performance for the year. To your point, I haven't done the math on what you say, but quite clearly, without the PBRI piece with the federal funding and without that New Jersey piece, then yes, it would be better than low to mid. Omar Abbosh: Art, do you want to just comment a little bit on how you're thinking about the business shape overall? Arthur Valentine: Yes, absolutely. And good to see you, James. And as Sally said, those two factors are real, particularly in the early part of the year in the course of New Jersey. But contract performance in the two large contract services business, Professional Assessments and School continues to be very strong. We won a competitive bid for Maryland. We won a competitive bid for Wyoming. We renewed close to 40 other competitive bids. We'll see the impact in 2026 of the full year of running the Salesforce and ServiceNow certification programs within the Professional Assessment business. Omar announced the extension of ACCA. That chartered accountants in the U.K. for those not familiar, that starts to show up in '26. In our U.K. and international qualifications business, we're launching the Standards and Testing Agency primary school testing contract in '26. We came online with that in '25, but this is the first full year of implementation. We'll be delivering primary school examinations in 16,500 schools in the U.K. And our clinical assessment business continues to deliver strong digital innovation into the market. That business has performed well over the last few years. I encourage you to stay for the product demos afterwards, and you'll see some examples of more innovation that we're bringing to market, and that gives us confidence in strong performance in that business. So overall, we feel great about A&Q. Omar Abbosh: That's the summary. We feel great about A&Q. On the second question, Sally, I'm going to ask you to say like one word about why our growth guidance was slightly like thin. And then I'm going to ask Vishaal if he's sitting on his hunches having signed 9 deals and he's not building pipeline for the future. But over to you, Sally. Sally Kate Johnson: Yes. So really confident in ELS growth. But I think we know right now, it's one of the smaller divisions. It's not going to be for long because I know how competitive, apart from anything else, Vishaal is. And that just means that a few million pounds can make a couple of percentage points difference. And therefore, it didn't really seem to make sense when we're looking at it quarter-by-quarter to be too specific. But the BQ part of the business, we'll see solid growth. And I talked about that Enterprise Solutions part of the business and that 20% growth in Q4, it's relatively small now. But if it keeps growing at that rate, it's not going to be relatively small for very long. Omar Abbosh: So Vishaal, you're not going to do any more selling and like are we done now with... Vishaal Gupta: Yes. So just to put a little bit more color to Sally's comments. So we have two businesses within ELS. VQ, we continue to be seeing a lot of robustness in that business. So part of that business or a large part of that business is very U.K.-centric, where we have the BTEC brand. We are also winning a lot of new contracts in the vocational space. So that continues to be driving growth. We are also expanding internationally to countries like Uzbekistan, Pakistan, Jordan and so on. And what is most exciting about that business, we also offer what we call as apprenticeship services. So a bunch of customers, we won a contract we announced last year with the British Army, which we are executing to now. We have something going on with NHS and more coming on -- coming up in Middle East that we will announce shortly. So that part of the business is doing relatively well. The other piece, which I'm even more excited about is Enterprise Solutions, where you saw those 9 partnerships that we have signed. So my team is singularly focused on execution as we speak. There are many things that we need to put in place to get all of the revenue in all the way from putting together the right product co-innovation road maps with these partners to having the right go-to-market motions and working with them, and these are very big tech players, as you know, working with them globally across all of the regions that they operate in. So a lot to focus on. But in terms of momentum, we are getting into 2026 with much, much more momentum than we had last year as we got into 2025. Omar Abbosh: Thank you, Vishaal. So James, let me say a couple of things about the AI risk point. I mean, so this one, obviously, we could spend a long time talking about it. I think the market looks and says, "Hey, if I have a digital format product where the product is purely digital and if the user is the buyer, then what happens if someone puts out an AI tool that is free, like what's that going to do to that market? And I think indeed, that is problematic for some people. The thing is Pearson doesn't do that. The only bit of Pearson that you could say like a little bit -- had a bit of that and it was Mondly. Mondly, we pivoted that a year ago to be a pure institutional and enterprise package. It's like where it's going. That's where all our spend and delivery is going. Pearson is actually -- you get a different outcome from AI. What -- when people are generating AI content at a rate of not, and there's an amazing amount of slop landing them in Internet. When you have deep fakes happening on the Internet and you have false identities on the Internet, we're seeing a giant flight to safety. People want trusted authoritative sources. They want verified identities. They want validated skills. I mean, as you know, James, today, it's tough for kids graduating or trying to get a job. They fire off 10,000 CVs with a bot and they're screening resumes at the other end by a bot. You've got bots with the bots. So the construct of how resume thing works is not really working. Companies are more and more saying, "Show me that you have a validated skill." That is what Pearson does. So actually, like I said, the AI thing is a giant tailwind for us. And I think whether we like it or not, and you all are much clever on this than I am. But when investors look -- particularly when it's sort of passive investing happening in bundles and Pearson is like wrapped up in media or wrapped up in EdTech, and we are not that. So I think Laura is next. Next to you, Susie. Unknown Analyst: Three questions, please. First one is on the virtual learning margin. So it has improved significantly year-on-year. I understand it's coming mostly from operating leverage. Is there anything else that's driving the margin expansion? And is it reasonable to assume that it's going to continue expanding at the same pace? Second question is on pricing. So you said you're generating a lot of efficiencies, thanks to AI. I'm curious to hear how are your conversations with clients? Do they expect you to pass on some of these savings? Or is your pricing power very strong, which means that you don't have to give away any of these cost savings that you're realizing? And if you could comment on how is pricing evolving across your business, that would be really helpful. And then lastly, on the Higher Ed business, one of your peers, McGraw Hill is growing very fast. Why do you think they're growing so quickly? And do you think you can bridge the gap to their growth rate? And Sally, all the best for the next step in your career. Omar Abbosh: Thank you, Laura. So on the Virtual Schools margin, I'm going to ask Tom to just say something there about what is it that you think has driven the success so far? And also, what are you thinking is -- how we're thinking about this going forward? Tom Simon: Yes, sure. So I mean, I think from a virtual schools perspective, last year, we obviously saw great growth driven by helping people like Savannah, which was lovely to see in that video. I think fundamentally, the margin characteristics of that business are great. The one thing you have to bear in mind is when you grow as quickly as we did last year, you have some teacher vacancies because you're struggling to recruit teachers. It's obviously kind of hard to recruit teachers in Q4 of the year. So I think you should expect to see sort of continued margin expansion driven by the top line leverage. But just recognize we may need to catch up and think a little bit differently about teacher hiring because fundamentally, I think we are seeing a very different opportunity in that space, which we're excited about. We just need to make sure we transform how we manage the business to support the ongoing demand. Sally Kate Johnson: And there was also that extra marketing spend that we put in to drive that growth as well. That's all covered in that margin movement too. Omar Abbosh: That was fully absorbed, yes. I mean, Laura, on pricing, I mean, I'll say like the headline is no. I mean, so Pearson, as you'd expect, is constantly investing in getting more efficient and more effective and more productive, and we will continue to do that. But that doesn't mean customers run around and say, "Hey, we've got to give us some of that savings." And the reason is very simple, and this is the point that I'm trying to make about the business model that I was talking about with James earlier. Pearson is one of two or three companies in the world that can do what we do because it's very hard to deliver that level of operational excellence in driving and assessing standards. And so that's where our gross margins come from. And so the short answer is no. Now having said that, are we going to be complacent? Of course, not. Some of the RevOps things that I spoke about earlier is actually giving us much more fidelity and visibility into our own selling rates, pricing rates, discounting rates. And we're getting more control of that, which I think will allow us to get a bit more value upside. And Tom and the team did some great work in the IA space a little bit in that space recently, and I expect that to continue. So -- but the short answer is no, we're not having to negotiate prices at the moment. And then on Higher Ed, McGrow Hill, I mean, I love you asking that because, of course, you're pointing to our upside. There's nothing that they're doing that we cannot do. And Pearson is coming from a place where perhaps we were not so well organized a few years ago. And under Tom and the team's leadership, we're in a much better place that business is growing. And I think we should aspire to continue to drive performance because McGraw is a great company. We love them, and we can learn as well. So over here and then over here. Ciaran Donnelly: It's Ciaran Donnelly from Citi. Two on enterprise and then one more. Just on your comments on the backlog in enterprise, could you just give us a sense of what it would have looked like 12 months ago, just to get a sense of how it's grown over the year in the context of the enterprise agreements you've signed? And then I guess, just on those partnerships, I'm just trying to get an understanding of pricing framework. Just in the context, I know there's a debate around AI displacement and unemployment levels. And I guess just in the context of potentially higher unemployment, how that would affect that business if pricing is based on headcount-led metrics? And then just on the medium-term plan and the average 40 basis point margin improvement per annum. Could you give us a sense of what's the contribution from, I guess, operating leverage and cost efficiencies just around your comments in terms of you've reinvested the cost efficiencies you've delivered over the last couple of years? Omar Abbosh: Yes. So if I go back a year ago, Ciaran, in the enterprise business and particularly looking -- I mean, so I'm not talking about vocational qualifications. I'm talking about just the small enterprise solutions thing that as Sally said, small numbers can make a difference. That business had already some partnerships. Other bits of Pearson like Pearson View, for example, would have had relationship with Microsoft and AWS, for example. And so when we looked at that, we were like, okay, how do we ensure that these customers are long-run customers for the business. That's part one. And secondly, how do we ensure meaningful growth upside. And that's what these contracts do. They lock in hundreds of millions of future revenues of pre-existing contracts and put us in a place where those companies want to invest in us and innovating to build the next generation of products, and we added incremental hundreds of millions on top of that, not just with those two, but all the others. And so that is a big difference from where we were a year ago. But like I said, the difference spreads out across ELS and ELL and A&Q because when we set up the enterprise sales team, you'll remember me saying this is Pearson had a lot of what the market in enterprise needed. It just didn't sell to it. So we've created a single sales team to address that enterprise opportunity and Vishaal's team bring all of Pearson, and that's what you're seeing in the outcome there. In terms of the pricing framework and the unemployment question, I'm not going to pretend to have a crystal ball on like the future of employment and AI impact. I think -- I do think there is some hysteria coming out of Silicon Valley because of actually how powerful 5.3 Codex and 4.6 Opus are, et cetera, on things like software engineering. So the software engineers are being very noisy about it, I think, for a good reason. And so that raises a lot of questions. In the past, when you get these sorts of dislocations, you end up with people needing skills, needing new skills. And that's the demand that we're seeing. So actually, the tech companies are coming to us for skilling their people like their sellers on their AI, and they're coming to us to come and skill their customers on their new products because in order to justify the hundreds of billions of CapEx, you need people to use the product. And in order for them to use the products, they need to know how to use the products. And that's what we're being asked to help with. So that's the big drive that we're seeing today. And I think Sally would say, in the past when there were sort of downturns in the economy and so on, Pearson has also had an element of it that is countercyclical and shows up and helps people in those moments. Sally Kate Johnson: On the specific financial question you're asking, though, from a pricing point of view, it's not based on headcount with these partnerships. It's on hard commits and dollars. Omar Abbosh: Yes. I mean, Sally you've excellent point. Sally. I mean so when I say the hundreds of millions, I mean, Sally and I talked about like how are we going to explain this to the market because it's a bit involved because it's across several years and it's across the different business units. But as Sally said, that is legally contracted revenue backlog. That's what that is. And then on the last point that you're asking about the medium-term 40 bps, how we're thinking about that vis-a-vis operating leverage. So Sally? Sally Kate Johnson: I think I've talked before about the kind of the three components, operating leverage on our mid-single-digit sales growth. And then we've talked about tens of millions of pounds of cost savings. Actually, last year, that was the 200 basis points that Omar referred to. So that gives you an idea of the scale that we're talking about. If you do the math on that, you get to a lot more than 40 basis points. And then we're reinvesting part of that back into the business in order to drive that future growth. So I think from a scale perspective, you can take the 200 basis points, you can apply the mid-single digits to the top line. And then the balancing figure to get that to 40 basis points is investment. And you'll see that, that's a significant number because we're driving for future growth. We're innovating with our partners to bring new products to the market, and it's really exciting. Unknown Analyst: So first of all, digging back into A&Q in Q1. So you saw 8% organic in Q4. I think if the whole of the New Jersey loss landed in Q1, that would be something like a 6-point drag. So that would still leave you in positive territory. PDRI was already declining in Q4. So were there one-off benefits helping you in Q4? Or is there something else worse in Q1 to get us down to negative? Also digging into Laura's question on Higher Ed a little bit more, Cengage was 10% up in U.S. Higher Ed and 25% McGraw Hill teens. Both of them say they won share of adoptions. They're also much bigger in Inclusive Access and growing faster in Inclusive Access. So this has been the case for a couple of years now. So what's going to make this turnaround and need to catch up when it isn't really happening so far? And a third question, can you talk about what kind of enrollment growth for fall 2026 you're baking into your thinking on higher education? Omar Abbosh: Yes. I mean, Nick, I love seeing you. I'm so happy you're here, and I'm excited about the day when you don't ask me tons of questions about Higher Ed. But anyway, we will get into that because I mean it like it's 10% of our operating profit with the English part as well. So I mean, the other 80%, 90% is the rest. I just want to remind everyone. But we're going to absolutely answer those things. So on AMQ, was there anything funny going on in Q4, Sally, that gave us a one-off kicker in AMQ that we should be talking about? Sally Kate Johnson: No. I mean, of course, we're not a business where you can just go steady, steady, steady, because it's not a volume play. We've got these large long-term contracts and the revenue recognition is based on when you're delivering against those contracts. And if your exam falls in one quarter rather than another, it can mean that things move around. All that's going on in Q1 is the New Jersey contract and then the comp from PDRI is a tricky comp. In Q2, the comp gets easier for PDRI and then we bring these new contracts online. And then we've got the new contracts that we had in Q4 also helping that growth. So just simple as that. Omar Abbosh: Yes. Thank you. I'm going to say a couple of words about -- my thesis about the Cengage thing. And then Tom, maybe you'll pile on and also talk about enrollment. So I mean, I'm a simple person, Nick. There's only two things that matter. Like do you have a good product and can you sell it? Pearson historically -- and I'm going back years, like perhaps we didn't pay enough attention to those two things well enough in the Higher Ed space. That's why on the product side, we're busy converging our platforms into a single modern tech stack and that Tony and his team are doing a wonderful job on that. So the product, I would say, was lagging, and now it's advancing really quickly. The feature functionality is incredibly rich and professors love our stuff. And some of the underlying tech stack was a bit older and like we're dealing with that. And so that's some of what you've heard about. On the sales side, again, Tom and the team have modernized that, and I actually am very happy with how that performs. But perhaps we were a bit slow on the uptake on inclusive access. So I think we closed out the year at something like 44% of our revenues are in that space. I think the top -- the front run is at 60%. So for me, it's just all upside, like we know what to do. But Tom, if you can comment on that and then please, a little bit on the enrollments as well. Tom Simon: Yes, sure. So I mean, I think the old market share question is a chestnut that we're kind of expecting. It's very simple. We think about adoption market share and so we're not particularly focused on NPI for a couple of reasons. One, it only measures half the market. So you can miss kind of important things like OER and what's happening there. Two, it doesn't really measure what professors are actually doing on an underlying basis in terms of adoptions. So actually, we're focused on adoption share. And last year, we were up. This year, we were flat. And we'll tell you when we're up and we'll tell you when we're down and we'll tell you when we're flat. So we're kind of fairly straightforward there. I think on Inclusive Access, as Omar touched on, there's more we can do. So we've been very focused on being more aggressive with our Inclusive Access strategy for 2026. We're looking forward to seeing how that plays out in the fall. And then I think we've also been fairly candid about some of the product areas of friction in the past, right? So when I think I joined, we had 170 different ways to integrate with an LMS. That's kind of difficult to manage if you're a sales team or if you're a customer support team. And so we've simplified that down to less than 10, and we're continuing to push on things like that. They make a difference to the professor experience, which is why we've had some of those points of friction and challenge with things like inclusive access, but there's been a lot of focus there. And then on enrollments, I think for the year, we're broadly flat. We're expecting it to be up in the first half and slightly down in the second half. So if you put all of that together, that's how we get there. So that's kind of our thinking there. And actually, just to add, I think from a product perspective, when you saw the AI in those demos earlier, that AI is out there in our sellers' hands today and it's winning new business and it's taking market share. And we're incredibly excited about our product lineup because I think the work that Tony and the team have done has been fantastic in terms of really putting leading-edge AI into our products, and that's resonating with faculty and students. And I think what people care most about is that proximity to the faculty and how we're helping students learn and you saw some beautiful statistics there about increases in active reading, learning. With your faculty, that's kind of what -- that's kind of music to your ears. Omar Abbosh: I mean the thing I'm just connecting a couple of dots of some of what you're saying is not long ago, people said, "Oh, EdTech is going to kill companies like Pearson." And then -- and also "OER is going to kill companies like Pearson." Those things flatline for reasons that are not always extremely evident. OER is peer-reviewed high-quality content generated by a professor and put out for free. But it needs to be maintained, aligned to the curriculum, aligned to the assessments. It needs to be integrated with all of the LMSs and SISs, all these things. And so that's too much for a typical professor to just do, so it doesn't happen. And so the institutions -- particularly in this world of AI where a lot of nonsense is getting published, they come back to the trusted authorities and the people that they believe in and trust and that's groups like Pearson. So I think we're in good shape. Anyone else? Unknown Executive: We've got one question on the line. If there's no other questions [indiscernible]. Omar Abbosh: Sure. Operator: [Operator Instructions] First question is from Steve Liechti of Deutsche Numis. Steven Craig Liechti: I've got a couple. Just on A&Q, can you remind us or scale the size of the big client pause that you had in the first half of last year? And remind us, was that in the first quarter or the second quarter? And is that meaningful to sort of the numbers the way that they sort of flow through in the in the quarters? That's the first question. Second question is on Enterprise Learning, I know you referred to it as being small within the mix previously. Can you just give us a rough figure or remind us within that ELS overall revenue of EUR 282 million, what that number is that would be Enterprise Learning, just to help us scale that. And you commented about the 20% growth in the fourth quarter of last year. Just how good is your line of sight to that -- to equate to that 20% through to the current year, i.e., have you got the line of sight to say 20% looks realistic for 2026? Omar Abbosh: Okay. Thank you very much, Steve. I appreciate that. So on A&Q, I think people will remember, we had a bit of a snafu with a Middle Eastern customer around payment terms that ended up causing a pause and then a subsequent reengagement. So do you want to comment on the materiality of that in the quarter? Sally Kate Johnson: Yes. So that contract was still running for most of Q1. It was Q2 when it paused and it went back online in Q3. Omar Abbosh: Okay. So it won't have a relevant flow for Q1, Q2, is what you're? Sally Kate Johnson: It won't for Q1. It won't for Q2. [indiscernible] subsequently. Omar Abbosh: And then on ELS, do we segment out the ES component? Sally Kate Johnson: No, we don't, but it's kind of 10%, 20% would be the way to think about it. Omar Abbosh: There you go, Steve. You've got a clue there. And then in terms of the 20% growth rate, I mean, the -- we've been careful with guiding because what I'm saying -- I think what we're saying to you, Steve, is the future revenues around ES and the other components where the enterprise deals are covering, we see the -- if you like, say, the annual flow of contracts that as previously committed. The exact amount of revenue that you're going to recognize in a given quarter, a little bit depends on the product flow that happens. And so we are not being too direct about that at this point. But -- so I think I'm very proud of what Vishaal and the team have done because they basically built a team that did not exist just over a year ago, engage with these customers and have engaged these deep multiyear, quite profound relationships, which will benefit them and benefit us. But the exact way it flows quarter-to-quarter in terms of revenue growth, we're not probably going to talk about at this point. Operator: We have no further questions on the phone line. So I'd like to hand back to the room. Unknown Analyst: Yes, we've got one question from Alex at AlphaValue. Can you elaborate on the product impairment? How many platforms did you have before the convergence? And how -- and was it related to past acquisitions? Omar Abbosh: Okay. Tony, over to you. Unknown Analyst: Yes. So it's specifically within the Higher Ed segment, and we had 4 courseware platforms, which we're converging down to 1 so that we have better efficiency. And you can see in the video, the AI study tools then work great across the one platform. And then we have a high degree of confidence that we then have the right setup moving forward from a product perspective as well as the way it's played out in the P&L. Omar Abbosh: Perfect. Thank you, Tony. And Alex, thanks for the question. Mr. Shore, does that cover us? Operator: That covers us. Omar Abbosh: Okay. Well, ladies and gentlemen, thank you. Thank you for being with us and giving us your time. We appreciate it. We appreciate your interest in Pearson. Do not miss the chance to go across to the innovation studio and see some of these products and play with them and get a sense of what Pearson is building. I mean I love the chart that we showed about the rate of innovation increases we're releasing more and more products each year. You can expect that of this company going forward. Over to you. Thanks. See you soon.
Johan Svanstrom: All right. Now we officially start. So good morning, and welcome to the presentation of Rightmove's Results for 2025. I'm joined today by Rory Hook, our CFO, sitting here, who'll be here in a second. First, a couple of takeaways. Our 2025 performance showed strong continued delivery in a competitive market, and we will step up the pace further in '26. We continue to deliver compelling value from and across our platform to both core and other partners. We have a very strong position with consumers, partners and our data. And with our AI capability, we're enhancing all of that even further. We continue to deliver our proposition. We're executing our strategy. We're excited about all future opportunities to further digitize the U.K. property sector. Now we delivered some really strong KPIs for last year. Revenue growth of 9% was supported by ARPA and membership increases in the core business as well as contribution from growth in our strategic growth areas. Underlying operating profit growth of 9% reflects our revenue growth and ongoing investments in people, technology and product delivery. Underlying EPS grew by 11%, and we increased capital returned by 21%. And finally, time on site at 16.8 billion minutes was the second highest on record, only beaten by the COVID exceptional burst in '21. Said differently, the equivalent of 32,000 years of time was spent on Rightmove platform last year. We made some strong operational progress as well right across the platform last year. So from the left, over 85% of that large audience came through direct and organic traffic and we grew our app users by strong 11%. We continue to evolve to meet consumers wherever they are and we doubled their engagement numbers in social media channels. We saw a strong penetration of our top packages in Estate Agency and New Homes as well as a very fast start for our latest and market unique Estate Agency own product, Online Agent Valuation. Our Agency retention was the second highest in over 10 years, and third-party surveys showed record positive sentiment scores for Rightmove. We continued our strategic and operational progress and growth in the strategic growth areas. And all of this was delivered through Rightmove's platform and leading data. We did over 6,000 tech releases. And after a multiyear build, we now have 31 live strategic AI projects at year-end. It's an increase of 4 on our November update, and we tripled the number of data models used to process our proprietary data in the platform. This strong stance is down to purposeful work and investments over the most recent years and has a strong trajectory for future product delivery. And finally, on people, we have a world-class, engaged and energized team. 89% of our team described Rightmove as a great place to work. So my sincere thanks to all hard and smart working Rightmovers for delivering our results of last year. It is a competitive market out there, but our position is stable and it's strong. And that's because we keep delivering great value for both consumers and partners. We remain the leading place for consumers looking to make a move in U.K. property. And while facing various competitive dynamics, over time, we have, for years, averaged over 70% share of portal time on similar web and over 80% on Comscore. In December '25, we were at 75% and 89%, respectively. And that love and trust from consumers drives frequency, leads and, of course, a lot of data signals. And those enable us to drive strong outcomes and value for our over 19,000 U.K. estate agents and New Homes partners. Now I want to touch on that value point a bit. We operate in a competitive market, and we always gauge how we can do even better. So we commissioned third-party surveys quarterly with over 1,600 independent agents contributing responses. The top left chart here shows that the total positive sentiment scores from those surveys. These are -- there are 2 big takeaways. One, just in absolute terms, we've seen a positive trend and a new record high actually by the end of last year. Market conditions and general sentiment out there often impact survey responses. So in the context of the weaker Q4 in the property market through the U.K. budget hesitance, that's actually an excellent result. And two, in relative terms, you can see a 1.7x differential between Rightmove and the main portal competitors. Now we ask for feedback at branch frontline, branch management level and company management levels, and we also go deep on several subcategories. You can see that we lead across subcategories across business results, value and inclusive services at the bottom of this chart. So we rate really well in what's a competitive market, yet we, of course, always look for opportunities to improve and for all partners. Part of the value and those strong scores come from our Building Success Together program, which we launched in early 2024. We invest resource in supporting our partners' business objectives. We also help them to understand what happens in the market and where Rightmove can bring. And as noted top right, this comes in many forms and at true scale. Dedicated account management in the field, our Rightmove Plus and Rightmove Hub tools, which are both available to all partners regardless of package levels. We're sponsoring and collaborating with several leading industry organizations across the Estate Agency, New Homes and Rental operators. We continue to invest in and progress these 2. Rightmove Plus, as an example, is the business management tool for partners. Last year alone, had new features and enhancements introduced over 25x. And our partners' engagement value from Rightmove Plus is clear, 28 million sessions recorded in the year. So in summary, we deliver Rightmove outcomes and value from a broad range of solutions, packages, products, data, insight, training, dedicated servicing through our account management and support teams and we measure these results. Now let's move to the property end markets for a bit. Within sales, top left here, it was really a year or 2 halves. H1 was strong, building on 2024 and with successive Bank of England rate cuts. H2 was weaker year-on-year due to the fears around the late autumn budget. If you take them together, 2025 as a whole, so 10% more completions versus '24, and that was in line with long-term averages. Looking at the year ahead, top right, there's been a clear post-budget bounce back in available stock, which is now at a 10-year high. This has caused slower price growth, which is, of course, supportive for buyers in the market. Now these elevated levels of resale stock is less helpful for New Homes developers. So on the bottom right here shows New Homes as a proportion of total for sale stock on our site. And with approved planning applications at an all-time low, we don't expect a material recovery of the development numbers in the market in H1 this year. With the rentals, bottom left, increased supply and reduced demand continues to improve the more extreme imbalance seen in previous years and which we have talked about. So the 2025 average of 10 inquires per available property is still above the pre-COVID average of 6 to 7 though. And of course, all these segments, of course, mortgage rates is a key driver, and it continues on a steady downward trajectory. At the 31st of January, the average 5-year fixed rate was 4.35%, that's 55 bps lower than a year earlier, and that's per Rightmove's daily mortgage tracker. So with that, let me pass over to Rory for more detail on our financials. Ruaridh Hook: Thank you, Johan. Good morning, everyone. I'm delighted to present our financial results for 2025. Overall revenue grew 9% compared to 2024 with strong growth across the business. Starting with Agency, Row 1 in the table, revenues increased by 9% to GBP 305 million. If you look at the chart on the right, the light blue bars showed that this growth was driven primarily by ARPA-led games, which continue to be mainly discretionary. An additional contribution of GBP 6 million came from increased Agency membership numbers. And moving down the table to New Homes, revenues here also rose 9% to GBP 75 million. This was in spite of continued headwinds in the New Homes end market with new builds coming to the market remaining subdued. You can see the impact of this in the chart with the dark green showing revenue growth contribution of less than GBP 1 million from higher average membership increasing by 1%. The ARPA growth contribution remained strong, contributing GBP 5 million. At the bottom of the table, our strategic growth areas delivered another strong performance. Revenue increased by GBP 5.7 million, up 25% to GBP 29.1 million. Commercial revenues grew 13% to GBP 15.3 million as we continue to focus on customer acquisition with membership increasing 29% year-on-year. Mortgages revenue was up almost 50% to GBP 6.8 million. This was weighted towards the first half of the year, mainly reflecting the timing of interest rate changes and hesitancy in the property market around the budget, impacting activity in H2. Rental Services made up of our Lead to Keys product, referencing ancillary services, saw revenues up 35%, driven by strong growth across the Lead to Keys product. For completeness, the non-SG&A parts of other revenues being data services, overseas and third-party advertising grew 2% year-on-year. Revenues outside the core represented 11% of group revenue, up from 10% last year. Compared to December 2024 across Agency and New Homes, membership increased by 225, up 1% to 19,272. This increase was due to growth in Agency membership, which increased by 261, up 2% on December 2024. This was due to high Agency retention of 90%, continued growth in Agent formation as well as current partners opening new branches. Within New Homes, we saw a year-on-year decline of 36 developments, down 1% at year-end. You can see in the bottom right chart, a decrease of traditional developments in orange of 113, offset by an increase in housing associations in teal of 77. New developments coming on site remain low. We are not seeing a pickup in build rates and have seen traditional developments fall to their lowest level since January 2018. We do not see this changing in H1, but continue to be optimistic that developers will be encouraged to build more by H2 and in future years. Overall ARPA increased by GBP 97 to GBP 1,621. 60% of ARPA growth was product-led with similar percentage in both Agency and New Homes as our partners chose to upgrade or purchase incremental product. The remaining 40% of ARPA growth came from contract renewals, which all proceeded as expected. Given partner engagement with our strong suite of value-adding products, we expect a similar split this year. In terms of product ARPA growth, we saw upgrades in Agency come from multiple sources, ranging from upgrades through the package ladder from lower threshold packages to new joiners joining straight into the top package. You can see this in the pie chart for Optimiser Edge joiners in the middle of this slide. The migration of the old top package, Optimiser 2020, has gone well and will be fully retired by H1. Joiners in New Homes to the advanced package, shown top right, similarly came from upgrades and new joiners. We had a new top package, Ascend, launched in May with 818, 28% of developments live at the end of the year. We expect a similar split of upgrades going straight into this top package, but flagged that the advanced package remains highly attractive, especially for smaller developers. So expect to still see good inbound into advance next year. Taking these 2 pie charts together, you can see that key for both New Homes and Agency is that we do not rely on a single source of joiners to the top package and expect penetration to continue to increase in both. The other driver of ARPA growth comes from incremental product purchase. You can see from the charts at the bottom for both Estate Agency and New Homes. ARPA increases at the initial upgrade in month 1. This is the column marked upgrade. Then we see ARPA increase across the first year and the second year. In both Estate Agency and New Homes, you can see that ARPA keeps growing far past the initial upgrade. This happens as partners choose to purchase more of the same products or add additional products to their package mix. We have shown the previous top package in Agency Optimiser 2020 and in New Homes Advance to illustrate how we have seen this before. And that the initial months of the new top packages in both Agency and New Homes are performing as we expect and have seen previously. We know that continuing to provide great value and superior outcomes to our partners through continually evolving and new products sees them choose to engage further. Also, at the end of last year, we added online agent valuation exclusive to optimize our Edge partners and with an average price of GBP 170, providing both another reason to upgrade to the top package and also encouraging existing partners to increase their current product spend. Moving on to costs. Underlying operating costs increased by GBP 11 million year-on-year, resulting in a 70% underlying margin as we invested with discipline and within our cost framework. The main driver of costs remains our investment in people, up GBP 4.6 million or 7%. The other main cost component was our continued investment across technology with an increase of GBP 4 million. In the year, there was GBP 9 million of internal labor capitalization with total CapEx at GBP 10 million. As guided in November, we expect to see an increase in labor capitalization in 2026 with total CapEx to be around GBP 16 million, less than 4% of revenue. In 2026, we will see investment as outlined last November, which will mainly be in people. We anticipate over 100 joining before the end of the year in roles across data, product and engineering. A few of these roles will be through our new flexible resource provider, which will provide us with the flexibility of headcount over the investment phase. Other material increase in cost will be the AI-powered operations area with work on the back office initial phase already commencing. All in, post capitalization, this incremental investment is expected to total around GBP 12 million in 2026 as guided in November. We remain highly cash generative with a cash conversion ratio of 107% of operating profit. As we continue to grow the strong cash generation of our business, this leaves us well placed to return surplus cash to shareholders. This year, a total of GBP 220 million was returned to shareholders, GBP 141 million via share buybacks and GBP 79 million via dividends, an increase of 21% year-on-year. We reduced our share count by 2%, meaning over 40% of issued shares have now been repurchased and returned 6% of our year-end market capitalization in the year. This morning, we announced a final dividend of 6.59p, bringing the total dividend to 10.64p. There will also be a share buyback program of GBP 90 million until the 31st of July. This will be funded by the growth in earnings, but also reducing cash reserves from December's GBP 43 million to around GBP 20 million by half year, which we see as sufficient to manage the working capital of the business going forward. Our capital allocation policy remains prioritize investment in the business, evaluate value-accretive M&A and return all surplus cash to shareholders via a progressive dividend linked to earnings and buyback thereafter. Turning to financial guidance. This remains the same as set out in November. Looking at the right hand of this slide, revenue growth in 2026 will be between 8% and 10%. We expect H1 growth to be lower than the full year 2026 growth with a higher growth percentage in H2. This is due to the high comparator in H1 last year, particularly in Mortgages, which saw significant activity in H1 2025 due to the stamp duty changes and falling interest rates. And in New Homes due to the full year impact of 36 developments, fewer developments, contributing a negative revenue comparator of around GBP 1.5 million. For Core, we anticipate that membership will grow around 1% and we lifted ARPA growth to between GBP 110 to GBP 120. At an overall level, for the SGAs, we anticipate growth to be around 20% to 30% range. Underlying operating profit will grow by 3% to 5%, resulting in an underlying operating margin no lower than 67%. With no change to our longer-term target set out in November, we anticipate underlying operating profit growth in later years to be at similar levels to revenue growth as we still see no reason for a margin lower than 67%. That concludes the financials. I'll now hand you back to Johan. Johan Svanstrom: All right. Thank you, Rory. So our investment case outlined here will be familiar to most and this summarizes our approach to value creation at Rightmove. On the left, Rightmove has exceptionally strong foundations. We have established a differentiated leading platform at the heart of the U.K.'s large and structurally growing property market. The platform is digital, low-cost, capital-light, driving higher returns on capital. The subscription-based B2B model has a proven ability to deliver and generate value in all market conditions. Moving to the middle of the diagram. We're using powerful data and profound network effects to deliver that value to all stakeholders. And with it, we're executing an expanded growth strategy with targeted investment and delivering data and AI-backed product innovation and that is done through a high-caliber and very energized team. We're entering now our 27th year with confidence to deliver a larger, diversified, yet very connected Rightmove platform. All said, this will continue to deliver compelling financial outcomes. Now our strategy is to develop the leading digital ecosystem for the whole moving experience, powered by exceptional data and network effects. And our people, data and platform really are the foundations and strong differentiators for the 3 business pillars of Core Partner, Consumer and New Growth. The property market is a huge economic activity, and we think there's a long runway to deliver more digital value and grow our business. And that, of course, includes the use of AI. Now there's been a lot of debate who the winners and losers might be, both for classifieds and more recently across a range of industries, really. So I want to talk to property classified specifically. In my view, there are really 4 components you need to win to compete effectively also in an AI world, consumers, partners, data and AI capability. We're really well positioned across all of these. We were well positioned before gen AI, and we will be with the next generations of AI as well. And here's why. We're a technology company. We built up market leadership through deep knowledge, digital leadership and deep layers of servicing our industry in the first 3 of these 4 components and that's been done over 25 years and at an increasing pace. We keep doing that day in, day out, improving all the time. The numbers are leading and they're deep. Now the most recent components of these 4 is, of course, AI capability. AI models and tools, they're fast developing, it's dynamic and they're not fully defined yet. Here's the thing, though. Anybody can get a hold of AI capability. It's an enabling technology that you can buy, skills you can hire and that you can learn to operate. We've done exactly that and for several years already. So what Rightmove has? It's a very, very solid performance and performance platform and business model. It's creating the fundamental attributes that are mentioned here, important to any business success. And in turn, they all boil down to 2 things, which, again, deliver true business results and sustained leadership, trust and vertical innovation. Now we obviously thought a lot about this. In our view, in the case of property classifieds is that LLMs or start-ups running on LLMs are missing or are quite far away on 3 of these 4 components that matters so much in this particular vertical. ChatGPT has been around now for 3 years, yet referral traffic to us is still under 0.5%. And actually, their U.K. app downloads and traffic has leveled off in the last 5 or so months. But more so, I don't think they or other horizontal LLMs can or want to service our vertical as deeply and focused as we and others do, nor to innovate as relentlessly and deep in the specialty of it. Now I'll be very open-eyed and give the large LLMs the upper hand of AI capability and AI innovation overall. But remember, again, they actually enable and sell that capability to buyers like ourselves. So as we add this AI capability to Rightmove, we combine it with the first 3 components that we already have and that are so strong. We're in the best place of anybody to innovate and service this vertical in new and even better ways. I'm actually going to go and cover these 4 components in a bit more detail because it's so important and so topical. Let's start with consumer and partner. You're familiar with network effects and how they're part of a great business like Rightmove and how we invest in them. But I think it's very important to understand that in case of home exchanges, there are 3 special aspects of these network effects, which make them even stronger for property classifieds and certainly in the U.K. So first, in the middle, property transactions, they're high value, highly personal, take a particularly long time in this country and they're very often done in joint deliberation with another person. There's also an incredible amount of browsing done on properties because of 2 things: homes, they're fun to dream of or to be inspired by; and also becomes -- because finding the right one and really deciding when it's time to move is such a serious and important life decision that comes at a high price. So the habit loops are therefore massive. This is very different from a number of B2C categories like e-commerce or research of different kinds, where AI or agents can provide an alternative and shortcut path. And secondly, to the left here, the same consumer actually plays multiple roles, to consider the 4 key roles who use Rightmove and their multiple use. Very often, a buyer is also a seller, and the seller is also a buyer. In the same chain of events or at different points in life. There are 2.5 million private landlords in the U.K. renting to tenants. And those landlords, of course, themselves live and move. There are parents who help their kids with a rental or a first-time purchase, while they themselves might be downsizing or buying a second home. So here's the point. The individual gets value from the same property platform for many different needs. They've seen it in the past. They know what the quality is and they are being in different roles. So the platform is trusted. It's specialized. It has all these different audience roles. So in a way, this forms like a consumer side, individualized network effect in itself, not just across to the other side of the platform. And again, that's very different to, for example, e-commerce and other verticals where the consumer might only be a buyer. And thirdly, of course, in the U.K. property vertical, there's a diverse nature of our partner base, the Estate Agents, New Homes developments, developers, rental operators, commercial and smaller niches. And even in a single branch, an Estate Agency, you can have sales, lettings, commercial, potential financial services, a business owner and branch staff. The U.K. partner is very fragmented and with low barriers to entry. There are many, many different roles that benefit from being on the platform. Agents are local property experts and they can access a highly effective audience platform and with a lot of services included to power their business goals. So in our view, when you combine these 3 points, property complexity, consumer multiuse and agent diversity, you realize that the trusted and vertically specialized UX of the portal will not be replaced by generic or horizontal AI interfaces. Now let's talk about the fourth component, AI capability. We've been building a great tech and data AI capability for a few years now as we reported on several times since 2023. And the simplified, and I know it's simplified tech stack view on the left here, outlines how our Core platform is built on Google Cloud with logically connected enterprise tools like Big Query, Looker, Model Armor, Vertex AI and so forth and is running AI models from Google, like Gemini, Nano Banana and so forth. Now we have a close strategic and product team collaboration also with Google. And we are actually working together, and we have a good view on what's coming in the future. Now we have orchestrated the platform, the stack, the pipelines to nevertheless be flexible, performant and trustworthy. So we have relationships with and we also use Microsoft, OpenAI, Anthropic and a host of smaller solutions. Some of those smaller ones are pure-play AI, some of the more AI-enabled existing software. Our data science team, they can build and connect proprietary Rightmove data models or external models or a combination of them. In November, we showed you one example of the proprietary model and how it uplifts the results, something that is only possible for us because we're in the stack. At the end, the stack enables us to deliver more value and differentiated outcomes for partners and consumers and, of course, gain operational leverage and productivity for ourselves. The 31 strategic initiatives plus a whole host of many more AI tests across the business today will soon be less of a number counting exercise and rather it's going to be completely infused in an organic way of operating. We're perfectly set up to leverage AI capabilities. Now I'll come back to very crucial component, data. We estimate that over 90% of our data is proprietary. It's also interconnected and we leverage it with human expertise and usage in mind. This data is not available anywhere else and it keeps compounding inside our ecosystem. We've shown you many examples of large data sets in the past. Here, just outlining a few examples, but to illustrate how unique and valuable this data is. For property, as an example, we have over 28 million unique properties on our Rightmove optimized UPRN address framework. And someone might say, "Well, that's all scrabble, isn't it?" Fact is that over 50% of the metadata underpinning a Rightmove listing is not scrapable from the face of our site. And for partners, we have, for example, built 57,000 defined geographic agent patches. We dynamically optimize them with our data and also with input and tailoring from our partner agents. That drive unique insights, products and great outcomes. For consumers, for example, again, the 69 billion first-party signals, they don't only provide that strong habit loop that I mentioned before, but they, of course, convert to outcomes through moving auction strength of buyers and sellers. Again, they also drive unique products, insights and recommendations and provide fodder for what we develop next. And the real magic and protection is how those and many more data points are interconnected in the platform. There are a few more examples in the middle, the data compounds and the fortifies. And finally, in the third column, but not to be forgotten, we overlay our human expertise to enrich this data being completely vertically focused. We also make sure it delivers real outcomes and value for humans that is using the data. All said, we hold the living map of U.K. property moving. The value is not in AI itself. It's what AI can deliver when it sits on the best property data in the U.K. So to sum it all up, we combine these 4 components. What we have is one connected ecosystem already powered by data and it's enhanced by AI. All right. So over to some of the concrete product delivery that drove the 2025 results and a bit of a glimpse towards '26 and onwards as well. We increased the pace of delivery in '25 with only a few of the features illustrated here. And I'm going to talk to the renters checklist on the left. It's an important example because it's part of our rental market solutions to digitally enable more of the moving journey. We've seen some strong growth metrics in 2025. A few of them are noted here. And with this renters checklist for consumers, we put all the tenancy admin in one place on My Rightmove, seamlessly integrating it with things like open banking and verifications and what to do next. The average user revisited their checklist 8 times. The information is stored in their Rightmove account, so it can be reused. That, of course, builds a lifetime value opportunity for us. And like many other products, this product also helps the other side of the platform, in this case, lettings agencies. They benefit from operational efficiency through the enhanced leads and seamlessly have those in their CRM. Now they can also operate the entire flow digitally in the Rightmove Plus environment from referencing deposits and many more things, all the way to contracts. A quick step back to the outline from November of how we're accelerating the consumer demand going forward. Number one is that we are adding and enhancing ways of searching. Number two is that we're accelerating our services in a consumer home-moving journey, what we call Beyond Find (sic) [ Go beyond Find ]. And here, I've got 2 examples of what we're working on. The Move Journey Assistant set up for sales and the expansion of My Rightmove into My Home, a full-service hub for homeowners. Now across the consumer domain, we have around 25 key releases or so planned for 2026. And for context, that's more than the entire platform consumer and partner sites together delivered in 2023. Now I want to expand a bit on conversational search, no surprise, which we launched only a few weeks ago to a limited amount of traffic. So here's just a demo of what it looks like. I'm going to talk over while you follow this. So this experience and features built through our partnership with Google Cloud it's using Gemini models. It's trained on and interrogates our listings, text and images and we use over 1 billion proprietary image database and many attributes that goes into the listings. As of today, it links straight into listings on the main site. And we'll evolve this tool led by the data that we see and our design expertise and we're going to make sure that we deliver a high-quality experience. Data so far from thousands of conversations tells us that users seem to have a pretty good idea of what they're looking for. They continue to explore and engage with tools in the main flow of listings and on the site. And so far, those who engage with conversational search are almost 3x more likely to send a lead versus the control group. Overall, feedback has been very positive. Now I want to consider a little bit the conversational assistance in searching a bit more strategically. Now first, on the left here, this is really, in many ways, it's just a continuum of changes. However, you discover, we have you covered, right? So we're entering another search modality or paradigm for consumers, and our position is the same as it has been with previous changes. Discovery is key, right? The classic behavior of visual scrolling and comparing properties, I believe, will always be there. But longer term, I also think this holds a real amplification opportunity for Rightmove. Conversational search will enable hyper-personalization and new utility for consumers on our platform that I couldn't get before. So AI assistance will be useful up and down the funnel and seamlessly provide complementary information along a complex moving journey on the platform. This will drive 2 things: higher platform engagement; and substantially more intent and behavioral data signals. And we can convert that data signal to increased value and targeting for Core partners and for diversified revenue opportunities, just like we have done in the past. Now we have already started a few years back to build many more of these consumer features with exactly that in mind. And you can see some of this in the graph and in the table metrics here. Impressive growth, and a lot of that comes from well-defined features and, of course, the scale of the audience and traffic that we can apply them to. Every feature we built is research and data-backed. It brings utility, frequency and data to us on an ongoing basis. And with it, as noted right here, we create enhanced partner value and, of course, revenue opportunity for Rightmove. Some of these improve or enable new products for Core partners. For example, the enhanced lease to lettings agents with the appointment bookings with the New Homes Ascend package. Others are monetized separate through commercial relationships that we have, like, for example, mortgages or ancillary lettings products. And here's the thing, as we scale and compound this data, we just increased the revenue and profit opportunities. Now over to the partner side. We released significantly more product and optimization source of partners in '25. A few key ones are set out in this slide. And I want to highlight online agent valuation on the left, as Rory mentioned before. It's soft launched in the fall and it's off to a great start. This tool works on both sides of the platform. It enables consumers to receive a digital valuation estimate from an Estate Agency with a quick turnaround and it's an opportunity for agents to start a new online relationship with a potential vendor through our platform. It leverages and reinforces our existing valuation domain on various tools, slotting in very logically with instant valuation, local valuation alerts, best price and premium price guides and so forth. And agents, in this case, can also choose to use an AI tool to support the responses in OAV. And for those that do, we have seen so far in the data that the response times are 16% faster on average, and the cohort actually books 20% more visits. So OAV, I think, is a good example of where AI is an enhancer of an already great digital product with real value. But AI is not the entire product itself. Finally, with OAV, Rightmove's platform also gets more data signals through up-to-date photos and property attributes supplied by the consumer. And this is before the property becomes a listing gets put on the market. That, of course, can feed into our AVM, which is a business line on its own and also powers many other things internally that we can build on for the future. Both '25 and '26 show how we are developing across several product lines and segments much more in parallel than in the past. And with AI bringing more efficiency and marketing opportunity to partners. Moving on from Core to the strategic growth areas. These grew, as you heard from Rory, by 25% as a group and that's close to 3x the Core growth rate. Operationally, we've taken some great strides forward in the year. For commercial, we added 275 new members to the platform. This year, we will launch our new search pages. And at that point, every aspect of the user web journey will have been completely overhauled to commercial-first experience. We'll also be launching our first chargeable product in the segment during the year. In Rental Services, revenues grew by 35%. And as we set out in November, we started to roll out the upfront modules of inquiry manager and enhanced leads to dual agents within their Core subscription. It's a process that is ongoing over '26. This is an exciting market penetration step-up. It brings efficiency to agents, to landlords and to tenant applicants and it's a true market scale. And in Mortgages, we saw strong growth overall. You will have seen that we announced a new exciting partnership with NatWest, the U.K.'s leading digital mortgage lender, which will be introduced in April across both sites and our apps, and we'll also continue to build out the broker opportunities over the course of this year. And finally, again, and importantly, a reminder, the SGAs all strategically reinforced the Core platform, drives user utility and frequency, and again, thus the great data sets that we have. Now this slide is a reminder of the 3 focus areas that we described in November. We are positively stepping up the pace with an eye to the medium-term opportunity of a more diversified and technically advanced platform. We're driving towards that larger digital opportunity in the U.K. property ecosystem. Now also as a reminder, we set some really ambitious midterm target KPIs for these initiatives. And I'm glad to report that all of this is mobilized in one way or another and the capabilities will be built and realized throughout 2026. We're going to see results along the way. One example, of course, being the successful launch of conversational search already in the very beginning of the year. So we'll come back to these areas and the KPIs over time. And I hope you can see that we drive this business with discipline, high quality and our goal is to deliver strong value and returns. So in conclusion, here are the key takeaways I showed you at the start of the presentation, and I want to repeat them. We're happy with the strong results in '25. It was a record year for innovation for Rightmove. We look forward to an exciting 2026. And as you can see in the graph, we're stepping up our innovation and delivery considerably yet again. We will grow revenue and profit in line with guidance, adding to strong financial returns in both the short and medium term. And with that, we're going to go to Q&A. Johan Svanstrom: So Rory is going to join me up here. Please raise your hands. Yes, some already did. Say your name when you're passed a microphone and let's aim for 2 questions in the first instance. We can double back if it's fine. Jessica Pok: Jessica Pok from Peel Hunt. I've 2 questions, please. The first one, just on the ARPA guide, Rory, GBP 110 to GBP 120. Can you give us an idea of how we should think about that Agent versus New Homes given the trends that we've seen last year? And then the second one, maybe on Mortgages. The new relationship with NatWest, any color on what triggered the change and what we can expect from that relationship in the near term? Ruaridh Hook: So on ARPA guidance, GBP 110 to GBP 120 is the blended ARPA guidance. Expect Estate Agency to be towards the bottom end of that and New Homes well above the blended rate. I would flag that in both EA and New Homes, we expect their ARPA growth to be higher than they saw in 2025. Johan Svanstrom: All right. And on NatWest, yes, we're very excited about entering a new partnership here. We've had a great partnership with our other partner for the last couple of years. NatWest is really the #1 mortgage lender in digital channels. So that tells you, I think, something about the vision alignment that we have. We continue to work deeply with one partner because we're quite keen to both build the business, of course, give more -- consumers more utility on the platform, but really also try to innovate along the way in this industry, which is still very fragmented and analogous and off-line and so forth. So those are really the few simple reasons behind it. William Packer: It's Will Packer from BNP Paribas. A couple of questions. Firstly, could we talk a little bit about agent relations? So from today's update, the survey data looks very encouraging, although I know we didn't see the absolute numbers, but that would be interesting. Retention is at record levels. You've got new agent additions. But then in contrast, if you read the trade press, it all sounds a bit grim. You've got the court case coming. And I think there's a perception that your relations with your customers are more adversarial versus some of your peers globally. How do we square that circle? Is it -- there's a few loud adversarial agents, but the median agent is getting happier. Can you just give us a bit of color there? And then secondly, your framing around the labor intensity of Rightmove is a little bit different to some of your peers within classifieds and other platform businesses. You're growing headcount aggressively. It sounds like that's going to continue for a little while. Could you frame that for us? Is that catch-up investment because the previous management team didn't hire enough people? When can we see the labor force to stabilize? Any color there would be useful. Ruaridh Hook: I'll take. You can jump in. Look, the first one, you mentioned some of those KPIs, which I think stand out, right? High -- second highest retention in a decade, highest take-up of our new product, OAV. We had record uptake of Optimiser Edge. That shows customers are engaging with our products and really happy with the outcomes. That, for us, is a real sign of strength in terms of relationship we have with customers, of which over 80% are now with us for 5 years. They know us well. They know our products well and we work with them to grow their businesses. You're always going to have a small minority, might be louder than the majority, but I would say that those KPIs, what we look at to show the strength of our products and the value that we provide our customers. We also, as we showed today, do monitor sentiment and we're delighted to see that sentiment not only much higher than competitors, but growing. So we don't rest on our laurels. We take it very seriously, and we keep our finger to the pulse in terms of how agents are feeling. And we support them as the property market ebbs and flows. And ultimately, for us, key coming back to providing those great products, and I think that take-up really shows it. In terms of the labor intensity, yes, we're adding over 100 and those 100 people are going to be building some fantastic products and fantastic assets. They're going to make Rightmove stronger and on our path to higher growth. That, for us, is a short-term investment. It's going to allow us to build many of the things that will enable us across the domains that Johan talked about. And we've provided a flexible resourcing partner as well to help us accelerate or pull back in that recruitment as we see fit. For us, this is about driving higher profit growth. And this is about us building things that we're really excited about that we see great ROIs from and that requires some head count in the short term. But what you will see and what we look forward to bringing to you on a regular cadence is some of the really exciting products that they're going to build. William Larwood: Will Larwood from Berenberg. Firstly, just obviously integrating a lot more AI functionality going forward, consumer with like conversational search, et cetera. How can we expect sort of the cost profile of the business to shift particularly thinking about sort of using more compute going forward? And then secondly, you mentioned it very briefly in terms of the mortgage broker side of things, but if you could provide an update on that, that would be great. Johan Svanstrom: Yes. Yes, I'll start with AI. So look, we obviously anticipate and budget for compute cost that didn't exist in the past because of this. But I think there are a couple of important things to remember, a, again, back to that slide of how we set things up. We set it up in a very organized, very orchestrated away, and we have fantastic control over this just like we have on other costs. Here's the thing. It's a cost to deliver opportunity, right? And if you look at token cost overall, I mean, they keep coming down by 80%, 90% on an annual basis across the world, right, both because models become more efficient themselves and because there's a lot of competition out there. So it's an item to keep track of, but it's not something that concerns us particularly, right? Yes. So Mortgages, I'll go to that one as well. So we are -- I think we talked a little bit about this before. So we have brokers on the platform, but it's a small part of what we do today. A lot of attention has been on the MIP product, building awareness with consumers seeing what that does and obviously deliver great results. What we did last year was prepared a little bit more to be able to scale the broker side of the business as opposed to one-to-one relationships with brokers because there's literally 5,000 of them in the U.K. And it's also really about looking at this as -- I think of this as an inevitable trajectory kind of thing. Because of who we are, the interest in properties, the fact that 2/3 of properties needs to be financed, us having some kind of service in this space makes sense and that's evidenced already. But it's a long-term thing to build. There's still awareness. They're still optimizing it. There's still -- we're still, but what we're trying to do again is build a better experience and an experience that doesn't exist anywhere else. That takes some optimization. It's 2% of our revenue today. We're happy with the growth, but there's going to be a test and learning as we go along with it and we're executing on it really well. So over time, there will be broker options as well. And it's about understanding the consumer. And again, because of all the consumers that we have, what's their mindset, right? Are they close to transaction or they're really out shopping and still want to get an affordability check. So segmenting that and dissecting and making very logical for them and, therefore, funnel them to different opportunities for financing is important. And that doesn't come just from saying we do one thing on the website, right? But again, fantastic opportunity going forward and lots of money in this space, and I think we have a real right to play. Andrew Ross: Andrew Ross from Barclays. I've got 2 on AI. First one is about the conversational search you've rolled out on platform. What are you observing in terms of the conversion rate from search into leads or any kind of outcome-based metric that you track from and kind of what impact is it having on clicks on to featured and promoted listings as part of it? That's the first question. And then the second one is you guys have obviously applied to put an app into ChatGPT. Can you just give us some context as to what the thought process was as to why do that? On the one hand, you're kind of feeding the beast. On the other hand, first-mover advantage is where the users are. What were the kind of puts and takes? How are you thinking about it? Johan Svanstrom: Yes. And so when it comes to conversational, again, I outlined a few stats, right? We -- because of our traffic and in spite of having it on a minority of that traffic already, we've seen thousands of conversations, lots of messages, very good flow-through in terms of people getting the results that they wanted and also, as expected, coming back over to the main site and digging around and using different tools and so forth. We have seen that uptick of about 3x the sort of lead sending propensity. But to be honest, is that cause a correlation? It could be the most qualified users that have been on Rightmove before and so forth. Or is it a novel way and, therefore, they become interested? I think it's too early to say. And anyone who talks about these data points, I think it's important to give that kind of context. Now again, I point back to this as an opportunity, right? The fact that how consumers experience the site and the listings and what they do with it? First of all, this is a first version of integration. And how partners show up in that? That will, of course, evolve over time, right? It depends on how much of a traction this will see from consumers, small minority or complement to -- for a lot of people to what they do, it's just simply too early to tell. But again, the opportunity, if you think about it, it's a much more personalized and engaged consumer in different ways doing this. And that further qualification of someone's behavior has value. So the fact that there's potentially new or, for sure, different commercial opportunity around this is also there and that goes through our heads, right? But it's early days. And the second one on ChatGPT, yes, I think you maybe outlined it well, puts and takes, consideration. Look, today, they're just -- they're meaningless in terms of a feed or a platform for people actually looking for and going after homes. So as we said, with those stats, right? And I think most of the peers report the same numbers, very, very small. But look, it is a tool that lots of people use for different things. So for us, this is a test-and-learn, right? We want to be where some consumers are and see what we can learn from that. And very importantly, of course, it's an app that we created. It basically displays listings and consumers then go back and do much more of the experience where they have all that experience and again, all the data and tools in their own history and so forth on Rightmove and that's what we expect going forward as well. Andrew Ross: And you keep all the data, right? Johan Svanstrom: Yes. Joseph Barnet-Lamb: Joe Barnet-Lamb from UBS. Two for me. First one, a technical modeling one, but I think it's important for the interpretation of ARPA guidance. So historically, forecasting agency was simple as ARPA times by the average membership. But we now have a growing proportion of non-ARPA revenue within Agency. So can you just clarify which revenue streams within Agency are non-ARPA? How big they were in '25 and how you expect that to change into '26? Then the second question is just on buybacks. We see you're effectively restarting and spending excess capital generation beyond dividends and spending half of the GBP 40 million that you've accrued, whilst you weren't buying back. Can you just give a bit of color on why you aren't spending all of the excess cash to get you back down to 0? And a sort of general commentary on sort of the merits of running a net cash balance sheet given where your share price is? Ruaridh Hook: Sure. Two for me. Yes, you're right. ARPA used to be much easier. You took kind of customer numbers, multiplied by ARPA and you got roughly our revenue number. There is a non-ARPA element, which is because we don't count agent accelerator in our ARPA calculation because it's a program rather than a package and also insurance revenue in the rental services part of the business because that's insurance to consumers and landlords. So therefore, it's not counted under the average ARPA. Those 2 together, used to be almost 0 a few years ago. Great to see them grow, and they're around about GBP 3 million. So that's what you should add on once you take your average ARPA times by your customer numbers. In terms of the share buybacks, great, we -- first thing to flag, we return all of our surplus cash to shareholders, and we don't see that changing. We've reduced our cash reserves from GBP 40 million to GBP 20 million, which we think is sufficient to run the business from a working capital perspective going forward. For those that have been with Rightmove for a long time, GBP 20 million was always the number that we used to have and feel very comfortable that, that's a manageable cash reserves for our working cap. So flag that. In terms of looking at debt for share buybacks, I think is what you're asking, we're not philosophical about no debt on the balance sheet. At the same time, we see there's many pros and cons of having no debt on the balance sheet. It's something that we continually evaluate and discuss with our advisers and with the Board. At the moment, we don't have plans to leverage up. But I would say, as always, nothing is off the table, and we'll continue to evaluate all of our options. Joseph Barnet-Lamb: Just one follow-up maybe on Agent Accelerator -- on Agent Accelerator, obviously, with what we're seeing with new agent formation, is it fair to assume that the Agent Accelerator will grow faster in '26 than the average of Agency? Ruaridh Hook: It's Agent Accelerator, low ARPA. So don't get too carried away. Great to see the agent formation come back. I wouldn't expect to see that continually rising given its record levels. So I'd just be cautious about that, but great to see that market open up. Marcus Diebel: Marcus Diebel with JPMorgan. Johan, just one question again on investments. And clearly, we've seen '26 is going to be a peak year. Again, we're going to guide for like 3% to 5% operating profit growth. Given where the shares are and you're prioritizing, obviously, buybacks and those things, I mean, how critical is it really for you that '26 is really sort of a one-off in terms of operating profit growth and things bounce back relatively quickly, i.e., do you feel that some investments that you clearly had in mind are now a bit more put on hold longer term? Is that the case? Just a question for what is the mood? How critical is to see a meaningful margin bounce already in '27? And then the second question, just in general, because you touched on this value-accretive M&A. Are we then talking about sort of like investments in tech? Do you feel there are some tech assets out there that you should get to? Any comments would be interesting because it feels there won't be much. I just want to be really clear on this. Johan Svanstrom: Yes, I'll have a go. Maybe, Rory, you can fill in. But look, we -- when it comes to the investments, right, as we outlined, and I say it again, we have a great foundation, a great tech platform. We're doing this because we think there's more opportunity in this market. We look at the U.K. property market, our position and what we can do together with others over the medium term. we want to step up that pace. That's what we're doing. And in terms of how that's shaped, we've guided to '26 and what that means on both revenue growth and operating profit growth. And we're not going down, as we said before, to be specific year-by-year. But of course, you can assume that the profit growth will start aligning more to the revenue top line in the years following, right? So that's kind of all we can say. And as usual, you look at the business and you look at the opportunities or sometimes challenges ahead and you adjust after that. But we're very happy with what we're doing right now and off to a great start with it. Secondly, on M&A and maybe value -- well, value creation and what kind of companies. Yes, I mean, look, there's always been a plethora of proptechs in the start-up space. And now many of them come with AI after them. So I can tell you in some conversations we've had with agents directly, some of them, of course, use AI already. It's like, "Hey, here's a quicker way to do admin or whatever it is." They're start seeing some of the AI-enabled products that we actually equipped them with, and they're also inundated, right? They get so many pitches from that dot AI and the other dot AI on an ongoing basis. So it's a little bit confusing. And as usual, there's a lot of promise. Again, as I said before, I mean, AI is one thing, right? You got to -- you actually got to build it on something. And it's a filter and automation tool, right? But it certainly doesn't provide the whole experience. So that doesn't mean that there aren't interesting companies, and we keep a good eye on them. We have conversations with several of them. But for now, our organic growth path and with the capability we have is clearly how we operate mainly. Marcus Diebel: Maybe in this context, it's actually quite interesting. I mean, yes, we see a lot of start-ups approaching agents, very early, very small niche. But do you feel that the large players, the open AIs of the world also go directly to agents and asking them to upload and work closer together. Is there anything that you see you or hear? Ruaridh Hook: Nothing, I would say, particularly on, let's say, the big LLMs from an enterprise perspective. And first of all, because our 16,000 memberships typically consist of very small, medium-sized businesses. But the fact, again, that many of them are interested in using tools, right, whether that's a free user or paying GBP 20 a month. And some of them are, of course, more advanced in trying to figure out what's happening either on their own or again, sold by someone else. But I don't think that's a particular thing that we see, no. Annick Maas: Annick Mass from Bernstein. The first one is on ChatGPT, again. So can you tell us a bit more about how the user data is shared in between ChatGPT and youself? At what point do you get access to the user and actually can follow them around and actually can collect the data exclusively? And the second one is on Opti Edge. When agencies don't decide to upgrade, generally, why is that? Do they keep the money and they don't invest? Do they go for something else? Can you just tell us a bit through the challenges that you hear when you're meeting with agencies? Johan Svanstrom: I'll take one. You can take two. Yes, so on ChatGPT, again, what we built is an app and it has an end point and it sits within -- or will sit within the ChatGPT environment, right? And what the consumer will experience is to be able to do conversations that -- and answers will come partly from ChatGPT. And in the case of serving up property listings that are relevant, that will come from us. And what I think others have reported and what you can expect, it's a fairly simple outline, right? Yes, it's possible to find our brand there. You can find it today, but now we can find it in a slightly more organized fashion. And consumers will be very encouraged and already know where to go and find the full experience. So that's kind of the outline right now. And that means that the really valuable aspects of data on how people navigate and what they've done before and what they want to do in the future will remain in the Rightmove platform. And of course, remember, again, we're building a conversational interface on Rightmove, right? People already have that habit loop. It's like, "Hey, I can do all of this conversation, including complementary information on Rightmove." So yet another reason, I think, to not worry too much about some other alternative universe being built out. But again, interesting enough to test it. That's the way we view it. Ruaridh Hook: On Optimiser Edge, we actually don't want all customers on Optimiser Edge. We cater packages for all different types of customers and different types of businesses. And we want them to have choice and Optimiser Edge doesn't see all customers. low stock, low value, depending on where you are in the country, depending on competitiveness, funding, lots of different reasons. The strength of our account management team is knowing what products work for which customers. And the way that they start the conversation isn't about which package to be on, but which packages or which products are going to help you grow the business. And depending on that product mix is what then will generate a recommendation of which package to be on. And so for some, Essential is absolutely the right package to be on, and we don't expect them to move. Others, we'll see them move from Essential to Enhance to Opti and others will come straight in. And that was a little bit of what I wanted to show earlier was the variance of how we see the inbound into the Optimiser Edge package. The other stat I would flag is that over 50% of our customers are choosing to purchase products above their committed levels. So again, they can engage and see value in our product without having to move up the package ladder. So for us, it's about coming back to offering a plethora of different products that suit whatever needs a business has, but also fit whatever the property market is doing because the property market, as we all know, in the U.K. can change a lot. So we want products that suit them whatever is happening in the property market. Sean Kealy: First question, Johan, I was really pleased to hear you describe ChatGPT is meaningless at the moment, given they're 0.5% of your referral traffic. First question from me, from both a technical and sort of market power point of view, if it came to it, would you have confidence in blocking LLMs, not just from scraping data for training, but also for the grounding process in search? And sort of what would be the puts and takes? And how would you look at that decision? And then secondly, where you've rolled out market capabilities, for example, in conversational search? Are you finding that the major LLMs are good enough off the shelf? Or are they requiring quite a bit of fine-tuning customization to work with the data that you've got and Rightmove effectively, only Rightmove has? Johan Svanstrom: Got it. Yes. So look, on the first one, technically, you can choose to be in an environment and you can choose not to be in an environment. And so I think that option is already there. Again, it's an interesting environment to test and learning, probably very small meaning at the moment. It might grow, and then it will be relevant to be there. So we'll see how that goes over time, simply. But the optionality is absolutely there. I think on the conversational side that we've done ourselves. So again, we operated the current version with Gemini models from Google. And again, it has the benefit of -- it's all very tied up through our stack. But we have also built that capability to switch that out for literally any other large LLM. We have those relationships and conversations as well. So it's off the shelf in the sense that the general LLM is there. Now as you know, every week or 2 or whatever, there's another dot-something version coming out. And the 3 things that we optimize for is it's not just cost, right? Again, that's kind of a tailwind over time because it's going to continue to come down. But it's cost, it's quality and it's performance, right? Quality is very important. And performance as in speed and response rates. And already today and even as a consumer, at least if you pay, right, you can see for yourself how the models act a little bit differently. And of course, we have a fantastic platform and capability in the teams to judge these older things, right? So we built this stack where we can plug and play on the side and then we decide what we take live. And we run concurrent what's called evaluation models. So models that evaluate the models on an ongoing basis. So it will continue to go along that way simply. Then maybe the last point. Yes, of course, the generic LLM capability is one thing. The really interesting thing to create a fantastic experience and relevant experience for the consumers to combine it with the data that we have. And again, the more people actually use this and/or any other personalization features on our sites, the more tailor that experience can be. And a lot of that comes -- or the vast majority of that really comes from our own platform. Giles Thorne: Giles Thorne from Jefferies. Back on Mortgages, please. The attributes, Johan, you used earlier to describe what pulled you towards NatWest, I'm pretty sure the things that were used to describe nationwide when the MIP product was first developed. So I'm still a little bit none-wiser as to what went wrong with the nationwide partnership and what NatWest now solves. So I wanted to push you on that a bit harder. And then the second thing still on Mortgages is just to hear your latest thinking on how you solve for the problem of the broker product only appearing after a failed MIP, if that's even still the case? So an update there. Johan Svanstrom: Okay. Thank you. So I'll leave you to judge your own wiseness, Giles. But we've -- as I said before, we've had a great relationship with Nationwide and what we are looking at now, where are we now, what are our own plans, what have we learned from all the data. And we have selected NatWest as our partner going forward for what we think are really good reasons. And on the second question, yes, the broker path to a large extent has been -- because we have been focused so much on understanding the MIP path has been focused on, okay, who doesn't get a MIP for what reasons? And over time, of course, as I said before, we want to expand those choices for consumers through our segmentation, seeing what they do on the site and potentially what they are outright requesting. Some of that experimentation has been going on already, and that's going to continue in the future. Giles Thorne: And just a follow-up. Where is the remortgaging product? I think that was due to be second half of '25 -- I forget the exact date, but I'm pretty sure we passed the original signal around when you're going to launch that. Johan Svanstrom: No, it's launched. It's on the site. Again, it's not the main focus. Remember that we had a lot of first-time buyers, of course, on the site. And for lender partners, often, they want to try to get a hold of new customers. Now the remortgage product is absolutely there, has been there for a while. But it's sitting as we have said before, logically connected, so closer to the home valuation tools, for example, where people might be in that mode of, "Hey, I'm tracking the value of my property. That might be because I'm thinking about selling or I'm thinking about refinancing because I'm staying." So that's where that is. And again, over time, that's an opportunity to obviously build that out further, but it's going to come with -- in the right placements and as we see fit. Ruaridh Hook: Great. Well, I think that's -- well, I'll squeeze you in, Andrew, last one. Andrew Ross: So another on one AI and about kind of Agentic. And I appreciate there's a whole separate conversation about whether you'd actually want your personal agent to be searching for a house. But in a future world where that could be possible from a technology perspective, what's your view about whether you'd let agents be searching on your site, how you kind of set up the technology to do it? Do you let them call and do whatever they want on any sites? Do you make sure you have a commercial relationship where it has to be free your flow? Like how are you thinking about the Agentic journey? Johan Svanstrom: Yes, a little bit, let's say, early, but clearly, the Agentic opportunity keeps growing. But again, I just -- what you said yourself, remember property, particularly. AI is a filter, an advanced form of a filter, humans make decisions, right? It goes for a lot of processes. So the level of filtering assistant, obviously taking out admin tasks and so forth, big opportunity in AI, but humans need to be in the loop still for a lot of things and even more so for other things, including this one. So we'll see how that evolves over time. I really can't talk to the technology of it or who we might have a relationship with. There are interesting precedents on Amazon shutting down. I think it was Perplexity's Agentic rolling around. I don't know where that sits, right? But it's something that we'll deal with over time, just like we deal with other opportunities. Ruaridh Hook: I would say thank you all for your good questions today, and I wish you the best of the day. Johan Svanstrom: Thanks, everyone.
Operator: Hello, everybody, and welcome to the AmRest FY 2025 Results. My name is Elliot, and I'll be coordinating your call today. [Operator Instructions] I'd now like to hand over to Lukasz Wachelko with WOOD & Company. Please go ahead. Lukasz Wachelko: Good afternoon, ladies and gentlemen. My name is Lukasz Wachelko. I'm representing WOOD & Company. And I have, again, the pleasure to moderate the call of AmRest after the quarterly results. The company is being represented by CEO, Mr. Luis Jimenez; CFO, Mr. Eduardo Zamarripa; and Chief of IR, Mr. Santiago Camarero Aguilera. Without further ado, guys, the mic is yours. Luis Comas: Good afternoon, and thank you for joining us. We appreciate your time and continued interest in AmRest. I'm Luis Jimenez, CEO of AmRest, and I'm delighted to be with you today. Joining me are our CFO, Eduardo Zamarripa; and our Head of Strategy and IR, Santiago Camarero. Today's call has 2 clear objectives. First, we want to give you a transparent view of the work delivered over the last 12 months, how we have executed and what we have strengthened and what we have learned. Second, we will share our perspective on 2026, our expectations, the main opportunities we see to accelerate performance and obviously, the challenges we are navigating in a dynamic environment. At the heart of our message is confidence in the fundamentals we are building. We believe we are laying the foundations for a compelling value creation story, maintaining disciplined profitable organic growth across the portfolio and improving consistency and execution, so discipline and the financial approach. With that, let's turn to the materials. Let's move on what we would like to share with you today. Let's move to Slide 2, please. AmRest is a truly pan-European company with a broad and diversified footprint across 22 countries in Europe, China and the Middle East. With 2,139 restaurants and a portfolio of 8 brands spanning quick service, fast casual, casual dining and coffee, we serve more than 30 million customers every month across multiple locations and channels with offerings tailored to local preferences. Our scale is a clear competitive advantage. It allows us to replicate best practices across markets drive efficiencies and continuously enhance the guest experience while focusing our resources where demand is the strongest. And what truly powers that scale is our local expertise, more than 44,000 colleagues who understand their markets and execute with discipline every day. Taken together, this combination of geographic reach, brand breadth and operational know-how underpins our ability to identify and capture attractive growth opportunities. Moving to Slide 3. Let me remark the most relevant milestones for 2025 that I would like to try to summarize in 7 points. On a like-for-like basis, the group revenues increased by 2.4% year-on-year, reaching almost EUR 2.6 billion. The group's EBITDA generation during 2025 reached EUR 407 million, representing an EBITDA margin of 15.9% with a clear divergence in the performance across countries. Third, despite a challenging operating environment throughout the year, particularly in the fourth quarter, the profit of the company increased to EUR 18 million compared to EUR 13.5 million last year, supported by lower impairments and interest charges. In addition, the company made a dividend payment in the amount of EUR 15 million or a 7% share, which was paid on the 22nd of December '25. In terms of new openings, during the year, we opened 92 units, and we also renovated 213 restaurants. From a leverage perspective, the group remains prudent with leverage at 2.3x at the year-end within our internal target range. And finally, during 2025, we also advanced our strategic road map throughout a meaningful step in our operating model with the disposal of our 51% stake in SCM and the termination of our mutual commercial agreements and obligations. This milestone supports our ambition to strengthen value creation through a more integrated and efficient platform, enabling AmRest to conduct supply chain management and product quality assurance services internally going forward and identified additional synergies that can support future growth, opening up a significant avenue for value creation throughout the supplies of our more than 2,000 restaurants. With this context, I invite you in the Slide 4 to review the performance in 2025 versus the expectations that we shared with you 1 year ago. First, revenues grew in the low single-digit range despite an operating environment marked by moderate growth in Europe and declining inflation alongside elevated trade policy and geopolitical uncertainty, which continue to weigh on consumers' confidence while easing inflation supported a gradual improvement in financing conditions. Household purchasing decisions remain cautious in several markets. Second, on profitability, we experienced a decline of 0.8% points in our EBITDA margin, affected by the deconsolidation of the SCM business, temporary business affection in the Czech market during the latest month of the year and to still elevated operating cost pressures. most notably labor costs in certain markets, while absolute food prices remain also elevated despite lower inflation rates. With respect to CapEx, we significantly reduced our capital intensity, fully consistent with our guidance. CapEx stood at EUR 158 million in the year compared to EUR 194 million in 2024, while we have maintained the number of new equity stores opened. The total number of openings reached 92 restaurants in 2025 versus 109 in 2024. And finally, as I already mentioned, the leverage continues at the low end of our internal target range. Moving to Slide 5. Let's now focus on what we expect for 2026. From a sales perspective, we are facing a challenging start of the year. However, we expect 2026 to be a period of progressive improvement, building momentum throughout the year with a very clear second half stronger than the first. Overall, our guidance is for mid-single-digit growth. Second, as trading momentum improves, we also expect this to translate into better profitability, supported by an ongoing discipline on cost and continuous focus on operational execution. Third and very importantly, we expect a strong increase in free cash flow generation, driven by both higher operating cash generation and tighter control of investment levels, including continued CapEx optimization. In addition, we plan to maintain a similar level of gross openings to 2025. However, the growth is expected to remain modest as we plan to accelerate our portfolio optimization, including a higher level of closures of restaurants that are not strategically aligned or are structurally underperforming so that they no longer dilute the group's profitability. And finally, we will continue to preserve a prudent risk profile, keeping leverage at the low end of our target range. If we move to Slide 6, we would like also to share with you our midterm expectations. Over the last few years, a combination of temporary factors has meant that the group's revenue growth, both at the sales line and across other income streams has not progressed at the pace we believe the business is capable of delivering. Looking ahead, we see a clear path to reaccelerate our return to a high single-digit growth profile over time. That acceleration should, in turn, restore operating leverage and support a meaningful uplift in profitability, targeting around 2 to 3 percentage points of margin recovery versus current levels. This, combined with a disciplined investment framework that will translate into a strong increase in free cash flow generation, supported by a stronger operating cash flow and continued focus on capital allocation. Finally, our ambition is to keep strengthening our portfolio by incorporating new concepts and brands so we can address emerging customer needs, broaden occasions of use and remain highly relevant to local preferences across our markets. If we move now to Slide 7, I would like also to share with you some key strategy considerations. Digital transformation remains a key enabler of efficiency, engagement and growth across AmRest. In 2025, we continue to scale a more unified and data-driven operating model centered on 4 pillars. AI agents supports almost all AmRest employees in central services, streaming daily operation and improving productivity in all business areas. We have also rolled out a comprehensive customer care solution, seamlessly integrated feedback from every channel and enabling efficient resolution of customers' inquiries and issues. Our digital platforms are continually refined to meet changing customer expectations, offering features like personalized kiosk offers in Central Europe or table payment capabilities at La Tagliatella. Ongoing systems standardization ensures agile and modern technology environments. And finally, we have implemented an intelligence platform that empowers daily restaurants and organizational decisions, support targeted marketing, boost customer retention, streamlines resource management and enhances pricing strategy, so enable self-service analytics for all teams. These initiatives improve efficiency and scalability by automating central services, unifying customer interaction across channels and enabling faster and more accurate data-driven decisions, very important. In summary, these initiatives are providing a tangible improvement in the quality and speed of decision-making. So on Slide 8, we can provide some examples of how advanced analytics translate into tangible commercial outcomes, driving traffic, improving financial performance through data-driven pricing, menu simplification and smarter promotion optimization. Data-driven decisions based on advanced analytics allow us to drive traffic and improve financial performance across our portfolio. By applying data-driven pricing tailored to local demand and competition landscape and so simplifying menus to strengthen margins and optimizing promotions based on the incremental impact, we are attracting more customers while improving the efficiency and returns of our commercial investments. Now changing topics. Let me take you to Slide 9, where we can summarize the evolution of our restaurant portfolio for your convenience. While we have already discussed our short and midterm expectations, this slide provides a clear view of the underlying openings, closures and the resulting net change. Finally, if we move to Slide 10, our commitment to sustainability continues to be a part of our long-term value creation. And as it is stated in the headline of this slide, our sustainability agenda remains integral to how we build long-term value. In 2025, we advanced our environmental and social priorities, including a significant reduction of energy and water consumption in our restaurants by 11% and 4% comparing to last year. We also continue to embed ESG criteria into our supply chain processes, including suppliers evaluation and tender processes. Beyond metrics, our people brought up our values to life across markets as set in the fifth edition of the Foodsharing Day initiative delivered across multiple brands and countries, reflecting our continued commitment and connection to the communities where we serve. And saying this, with this, Eduardo, if you can cover the main financial highlights, please. Eduardo Zamarripa: Thank you, Luis, for your insights. Good afternoon, everyone, and thank you for joining us. It is a pleasure to be with you again to share a summary of the results delivered by AmRest team during the last year. 2025 was marked by ongoing geopolitical uncertainty and a consumer backdrop shaped by persistent cost of living pressures. Against this backdrop, AmRest once again demonstrated the resilience of its business model, supported by disciplined execution across markets and routes. Throughout the year, we continue to adapt to a more precise conscious consumer, delivering a compelling and consistent value proportion across brands and geographies that remain central to sustaining traffic and protecting profitability. At the same time, technology and digitalization have become increasingly important enablers of this ambition, enhancing convenience for guests while supporting operational execution and data-driven decisions making at scale. Luis already covered the key full year highlights, so I will skip Slide 2 (sic) [ 12 ] and move directly to Slide 13 to walk you through the main financial highlights for the fourth quarter. Turning to the fourth quarter. Revenues amounted EUR 636 million, representing a 1% increase versus the fourth quarter of 2024 and the same-store sales index stood at 96. We have already discussed the temporary factors behind this performance in addition to the underlying macro backdrop. We also faced an external headwinds. However, we are not satisfied with this. We want to be clear that we are taking decisive actions to improve, and we are already seeing the situation improve progressively. It is also important to highlight the divergence we continue to see across markets. Most of our core markets delivered solid progress, most notably Poland, where quarterly revenues increased by almost 6% year-on-year in the fourth quarter or by 9% on a full year basis. On profitability, the sales evolution meant that we kept the EBITDA margin close to 17% in the quarter, resilient but still clearly below the group's potential and objective. We continue to view the drivers of largely temporarily as we expect a gradual improvement in profitability as sales trends recover and operating cost pressures eases over time, both on food and labor. As you can see on the slide, fourth quarter EBITDA amounted to EUR 106 million, while EBITDA non-IFRS 16 was almost EUR 58 million, implying a margin of over 9%. On the other hand, the operating profit for the quarter reached EUR 26 million. Finally, cash generation remains strong. Operating cash flow in the quarter was EUR 109 million, while investing cash flow was below EUR 46 million, reflecting the continued decline of investment intensity and our disciplined approach to capital allocation. Moving to Slide 14, please. On this slide, you can see the evolution of the group's quarterly revenues over time, reflecting the natural seasonality of our business. At the same time, digital sales gained relevance, particularly in the QSR segment. Excluding our casual dining brands, digital sales represented a primary route to market in 2025, reaching around 62% of total sales. We see this as a very exciting opportunity. It strengthens the way we interact with our guests, enhances convenience and give us additional levers to build loyalty and improve our commercial effectiveness through a more personalized and data-driven consumer engagement. With that backdrop on revenues and the growing weight of digital channels, let me move to Slide 15. where we summarize the evolution of our profitability, tracking EBITDA and EBIT and how margins progressed through the year. As discussed, EBITDA in the fourth quarter was over EUR 106 million with almost 17% margin, broadly stable versus the recent quarters. In terms of EBIT, the generation was EUR 26 million with a 4.1% margin. The key message from my side is the resilience of profitability with our focus on gradually restoring operation leverage. Now moving to Slide 16. Let's look at our cash and debt evolution and more broadly, our liquidity and leverage position. At year-end, AmRest net financial debt stood at EUR 518 million. Leverage increased to 2.3x as expected, sitting at the low end of our internal target range, an area where expected to operate over the coming quarters. Finally, the group's liquidity at year-end was over EUR 146 million, a decrease of EUR 7 million versus the prior year. This reflects an efficient liquidity position, supported by the additional unused committed lines in more than EUR 140 million. This financial risk profile provides a prudent use of resources and a solid liquidity that we consider to be efficient, fully aligned with the group's operating needs. In summary, keeps us well positioned to support the business while maintaining disciplined capital allocation. With this balance sheet context, let me now turn to the operating view by geography. Turning to Slide 17, you can see the breakdown of revenue, EBITDA and restaurant count across our segments. These segments span our footprints across 22 countries. And after several years of broadly synchronized trends, we are seeing a more differentiated set of dynamics across markets. In other words, performance is increasingly driven by local market dynamics, which also creates opportunities to allocate resources more selectively and accelerate improvement where the upside is the strongest. Turning to Slide 18 and 19, we present the key metrics of Central and Eastern Europe, our largest segment. In 2025, annual sales in this segment amounted to EUR 1.6 billion, representing a year-on-year growth of 6.5%. At country level, Hungary posted double-digit growth of 10.2%, while Poland also achieved a strong performance with almost 9% increase in revenues. EBITDA generated reached EUR 306 million, representing an EBITDA margin of over 19%. Profitability remains solid and broadly consistent across regions, with Hungary posting the highest margin at almost 21%, while other markets delivered comparable levels. Looking at the fourth quarter, revenues totaled EUR 394 million, 1.2% higher than in the same quarter of 2024. EBITDA was over EUR 78 million, representing an EBITDA margin of almost 20%, broadly flat year-on-year. Finally, the restaurant portfolio in the region reached 1,283 units after increasing by 55 restaurants with the opening 28 units during the last quarter of the year. With this, let's now move to Western Europe in Slide 20 and 21 to discuss the performance and key dynamics of that region. Revenues in this segment amounted to EUR 870 million for full year 2025. This represents a 3% year-on-year decline. EBITDA generated amounted to EUR 121 million, resulting in an EBITDA margin of 14.8%, 0.3 percentage points lower than the prior year. Performance diverged significantly by country. Spain, AmRest's second largest market, delivered flat sales versus last year, while Germany recorded almost 5% growth, supported by continued momentum in the market. By contrast, France experienced a 13% decline, reflecting a more challenging trading environment and weaker consumer confidence. In the fourth quarter, sales reached EUR 221 million, a decrease of 4%, which represents to the same period of 2024. EBITDA stood at EUR 33.5 million. This is an EBITDA margin of 15%, more than 1 percentage points below the prior year. Finally, the total number of restaurants in the region stood at 771 units after 19 openings and 32 closures. Approximately half of the closures occurred in France, reflecting ongoing portfolio optimization efforts and a focus on improving the quality and profitability of the market. With that, let me move to the next slide and briefly comment on China, where we operate the Blue Frog portfolio. This segment is smaller in scale, but strategically important, and we remain focused on protecting relevance and profitability while navigating a more volatile consumer backdrop. Revenues generated during the year stood at EUR 85 million, which is 8% lower than in 2024. The depreciation of the Chinese yuan against the euro was the key headwind. In local currency, sales decreased by 4%. Despite the softer top line, EBITDA amounted over EUR 16 million, implying a solid EBITDA margin of over 19%. In the fourth quarter, revenues were EUR 20 million and EBITDA reached almost EUR 4 million. With this, EBITDA margin improved to over 18%, almost 0.5 percentage point higher than 1 year ago, reflecting ongoing cost discipline and operational focus despite the more challenging trading environment. The restaurant portfolio closed 2025 with 85 restaurants in the region after no openings during the last quarter of the year. And with this, Luis, I believe we are ready to take questions from the audience. Many thanks. Luis Comas: Thank you, Eduardo. Operator: [Operator Instructions] Santiago Aguilera: We're going to start perhaps with some questions that we have received in the box. The first one is asking about the situation in Hungary during the 4Q of the year if the performance that we have seen in the market and the strong revenue growth is coming from any one-off in this market? Luis Comas: No. Hungary has been last year and so previous years as well, a growing market. I think we have been very pleased with the performance, customer confidence and traffic has been growing. And so it has been one of the best years as we have seen in the percentage of margin that Eduardo just mentioned, reaching to almost 21%. So it was a great one and nothing as one-off. It was a continuous operation. Santiago Aguilera: Thanks, Luis. We have the next question referring to Czechia. Do you see already the normalization of sales in Czechia following the allegations of food safety? Luis Comas: Yes, Santiago. And let me be very transparent on this issue. AmRest performance sales in Czechia were negatively affected in the final months of 2025, following misleading allegations about food safety spread through social media. We at AmRest take food safety very seriously. And always, we are fully committed to rigorous food safety standards, and we conduct comprehensive reviews across our network. We do combine robust internal controls and also independent third-party audits. And saying that in this context, AmRest has also submitted itself to hundreds of additional audits and inspections conducted by both the respective brand owner and the competent health and hygiene authorities. And gladly, the results of this out is identified, no systemic issues and all restaurants continue operating normally. So after this event, I think we are observing now a progressive recovery, Santiago. Santiago Aguilera: Thank you, a very detailed answer for this issue. The next question is related to CapEx. This says what CapEx levels do you expect to reach in 2026 and 2027? Eduardo Zamarripa: In terms of CapEx, we addressed the topic during the call. And we expect similar levels to the ones that we had in the previous year. And we want to be very objective on this and focus on 2 main topics. openings, and we are doing a very detailed procedure in terms of getting sure that those openings give the returns that are expected by the company. And on the second topic is very important, the renovations that we are doing across the organization. This is very important to us because it's part of the service level that we give to our consumers. So it's important to have updated the restaurants to have a very good experience in our consumers. And also, this drives additional transactions and sales during the reopening of those restaurants. Luis Comas: Eduardo, let me jump in because I think it's also significant that the usage of CapEx this year has been outstanding and greater to previous years. I would like to highlight the efforts made by the teams into how to improved efficiency of the jobs of the construction of the supply, everything, all the parts related to CapEx investment has really saw an improvement. And I think the efficiencies that we are observing will stay even improve for longer. So those are good signs and good data that really allow us to be more positive about how the -- we're flying in the same level of CapEx be more effective on the usage of the capital. Santiago Aguilera: Okay. Thank you very much, gents. The next question that we have is related to the dividends. And they are asking if AmRest is planning to establish an official dividend policy, and we can expect or we have any guidance with respect to next year's dividends? Eduardo Zamarripa: We are focusing on the cash flow of the company, mainly enhancing the operating part of it. So at this moment, the results are the one that mark the dividend that we can share. So our focus right now is on cash flow and the Board of Directors will take the decision depending on the level that we generate as a company. Santiago Aguilera: Okay. Thank you very much. I don't know if we have any further questions, operator? Lukasz Wachelko: Maybe I will take the privilege of moderator and ask a couple of follow-up questions. First of all, I would like to ask about Czechia. You said that you are seeing gradual improvement. Can you share with us what kind of same-store sales are you observing in Czech Republic in the first quarter of this year? Luis Comas: As I said, after this impact on the last month of last year and let's say, the customers has been more aware of the real status of our safety and our conditions and the restaurants, the trust is recovered and the granted operation trust and confidence is showing back. So the performance is gradually recovering. It may take some time. We don't have a clear vision on that. But definitely, we see just positive week-on-week. So this is good news. Lukasz Wachelko: Okay. And in the presentation, you also shared with us that you are considering new brands and new concepts. Can you shed more light on that? What kind of a brand, what kind of concept, just even the direction, where are going? Luis Comas: Sure. Sure, Lukasz. The company has been always evaluating and assessing different perspectives of how to improve and grow our portfolio. And in that regard, we continue doing that. Obviously, we are looking forward to onboard brands that increase our reach through different business proposals. And that's an important thing because I think the diversified portfolio of brands that we operate is one of the strengths of AmRest. So we want to keep expanding that and from there, looking forward. When I cannot disclose that, but we are seriously working on that topic. Lukasz Wachelko: Okay. And on the flip side, you are still in a cleanup at closing down the less efficient part of your network. And as I understand that's also the plan for 2026. Can you tell us which restaurants, which markets are under your consideration? Luis Comas: Yes. This is also as well a dynamic exercise and a dynamic assessment. And as you can imagine, there are brands and territories and customer dynamics that are changing in the years. We expect to keep running in the same level of closures as we saw in the last years. This is a discipline that we are taking to really be present where the consumer occasions are now and also to be sure that our profitability is not dragged out by underperforming stores. So probably the same level. I expect that for a couple of years, we still have some areas to keep working on, and that will be the reference as same as we did this past year. Lukasz Wachelko: Can you give us any details on the markets or brands or you will like to say as you are now? Luis Comas: Well, probably, this is a variety of actions because not all markets do have a continuous trend. And saying that, what one market was a target 1 year, another one will be next. This is on many occasions also related to leases agreements with landlords. So it's not geographically driven and some occasions are regulated by contracts, disposals and so on. Santiago Aguilera: We have received in our box an additional question that is asking about the evolution of the EBITDA margin in Germany during the fourth quarter of the year. I don't know if perhaps Eduardo, you can answer this. Eduardo Zamarripa: Yes. Thank you, Santiago. There's an important extraordinary element in there. We registered a fire, and we needed to make some bookings in the fourth quarter of 2024. But the good news on that topic is that now that is normalized and the market is recovering. Santiago Aguilera: Thank you very much, Eduardo. Operator: [Operator Instructions] Santiago Aguilera: Okay, if there is no further questions. I don't know is... Luis Comas: No. Thank you for joining the call today. I think it has been a challenging year, no doubt. I think the markets across the different geographies we are facing are in different momentums of their evolutions. Gladly, AmRest's diversity in brands and geographies allow us to compete heavily where we have bad wins. The good thing is I think the company has gone through a very, very selective exercise of how fine-tuning our processes. We have kept investing in good systems. Our profitability keeps moving up and the margins are also solid. I have good feelings, and I think this is a topic Santiago, no one mentioned that I think second half of the year their forecast in this industry about some commodity or goods prices that are looking to go down as chicken, beef and coffee that as you know very well, these 3 in the last 2, 3 years were very volatile. And I think we are observing potential decreases in prices, especially on the coffee side because great harvest in different territories, but also beef that we name internally deflation seems to be now stabilizing. And those 3 things have no more than positive forecast outcomes to our business. So I'm also expecting those to land in reality somewhere in the second half of the year. Saying that, thank you very much for the coordination of the call on the other end and looking forward to share with you more news in very short. Thank you, everybody. Lukasz Wachelko: Thank you very much. Operator: Ladies and gentlemen, today's call has now concluded. We'd like to thank you for your participation. You may now disconnect your lines.
Operator: Thank you, for standing by. This is the conference operator. Welcome to the Endeavour Silver Fourth Quarter and Year-end 2025 Financial Results Conference Call. [Operator Instructions] The conference is being recorded. [Operator Instructions] I would now like to turn the conference over to Allison Pettit, Vice President, Investor Relations. Please go ahead. Allison Pettit: Thank you, operator, and good morning, everyone. Before we get started, I ask that you view our MD&A for cautionary language regarding forward-looking statements and the risk factors pertaining to these statements. Our MD&A and financial statements are available on our website at edrsilver.com. On today's call, we have Dan Dickson, Endeavour Silver's CEO; Elizabeth Senez, our CFO, and Don Gray, Endeavour's COO. Following Dan's formal remarks, we will open the call for questions. And now over to Dan. Dan Dickson: Thank you, Allison, and welcome, everyone. Before reviewing our 2025 results, I'd like to provide a brief update on Terronera. Operations were temporarily impacted by recent security events in Mexico and Jalisco's Code Red mandate, which requires civilians to shelter in place. To comply with the mandate, the uncertainty surrounding the event and to ensure the safety of our people, we paused Terronera's operations Sunday evening. Operations resumed Wednesday, February 25, once supply routes were confirmed to be secure. We will continue to monitor developments closely and the safety of our employees and contractors remain our top priority. With that, I'd like to briefly touch on the current silver and gold market. Over the past year, we've seen exceptional gains in renewed investor interest in precious metals, driven by inflationary pressures, global economic uncertainty and ongoing political tensions. Silver and gold continue to be viewed as a safe haven assets with silver also benefiting from rising industrial demand especially in the green energy and technology spaces. This momentum has continued into 2026 as gold trades well above $5,000 and silver is elevated above $90, reflecting ongoing confidence and reinforcing the importance of our strategic initiatives and our commitment to delivering value for our shareholders. We are extremely well positioned to benefit from the current silver prices and believe there is substantial runway remaining in this cycle. Moving over to the specifics of the company. 2025 was a transformational year for Endeavour Silver. We took a major step forward with the acquisition of Kolpa in May, Terronera achieving commercial production in October and agreed to the sale of the Bolanitos Mine, which closed in January. In December, we raised $350 million through convertible debt offering, strengthen our balance sheet and positioning ourselves to advance the Pitarrilla development asset. These milestones lay a solid foundation for performance and sustained growth as we look ahead to the future and position ourselves as a stronger company within the industry. In 2025, Endeavour produced 11 million ounces of silver equivalent metal, including base metal production from Kolpa making a 48% increase compared to 2024. In Q4, Endeavour produced 2 million ounces of silver and 14,000 ounces of gold, totaling just shy of 4 million silver equivalent ounces. This represents a 146% increase compared to Q4 of 2025 due to the addition of Kolpa, Terronera and the higher grades at Bolanitos. Excluding Kolpa and Terronera, this was a 27% increase compared to the same period last year. In 2025, the company reported record revenue of $468 million up 115% compared to 2024 with cost of sales of $385 million, mine operating earnings of $83 million and mine operating cash flow before taxes of $156 million. Mine operating cash flow before working capital changes rose by 116%, while cash costs increased to $19 per ounce of payable silver primarily driven by the substantial changes in our production profile. In Q4, Endeavour recognized adjusted net earnings of $4.8 million or an adjusted earnings of $0.02 per share. Due to realized losses from derivative contracts and higher financing costs in relation to the early repayment of the debt facility. Direct operating costs per ton increased by 8% this year, primarily driven by elevated costs at Terronera during its initial quarter of production. Looking ahead, we anticipate a substantial reduction in these costs as we transition from diesel to liquefied natural gas in Q2 of 2026, complete the demobilization of our construction team, benefit from workforce and logistics optimization plans implemented in January and maintain a throughput at 2,000 tonnes per day through 2026. Kolpa will also see an improved cost efficiency as its plant expands 2,500 tonnes per day here in Q1. For clarity, our direct operating cost per ton include direct input costs associated with mining, milling and site level G&A. Our definition of direct cost per ton includes royalties, mining duties and the purchase of third-party material. Changes in the metal prices have a meaningful impact on our direct cost per ton. For example, for every dollar increase in silver, our cost per ton rise by about $0.90 of Terronera, $0.50 at Kolpa and $3.80 per ton at Guanacevi, mainly due to the higher royalties, duties and third-party purchase costs. All-in sustaining costs net of byproduct credits were elevated this quarter with higher royalties duties, third-party ore purchases, elevated corporate G&A and the addition of Terronera. Terronera incurred higher costs due to higher sustaining capital expenses during the first quarter of operations. Terronera's all-in sustaining costs includes capital expenditures of $16.3 million for the quarter which worked out to approximately $48 all-in sustaining cost per ounce. And this includes onetime investments related to new mining operations. These costs are expected to decrease as we move through 2026. The elevated corporate G&A was impacted by the divestiture of Bolanitos, the appreciation of deferred share units and the integration of all our new operations. As of December 31, 2025, the company's cash position stood at $215 million, providing us with the financial strength and flexibility to advance our strategic initiatives. This robust foundation allows us to remain nimble and responsive to new opportunities while staying focused on driving progress at Pitarrilla, where we continue to invest in exploration, technical studies and the economic evaluation. As we move through 2026, our attention remains focused on several operational investment priorities across our main operations and projects, each serving as a catalyst for our continued success and growth in 2026. At Terronera, our primary focus is disciplined execution as we transition into higher grade zones in the second half of the year. We are seeing gradual improvements towards designed operating parameters, including nameplate throughput, recoveries and mine output. Grades are aligning with plan and operations are beginning to establish a consistent rhythm rather than the volatility of a typical ramp-up. As we eliminate ramp-up or start-up costs, we expect direct cost per ton to improve through the year. Secondly, at Kolpa, we are actively advancing our expansion initiative, increasing capacity from 2,000 tonnes per day to 2,500. We anticipate achieving this milestone in the coming weeks, which will enhance our throughput and support our growth objective. Additionally, we remain focused on delivering a resource estimate later this year. At Pitarrilla, the company's next major development project and one of the world's largest undeveloped silver deposits, our commitment remains very strong with a planned $68 million investment in 2026. This includes the completion of an NI 43-101 feasibility study targeted for completion in Q3 2026, along with early works such as commencement of the construction camp, continued ramp advancement through the manto and procurement of long lead equipment to support the basic and detailed engineering. We are positioning the project to have a well-informed construction decision in early 2027, supporting our strategic strategy of significant organic growth. 2025 marked a defining chapter in our story. As we continue on this exciting path, I want to extend our gratitude to our valued shareholders and stakeholders for your confidence and partnership. We remain committed to creating lasting value, driving operational excellence and building a premier senior silver company. Thank you for your continued support and engagement. And with that, I'm happy to open this to questions. Operator, please proceed to our Q&A session. Operator: [Operator Instructions] The first question comes from Wayne Lam with TD Securities. Wayne Lam: I'm just wondering, just on the updates operations like Terronera. Can you discuss the mill availability and what happened with the electrical interruptions? If I recall, you guys also had an electrical issue in late September, which kind of resulted in the delay to commercial production. So just wondering exactly what's going on there? And have you seen an improvement on those issues? Have those been resolved in the first 2 months of this year? Dan Dickson: Yes. Thanks for the question, Wayne. I mean the quick answer is yes, we have seen a lot of improvement in January and February. We've done very well from a throughput standpoint. As you recall, back in September, we had resistors that we had to replace early October, and it took 6, 7 days for those to come in as they are onetime items. And we had a lot of electrical disruptions just because we're on diesel gen sets. We were at max power and we had to make some adjustments in Q4 to that, and we're getting lots of starts and stops. So losing maybe 1 hour or 2 hours on various days that really impacted. Starting and stopping impacts recoveries, obviously impacts throughput. We've seen that kind of stabilize late December and obviously through January and February. The most important part to those temporary diesel gen sets is we have received our permits to operate our LNG plant. So we are allowed to vaporize our liquefied natural gas into natural gas and ultimately electricity. We are completing that connection point here in Q1. The provider of the liquefied natural gas has obtained their permit to transport, and they're waiting on a storage permit on site that we're going to look at here over the next or we expect to receive over the next couple of weeks. So our expectation is that we'll be on our LNG plant in Q2. Obviously, it does a significant thing for our stability of electrical continuity, but also from a cost standpoint. Going from diesel gen sets into the LNG plant takes us from $0.33 per megawatt hour to $0.17, almost $8 a ton at this point. So we're excited to get on that for a number of reasons. Obviously, reliability and cost being the first -- the main two. Wayne Lam: Okay. Great. And then maybe just on the grade profile at Terronera. You guys had previously guided the 122 grams per tonne silver and 2.5 grams per tonne gold through the first 6 months of operation. But the guidance for this year implies that you'll average 120 grams per tonne through the entirety of 2026. I know you guys had talked about some mining of the lower-grade stock works driving that. But -- just wondering if you might have any guidance on grades in terms of a split in H1 versus the prior 122 grams per tonne and where we should think about that with the higher grades you're projecting into H2? And then just are the lower grades entirely being driven by that lowering of the cutoff? Or is there some attribution as well to greater dilution or lower reconciliation versus the block model? Dan Dickson: Yes. I think the first couple of questions. block model reconciliation has been relatively strong, better as we move forward, and we've got deeper into the mine plan. We do have lower silver grades and ultimately gold grades because of some of that stock work. But right now, that software isn't a significant amount. And as we're -- as you know, in the back half of the year, we get into the main shoot of Terronera, and that's the goal. That's where our highest grade points are, and that's where our biggest splits are. As far as the breakdown between H1 and H2, I don't have that rate in front of me, but it is a gradual increase of Q1, Q2, Q3 to Q4. Each quarter gets better as we bring more and more of that shoot in -- for those that are listening, we made the decision about almost a year ago now, maybe 9 months ago, that we would go into a lower grade part of the ore body as we start with initial production. Obviously, because we didn't want to end up having ounces of silver and gold into our tailings dam, ultimately as we go through kind of your regular start-up issues and building up our recovery. So this was by design, Wayne. Again, it's lining up relatively well to plan. We're slightly lower because we are taking that stockwork. It's very difficult to speak to that stockwork. and the impact overall. But as we go through the year, we'll bring more and more into the plan and more of the high-grade stuff and hopefully go back to that stockwork later on. Wayne Lam: Okay. And maybe just as a follow-up to that, the mine plan in the early years of operation is in the realm of 230 to, let's call it, 280 grams per tonne silver, like when would we expect that type of material to be mined and processed through the mill. Is that more of a '27 thing? Dan Dickson: Exactly, 2027. Wayne Lam: Okay. Okay, good. Maybe just last one for me. Just on the guided capital spend this year. There's been quite a bit of spend budgeted at Terronera, particularly towards additional mine development, which is driving your higher ASIC. Just wondering if that reflects a catch-up on development that was anticipated to have been completed through the initial construction period. And if that drops off substantially as we progress through the year. Or would you see your development meter still as relatively behind where you'd like to be through the early stages of the operation? Dan Dickson: Yes. We're a little bit behind, but not relatively behind. You'll see that in our guidance that we put out in January, we had a $56 million capital budget for Terronera. And then similarly, I think we spent almost $17 million in Q4 at Terronera, which we define as sustaining capital. Obviously, moving from commercial production into -- from construction into commercial production, we have had some capital programs slosh into Q4 and ultimately Q1, Q2. As we move forward through Terronera, we expect that to come down. There are onetime activities that are included in this CapEx. For example, as we already talked about, the LNG plant and the completion of that. We're waiting on a CONAGUA permit for waste dump 2 that's going to reduce our trucking capacity, and we would have some development around waste dump 2. We expect that. We have a backfill plant that we're currently leasing we're going to buy that. So there's a number of onetime items in our sustaining CapEx that you could argue is related to the actual build of Terronera. Obviously, we're taking that through sustaining CapEx. We don't want to play with numbers and start calling certain things growth or sustaining. So at this point, it is what it is, but do you expect that to come down as we move through 2026 and ultimately 2027, we expect to be at a regular sustaining CapEx break. Operator: The next question comes from Heiko Ihle with HC Wainwright. Heiko Ihle: So Terronera commercial production, obviously, was October 1. So we'll be in March 1st here in the very near future. So it's 5 months later, you want to just maybe provide the audience here with a little bit of color on how things went since then, maybe things that went better if things that went worse? Any sort of bottlenecks in supply chains or at site or just things that came a little bit different from your expectations, again, not necessarily just worse. But also, I assume some things went substantially better than you thought. Dan Dickson: Do you mean over the course of the construction period or just over operations in the last 5 months, Heiko? Heiko Ihle: Operations over the last 5 months. Dan Dickson: Yes. I mean, to be honest, I mean, it's our first time doing an initial build. Our first mine that we brought into commercial production. Obviously, there's things have gone extremely well, things that we wish could be better. I mean I think that's normal through a ramp-up phase that is 2 steps forward, 1 step back. It's through all of our past experiences and Don's experiences. There's things that we felt like we can improve on maybe from an initial start-up and ramp-up, better knowledge almost of going to the initial plan. Everybody has different ideas and it's sticking to the original plan. And then from that, starting with the variables are trying different reagents at different times, putting various options through it. Because of the terrain around Terronera, the topography at all, it's very mountainous, we don't have a lot of flexibility with laydown yards. So we only have about 80,000 tons, even less than that right now, a stockpile that sits near the plant. So what comes out of the mine kind of gets fed right into the plant. So we're continually learning about the ore body trying to find what's best from a recovery standpoint. But again, January, February, we've seen very good throughput up until Sunday night. We obviously shut down for a couple of days. But again, going forward, we expect that to be very good and it's the gradual ramp-up of recoveries. We've been running lower silver grades, as Wayne kind of pointed out, and those will improve through we go the year, and we expect recoveries to improve with that. I think our team has been phenomenal at finding flexible ideas using plans B and C to get to where we need to get to. But now we want to get into the rhythm and kind of be steady state and get into normal course operations. We look forward to that. Heiko Ihle: Fair enough. And then just like, I guess, a little bit more touchy-feely, as silver is at $94 right now. I mean assuming silver prices stay here or maybe even go up a little bit more, is there an impact a quantifiable impact of where you mine across your asset base? And what you internally are envisioning a mining costs like direct costs for labor and [indiscernible] activity across your asset base? Dan Dickson: It's a very broad question of with $94 first off, it's a phenomenal environment, and we expect cash flow to be very significant. There's a big impact to us at Guanacevi because we pay a significant royalty at Guanacevi 16% to Minera Frisco that owns the main concessions of that. Further with there, we toll ore, I think in Q4, we did close to 20% of our throughput was toll ore. That's going to continue. Obviously, there's a lot of family run operations. The government built in 1981, that Guanacevi plant, and we're required to take up to 10%. And quite frankly, it extends the life of our mine. We get good margins on some of that tolled ore. It's just expensive to buy. And then flip side of that, Special Mining Duty, which is an EBITDA tax, and that's included in our cost per ton in our direct cost per ton. So with higher prices, and we kind of put this in our guidance news release, it's going to drive our direct cost per ton. Again, for our audience, we have a direct operating cost per ton, which is mining, milling and our indirect costs and then our direct costs include royalties, duties and purchased ore. Those last 3 items go up with higher prices. It's great. We still have great margins, but it means rising cost per ton. We get a lot of questions of wire costs rising. For the cost that we can control, we've been through our negotiations with our unions out of Mexico, and our general increase is about 6%, which is a bit higher than our budgeted number of 5%. It was all included in guidance. Of course, we're going to start seeing pressure on our inputs. I think that's just natural at these prices. It's our job as management to work through that. That's all included in our guidance numbers. I think it's imperative at Kolpa and Terronera, we have a lot smaller royalties there, so it's easier to contain those costs. But of course, as we evaluate projects going forward, we're looking at these higher prices and what's the impact long term on costs. I don't know if that fully answers your question, Heiko. But again, in our guidance news release, we kind of touch on that in depth a it. Heiko Ihle: Yes. Yes. No, you did. You got exactly where I wanted to go with this. Operator: Next question comes from Soundarya Iyer with B.Riley. Soundarya Iyer: Congratulations on the quarter. My question is more on this derivative hedge. I mean, there is a good amount of detail in the MD&A. But could you help me understand the remaining notional exposure and the cash settlement cadence over the next 12 months? And how -- what about the risk management strategy in order to manage this strength in precious metals? Dan Dickson: I'm happy to talk about that. I mean, it's an important part right now on our balance sheet that we -- under the project loan facility that we borrowed to build the Terronera mine. We borrowed $135 million from 2 lenders. When we went into that facility agreement back in 2022, we were required to hedge 68,000 ounces of gold, and we locked that gold price and in March of 2024 at $2,325. Today or at December 31, we had about 50,000 ounces of that gold hedge remaining. That gold hedge is going to unwind through 2026 and into 2027. I think we're through it in Q2 of 2027. Ultimately, on our balance sheet, you can see that we do a mark-to-market adjustment that holds that difference, that liability sits on our balance sheet. We recognize that loss on that derivative liability through the income statement in the year. So a very significant amount, and we try to adjust it for adjusted earnings purposes. Again, we, as a company, have a policy that we would not like to hedge our silver, we have a small hedge in place from a collar again from that project loan facility. But we have a policy to try to remain unhedged. And of course, from a silver standpoint, if you're make an investment in the silver company, you believe silver price likely going higher. We want to give that upside, and we feel like there's a lot of upside there in silver. So we hedged the gold, which was a byproduct. And again, we're through that mid-2027. Soundarya Iyer: Just one more on this Mexican peso appreciation, which was again a headwind on the cost this year, right? Any hedging or risk management strategy to cover that for 2026? And is there any sensitivity at what exchange rate does this currency that impact meaningfully margins or costs? Elizabeth Senez: Soundarya, this is Elizabeth. I'll take that question on the foreign exchange. So as you see, we do have some Mexican peso hedges in place. And I believe at the end of 2025, they were around 19 pesos to the dollar remaining. We don't have very many left. And with lower prices, we haven't put many on recently. It's hard to hedge at 17 pesos to the U.S. dollar. But we are taking opportunities to hedge where it is appropriate for the Mexican peso. One of the advantages with adding Kolpa to our portfolio is that we have reduced our percentage exposure to the peso as well. And the sol -- the Peruvian sol is more steady for us. So we do have that diversification as well. Operator: The next question comes from Cosmos Chiu with CIBC. Cosmos Chiu: Maybe my first question is -- sorry, also on Terronera. But just I'm trying to kind of quantify it. Terronera costs were fairly high in Q4, $50, $65, $70 an ounce. And Dan, you talked about onetime costs, LNG plants and stuff. But in 2026, you're guiding to 28% to 29%. And so I'm just trying to understand how it can drop in 2026. Is it going to be more back-end weighted? You're going to have some quarters that might be over $29, some quarters below $29 an ounce or -- because if you have another [ quarter of $65 ], it'd be hard to average out to $28 to $29 for the full year. Dan Dickson: Well, the good news is $65 was in Q4 of 2025. Our guidance is only for 2026. We don't expect Q1 to be as elevated as it was in Q4. We've got some severance costs of moving off from various construction people in January, but we do expect that cost to decrease over the year. So Q1 will be higher than Q2. Q2 will be higher than Q3. Q3 and Q4, we have higher grades coming in. So on a per ounce basis, that cost per ton or that cost per ounce can improve, the cost per ton won't become as drastic. I would point out that Q4 has the onetime expenditures of $16 million, not necessarily onetime CapEx expense of $16 million, $17 million in Q4. That includes onetime initial CapEx that flowed into Q4. We have that in Q1. We'll have less of that in Q2. Q3, Q4, we should get pretty flattened out sustaining CapEx. That is going to be the biggest driver of our cost per ounce increase at all-in sustaining costs. Similarly, our cost per ton as we get more rhythm at site, we expect that to come in a move from LNG plant to the -- temporary diesel gen sets to the LNG plant that's cost improvement. So there's a number of things that are going to come through cost that are going to come through the year. So we've been saying out to the market and to analysts, look, Q1 is our first quarter of production. It's not indicative of what the future is going to hold at Terronera. And again, we expect Q1 to be better. We expect Q2 to be better than Q1, and I think that's going to come through. Cosmos Chiu: Great. And maybe broader scale, can we talk a bit about Mexico, Jalisco, certainly some volatility in the area. Has it resulted or necessitated any change in security protocols on site of Terronera? Has it necessitate any kind of changes to systems in place to make sure that it's kind of in response to the situation. And then on top of that, can you talk about supplies on site, consumables on site? Have you stocked up in light of what's happening in terms of fuel, in terms of consumables, in terms of spare parts, how should we look at it? Dan Dickson: No, it was a very fair question [indiscernible] what we saw this past week. Obviously, unexpected, I think that was something we've never experienced in Mexico. Our biggest concern, obviously, first and foremost, is for our people and with Jalisco going to Code Red, shutting down Sunday night. The major thing about coming back from an operations is the supply lines out of Puerto Vallarta up to site. So we're about an hour and [ 15 ] 1.5 hours drive from Puerto Vallarata to site. Because of the topography of Terronera, we don't have a lot of storage space. We have about 1 week supply of food for the camp, 2 to 3 days supply of water. We had delivery of water on Monday that helped. Obviously, we're very concerned about diesel and transporting that. Going forward, I don't suspect we'll change our security around the Terronera mine. It will continue as in. We have to look at our protocols on shipments. So shipments coming up, shipments coming out, our concentrate shipments. We already have security protocols around all the shipments going out. Some of the shipments coming up. I think we'll just have to look at that, maybe beef it up a little bit. We don't expect a dramatic increase in security costs at this time. Of course, we have to monitor what this impact will have across the region if there becomes instability with all these groups in Mexico. As of right now, we don't have a huge change, just an increase of presence around our transportation lines. Cosmos Chiu: Great. And then maybe one last question, more of an accounting question. With Bolanitos, the sale closing in Q1, is there any kind of accounting nuances or impact that we should be aware of for Q1? Is there going to be some type of onetime gain or loss? And then can you talk about Mexican taxes as well? My understanding is that Mexico cash taxes are higher in the second -- in the first half or even in Q1. Is that what's happening here? And with the Terronera construction costs, the CapEx, does that help you offset some of those Mexican taxes? Dan Dickson: Yes. Hold on, can we just clarify your second question about Bolanitos taxes? You said something around timing at end of the year. Cosmos Chiu: Yes, overall, just more Guanacevi, sorry. So I guess, number one, Bolanitos, the deal is closing or closed in Q1. Is there any accounting sort of nuances or entries or impact that we should be aware of? Just, you know, overall Mexico taxes, how we should look at it in terms of quarterly. Sorry, Elizabeth. Elizabeth Senez: Yes, this is Elizabeth -- I'll take that question. Yes, the Bolanitos sale closed January 15. And we will be recognizing that during our Q1 financials, obviously. And we are anticipating, as you saw, we sold it for approximately $50 million. For accounting, there's different adjustments to that, depending on the value of the shares that we acquired as a result. And then we were carrying it for around $25 million at the end of the year. So we are anticipating an accounting gain on that in Q1. And that math can be done using our year-end financial statements. Your question about Mexico taxes. Guanacevi is paying Mexico taxes and pays installments regularly on those Mexico income profit taxes there. Terronera, as you commented, does have construction costs, which are recognized as tax losses. And as it starts to make taxable profits, those losses will offset those taxable profits during 2026. And then depending on how the silver price goes, drives how quickly those losses will be utilized, and then when we will start paying income taxes in cash in Mexico for Terronera. Cosmos Chiu: Great. So there's no big true up in Mexico, Mexican cash taxes in the first half of 2026, where I see that somewhere else in other companies, but I guess not here. Dan Dickson: No. On our sale of Bolanitos, we have historical losses that are designed or we can use that we won't have to pay a tax on our Bolanitos debt. Elizabeth Senez: AT this point, that's our anticipation, yes. Operator: The next question comes from Alex Terentiew with National Bank. Alexander Terentiew: I guess I was a bit slow with my fingers, a lot of questions already asked. But nonetheless, one question still for me here on Kolpa. So can you just clarify for me then. As it comes to that mine with permitting and getting 2,500 tons per day, are you waiting for additional permits? Because I thought 2,500 tons per day is kind of the ultimate expansion rate that you want to get at. But based on your commentary guidance, it sounds like you're going to get there a lot sooner. So I just want to make sure I'm clear on the expectations there. Dan Dickson: Yes. We are getting there a lot sooner. I think it's a testament to the team that we acquired when we bought Kolpa. They're very confident people. In December, they received the construction permit to build out the Kolpa plant, which is really a expansion, the crushing facility, new crusher, ball mill to go to 2,500 tons per day, then there's some additional flot cells that need to be done. It, of course, expanding the mine underground. They received that construction permit. They're almost through that. We expect to be testing the ball mill relatively shortly, so let's say March. In our guidance, we did have 2,400 tons per day throughput for the average for the year. We've been running just over 2,300 tons per day over the last couple weeks. There has been a lot of rain in that area, and we've battling how much rain there's been here in Q1, so it slowed us down a little bit from a production standpoint. The construction standpoint, like I say, we've been very impressed with how it's gone. From the construction standpoint, we can operate it, but we do have to get an operating permit, which generally comes a month to two months, maybe three months after the construction phase is done. But we are allowed to test that circuit and go through that. Again, hopefully in Q2, we're approaching 2,500 tons per day. The underground mine will be running around 2,300 tons per day. As we've talked about before, with the underground mine, it's opening up more faces, more employees, staff. You're not going to get a lot of economies of scale from the underground portion of it. The additional tons for the first half of the year will come from a lower grade pit that's within the area, and we'll try to fill that with some contractor ore as well. So we are ahead upon the above ground surface. There's still some work to be done underground, but we are in very good shape right now. Alexander Terentiew: Okay. Great to hear. And then just one last question on Pitarrilla. A lot is happening there this year. Can you remind any of permitting time lines or kind of what you're doing to advance that this year? And what news we maybe could expect whether later this year or early next year on the permitting for that project? Dan Dickson: Yes. I'll give a quick overview, and I might pass it over to Donald Gray, our COO. I mean, obviously, we're spending $68 million at Pitarrilla. We really believe in the project. We like everything we've seen, thus far. What makes Pitarrilla kind of special is the volumes that you can get out in such a tight space. There's a manto that's got 7 million to 8 million tonnes of what would be ore once that feasibility study is complete and then 3 feeder structures that come up and through it. And we've been working on a mine plan, and that mine plan is going to dictate the scale of the plant. Now the plant has already been permitted. Underground mining has already been permitted. We're waiting on a tailings storage facility permit. It's going to be a dry stack tailings. We've been working on the site. We've been working on the engineering. We've been going back and forth with the state level SEMARNAT on how to submit this and how to submit it most efficiently. I think right now, our projection is that we're aiming for Q1 2027 permit to receive that tailings storage facility permit. But beyond that, there's additional permitting that's required, such as CFP for power but that's something that we can work through during our construction timeline, as we did with Terronera. Of course, we will need temporary power source during the construction. It's a question of when we can bring on power sources at the end of that. Don, I don't know if we want to get in too much more detail of it, but there's a lot of permits that we've gone after. We've spent the past 12 months working on that permit to make sure we're getting ahead of where we effectively were when we started building Terronera. Don, do you have any color you want to add? Donald Gray: Just that I think the permitting schedule really lines up well with the, with the project work that we need to do to finish the feasibility, get into the basic engineering, get the, like we mentioned in the press release, the long lead items or the major pieces of equipment on order so we can do the detail engineering and then head into construction. I think what you'll see is really -- the engineering will be quite advanced by the time we go into construction, and we'll have a good idea on where the costs are and that kind of thing. Dan Dickson: I think the main gating item is [indiscernible] from a construction standpoint is that last permit. So we'll be in very good shape. We feel when we can get that permit. Operator: This concludes the question-and-answer session. I would like to turn the conference back over to Dan Dickson for any closing remarks. Please go ahead. Dan Dickson: Well, thank you, operator, and thanks, everyone, for attending our Q4 financial earnings call. Again, 2026 will be a big year for Endeavour. We're excited with what we can do with Terronera and getting that operation into a steady-state full rhythm by midyear. What Kolpa is going to do for us and ultimately advancing Pitarrilla to take us to where we need to go, and that's, again, our goal is to become a premier senior silver producer. Thanks a lot, and have a good day. Operator: This brings to an end today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.
Manuel Manrique Cecilia: Good morning. I'm Manuel Manrique, Executive Chairman of Sacyr. I'm joined in this presentation by Pedro Siguenza, Chief Executive Officer; and Carlos Mijangos, the company Chief Financial Officer. Thank you very much to all of you, analysts, investors and media representatives for attending this presentation of Sacyr's financial results for the full year 2025. In fiscal year 2025, we reached the halfway point of our 2024-2027 strategic plan. And I must say that the results have been highly positive. Over the past 2 years, we have delivered significant additional value in our concession assets and increased our cash flow to invest in new projects. Therefore, confirming that our business model is increasingly solid, growing and profitable. This strong performance has been accompanied by an increase in our share price and cash dividend distribution, directly delivering the benefits of this business model to our shareholders. Between 2021 and 2025, our market capitalization increased by 152%, significantly outperforming the IBEX 35, which rose by 114% over the same period. The solid balance sheet for the first 2 years of the plan makes us very optimistic about meeting and even exceeding the overall targets under the plan, which will bring us closer to our goal of becoming world leaders in greenfield project development by 2033 as we announced back in the day. Now looking at the specific figures of this midterm review, I should mention the following. Operating cash flow of EUR 1.359 billion. This has exceeded the target 2 years ahead of schedule. We have secured 5 new concession project awards by contrast with 3 or 4 initially estimated with EUR 905 million in new capital invested, we have almost reached the target of EUR 1 billion that we set for the 2024-2027 plan. Concession distributions amounted to EUR 224 million, well above expectations. Net recourse debt is at minimum levels. We have also obtained an investment-grade rating, and we have distributed a first cash dividend of EUR 225 million, which is the total that we planned to distribute over this period. These figures indicate that by the end of 2026, we shall have practically fulfilled the entire plan a year ahead of schedule, and we shall be ready to set new more ambitious goals, especially depending on the outcome of some significant tenders in Australia, Italy and the United States where we are competing. Thanks to the awards won in the last 2 years, future concession distributions have increased by 18% to EUR 19 billion, which is a real strength for the sustainability of this business model. Since the last Investor Day held in May 2024, total future distributions have increased by more than EUR 3.1 billion, excluding those received since then. This important data reflects the awards that we report each year. We are a company experiencing exponential growth, but one that needs a certain amount of time to build and commission assets. We are investing in the future because today's successes will be seen in 3, 4, 5 years down the road and in the form of distributions from our concessions. Concession distributions amounted to EUR 224 million in fiscal 2025, 17% more than initially estimated under the plan. And if we add to this the proceeds from the sale of the Colombian motorways, the figure exceeds EUR 500 million. I would like to take this opportunity to highlight the value of this divestment, which is 12% above our internal valuation due to the EBITDA multiple obtained and also because it helps us to balance our sources of income with a view to consolidating the global group we want to build. The 3 Colombian assets included in this successful transaction, which we carried out by taking advantage of an excellent opportunity were already part of Voreantis. We have everything ready and continue to see a lot of interest among potential investors. But as we do not currently need cash for the projects in our portfolio, we shall undertake this transaction when we see the right market window. After progress made, the valuation of the assets also continues to rise. As of December 2025, it reached almost EUR 4 billion, in line with the target of EUR 5.1 billion by the end of 2027. The EUR 4 billion valuation figure does not include the latest assets awarded to the company, including the 2 water plants in Chile. And I would like to highlight this as one of the major milestones reported in the prior fiscal period. That is why in the coming months, we are planning to offer an updated valuation, which would undoubtedly already be in the north of EUR 4 billion. As for 2025 income statement, noteworthy is the improvement across lines. Revenue grew by 2% to EUR 4. 6 billion with a net profit, excluding divestments in the amount of EUR 165 million. That would have been 46% more. 93% of EBITDA comes from concession activities. In this regard, 73% of the construction portfolio is for our own concessionaire already. Operating cash flow in turn amounted to EUR 1.359 billion, up 5% and the net recourse debt ratio is just 0.18 compared to 0.42 a year earlier and far below the 1 percentage point we had committed ourselves to. These rocket solid results demonstrate the success of the concession model for sustainable and stable growth. In 2025, we achieved a milestone that we had already announced back in the day. Cash flow exceeded EBITDA, which gives us great strength to face the challenges ahead. Let me remind you that financial assets of most of our concessions, once they become operational, EBITDA goes down and cash flows go up. Well, that has already occurred and cash flows will continue to rise as standing out from EBITDA, which will slide down progressively. Now I would like to mention other milestones achieved during fiscal year 2025, such as a record 5 concession awards, 1 in Paraguay, 1 in Italy and 3 in Chile, 2 of which are major water assets. The investment grade rating obtained from a global agency, that's another milestone. Our exceptional positioning for the future in the managed lanes sector in the U.S. and in the water sector in strategic markets. The outstanding divestment of the 3 Colombian assets, as I said, 12% above our initial valuation. Also the fulfillment of our commitment to pay a cash dividend together with a scrip dividend for the benefit of all our shareholders and the division of executive functions carried out during the fiscal year, which enables us to continue fulfilling our strategic plan and preparing for the future with the utmost assurance. Finally, I would like to mention Sacyr's leading position in the field of sustainability. With 5 years of continuous improvement having been reported in Standard & Poor's Global book. Also as the only European infrastructure company with a CPD rating in water and climate in 2025 and among the world's best companies with the lowest ESG risk profile according to Sustainalytics. Next, Carlos Mijangos will provide you with more specific data and details on the income statement and balance sheet. Carlos Gorozarri: Thank you, Mr. Chairman. We shall now analyze the company's operational and financial performance during fiscal year 2025. First, let's take a look at the results for 2025. Revenue reached EUR 4.66 billion, up 12% year-on-year. EBITDA stood at EUR 1.358 billion, maintaining a margin of around 29%, which reflects strong operating performance in terms of net profit, excluding divestment, there was a very significant increase of 46%, reaching EUR 165 million. However, the sale of assets in Colombia had a one-off effect of minus EUR 80 million, reducing the final net profit to EUR 86 million. Operating cash flow in turn amounted to EUR 1.359 billion, up 5% compared to 2024, demonstrating the company's ability to generate cash from its assets, and this is higher than EBITDA. As the Chairman pointed out, I would like to mention that due to the accounting associated with concessions with the risk of litigation, which are considered financial assets for accounting purposes, maximum EBITDA is achieved at the end of the construction phase. And as the years of operating -- operation elapse, EBITDA slides down, but operating cash flow climbs, resulting in this effect where more operating cash flow has already been generated than EBITDA. From a financial standpoint, the company has achieved an investment-grade rating from Morningstar DBRS, which is a sign of strength and confidence for investors, allowing it to diversify source of financing, reduce costs and simplify the prequalification processes for new projects. Furthermore, this opens up the opportunity to issue debt in the U.S. market through private placements known as USPPs. In the area of divestments, as the Chairman pointed out as well, the sale of 3 motorways in Colombia for EUR 1.565 billion stands out with a multiple of 2.7x the capital invested and 12% above our internal valuation. With regard to treasury share transactions, the company remains committed to value. We currently hold 30 million shares through forward contracts with an average reference price of EUR 3.36. As for shareholder remuneration in 2025, we made a steady progress on increasing the cash dividend with a payment of EUR 0.045 per share having been paid in July and a dividend in January, maintaining the policy established in our 2024-2027 strategic plan to remunerate with at least EUR 225 million in cash during the planned value. Capital contributions and distributions. Between 2025 and 2033, concession distributions of more than EUR 3.7 billion are expected with EUR 1.6 billion in capital contributions being committed to our projects. The net cash available for future growth amounts to EUR 2.14 billion, which is a very significant figure that will enable us to compete with top-tier companies in the sector for the largest infrastructure projects currently being tendered. Long-term outlook, total estimated distributions through 2021 amount to EUR 19 billion, driven by new awards, discounting asset turnover in Colombia, and this will generate an average annual distribution of EUR 460 million, which further reinforces the company's growth capacity. If we now analyze the evolution of consolidated net debt, it has been reduced by EUR 532 million. It is worth highlighting the strong operating cash flow generated by business activities amounted to EUR 1.358 billion. Then we had the financial result generated mainly by project debt amounting to EUR 609 million. We have invested more than EUR 800 million in our assets and received EUR 281 million from the sale of assets in Colombia. Finally, under the heading of miscellaneous, there is a decrease of EUR 335 million due to 3 main impacts. Debt reduction due to the effect of the consolidation of Chilean assets that were held for sale in 2024 and then the deconsolidation of Colombian assets already sold for a net amount of EUR 222 million. That's the net effect. There is also a debt reduction due to exchange rate differences in the amount of EUR 190 million and debt increased due to leases and dividends from the parent company amounting to EUR 82 million. As for net debt -- net recourse debt, the most notable event of the quarter were the funds received from the sale of 3 Colombian assets totaling EUR 281 million. And this cash inflow together with seasonal recovery in working capital and taking into account investments and financial expenses over the quarter brings us to a figure of EUR 59 million, which is the lowest level ever achieved by the company. With this positive debt figure, the ratio of net recourse debt to recourse EBITDA plus dividends is 0.18x, well below the maximum commitment of 1x. The process of deleveraging and reducing debt and risk undertaken by the company in recent years is quite evident, going from EUR 850 million in 2019 to EUR 59 million in 2025. And now I give the floor back to the Chairman. Manuel Manrique Cecilia: Now Pedro Siguenza will provide a detailed view of the performance of each business line. Pedro Siguenza Hernandez: Thank you very much, Mr. Chairman, and good morning, everyone. I will now address the company's performance broken down by line of business in fiscal year 2025. Once again, we achieved a record with 5 new greenfield concession projects awarded, representing a success rate in our bids of over 50% because we were awarded 5 contracts out of 9 bids submitted. In 2025, we were awarded projects totaling EUR 13.6 billion, increasing our portfolio as of December 2025 to a total of EUR 67.425 billion, and this affects all of our portfolios. We have created value for our water division with the award of 2 major concession projects, Antofagasta plant in Chile, the largest wastewater reuse plant in Latin America, which is a key project to secure water supply in the Antofagasta region with an investment of EUR 295 million, a duration of 35 years and an estimated portfolio of EUR 2.5 billion. And the Coquimbo desalination plant, which is the first desalination plant under a public concession tender in Chile with an investment of EUR 305 million, a duration of 21 years and an estimated portfolio of EUR 1.2 billion. The plant will have an initial capacity of 800 liters per second with the possibility of expanding that capacity to 1,200 liters per second and will directly benefit more than 540,000 people in the municipalities of La Serena, Coquimbo, and Ovalle. Within our hospital specialty segment, where we are a global leader with more than 80 premises built throughout our history, we have added to our portfolio, the City of Health & Science project in Novara in the Piemonte region of Italy. This is a multifunctional complex that will encompass a new hospital and a university campus with an investment of EUR 125 million, a duration of 25 years and which consolidates our position in Italy, one of our core strategic markets. As for transport infrastructure, we have been awarded 2 new concession projects. The Asuncion elevated Urban Highway, which extends the Eastern route in Paraguay. This is a project with an investment of EUR 174 million and a duration of 23 years. Then the Piemonte route in Chile, a 20-kilometer stretch of highway that is key to the road modernization plan in the Biobio region of concession with an investment of EUR 330 million and a duration of 45 years. With these high greenfield project awards, we continue to ensure our commitment to the steady growth of our successful concession model. Furthermore, today, we can announce that we have just signed the contract for our first concession project in Canada, the Ontario Science Museum in Toronto, a project that will transform the Toronto skyline and open the doors to one of the most modern science centers in the world. This is a 30-year concession entailing an investment of EUR 260 million. And we hope that this contract will be the gateway to other new concessions in Canada in the future. This slide shows a map with the main opportunities that we are bidding on, prequalifying for or studying in line with our strategic plan commitment to increase the weight of our portfolio in English-speaking countries with a special focus on tenders in North America and Australia, but without neglecting our strategic European and Chilean markets. In the United States, as you know, we are prequalified for the managed lanes in Georgia, the I-285 in Atlanta and the I-24 in Tennessee in Nashville, and we will be submitting bids before the summer break. In addition, last Friday, we were prequalified for the I-77 in North Carolina, another express lane on the southern approach to the city of Charlotte. As you can see, we're also pursuing other managed lane opportunities that are expected to be prequalified shortly in the United States. In Canada, in addition to the aforementioned Ontario Science Center concession, which we have been awarded, we are pursuing various hospital concession opportunities such as the Windsor Hospital for Ontario infrastructure, where we are preparing for prequalification as well as several collaborative construction projects such as expansion of the Toronto Airport and the extension of Line 1 of the city's subway system for Metrolinx. In Australia, we'd like to highlight the recent partnership with the local build group and the award of our first hospital project in the country, Peel Health Campus in Mandurah, Perth, for which the initial design contract was signed last January. Together with build, we are exploring other opportunities in the hospital construction sector, such as the Parkville Hospital concession in Victoria and various landmark buildings for the 2032 Olympic Games in Brisbane. In addition, we are competing for major water projects such as the desalination plant for Northern water supply in Adelaide, the wire long water treatment plant south of Brisbane and the Aurora reuse plant in Melbourne. In our strategic Italian market, we have submitted our prequalification for the A22 motorway connecting Modena with the Brenner Pass to Austria. And we are still awaiting the tenders for the Turin, Milan, and Brescia-Padua sections of the A4 motorway, which are due to be put up to tender shortly. Also in Europe, we are analyzing the tenders for the high-speed train from Porto to Lisbon and in Ireland for Metrolinx, the connection between Dublin and the airport, both under concession. I would also like to highlight the National Health Service program in the U.K., a framework agreement to build hospitals under a collaborative contract model with an initial wave of 11 hospitals worth GBP 15 billion which will be expanded to GBP 37 billion. And we are now expecting the official announcement of the company shortlisted for the execution of these projects shortly. And in Chile, we are pursuing several water and highway concession projects such as the Caldera-Antofagasta Highway, which is a private initiative developed by Sacyr, the Rio Bueno-Puerto Montt section, both on Route 5 and Route 57 between Santiago and the Andes among other opportunities. I will now provide you with some details on the performance of our lines of business. The Concession division recorded revenue of EUR 1.892 billion, representing an increase of 8% over the prior period. The impact of the exit from the scope of the 3 motorways sold in Colombia as well as the accounting effect of the evolution of operational financial assets have affected the division's operating income and EBITDA by 4% and 14%, respectively. Construction revenue in turn rose by 50% due to the progress of major new greenfield projects such as the Velindre Hospital in Cardiff, the Buga-Buenaventura Highway in Colombia and the Ruta de la Fruta in Chile. In fiscal 2025, we invested EUR 275 million in this division, bringing the total equity invested in our infrastructure assets in the transport sector to EUR 1.71 billion after deducting investments, whereas distributions from our concessions amounted to EUR 212 million in 2025. This year, we also commissioned 3 assets, all of them in Chile, the Atacama Airport in January, the Itata route in April and 68 on July. On March 1, we will commission the Antofagasta Airport project. As for Engineering & Infrastructure, revenue grew by 8% to EUR 2.971 billion, thanks to the growth of our activity in Italy and particularly the contribution of the A21 motorway. For this same reason, EBITDA rose 31% to EUR 552 million. If we analyze the construction activity only since, as you know, Italian concessions are included in this division, the EBITDA margin remains stable at 4.8% over the revenue figure. The division's portfolio set a new record, increasing by 18% over the year to EUR 12.47 billion, of which 73% of the portfolio, as the Chairman pointed out, corresponds to activities for our own concessions. Noteworthy milestones in the last quarter include the successful completion of the US 62 highway in Lubbock, Texas, bringing the total number of road projects completed in the country to 11 to date, which demonstrates our ability to execute complex projects in the U.S. As I mentioned before, the award and execution of the Peel Hospital contract in Perth. This is alliance-based contract, that is to say a collaborative contract, which is one where we prioritize the execution of works for third parties. Finally, our Water division continues to post the double-digit growth reported in 2025, both in terms of revenue, which is up 25% and now exceeds EUR 300 million and in terms of EBITDA, which reached EUR 62 million, 23% more year-on-year. The portfolio grows by 45% to EUR 6.979 billion. This figure does not include the Coquimbo desalination plant, which will add another EUR 1.2 billion to this portfolio in March once the contract is signed. Total equity invested in the concessions of this division amounts to EUR 128 million, and the assets have delivered EUR 12 million this year. So with this year's awards for 2 major concession projects, Antofagasta and Coquimbo, we have given a major boost to our goal of growing our water business within our 2024-2027 strategic plan. Now I give the floor back to the Chairman for some concluding remarks. Manuel Manrique Cecilia: Thank you very much, Pedro and Carlos. Sacyr will celebrate its 40th anniversary in 2026. I sincerely believe that we are at the peak of our trajectory. We have a clear-cut strategy focused on concessions and avoiding risks. We have a healthy balance sheet with a strong cash position and well-structured project debt. We have also eliminated corporate debt. We are ideally positioned to tackle the challenges of transport, hospital and water infrastructure from a public-private partnership perspective. Halfway through the 2024-2027 strategic cycle, I have no doubt that we will successfully complete it, thanks to last year's achievements, which represent the fulfillment of our commitments to shareholders and the market. Our success in securing concessions with 5 new awards to begin with and which, as we have said, will form the basis for this progressive increase in total distributions in the coming years from concessions, together with the multiple growth opportunities that we are bidding for in our strategic markets, and with more than EUR 2.1 billion available to invest between now and 2033. In terms of equity, let's make this clear. Second, cash flow exceeds EBITDA and continues to rise. Thirdly, the achievement of the investment-grade rating, which will enable us to increase our sources of financing while reducing finance costs. And finally, shareholders' remuneration with the first cash dividend payment. I would also like to take this opportunity to thank Sacyr's all 15,000 professionals around the world for their work and engagement over the past year and send them a message of confidence in this company's project. Thanks to each and every one of them, we can report on the milestones achieved in our strategic plan today. In 2026, we shall continue working to fulfill our outstanding commitments, and we are ready to celebrate our 40th anniversary and move forward with even greater strength. We are now available to answer your questions. Alberto Gargoles Gonzalez: Good morning, everybody, and thank you very much for joining us at this financial results presentation of Sacyr. We are going to start with those questions posted via telephone first, and then we are going to tackle the questions coming through the website. [Operator Instructions] Luis Prieto from Kepler Cheuvreux is going to ask the first question. Luis Prieto: I had 2 questions. The first question has to do with Voreantis schedule. I understand that Pedemontana is a requirement for rebalancing purposes. But since the Chairman has conveyed that there is maybe we should have to wait until next year for the transaction to be launched. We have offset some transactions that were launched in the past with a scope different from the ones initially estimated. Could that happen with Voreantis? Well, could that be the case? We are going to answer in a minute. Manuel Manrique Cecilia: Well, regarding Voreantis, I think that it was made quite clear. We did the reversal of 3 key assets. We announced that we have EUR 2.140 billion in equity to invest. We do not need that operation for further investments. And second, we have a pipeline, which is huge. And we believe that it will even improve our vision going forward positively. So this will establish a new strategic plan as well as what will happen with Voreantis. As for the question concerning the scope, the transactions that we engaged in were ones where we adapted ourselves to do whatever was best for the company at each point in time, and that is exactly what we're going to do with Voreantis. Alberto Gargoles Gonzalez: There are no further questions over the phone. We are going to address the questions that were posted through the webcast. Filipe Leite asks whether we can confirm or whether we can give more color on the contract that we have just announced for the Ontario Science Museum, the investment figure and our stake in such a consortium. We are also being asked about our stake in the consortium where we are bidding for concerning managed lanes. And as for equity concerning construction and upfront payments, which are the amounts that we are analyzing for the managed lanes? And fourth, when do you expect to reach the rebalancing of the Pedemontana project, I have to say the financial balance. We will get back to you in a minute. Manuel Manrique Cecilia: Let's see. The contract we have announced over the Toronto Science Museum project entails an investment of EUR 280 million. We are going to go hand-in-hand with Amico and John Laing. As for the managed lanes, we are going to work with Plenary. This is a Quebec fund. And then an Israeli company with a 50% stake in construction and a 30% stake in equity. And we have already been prequalified as far as this project is concerned. Regarding the Pedemontana related question, Filipe, we have a contractual entitlement to the rebalancing. So I have the same concern as the one announced 6 months ago. That to say, we do not have any worry about this. There were regional elections, and that normally puts the schedule off. We continue to engage in meetings with the authorities and the Big Four that has been appointed to this end, but you know that time management in Italy has its peculiarities. This is going to be the third rebalancing process concerning this concession, but we are not worried about it at all. Alberto Gargoles Gonzalez: Thank you, Mr. Chairman. The next question is by Julius Nickelsen from Bank of America. He asked about the Pedemontana project. And he says whether apart from the transaction concerning Voreantis, there is another potential divestment being analyzed such as in Chile. And second, whether we can provide an update about conversations with rating agencies. We will get back to you in a minute. Thank you. Manuel Manrique Cecilia: As for Chile, there's always interest around our assets. However, when there is anything concrete, we are going to make the relevant announcement as we have always done. As for the rating agencies, we have been working with several agencies for quite some time. We were waiting for 2025 results being published in order to keep moving forward. Our goal is, therefore, to keep on engaging in conversations with them or exchanging information with them in order to get a new rating. Alberto Gargoles Gonzalez: We are going to go back to the telephone line because Miguel Gonzslez from JB Capital has a question. Miguel González Toquero: I had 2 questions, 2 quick questions. The first question is the following. You provided an update of dividend evolution and equity committed in concessions. The gap between dividends and equity in 2026 has narrowed down compared to the guidance provided in Q3. Therefore, I would like to know about the FFO final picture, especially after the divestment in Colombia. Do you expect any growth in this respect compared to 2025? And then concerning the pipeline shown on Slide 25. We are talking about the United States here, but could you give us more visibility about the timing or about the budget concerning the most relevant awards all the tenders in Italy, the Route 5 in Chile or the project in Portugal, I believe that you decided to withdraw after the first tender. Could you give us any additional information in this respect? I would appreciate that. Alberto Gargoles Gonzalez: Miguel, we will get back to you briefly. Unknown Executive: Okay. Miguel, I'm going to answer your question concerning the funds of operations. On a like-for-like basis, most of our assets have to do with payment upon availability, but inflation normally results in increased cash flows compared to the prior year. Here, we are also factoring in the assets that we were awarded in 2024 and 2025. Those which are greenfield, of course, do not have a contribution to operating cash flows, not now, but they will in the future. Then we have EUR 200 million coming from Colombian concessions. On a like-for-like basis, of course, we're going to grow. In absolute terms, we had to factor in those EUR 200 million and include the greenfield assets that we have been awarded over the past 2 years, and therefore, we are going to report similar figures. As for the question concerning timings, the 2 managed lane projects in Georgia and Tennessee in the United States were announced before the summer break. Route 5 in Chile is going to announce next month and Route 57 is going to be announced in June. As for Italy, and as the Chairman said, actually, the tender for the Brescia-Padova-Turin motorways should already be available, but actually, we are still waiting. As for the Portugal section of stretch project, it has been put out to tender once again. There were no bidders and therefore, they decided to change the terms and conditions, and we are now waiting for this to be announced in May. We are paying close attention to developments. Alberto Gargoles Gonzalez: We go back to webcast questions. We had 2 questions, one from Victor Acitores. Are we currently analyzing the possibility of approving a new incentive plan tied to share price? And secondly, are we planning to update the evolution of our assets in fiscal 2026? Unknown Executive: Okay, Victor. We shall be presenting a new incentive plan for management members in line with share prices and always in line with the best interest of shareholders, and we shall be doing so in the coming months. Secondly, based on the first half yearly results, we shall review the value of our assets. Alberto Gargoles Gonzalez: The next question is by Julius once again from Bank of America. Could we please confirm whether we are going to update the figures under our plan? Are we going to present a new plan? Or are we going to hold an Investor Day? We will answer shortly. Thank you. Unknown Executive: Well, based on the results expected from this pipeline in Q4 2026, we expect to undertake a new strategic plan. As usual, we will keep you posted about all this and about the timing. Alberto Gargoles Gonzalez: Thank you very much. There are no further questions. Now let me give the floor back to the Chairman. Manuel Manrique Cecilia: Well, if there are no further questions, we thank you once again for your presence, your attendance and interest, and we wish you all fare well until the next presentation. Thank you very much, and have a good afternoon. [Statements in English on this transcript were spoken by an interpreter present on the live call.]
Operator: Good day, and thank you for standing by. Welcome to The St. Joe Company Fourth Quarter 2025 Earnings Conference. [Operator Instructions] Please be advised that today's conference is being recorded. I'd now like to hand the conference over to your speaker today, Jorge Gonzalez, Chairman and CEO of The St. Joe Company. Please go ahead. Jorge Gonzalez: Thank you, and good morning. I'm Jorge Gonzalez, President, CEO and Chairman of The St. Joe Company. It is my pleasure to welcome you to our quarterly earnings call. I'm joined today by Marek Bakun, our Chief Financial Officer. On Wednesday after the market closed, we issued our fourth quarter and full year 2025 earnings press release, which can be found in the Investors section of our corporate website at joe.com. [Operator Instructions] Before we begin discussing our results and answering your questions, I would like to remind everyone that Wednesday's press release and the statements made during this call include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to risks and uncertainties that can cause actual results to differ materially from our expectations and projections. Such risks and uncertainties include the factors set forth in the earnings release and in our filings with the Securities and Exchange Commission. Additionally, during today's call, we will discuss non-GAAP measures, which we believe can be useful in evaluating our performance. A reconciliation of these measures can be found in our earnings release. This morning, we are continuing our commitment to quarterly earnings calls to provide our shareholders and the investor community with an opportunity to ask questions about our business and performance. We have always been an open and transparent company that welcomes all feedback and opinions. Because of the types of assets that we own, we encourage shareholders to visit us in person so they may assess firsthand the progress of the region and of our assets. Let's go ahead and get started. We assume everyone has already carefully reviewed our earnings release, which provides comprehensive details about our performance, so we are only going to mention a few key highlights of both the fourth quarter and full year before we move on to your questions. For the fourth quarter, we continued the year-over-year growth of the previous 3 quarters with a 24% increase in revenue and a 58% increase in net income. Capital allocation in the fourth quarter was $18.5 million in capital expenditures, primarily for growth, $15.1 million for stock repurchase, $9.2 million for dividends and $8 million for debt reduction. The $15.1 million in stock repurchase was the highest of any quarter in 2025. For the full year, revenue increased by 27% to $513.2 million from $402.7 million, and net income increased by 56% to $115.6 million from $74.2 million. Earnings per share increased to $2 from $1.27. Not including the onetime large timberland sale in 2014, we surpassed $500 million in revenue for the first time in 20 years and reached $2 per share for the first time in 23 years. However, we are now a different company than we were 20 years ago. Back then, the company's financial performance was achieved primarily as a bulk seller of assets with only 15% recurring revenue. Today, the company is a diversified real estate operating company with 56% recurring revenue. The company now has a more sustainable and diverse business model with a demonstrated ability to grow multiple revenue streams, all while simultaneously increasing the value of the underlying land assets and what we call the virtuous circle of value creation, where an investment in one segment creates value for the other segments. In addition to the growth we had for the full year, we continue to refine our operations and improve profitability. Homesite gross margins increased to 51% from 47%. Leasing gross margins increased to 57% from 54%. Hospitality gross margins had a slight decrease to 31% from 32%, which was primarily due to opening expenses associated with the new golf course, The Third, and the renovation of the Shark's Tooth Clubhouse. It is important to note that the hospitality gross margin of 32% in 2024 was a significant increase from 20% in 2023. For the full year, we continued a measured and multifaceted capital allocation strategy, with 47% for capital expenditures, primarily for growth, 33% for dividend payments and stock repurchases and 20% for project debt reduction. We accelerated stock repurchases with the repurchase of 798,622 shares as compared with a repurchase of 70,985 shares in 2024. The average price of shares repurchased in 2025 was $50.10, which considering the share price as of the close of the market yesterday, it was a good value for our shareholders. Since 2015, the company has used $653.6 million to repurchase 34.9 million shares of the company's stock, representing 37.8% of the original shares, bringing the outstanding share balance below 58 million for the first time in nearly 30 years. Outside of the financial numbers, we continue to fill the pipeline for potential future growth. We have local and state government approval for 10 detailed specific area plans, or DSAP, each with at least 1,000 acres of fully entitled mixed-use projects. We have only started to develop 3 of the 10 approved DSAPs, so we have a long runway for future growth. An encouraging sign is that we continue to receive inquiries from new potential homebuilders from outside of this market who want to join our homebuilder program. So we plan on breaking ground on 2 more DSAPs in 2026 to accommodate our growing homebuilder demand. At the end of the year, our residential homesite pipeline had approximately 23,900 homesites in various stages of planning, engineering, permitting or development, which is an increase of 2,200 homesites as compared to the end of 2024. At the end of the year, our commercial segment had 94,500 square feet under construction in the WaterSound Town Center and West Bay Center, of which approximately 76% is preleased. We continue to receive inquiries from national and regional tenants who are noticing the growth of this market and are interested in leasing space from us. In order to continue to meet this growing demand, in 2026, we plan on breaking ground on new commercial buildings in the WaterSound Town Center and West Bay Center totaling approximately 54,000 square feet. We are also planning on breaking ground in a new apartment complex and executing several new commercial ground leases. In our hospitality segment, we continue to increase our club membership program, and we continue to be focused on increasing occupancy and margins in our hotels while continuing to assess and plan for opportunities for new hotels, marinas and club amenities. Now Marek and I are going to answer your questions. [Operator Instructions] We're going to do this in the same way that we've done the last several calls. Marek is going to read the questions and then we're going to answer them. Marek? Marek Bakun: Thank you, Jorge. We have a few questions. The first one, are there any new multifamily units on the horizon for 2026 or 2027, any new hotel operations or acquisitions planned? Jorge Gonzalez: In my opening remarks, I mentioned that we do have plans on breaking ground in a new apartment complex. The location of it is really focused on the potential of the FSU Health campus. So it's in that vicinity. The -- in terms of new hotels, we're constantly planning and getting prepared for the right timing of when we may move forward with new hotels. Similar with acquisitions, we're always looking at the market, and if the timing is good and there's an opportunity for us to gain value, we will execute those opportunities. Marek Bakun: Next question. After the opening of Topgolf at the Pier Park, any new developments coming in the near future, for the area? Jorge Gonzalez: So Pier Park East is an important project for us. We believe that is going to be the city center of the Pier Park area. We are being very thoughtful in planning that property and in choosing tenants. We've always wanted to have 2 major anchors for Pier Park East. We have one, as the questioner asked, in Topgolf. The second anchor, we're pleased to report that we finalized a ground lease with a really exciting family-oriented surf park concept. So that's going to be the second anchor for Pier Park East. We're currently in the process of planning the balance of that property, including potentially breaking ground on infrastructure in 2026. Marek Bakun: Share prices have climbed nearly 40% since the last quarter. Does management still view buybacks as a prudent allocation of capital at this price? Jorge Gonzalez: Capital allocation, as we've said many times, is multifaceted for us and buying shares back is always a component of capital allocation. Also, as we've said many times, there's a facts and substances context to that depending on what's happening in the quarter at the macro and micro level. But the short answer to the question is, yes. Marek Bakun: Awesome year. Why pay down debt here when the stock seems unusually priced relative to the per acre implied value? So interest is a real dollar expense, minimizing interest and increasing earnings is always a positive. As Jorge just mentioned, in 2025, 47% of our capital was allocated for dividends and repurchases. At the same time, we were able to pay down debt. Some of the debt that was paid down was related to the Watercrest sale, but we feel that lowering interest is always a positive. Jorge Gonzalez: And I think, if I can just add, anybody that has owned or run a business before, understands the importance of paying down project debt because it is not a GAAP expense, it's a real cash expense. Marek Bakun: Can you help break down the 47% year-over-year increase in real estate revenue in Q4? The higher average price on homesite sales and the sale of the 136 North Splash Drive plus Watersound Villas make up some of the lower homesite sales number. But what accounts for the rest of the delta, higher residuals? So specifically to the residuals, we do disclose in our 10-K the flow-through of the residuals. And just for the full year, there was $13.6 million of new residuals that did go across all 4 quarters. But yes, there were residuals. But in addition to the average sales price, the villas of the townhome sales, there were also normal land sales that we have had and will continue to have within the company. So that really details it out just through normal activity that we have. How are you thinking about replacing the high-value homesites at Camp Creek as we start running out of lots? Are there plans for other similar high-price point neighborhoods, more commercial land sales? Jorge Gonzalez: We always think about having a higher end retail custom homesite product. It's not just Camp Creek. We've also done that in Origins as an example, Powell Landing West, where we sold quite a few retail custom homesites at a very high value. We are in the process of planning and permitting a replacement product, and they're not exact replacements. There is some overlap in terms of pricing and so forth. This one is going to be in Origins West right next to a very exciting art park that we think is going to be very attractive to residents. We don't have an exact time frame for this new product, but we are pretty far along in the planning and permitting of this neighborhood. Marek Bakun: Do you have any updates on lake amenity or Pigeon Creek neighborhood? Jorge Gonzalez: So the lake amenity is, I believe, referencing an amenity that we have been planning on Lake Powell for the Watersound Club. We are pretty far along in planning that concept. We're spending a lot of time thinking about the right programming. And it's a project that we feel really good about, but we're still in the planning phase -- programming phase. Pigeon Creek is one of the DSAPs that we have talked about before. We have been in discussion with one builder that's going to be new to the market for this project. We are pretty far along in those discussions, and we feel cautiously optimistic about executing those discussions into action relatively soon. Marek Bakun: And with a relative question, what is the status and current timing around Pigeon Creek? At the Annual Meeting and prior calls, it was mentioned that the lots could possibly be sold outright to a single developer. Is this still on the table? And is there any update or timing? Jorge Gonzalez: So first, what we said at the Annual Meeting was that Pigeon Creek, even though it's sizable, over 3,000 potential units, what we said is that we're in discussion with just one builder. We never indicated that we had a particular preference for a business structure on that project. So that still holds true. We're in discussion with one homebuilder who is new to the market for all of Pigeon Creek, which is over 3,000 units. And like I said in the previous answer to the previous question, we're pretty far along in those discussions, and we're cautiously optimistic that we'll be able to execute those discussions into action relatively soon. Marek Bakun: Could you talk about the progress of some of the big projects along State Road 79 corridor? FSU Health Campus, potential commercial around it and potential new residential builders along the corridor? Jorge Gonzalez: State Road 79, as I mentioned in our last Annual Meeting is an area of our land holdings that currently has a lot of energy, a lot of interest. In fact, we created a video in case the listeners want to take a look at it. You can go to our web page about the State Road 79 corridor. Ward Creek is moving along very nicely with our 4 homebuilders constructing homes with a pretty wide range of price and product types. The FSU Health Campus is very exciting. It is progressing very well. The first phase of that campus, as most listeners know, a medical office building, 80,000 square feet, has been finished for a couple of years. It is essentially full with clinical practitioners. The second phase is a teaching hospital, an academic health center that takes advantage of the synergies between research, teaching and clinical delivery. It's going to be under the FSU Health concept. That hospital is progressing well. We believe it's going to be a pretty significant catalyst, not only for the State Road 79 corridor, but for the region, not just because the fact that it's a hospital and there's clinical delivery that will occur there, but because of the academic health center model, where research and teaching are also going to add a significant amount of value to that region -- to that part of our holdings in the region. Marek Bakun: Your LTV is under 25% when looking at your income-producing assets. Your LTV is well below 25%, and your cost of debt is in the low single digits. Why do you believe that paying down debt is a good use of capital? Why isn't the ideal -- what is the -- why isn't the ideal debt level a lot higher than where you are today? Jorge Gonzalez: So like I said before, anybody that has owned the business, has run a business, they understand the importance of managing debt because at the end of the day, cash is king. Cash is what matters. Free cash flow is what matters. And when you have real expense associated with debt, it makes sense for that to be part of the capital allocation strategy. We've been very thoughtful, very methodical in how we pay down debt. And we feel pretty good about what we've done so far, and we intend to continue the same strategy. Marek Bakun: And Jorge, if I may add, I want to say that not all debt that we have is equal. So if I look at the apartments debt, which is long-term HUD insured up to 42 years at a very low fixed rate, that's the type of debt that we're not paying down. It's just amortizing over normal life. It's the debt that's shorter life that we may choose to pay down and to save interest. But as far as the debt, as you mentioned, the new apartment community, it would be normal and consistent with our strategy to have debt on the new apartment community, especially if we could continue to obtain long-term HUD insured financing. Jorge Gonzalez: Absolutely. And that's what we mean about us being thoughtful in how we pay down our project debt. We're not doing that randomly in across kind of a -- from a top line perspective. We're looking at each project, we're looking at the specifics of the debt of each project, and the ones that we believe are going to create a savings for the company, we're going to pay down that debt. And generally speaking, as Marek said, the debt we have, the HUD loans we have for our apartments are terrific. We have yet to find any program as good as the HUD loan program for apartments. So we do intend to continue when we have apartments to follow that loan program. And we're also not paying down the debt for the apartments. We're paying the debt down for projects that have higher interest rates and kind of present more challenges for us. Marek Bakun: Thank you for all the hard work. Greatly appreciate this call, and management continued execution in recent years. Over the past 10 years, there appears to be a high correlation between return on investment capital, earnings per share and the stock price. In 2023 and 2024, the company's recurring income grew significantly, but earnings per share, return on invested capital declined as a result of lower lot income and land or asset sales. During this period, Joe's stock price underperformed. Over the past 12 months, earnings per share and return on invested capital have increased meaningfully, heavily driven by increase in income and asset sales and the stock price has gone up considerably. Assuming we all agree the company's NAV is meaningfully higher than the current stock price, does the company agree that future stock appreciation is highly dependent on the company's ability to continue growing EPS and increasing return on investment capital from its current levels? And the company -- and is the company aware of the importance of driving return on investment capital growth when it comes to long-term stock performance? Thank you again. Jorge Gonzalez: That's a very insightful, detailed and well thought-through question. And the best way we can answer that is with a simple yes. Marek Bakun: Over the past year, in areas surrounding St. Joe's land as well as areas immediately adjacent to our developments, there have been numerous lot sale transactions at significant premiums to where we have been selling lots. Just last year, D.R. Horton appeared to have paid $146,000 per lot near Breakfast Point. Lots in SweetBay in Panama City were recently sold for over $130,000 per lot. Even at lowest entry level in Freeport, lots have been selling to -- close to $100,000 each. These lot prices appear to be significantly higher than what St. Joe has been transacting even as recently as this year. i.e., low to high 80s, 90s at Breakfast Point or around $90,000 at Breakfast Point East. Furthermore, these transactions seem to be a typical market -- at typical market rates of 20% or more of the eventual home price, and we seem to be selling our lots at a discount to these rates, in some cases, low teens, if I'm willing to be correctly. My belief is that some of the lowest hanging fruit as it relates to materially growing our cash flows is the coming -- in the coming years, especially in more DSAPs come online is to bring MPC low prices to level that most appropriately reflects market value, i.e., 20% to 25% of finished home price. Furthermore, given our competitive positioning in the area, it's hard to understand why we would not be more of a price maker than a price taker? Is this something you can elaborate on? Thank you. Jorge Gonzalez: Again, another long and thoughtful and detailed question, and I can assure the individual who submitted the question, this is something that we monitor very closely, literally every day. We have a pretty good handle on what's happening in the market with direct competitors. Not all communities are direct competitors to our communities. I can also assure the questioner that we don't sell lots at a discount. One of the things that may not be obvious to folks is, we believe we're the only developer that has a back-end participation when we sell homesites to builders. We don't believe anybody else in the market has that. So when you just go on the Property Appraiser web page and just take a quick simple look at comps, you have to be careful, and I caution readers not to assume that, that's an apple to an apple with our transactions with homebuilders because again, we're the only developer to our knowledge that has a back-end participation where we get a part of the profit of the sales price of the home that the builder sells. Our back-end participation is also not uniformed. It's not one size fits all. They're all different based on the homebuilder, based on the price point, based on the community. So again, I would caution folks when they go on the Property Appraiser web page to take a look at comps that there's a couple of layers deeper than that, particularly with us because of the back-end participation. I will also assure the questioner that we don't sell lots at a discount. Marek Bakun: What is the company's short- and long-term goals for the percent of revenue that is recurring? Jorge Gonzalez: Our -- probably we have several different important parts of our business strategy. And as most -- everybody knows, arguably, the most important one is to continue to grow recurring revenue. So that is going to continue to be an important part of our business strategy, and we want to continue to grow our reoccurring revenue because that is a more sustainable and scalable revenue stream than just pure transactions. Marek Bakun: How is AI going to be implemented into the infrastructure of operations inside of St. Joe? Jorge Gonzalez: Like every operating company and business in really not just the country, but the world, we continue to explore AI as a tool to improve our operations, like everybody else is doing. It's an emerging technology. It's very dynamic. It changes literally day-to-day, and we continue to explore how we can use those tools to improve the efficiency of our operations. Marek Bakun: What is the company's estimate of the average value per unused acre of land in the portfolio? And if answered per developable acre of land, then please disclose how many acres of land will not be able to be developed? Thank you. Jorge Gonzalez: That's a question that requires a lot of time to respond to because there are many different layers of what makes an acre developable, not developable. There's a lot of different layers of different types of development, different types of open space, green space conservation. We don't have a one-size-fits-all number. We have -- if you look at our previous disclosures, we do have a lot of different information in our tables and in our footnotes that perhaps if somebody just read those and put them together, they can start making some assumptions. But there's not a one-size-fits-all headline number to answer the question. Marek Bakun: And Jorge, just, under disclosure, as you mentioned, we have also disclosed, including in last year's shareholder meeting presentation, how many acres we have been using on an annual basis to generate the revenue that we have been generating. So that data is also available for a number of years back. That would be a good way to think about it. Based on the current market demand and pricing, what's you're planning to develop? Do you think you can achieve $750,000-plus lot prices on our future premium communities? Jorge Gonzalez: Like I said to an earlier question, our goal is always to have a high-end premium retail custom lot product. It's going to ebb and flow over time in terms of location, in terms of what the actual price is. So yes, we're always working at trying to create the highest premium, the highest value communities in the region. Marek Bakun: I've noticed you guys typically transfer land to LLCs when a monetization event is on the horizon. In this slide, you recently transferred land atop sale the parcel across from Powder Room and the Pier Park City Center into such entities. You mentioned the surf park at city center, would you care to detail the other 2 locations, and how/when you envision the monetization occurring? Jorge Gonzalez: When we create LLCs or special purpose entities for our projects or land holdings, it's not exclusively because we intend to transact or sell that asset. There's a couple of different reasons why we do that. So I wouldn't just assume that just because we created an LLC, it means that we're anticipating selling an asset. As I mentioned during the last earnings call, we are looking at all of our assets because we consider particularly all of our operating assets as piggy banks. I have said that many times before. We have said that many times before. We're constantly looking at the piggy banks and making assessments about how those piggy banks fit in to the broader strategy of the company, how accretive they are to our other segments and what return they provide to us and what would be the price if we monetize them right now. So when we look at all those factors, we will -- we get conclusions where some assets we believe they are in the best interest of the company to monetize and sell, others are not. Marek Bakun: Any color you can provide on how the nonstop flight from New York has been performing for Delta? Do you think the flight is here to stay? Jorge Gonzalez: So to answer the last question first, time will tell. It's still early. So it's very difficult for Delta or anybody to say definitively what the long-term plans are. But I can tell you, preliminarily, we believe it's been performing well. We have started a campaign to increase awareness in that market. And so far, we're pleased with the early results of that campaign in terms of how many folks in that market go to our web pages to look at hospitality offerings. Also, that has translated and has started to translate into higher occupancies and reservations from that market. So early preliminary results are, we're encouraged. We're cautiously optimistic. And we hope that not only is the flight here to stay, but our hope is that Delta will add flights because the demand is so great. Marek Bakun: One more question. Great to see the brokerage business growing. Could you talk about the progress there? And anything that surprised you with how it's been received in the market? Jorge Gonzalez: The biggest surprise is the reception from the agent community. We have been very surprised in a positive way about how many agents call us expressing an interest in joining our brokerage. We had anticipated some of that would happen, but not to the scale that we have. And yes, we're pretty pleased with the start of the brokerage business. It's just in -- it's still in its infancy. So we still have a lot of way to go in terms of achieving our business goals with it. But so far, we have been very pleased with the reception of the agent community and the way that business is progressing. Marek Bakun: Okay. Is there any new info on West Bay Parkway Walton segment? It is good to see that at least part of the road is underway. Jorge Gonzalez: We 100% agree. We also are very happy to see that, that part of the road is underway. We continue to work very closely with the transportation planning organizations, with the FDOT in moving forward with the next step in the process, which is in civil engineering and permitting of the road. There's been good progress made on that end, and we are cautiously optimistic about the road and the potential timing. Marek Bakun: There are no more questions. Jorge Gonzalez: Okay. We'll wait just 1 more second in case there's a last-minute question. Okay. I think then that's the last question. Thank you again for joining us today, and for your interest in The St. Joe Company, and look forward to speaking with you again next quarter. And again, we welcome anybody and everybody to come to our market and look at the area and look at our assets. Thank you. Marek Bakun: Thank you. Operator: This concludes today's conference. Thank you for participating. You may now disconnect.
Operator: Ladies and gentlemen, thank you for standing by. [Operator Instructions] I would now like to turn the conference over to Tahmin Clarke. Please go ahead, sir. Tahmin Clarke: Thank you, operator. Good afternoon, and welcome to Arlo Technologies Fourth Quarter and Year-End 2025 Financial Results Conference Call. Joining us from the company are Mr. Matthew McRae, CEO; and Mr. Kurt Binder, COO and CFO. If you have not received a copy of today's release, please visit Arlo's Investor Relations website at investor.arlo.com. Before we begin the formal remarks, we advise you that today's conference call contains forward-looking statements. Forward-looking statements include statements regarding our potential future business, operating results and financial condition, including descriptions of our revenue, gross margins, operating margins, earnings per share, expenses, cash outlook, free cash flow and free cash flow margin, ARR, Rule of 40 and other KPIs, guidance for the first quarter and full year of 2026, the long-range plan targets, the rate and timing of paid subscriber growth, the commercial launch and momentum of new products and services, the timing and impact of tariffs, strategic objectives and initiatives, market expansion and future growth, partnerships with various market leaders and strategic collaborators, continued new product and service differentiation and the impact of general macroeconomic conditions on our business, operating results and financial condition. Actual results or trends could differ materially from those contemplated by these forward-looking statements. For more information, please refer to the risk factors discussed in Arlo's periodic filings with the SEC, including our annual report on Form 10-K filed earlier today. Any forward-looking statements that we make on this call are based on assumptions as of today, and Arlo undertakes no obligation to update these statements as a result of new information or future events. In addition, several non-GAAP financial measures will be discussed on this call. A reconciliation of the GAAP to non-GAAP measures can be found in today's press release on our Investor Relations website. At this time, I would now like to turn the call over to Matt. Matthew McRae: Thank you, Tom, and thank you, everyone, for joining us today. In addition to providing an overview of our recent performance, we have designed this year-end call to provide a deeper dive into our broader strategy and the investments which provide a path for continuing growth into the future. But first, let's jump straight into our results. Arlo had an incredibly strong fourth quarter. Total revenue came in at $141 million, slightly above the high end of our guidance range and fueled by our product launches and impressive performance across our services business. In fact, service revenue hit $89 million, representing 63% of total revenue and grew at an astounding 39% year-over-year. This momentum propelled our annual recurring revenue to $330 million, which is up 28% year-over-year. Fourth quarter EBITDA hit $23 million, up an incredible 138% year-over-year and resulted in Arlo posting $0.22 of non-GAAP EPS, substantially above the high end of our guidance range. And looking at our SaaS performance in the quarter by utilizing the Rule of 40, Arlo achieved a score of 45, putting us in an elite handful of companies executing at this level. Underpinning the record-breaking quarter and continued expansion of our services business is a world-class team that is executing at the highest level. I would like to touch on a couple of examples. Last year, we continued our strong pace of innovation and deployed Arlo Secure 6 across our user base, introducing a myriad of class-leading features, including an advanced multi-recognition engine, AI-based scene descriptions, numerous new AI-based audio detections and the only personalized AI micro model capability in the world. We also made innumerable performance and interface improvements throughout the year to retain our leadership position in simple yet powerful user experiences. And in the second half of 2025, Arlo executed the largest device launch in company history, comprising of more than 109 unique SKUs across our channel partners. We shipped more than 800,000 units in the first 60 days of production and achieved our planned supply ramp to ensure strong unit sales in the quarter with no excess inventory. This was an extraordinarily complex endeavor, and the team executed flawlessly. The reception of our new products and services has been outstanding. Our customer and professional reviews are the strongest Arlo has seen for a new product launch in our history with numerous models already receiving multiple editor's choice and best of awards. Our new lineup not only contributed to Q4 results, it serves as the foundation of our continuing growth in 2026. The other example of exceptional execution is when you look across our SaaS performance metrics. Our monthly consolidated churn dropped to 1% in the fourth quarter. Or said another way, our monthly subscriber retention rate is 99%, which means a paying user stays with our service for more than 8 years on average. This achievement is the culmination of numerous small improvements across our platform, including performance enhancements, customer care improvements, billing system improvements and deeper insights at the user cohort level driven by our vast data sets. And when you dig deeper into our retail and direct accounts, Arlo's SaaS unit economics are world-class. Average monthly revenue per user grew to $15.30 during Q4, aided by additional upward migration of customers to our AI-driven service plans. And these subscriptions, which account for 89% of our annual recurring revenue, generated an outstanding 94% gross margin. These numbers, coupled with our low churn drove the lifetime value or LTV per subscriber up to $917, up 23% from a year ago and a new record for Arlo. Despite this being the promotional holiday quarter, our customer acquisition cost or CAC remained stable, while retail unit sales grew more than 20% year-over-year. Taken together, this performance drove Arlo's LTV to CAC ratio up to 4.0. This is an optimal result for our services business as a score below 3 would indicate a less efficient user funnel and a score above 5 would indicate missing opportunities for additional growth. We constantly balance our unit growth, product gross margin, household formation, conversion and other key metrics to ultimately expand our financial results, which are clear again this quarter. Arlo's corporate non-GAAP gross margin grew by more than 1,000 basis points year-over-year to a record 47.8% and our non-GAAP EPS improved 120% to a record $0.22. Looking back at the full year in review, the goals we set at the beginning of last year were ambitious, and Arlo delivered across the board. Arlo Secure 6 provided significant platform innovation by launching numerous AI enhancements that drove subscriptions and user engagement. Arlo executed the largest product launch in the company's history, which fueled our unit sales growth in the second half. Our expanded product lineup allowed us to nearly double our shelf share at Walmart and significantly increase our assortment across other retail and e-commerce channel partners. Arlo landed several new strategic partners, which creates incremental growth opportunities and further diversifies our revenue sources, a topic I will discuss later in more detail. We targeted a minimum of 20% growth or $300 million of service revenue and actually achieved an outstanding $316 million of service revenue in 2025. And finally, we set out to be one of a handful of SaaS companies whose business was growing fast enough to be Rule of 40. Arlo delivered a full year score of 42.5, which places us amongst an extremely small selection of public companies to achieve such profitable growth. 2025 was a phenomenal year for Arlo, and I want to thank the team for the dedication and outstanding execution across every aspect of our business. And now I will turn it over to Kurt, who will provide more details on our operating results. Kurt Binder: Thank you, Matt, and thank you, everyone, for joining us today. 2025 was another tremendous year for Arlo as we generated outstanding financial and operational results. Our subscription-driven strategy and services business remain paramount to our success. And as a result, we are now experiencing the benefits of stellar execution and a clear strategy. We continue to utilize our innovative products and competitive pricing to identify, target and monetize new households with our AI-enabled services. This approach, along with a disciplined focus on execution, enables us to consistently deliver record levels of subscription and services revenue, ARR, gross margin and free cash flow. Let's briefly review our consolidated results for 2025 when compared to the original guidance we provided at this time last year. At the beginning of the year, we shared our expectations to deliver consolidated revenue in the range of $510 million to $540 million, with subscriptions and services revenue comprising 50% or more of total revenue or approximately $300 million. We ended 2025 with actual consolidated revenue of about $530 million and subscriptions and services revenue at $316 million or 60% of total revenue. Our top line revenue performance was strong. But what's truly remarkable is our ability to substantially exceed our goals for profitability in a year fraught with uncertainty due to macroeconomic, geopolitical and tariff challenges. We generated record levels of EBITDA, which resulted in an adjusted EBITDA margin of 14.1%. Additionally, our bottom line outperformance was even more impressive given the non-GAAP EPS outlook range of $0.56 to $0.66 as we provided when we embarked on the year. We delivered an impressive non-GAAP EPS of $0.70, surpassing the high end of our guidance even withstanding the impact of tariffs, an incredible outcome for our shareholders and a testament to the phenomenal execution by this team. Our installed base of paid accounts continued its robust growth trajectory coming in at 5.7 million accounts for 2025, an increase of 24% for the year. Our paid account growth aligns with the 23% increase in retail POS or point-of-sale volume that we experienced with our new product launch in the second half of the year and the continued success with our strategic partners. Our performance at Walmart was solid, aided by an expansion in shelf space. We capitalized on the power of the Amazon platform, generating additional paid accounts through this digital channel. We expect to continue to drive paid account growth in 2026 as we launched several initiatives designed to enhance our conversion and subscription retention. The strength of the Arlo value proposition is powered by annual recurring revenue as we ended the year with $330 million in ARR, up an outstanding 28% year-over-year. This was driven by strong subscription growth and continued expansion in ARPU. In 2025, our ARPU increased from approximately $12.60 to $15.30, resulting from our service plan optimizations that occurred in early 2025 and customers selecting our higher-tiered AI-driven service offerings. We expect to deliver incremental ARPU benefits in 2026 through additional subscription plan optimizations and subscriber retention initiatives, thereby delivering durable and predictable revenue with the goal of surpassing our long-term ARR targets. Our services transformation has been remarkable as we ended 2025 with over $316 million in subscriptions and services revenue, up 30% year-over-year. Subscriptions and service revenue for the full year now comprises 60% of total revenue, a significant milestone that is driving Arlo's expansion in profitability. Additionally, our Q4 subscriptions and services revenue was $89 million, an increase of about 40% when compared to the same period last year. Our non-GAAP subscriptions and services gross margin came in at 84% for the quarter, up 230 basis points when compared to the same period last year. As a point of emphasis, our retail paid accounts generated about 90% of 2025 subscriptions and services revenue with a gross margin of 94% truly remarkable. Subscriptions and services gross margins were positively impacted by improvement in retail and direct ARPU, coupled with a more favorable cost to serve as we continue to gain scale with our cloud storage partners. Approximately $4 million of Q4 subscriptions and services revenue was attributable to nonrecurring engineering services from a strategic partner. As we attract larger, higher-profile partners, we can expect additional revenue to be derived from this type of development work as we integrate our innovative platform and AI algorithms. While highly profitable, NRE has a slightly lower margin profile than our core subscriptions and services revenue. In summary, all of the variables that drive our outstanding unit economics have improved, resulting in significant growth in our LTV to over $900. Non-GAAP gross profit for the fourth quarter was $67.6 million, resulting in non-GAAP gross margin of 47.8%, up an outstanding 48% on an absolute dollar basis when compared to the same period last year. This trend was driven by the larger percentage of total revenue coming from subscriptions and services in Q4. Additionally, our product gross margins rebounded by almost 300 basis points in the period when compared to the third quarter levels, aiding the consolidated margin improvement. As we enhance our consolidated gross margins, this success confirms that leaning into product margin to generate additional paid accounts is the right strategy. It should be noted that this tremendous outcome would not be possible without the outstanding execution by the teams to successfully navigate a challenging new product launch and related tariffs. We generated outstanding growth in adjusted EBITDA during 2025. For the year, adjusted EBITDA was $74.7 million, an increase of 85% year-over-year and represents an adjusted EBITDA margin of 14.1%. We exited the year with strong momentum in Q4, delivering adjusted EBITDA of $23.3 million, up an impressive 138% year-over-year for an adjusted EBITDA margin of 16.5%. The expansion in EBITDA margin resulted from our disciplined management of operating expenses. Total non-GAAP operating expenses for the full year of 2025 were $165.7 million. Non-GAAP operating expenses on an annual basis have increased over the past 5 years at a 6% CAGR from $123.2 million in 2021. During that same time frame, we have grown service revenue from $103.5 million to $316.4 million, representing a 25% CAGR over the same 5 years, a growth rate of 4x our OpEx spend. Our ability to manage our operating expenses while investing in R&D and sales initiatives to support the stellar growth in our subscriptions business underscores the operating leverage that is innate to this business model. In Q4, we posted non-GAAP net income of $23.9 million or net income per diluted share of $0.22, significantly ahead of consensus estimates. This performance represented net income growth of more than 100% when compared to the same period last year. For 2025, we recorded non-GAAP net income of $77.3 million, up more than $35 million or 83% when compared to the prior year period. Our non-GAAP net income translated to a net income per diluted share of $0.70 in 2025. Again, an outstanding improvement from a net income per diluted share of $0.40 in 2024. Strong adjusted EBITDA, coupled with exceptional working capital management helped drive our 2025 free cash flow to $66.9 million, which is up 38% year-over-year with free cash flow margin of 12.6%. Continued free cash flow expansion, fueled by exponential subscription and services revenue growth demonstrates how far Arlo has progressed over the past 5 years. We ended the quarter with $166 million in available cash, cash equivalents and short-term investments. Our cash was up $15 million year-over-year, underscoring the improvement in profitability, even withstanding our investment in Origin Wireless and the $45 million return of capital to our stockholders through our share repurchase plan. Given our expected ARR growth and expanding profitability, free cash flow generation will continue into 2026, and our cash position will improve over time, thereby enabling us to pursue a more aggressive capital allocation program in the near term. Our DSO levels for the quarter were 26 days in Q4 of 2025, down significantly from the levels in prior quarters, highlighting a favorable working capital trend resulting from a subscription-based operating model. As our revenue shifts to monthly and annual subscriptions versus product sales, there will be a corresponding improvement in the timing of collections while reducing the level of investment in working capital. Our DSOs may fluctuate from quarter-to-quarter, but we are pleased with the improving status and collectability of outstanding receivables. Inventory is at $41.2 million and down from $44 million in the third quarter. Our inventory turnover remained solid in Q4 at 5.9x, down from 6.4x in Q3, a modest decline as we successfully managed our ending inventory as well as the inventory in channel. Arlo's inventory levels are now well positioned as we proceed into the first quarter of 2026, once again highlighting the exceptional operating performance of the Arlo team. Matthew McRae: Thank you, Kurt. Arlo's performance in 2025 was truly outstanding and a reflection of both the fundamental strength of our business and the excellent execution across the team. In parallel to delivering on our 2025 plan, Arlo has been hard at work building the foundation for continued growth in the coming years, and I would like to update you on a few of these initiatives. Arlo has a multipronged strategy to drive growth across the business as we look to exceed our long-range plan. First is to continue our faster-than-market growth in the retail and direct channels. Our recent product launch drove an expansion of Arlo's assortment across channels, and we continue to capture share in our key market segments. Arlo will also launch several new retailers over the next 12 months, allowing us to reach new customers and market segments. And as I mentioned before, 89% of our service revenue is generated from users that became subscribers by purchasing Arlo devices in this channel and incremental household formation will drive our services business. Our software and services road map remains a key lever for growth, and Arlo has a robust pipeline of new features, AI-powered capabilities and additional subscription tiers, which will begin to roll out later this year. Arlo is set up for continued success across our SaaS metrics, including subscriber acquisition, ARPU expansion and retention. These services will layer on top of our massive product refresh from last year, new devices launching this year and a new hardware platform launching in 2027. Arlo will continue to focus on new strategic partnerships that fuel both additional growth and diversification. These partnerships can provide access to millions of users at scale with little or no customer acquisition cost and provide substantial incremental service revenue. Arlo is uniquely positioned to capture these partner opportunities due to our world-class technology stack, mature partner APIs and our unrelenting focus on data privacy, a topic that sharply differentiates us from the other players in the market today. And finally, Arlo will take our first step to expand into new adjacencies. Several multibillion-dollar markets exist that could leverage a substantial portion of our current platform. We have been cautious until it was clear Arlo is well on our path to meet or exceed the long-range commitments we made to investors. But the time is now. I have never been more confident in our management team, our strategic plan, our platform and our ability to execute through the global volatility that seems to be the new norm. Arlo is ready to add new initiatives while managing the execution of our core plan. You will see Arlo planting the seeds for the small business market and the agent place market. All of this is enabled and built upon the world's most advanced, resilient and innovative SaaS platform inherently designed for real-time smart safety and security. Arlo launched this platform with artificial intelligence integrated at the core in 2018 and has been driving AI-based consumer subscription services at scale for 8 years. In fact, we invented this market, and our longevity means that you will see our seventh generation platform launch this year to keep us ahead of the competition. And as I mentioned earlier, this platform and our focused execution are helping us win numerous large-scale branded partnerships that will drive growth over the next 3 to 5 years. In addition to our previous announcement with ADT, there are 2 new strategic partnerships I'd like to touch on today. At the Consumer Electronics Show in January, we announced our new partnership with Samsung. Arlo will be powering an emergency response service across Samsung devices in the United States. Samsung Smart Things will offer this new service to a substantial portion of the 425 million Smart Things users. It will be branded Smart Things Safe Premium powered by Arlo and represents our first partnership that is solely based on SaaS services without reliance on a hardware component. We are extremely excited about this next stage of our partnership with Samsung and expect to see more information next quarter. And finally, we are excited to announce a partnership with Comcast to provide connected home security solutions to millions of its Xfinity Internet households in the United States. More information about this offering will be provided by Comcast closer to the market launch. But I can say from our side, it is difficult to overstate the potential impact of this partnership, which could grow larger than our Verisure partnership over time. All of these partnerships will contribute to our business in 2026, but truly ramp in 2027 and beyond. Let me back up a bit and review the capital allocation plan we rolled out in 2024. It has 3 main pillars. First, a focus on organic investment, Arlo's traditional pillar of differentiation. This should be evident in our huge product refresh, Arlo Secure 6 platform enhancements, strategic partner engagements and our share growth in core markets. It is the core tenet of our success to date, and I see no limit on the ROI as we drive this market forward with additional innovation and channels launching over the next 2 to 3 years. The second pillar is share repurchase or investing in ourselves. It is no secret, and I know many investors share the sentiment that Arlo is undervalued relative to our financial performance. Over the last year, we demonstrated our commitment to this area by repurchasing over 3.3 million shares, and you will see this commitment continue, as I'll talk about on the next slide. And finally, the third pillar is our inorganic investment, which includes deep technology partnerships or acquisitions that could accelerate our path to Arlo's long-term targets. You can expect Arlo to be more active in this area over the next year as well. Once again, if we look at software companies that are near a Rule of 40 measure, we come up with 24 companies that at least hit a score of 35. The revenue multiple for those companies is 5. If we then limit those companies to those with more than 20% revenue growth, it reduces the list to 8 companies, and they have a multiple of 6.4. Arlo's service business has a growth rate of nearly 30%, and we achieved a full year 2025 score of 42.5%. However, the multiple on our service business is around 3x. We feel we are substantially undervalued compared to our performance. As such, our Board has approved an additional $50 million to repurchase Arlo shares, and this was one of the easiest decisions we've made inside of our capital allocation plan. And now I will turn the call back over to Kurt, who will give our forward-looking guidance. Kurt Binder: Thank you, Matt. Before I provide an outlook for 2026, I want to share some perspective that is foundational to our confidence in our outlook for the current year and beyond. Over the past few years, we told you that Arlo would transform into a durable recurring revenue subscriptions and services business, and we have accomplished that. We assured you that Arlo would be a market leader in innovation and technology with a scalable AI-driven platform, and we have exceeded on that front. Last year, we indicated that we would evolve into an enterprise-grade business supporting large global companies. And the recent signing of Comcast caps off a year where we have added ADT and Samsung to a robust portfolio of strategic partnerships. We believe the latest evolution will enable Arlo to diversify our revenue base and further enhance our operating model. The latest evolution will enable Arlo to diversify our revenue base and further enhance our operating model. With that said, we expect the first quarter consolidated revenue for 2026 to be in the range of $135 million to $145 million. We expect our first quarter GAAP net earnings per share to be between $0.01 and $0.07 and our non-GAAP net income per diluted share to be between $0.17 and $0.23 per share. We expect product margins in the period to rebound from the level that we reported in the fourth quarter of 2025. For the full year 2026, we expect consolidated revenue to be in the range of $550 million to $580 million, with service revenue comprising greater than 65% of total revenue. We will implement initiatives to improve customer retention and drive higher conversion, and we will adjust our innovative service offerings to enable us to deliver ARPU growth and expanded ARR. These efforts will enable us to generate service revenue in the range of $375 million to $385 million in 2026. And finally, we expect our non-GAAP net income per diluted share to be between $0.75 and $0.85 per share. As you're aware, there was a ruling by the Supreme Court striking down the tariffs that were put in place by the administration last year. At this point, a great deal of uncertainty remains around the tariffs and our ability to recoup funds from tariffs that were previously paid. Given the lack of clarity, our outlook assumes that we will remain subject to the 20% tariff structure already in place prior to the ruling, and we will continue to monitor the situation closely and provide an update if necessary. Our innovative platform, coupled with our subscriptions-driven strategy has delivered outstanding results over the past 5 years. Our paid subscribers have increased by more than 10x to 5.7 million. Our annual recurring revenue is up more than 7x to $330 million. and our highly profitable retail subscriber base continues to drive the expansion of our overall profitability, resulting in adjusted EBITDA margin of 14%, which is up 30 percentage points. A customer-focused mindset and steadfast execution has enabled us to consistently deliver these outstanding SaaS results over the past 5 years. And we are well positioned to continue this trajectory over the next 5 years as we progress towards achieving our long-range plan targets. Now let me turn the presentation over to Matt. Matthew McRae: Thank you, Kurt. Given our rapid growth, stellar results and exciting new components of our business, I would like to quickly level set on where Arlo stands. Arlo is a rapidly growing SaaS business that pioneered the DIY security market and created AI-powered services to create a compelling user experience. Arlo's singular focus on the smart home security market has allowed us to move quicker, innovate faster and maintain technology leadership in the market. Every day, every person at Arlo is solely dedicated to delivering on our safety and security pledge. Our mission is to connect and protect what people care about most. And that mission extends to our users and partners through our privacy pledge, which is transparent and clear. Your data will only be used to cultivate the best security experience for you. It's that pledge and singular focus, which has allowed some of the largest strategic players in the world like Samsung, Comcast and ADT to team up with Arlo to be their security partner of choice. And our continuous investment in our platform remains a substantial differentiator. While others have been pulling back on their investment in the segment, we have been pushing the boundaries further. We leverage our class-leading devices to acquire users and lock in long-term relationships that can't be disintermediated like many other AI or subscription business. And our groundbreaking features and functionality that we deployed in Arlo Secure 6 will only be further enhanced by our rollout of Arlo Secure 7 later this year. The home security market is large and growing quickly, now valued at $25 billion in the U.S. alone, and we estimate that the penetration of our market remains in the early innings at just over 20%. Our routes to this market have historically been retail channel partners, but we have diversified that into business-to-business strategic partners as well, ensuring access to hundreds of millions of households for future user acquisition. And now Arlo is making investments that will launch features and services across several areas, including the broader smart home segment, small business and the enormous agent place market, which increased the available TAM more than tenfold. A quick glance at Arlo shows a SaaS company with over $330 million in recurring revenue, growing at 28%, service gross margins at 84%, a strong LTV to CAC ratio of 4 and a 2025 service business Rule of 40 score of 42.5. These are the metrics of a world-class services company, and we feel like we are just getting started. Looking ahead, the components of Arlo's future success are clear. We will continue the fast pace of platform innovation, which drives our service business. You will see continued growth in our core channels, which drives new household formation. We will launch and monetize our new impactful strategic partners. You will see us invest in new adjacent market segments. We are targeting more than 20% service revenue growth again in 2026, and we will invest in ourselves by repurchasing shares. Our investments and execution have set up Arlo not only for a strong growth in 2026, but also in 2027 and beyond as we reap and reinvest the rewards of our recent performance and strategic account wins over the coming years. I have never been more excited about the vast opportunities that lay in front of us, and we have the foundation and the team to go maximize success. And now we will open the call for questions. Operator: [Operator Instructions] Our first question comes from the line of Jacob Stephan with Lake Street Capital Markets. Jacob Stephan: On a great year and a really strong guide to start off '26 here. Maybe just first off, I wanted to touch on kind of the 2 strategic partnerships, more specifically Comcast and ADT. So when I look at Comcast, you've got 31 million subscribers that have Xfinity. Maybe help us think through kind of -- is this kind of like a Calix-type partnership? And then maybe just kind of lay that over with a quick ADT update. Matthew McRae: Yes. So maybe I'll go in order of the partnerships that we've announced or talked about either previously or today. So ADT is going very well. The technical integration was basically done by the end of last year. And so what's being done now is planning for their go-to-market. And again, I don't want to kind of get ahead of their launch announcement, but the original target was sometime in the middle of this year. And so we're excited about seeing that come to market because I think it will be able to trigger a lot of growth for them. And it's an exciting partnership for us because of, obviously, their scale and their brand in the segment. We've been able to open Arlo up to a lot of households that we're not really addressing right now through our primary channels of retail and direct. So if I look at Samsung, Samsung is interesting, even though it was publicly announced at CES, I think people kind of missed the impact of that partnership. So what we announced is actually powering an emergency service across Samsung devices. It will start with their mobile phones and tablets, but you should expect that to kind of broaden across all Samsung devices starting in the United States. It's a very large population of users. And what's really interesting about that is, like I said on the call, it's the first time we've done a real deep partnership and integration without hardware, right? I mean they have hardware. It's on their phones and tablets. But for us, the integration is we're really just powering a pure service and subscription service that Samsung will be providing out to their Smart Things users. So that's really exciting. And like we said on the call, I think you'll see more information coming up next quarter. Comcast, I can't say too much about. So it's announced. We'll be doing -- what I would suggest is the integration of a very large partnership like this takes usually between 9 and maybe 12 months. So that's -- there'll be a lot of work making sure that the technology is integrated and Comcast is ready to deploy. But I think you'll see that provide some revenue for us this year, but then really ramp going into '27 and beyond. But there'll be a lot more information when Comcast is ready to release more information about the partnership. But like I said on the call, from our perspective, the scale of Comcast, how many Xfinity customers they have is really exciting for us. And I think the partnership for us could be as impactful, if not more impactful from a service revenue perspective than even Verisure, which is one of our largest and most successful partners. Jacob Stephan: Got it. Very helpful. Maybe just to kind of touch on some of these -- the new products, the new hardware products that you're kind of planning to launch over the 2026 as well. I mean, what end markets are attractive? You kind of look at your history and your spin-off from NETGEAR. Are routers on the table? Or what's -- I guess, what's exciting about the different hardware products? Matthew McRae: Yes. So what you've seen us do is at the end of last year, we did basically a pretty comprehensive refresh, right, 109 SKUs across our channels. And that really set the foundation for not only having a successful holiday period, which we demonstrated, but the foundation for a bulk of sales that we'll be doing in 2026. So we think we're situated extraordinarily well for 2026. And you'll see some updates to some of those products and a couple of new form factors this year and really adding to the assortment of cameras and working. I say not too much, working on some product segments that are seeing some specific growth, very similar to what we did in P2Z in the refresh that we did last year. So that will continue to grow, and we'll be able to grow assortment and market share with those launches this year. When we look into 2027, we talked about launching a new hardware platform, and that is going to be a combination of a couple of things. One is it will be a refresh of a technology-first or innovation-led type platform, new user experiences, starting from scratch a little bit, thinking about home security in the world where the experiences can be AI native or built from -- with AI from the very beginning. So think of a clean sheet of paper and starting over in the space, starting at the high end, and coming out in 2027, but also broadening into the broader market of smart home control, right? It doesn't mean we'll be building those devices in every respect, but the idea of being able to make the smart home and the various devices that are in a smart home participate in home security in the smart home ecosystem. So you'll see that. The other thing we're starting to work on is making a more deliberate push into small business. That is an extremely large market, very fragmented. And the next-generation platform will be geared towards that market segment as well. And you could see us make some service announcements later this year is starting to test that market, getting ready for maybe a bigger deployment in 2027. And then there's some other areas that are very interesting to us. So as we looked to adjacent markets that where 90% of what would be deployed is technologies or platforms we already have, you'll see us maybe make some moves in the second half of this year into other markets like agent place or some of these other areas, and that could involve new hardware as well. So like I was speaking about earlier on the prepared remarks, I feel that the time is now for Arlo to start to accelerate growth and our investment in some of these adjacent markets and which will fuel faster growth than we're sitting here today. So we spent a lot of time recently thinking about not only 2026 growth, but really '27 and '28 and making sure that we're investing correctly to drive that growth. And I think we've done a really good job. And you'll see more of that be rolled out with more detail probably over the next 12 to 18 months. Jacob Stephan: Okay. And if I could just sneak one more in. The service revenue in the quarter, $89 million, that was well above what we were expecting. Maybe you could kind of help us think through, is this the kind of second phase of the plan simplification you did earlier this year? Or maybe just any kind of color you can provide as to why that was such a strong sequential number? Kurt Binder: Yes. Jacob, it's Kurt. So yes, most -- so $89 million for Q4 was a great quarter for us. Obviously, we continue to build on the previous 2 or 3 quarters with the service plan optimization that we kicked off and also on the ARPU expansion that we experienced. So the core business grew nicely as a result of adding new subs especially coming out of the retail and direct channel and then the ARPU expansion. We did have about $4 million of NRE in Q4 hit. This was associated with a strategic partner that we've been working with for the better part of a year. They came in and actually increased our service revenue. did have a slight impact on our overall services margin. But all in all, it was a nice windfall for us in the fourth quarter. So I think, as I mentioned in the prerecorded remarks, you're going to see a little bit more of this as we go into 2026. Given the caliber of the strategic accounts that we're working with now, we're being asked to do a lot of integration work with our platform. And as a result of that, we're monetizing service revenue through those relationships a bit earlier than sort of what we've done in the past. So 2026, you'll continue to see growth in our core subscription business, and then we'll add on in these cases where we're working hard to deliver on the promises to these large strategic accounts. Operator: Our next question comes from the line of Scott Searle with ROTH Capital. Scott Searle: Great job on the fourth quarter and really exciting in terms of the strategic opportunities and new adjacencies that you guys are moving into. Maybe in terms of starting, the outlook for subscription and services growth this year of around 20%. I'm wondering if you could give us an idea of strategic contribution into that number. How much are you guys factoring in? It seems like we might start to get some in the second half, but it's going to be fairly limited on that and which sets up a nice growth trajectory into '27. But also as part of that, I'm wondering if you could talk about the opportunity pipeline as well. Are there additional opportunities that you guys have percolating there? I also would like to couple that, Matt, with the privacy concerns have really reached, I'll call it, a little bit more of a fever pitch now and how that's factoring into how you guys are positioned on that front. And then where adjacencies kind of fit into the numbers this year? Is there any contribution that you guys are assuming at all at this point? And then I had another follow-up. Matthew McRae: Yes. So maybe I'll start with the privacy matter. So as you know, over the last, I would say, I guess, 6 weeks or so, 4 to 6 weeks, privacy and the idea of data security and data ownership has really become a topic in the public's mind, but also, I would tell you, in strategic partners and the industry as a whole. We are very proud of the pledge and the stance that we've always taken at Arlo, which is it's not our data. It's your data as a customer. We're servicing it on your behalf. If you choose to share it to somebody, that's fine, but we are not taking that data and using it in unexpected ways or sharing it with third parties without your permission or anything else. And I will tell you, I think that's helped in the consumer market, and we're hearing that from the channel, and we're hearing that from our customers directly. But like I said, I think it's having a big impact with potential strategic partners. So when we talk to some of the accounts and some of the partnerships -- partners that we've mentioned on the call and some of the ones that may be coming, this is increasingly a topic of discussion and something that they're using to make their decision on where to put their investment from a relationship perspective. So I think it's why Arlo is winning in most cases when it comes to driving strategic partnerships and having that be part of our growth going forward as part of our long-range plan. When you talk -- you asked about what's the revenue contribution when we look at the 20% or more service revenue. A big portion of that is still just the core business growing. We're capturing share at retail. We're driving more households. We have current strategic partners that are helping drive that as well. You will see some contribution on the service revenue line. As Kurt was saying, a chunk of that will be NRE and some of the nonrecurring fees that we're working with. And that's one of the reasons you're seeing the normal ratio of ARR to service revenue change just a little bit because we don't treat NRE as recurring. We treat it as service revenue only. And so you'll see that change just a little bit like you saw in Q4. So there will be a contribution in service revenue as we execute the engineering and the integration with some of these partners. But I would tell you, I think then when you look at ARR or the service recurring component of a lot of those relationships, you're right. We'll see a little bit of that in the second half. But I think what you'll see in more materiality will be in 2027 as those launch and ramp and have time to actually saturate into the marketplace. As far as adjacencies, we haven't really included any of that in the plan. We really are looking at maybe doing tests, some investments in that area. So again, I think it's more of a setup for 2027 growth when you look at ARR and service revenue. But you'll see some of that come in by the second half. And there's more information we'll share probably either before or at the next call. Scott Searle: Great. Very comprehensive. And if I could, from an investor standpoint, the concerns I've been getting on risks from a feedback standpoint, a bit around privacy, which you've addressed, but also AI in terms of marginalizing the recurring revenue stream and the opportunity in what Arlo provides as basic services. I wonder if you could quickly address that again. I know you had some comments in your opening remarks, but I'm wondering if you could dive deeper. And then as well, concerns about memory, not just in terms of pricing, but also availability, particularly as we get into the second half of this year, how that impacts you and how you guys are thinking about it? Matthew McRae: Yes. I'll answer the AI component, and then I'll let Kurt talk about the supply chain from an operations perspective. I think the AI market and the potential for disintermediation that we're seeing in the broader software market really just doesn't apply to us. And I think it's one of the key differentiators that Arlo has over most of the market when you look at like an AI SaaS-based market, if you're looking at the broader category. And a lot of that is due to our relationships with our customers drive from a hardware component that they purchase and invest and that draws a linkage to then our cloud services. So there's no way to actually disintermediate and actually drive different AI services to those cameras. They are locked to our back end. It's part of our security mechanism, and we are the only one that provides those services. So there's an inability to actually be disintermediated that doesn't exist in many markets, and that's driven from our dual relationship with the end user. It's a hardware relationship that starts right when they purchase the devices and get them installed that then converts into an ongoing long-term service relationship that makes us very unique in that the user is actually investing in the relationship as much as we are. So it's something that I think is missed by a lot of investors when we get swept up in some of the concerns around AI. It's actually an advantage that I think differentiates us from a lot of what's happening in the marketplace. Kurt Binder: Yes,. And we, as you know, have been leaders in supply chain management for probably the better part of 15 years. The team that we have at Arlo had began at NETGEAR and has done a phenomenal job of building incredible relationships across the entire supply chain. And those relationships obviously bear significant benefits when you have a situation that's like unfolding today with memory. Memory costs have gone up, absolutely. Across our actual product ecosystem, it represents probably somewhere between 4% and 6% of the BOM cost. And so it's not, I would say, overly significant to us. We look at it as just another element of that cost of customer acquisition because we use that particular product to gain access to a household and convert them into a service or paid household. What I would say to you is that we use the lower end of the DRAM spectrum type capacity. Most of the stuff that's being highly coveted right now is sort of the high-bandwidth memory, which is consuming a lot of capacity at plants. We have multiple suppliers that we can tap into. And at this point in time in all of our discussions with our suppliers, we feel like the supply is available to us and any increase or incremental cost has already been factored into our medium- to long-term plan. So we're feeling pretty good about the situation. Obviously, we're monitoring it closely. And of course, as new information becomes available, we'll make sure that we share it with you guys. Operator: Our next question comes from the line of Logan Katzman with Raymond James. Logan Katzman: This is Logan on for Adam. Kurt, maybe for you. We -- I think you mentioned product gross margins for 2026 were expected to rebound off of the 4Q level here. I just wanted to get your thoughts on maybe gross margins in 2026 and more specifically product gross margins and your thoughts on the cadence there. Kurt Binder: Yes, Logan, let me just clarify a couple of things. So when we came out of Q3, our product gross margin was in, I think, around the negative 17% range. And we had heard from various investors that, that was a bit concerning because it had bounced up a little bit relative to what we were presenting in the first half of this year. And then what you saw in Q4 is it actually came back about 300 basis points. We reported negative margins of about 14.4% for product in Q4. We were pleased with that. We've obviously been very focused on ensuring that we keep our product costs in check. As we communicated in Q3 into Q4, when we launched the third generation of products that Matt mentioned earlier, we brought down the BOM cost anywhere between 25% and 30%. One of the challenges we had in the third quarter of last -- of 2025 was we also had the added cost of EOLing a lot of the existing legacy products. So that impacted our product margins. What I communicated about 2026 was that in Q1, we do expect the product gross margin to continue to bounce back a bit. Currently right now, the first half of 2026 looks pretty strong from a device standpoint. And we're feeling really good about the way we're managing our product margins given the 25% to 30% BOM cost down that we communicated earlier and our ability to manage the promotional sort of the depth and the frequency of promotions at this point. So all we're saying is that we're watching it very closely. We know that it factors into the overall combined gross margin. We hold ourselves accountable to growth in that combined gross margin. And frankly, when you look at the 2025 combined gross margins and the growth that occurred over 2024, we were extremely pleased with that. We also believe that going into 2026, we'll continue to see that growth. And so we'll keep you posted. But right now, we're feeling really good about the way we're managing our overall combined gross margins, given that our services margins are still trending in that 84% to 85% range and our actual product margins are manageable where they are right now and using that particular element as our cost of customer acquisition. Logan Katzman: Great. That's super helpful. I appreciate it. And then I guess as my follow-up, I just wanted to get your guys' thoughts on what you guys are currently seeing in your international markets and the opportunity you guys see there in 2026. I know one of your largest partners just went public and is talking about maybe doing some expansion. So just curious your guys' thoughts in 2026 around international. Matthew McRae: Yes, it's a great question. So you're correct. So obviously, our European partner, Verisure went public in October. They've raised a bunch of capital, obviously, using that capital for growth. So when we look out at least over the first half of this year, where we have already forecast, we're expecting some strength and continued growth from that region. So I think that's -- we're starting off really strong there. And they are moving into Mexico and potentially some other areas that they've talked about publicly. And so there was likely some growth there. We are also actually spending more time looking at some of our other regions that we spent less time focused on as we've been driving just core growth in the business. And so you will likely see a little bit more growth in areas like Canada, Australia and New Zealand. And so those are some areas that we're going to start pushing a little bit of investment in as we think they're right for some additional share gain. So international expansion, I would say, is something that we are working on and expecting some strong results as we go into 2026. Operator: Our next question comes from the line of Anthony Stoss with Craig-Hallum. Rian Bisson: It's Rian on for Tony. Matt, for you, you mentioned last quarter, shelf share nearly doubled on a SKU basis with Walmart. And we've seen more and more chatter against home security cameras coming out of China and the U.S. I'm curious your thoughts around any further potential share gains or if you're hearing anything from your retail partners regarding that. Matthew McRae: Yes. It's a really good question. And there is a lot of different, I would say, vectors of activity that we're seeing there. So one, like I said and like you mentioned, is we are able to capture additional share in several areas. One was obviously Walmart, like I talked about as far as our product launch. That product launch also drove additional assortment at other retailers and obviously, e-commerce. We'll be launching additional product SKUs, as I talked about earlier, that will help us capture some additional share and assortment across the retailers. So I'd say that's one. Two, we are looking at expanding into some additional retailers over the next 6 to 9 months as well. And so there's some discussions going on there. So I think there's incrementality just from that perspective of us being able to capture some incremental shelves across our key markets. I would say also that some of the key retailers and some of our channel partners are realizing that having a very large assortment, meaning many different brands isn't really a path to success. And so they're looking at actually consolidating down to maybe a smaller number of brands on the shelf as we look at this year and probably going into 2027. And that's something, obviously, will be one of the brands that get to remain on the shelf and actually capture a little bit more share, at least mind share or shelf share from a relative perspective. So I think you'll see that trend continue. And then there's various areas that you touched on of the import of cameras from specifically China as an example, and a couple of brands that are being investigated at the federal level and in some cases, some the state level. That is continuing. And I think the activity there has accelerated. We're seeing actual formal actions being taken at the congressional level, at some of the Department of Homeland Security and other areas of the federal government. And there's likely to be some action sometime this year that could block the import of 1 or 2 brands that could open up as much as maybe somewhere between 10% and maybe 20% of unit volume in the United States to be captured. So what we're doing is we're following that from at least an informational perspective and actually working with some of the federal agencies and Congressmen that are actually pushing some of these activities. At the same time, we are making sure that our products, especially the products we just launched, are priced correctly, positioned correctly and are in the right channels to be able to attack that share if it becomes available. So I think it's more likely than not something happens this year, and Arlo is ready to go capture additional share above and beyond the share capture that we're working on with just organic activities across the channels. Rian Bisson: Got it. Super helpful. And then just if I could just piggyback on kind of the retail partner stuff on a more broad level. So unit volumes were strong in 2025. I'm curious, it's early in the year, but do you have any thoughts on '26 unit volumes or just overall consumer demand, anything that you're hearing on that front? Matthew McRae: Yes. I would say third-party data is just coming out. And I think what you'll see when that third-party data comes out is they're expecting the overall market to be flat to maybe up 5% to 10% so kind of a typical year-over-year. We endeavor to grow faster than that, as always, because we'll be capturing share. What I would tell you is so far year-to-date, we're seeing a stronger result. And I would say, from a consumer demand perspective than what maybe the third-party data suggests. So I would say the year is off to a good start from at least a consumer confidence perspective. It is a little bit week by week as we're having snowstorms and other quick shutdowns and things that are happening. So there's a little bit of volatility. But overall, I think the year is off to a very good start, and it supports our annual operating plan and the forecast that we're putting together. So I think it's going to be a normal year-over-year growth from a third-party data perspective, and then we're going to outperform that going forward. Operator: Our next question comes from the line of Hamed Khorsand with BWS Financial. Hamed Khorsand: So first question I have was, any reason why the cash balance didn't grow so much as your profitability did this quarter compared to Q3? Kurt Binder: Yes. So we ended the year at $166 million, and we generated on the year close to $68 million of free cash flow. What you don't see in the numbers is that during the year, there was 2 pretty sizable areas of investment we made for our capital allocation plan. First thing is, in the beginning of the year, we made an investment in a company called Origin Wireless. That was about $12.8 million. It's really the first investment that we've made in a technology or IP play, and that's worked out pretty well for us. The other thing is that we actually invested $45.5 million in the share repurchase program. So we returned capital to our shareholders of $45.5 million. So when you look at just the cash balance and the overall year-over-year growth, given the free cash flow that was generated, you have to take into consideration those factors to get to really what the overall business is generating. When we look forward into 2026, we expect free cash flow to continue to grow. We do believe that we can grow free cash flow upwards of $80 million. And so we'll look at that in relation to the capital allocation program that Matt talked in depth about as part of his prerecorded remarks. Hamed Khorsand: Okay. Maybe I missed it, but I was referring to the difference between Q3 and Q4 was only less than $1 million. Was there any share buybacks in Q4? Kurt Binder: Yes. Hamed Khorsand: Okay. That's what it is. And then as far as the investment into your partnerships with Comcast and Samsung, does that require a CapEx spend for you this year? Kurt Binder: There will be a level of investment we'll need to make. Actually, that is a thing we've factored into our 2026 guidance that we will be putting some of our OpEx away to invest in things like R&D and sales and marketing. So we've already started that planning. And given that those projects in the development phase have already kicked off, that will be factored into -- that is factored into our guidance. Operator: There are no further questions registered. That will conclude today's call. You may now disconnect your lines.
Operator: [ Welcome to the bioMerieux 2025 Third ] Quarter Sales Conference Call. The call will be structured in 2 parts. First, a presentation by bioMerieux Group management team. Afterwards, there will be a Q&A session. [Operator Instructions] I will now hand over to Aymeric Fichet, VP, Investor Relations. Please go ahead. Aymeric Fichet: Thanks. Hello, everyone. Good afternoon, good morning, and thank you for joining this call. I'm with Pierre Boulud, CEO; together with Guillaume Bouhours, CFO. Please note that this conference call will include forward-looking statements that may change or be modified due to uncertainties and risks related to the company's environment. Accordingly, we cannot give any assurance as to whether we will achieve these objectives. I also remind you that today's call is being recorded and that the replay will be available on our website, www.biomerieux-finance.com. I will now hand the call over to Pierre, and then we will open the call to questions. Pierre? Pierre Boulud: Hello, everyone. Good morning, good afternoon. So I'll start with giving you the highlights for the year 2025. So I'll start with the sales numbers. We've reached a very important milestone, EUR 4 billion company now, bioMerieux growing 6.2% organically, significantly outpacing a market that we're seeing way around 1% when we look at the diagnostics results from most of the competitors. This growth would have been 7.8% excluding China. What is very positive we see in our performance for 2025 is we've made a very profitable growth, reaching 17.9% of our sales contributed EBIT and growing 16% organically. And finally, on the numbers side, very strong cash flow generation, reaching EUR 460 million, growing 40% versus 2024. So now if we go into the commercial dynamics and the 4 growth drivers that we selected in the context of GO.28. So if you put them together, they've actually been growing 9.4%. So let me start with non-respiratory BIOFIRE. What I'd like to highlight here is an increase of the net unit installations. As you know, this is an indicator that we follow very closely. We've managed to install an additional 1,800 units of BIOFIRE in 2025, to be compared with 1,350 in 2024. So we have successfully grown installed base by 7% in 2025 only, which is very consistent with the growth perspective that we project for the years to come. And we've done that. We'll come back to that with very limited price erosion. The second growth driver, as you know, is SPOTFIRE, point-of-care system. So what I'd like to highlight here is a very significant improvement of the installed base, 110%. We've installed 6,400 instruments in 2025 with the successful launch of the nasal swab in the U.S. in the summer. The third growth driver is Microbiology, where we have a very strong leadership position. As you know, we've been impacted by the decline in China. Excluding China, we've managed to grow 6.3% We are very satisfied actually with the instruments growth in the region of 14% in 2025, growing 14% in 2025 versus 2024. So demonstrating very strong momentum for our Microbiology solutions moving forward. And an additional 2 percentage point price increase in Microbiology, which is also a very positive factor. Finally, Industrial Applications. What I'd like to highlight is a very strong performance on the Pharma segment, where our launches are demonstrating a very strong impact in the market and the pharma sales growing at mid-teens again, very strong level of [indiscernible] for the future, together with 2 percentage point of price increase. Now the 2 additional areas of sales that are not a growth driver, but we still obviously monitor very carefully. Respiratory panels, we've actually managed to grow 1%, building on very strong performance already in 2024. The epidemiology was broadly in line, distributed differently between quarters but broadly in line for the full year between 2025 and 2024. What is making us very positive on this one is, again, very limited price erosion, below 2%. And of course, the installed base increase that I was mentioning will also benefit the respiratory panels for the future. In immunoassays, we've been struggling with immunoassays franchise, as you know, in the last couple of years, minus 6% in 2025. A positive factor that I wanted to highlight here is the VIDAS KUBE, a new system for VIDAS that we have launched now a couple of years ago, is growing very nicely. There are replacements obviously there, but mid-teens sales growth in instruments in 2025, demonstrating that we are actively managing the replacement of the old VIDAS in the market. So what are the comments on the top line? If we look at the bottom line, 16%, as I was commented -- commenting an improvement of CEBIT. Together with the 6% of sales, so definitely a significant operating leverage. We are deploying our GO.28 initiatives. We are progressing on the automation with regards to manufacturing costs, reaching 40% of the pouches fully manufactured now on the automated lines, which is good news, bad news. I mean, good news is we keep improving. And we still have an opportunity to grow this in the next few years and further improve our costs with regards to BIOFIRE and SPOTFIRE pouches. We are also progressing in R&D following the decision to close the San Jose site, we are moving forward with adding 1 unified team for Microbiology. And we are progressing also with the transformation of our global customer service that will translate into a better service to our clients and efficiency improvement. Overall, we've increased our headcount around 2% in 2025. So to be compared with a 6% sales growth that we are posting. Finally, on 2025, I wanted to give you an update on very significant progress on our CSR agenda. We are actually, for nearly all KPIs, either at or above target. I'd like to highlight especially the CO2 greenhouse gas emission that has been reducing close to 30% since 2019, while our sales have been growing 50% since 2019. So a very significant improvement, and we're talking absolute emissions, which, by the way, I'll come back to that, will lead us to review and upgrade our CSR ambition for the years to come. So before handing over to Guillaume, who will give more granularity on the information on the financial performance. It's been 2 years now that we've communicated GO.28 plans. So we have -- it's a good opportunity to step back after 2 years. So if we look at the different dimensions of the GO.28 ambition, after 2 years, we've been growing sales 8% on average in the last 2 years. So significantly very much in line with the plan. We've grown the EBIT by 20% in 2024, 16% in 2025. So overall, an improvement of 260 basis points versus 2023, very much in line. In terms of team engagement, we wanted to be in the top quartile of the industry. At the end of 2025, our engagement ratios within the top 5% of the industry. And as I said, I will come back to that, 29% reduction of greenhouse gas emissions versus 2019, very much in line with the ambition to reduce by 50% by 2030. So with this, I hand over to Guillaume, who will share with you more insights on 2025. Guillaume Bouhours: Thank you, Pierre, everyone. So let's look at our financial performance. Pierre already explained very well the commercial dynamics of our different ranges. So you see actually a wrap up on this page. The only thing I can highlight is that BIOFIRE overall without SPOTFIRE, which represents 37% of our total sales as our first product range. And we take everything together, grew 5% in 2025. And of course, our second range is Microbiology, which represents 33% of group sales. Now looking at maybe some kind of by geography on the next page. So North America grew an organic plus 8%. Of course, it's our first region for SPOTFIRE, so fueled by SPOTFIRE super high growth. Also a very good performance of industrial applications in North America as well as non-respiratory panels. Latin America, as you can see, is super dynamic, quite a stunning plus 18% organic, and it's actually very solid on all product lines in this region. EMEA delivered a 5% organic growth in 2025. We can see notably double-digit growth of BIOFIRE non-respiratory. And I remember, we always have questions on the internalization, meaning outside of the U.S., the push outside of the U.S. for BIOFIRE. So I think this is also pretty visible here in the figures. In EMEA, we should mention a solid performance of Industry Applications as well as Microbiology being mid-single digit. Asia Pacific, maybe let's stand there, had a contrasted overall 1.5% organic. Really contrasted because, of course, we discussed China all over the year. Just to remind everyone, China declined, so for us, minus 40% is a market downturn with a lot of pressure from authorities to decrease the spend of hospitals, which actually translated in our field, which is mainly Microbiology in China in a volume decline in 2025, so down 14% in China. But very dynamic actually in Asia Pacific outside of China, plus 11% overall. We can mention India with plus -- which is 12%, so above double digit. And of course, Japan, which has now delivered about 30% -- above 30% organic growth in 2025 with a great success of BIOFIRE and SPOTFIRE. Noting that there was the exceptional instrument sales of SPOTFIRE in Q1, but yet a great dynamic in this country. With that, let's turn to the P&L. So with 6% organic on the top line, we have delivered a solid improvement in gross margin. You can see 8% like-for-like growth of gross margin, which is actually a 90 bps improvement in the margin itself on a like-for-like basis. How do we explain that? We have a product mix effect. As you saw, we had a higher share of BIOFIRE, SPOTFIRE, which I remind everyone is a slightly higher margins than the rest of the group. And we also have in gross margin, a number of GO.28 efficiency that Pierre illustrated earlier that improved our cost of goods sold. We had notably, really nice procurement savings in 2025 and supply chain, international transport savings. And this is all despite the impact of tariffs which we had in H2, of course, in this gross margin part. Below, we have the SG&A in, let's say, contained increase, I should say, at plus 4%. That also includes some of our GO.28 efficiency initiative, and then you had examples earlier from Pierre. R&D is up 3% on a like-for-like basis. So we continue to invest strongly in R&D at 12.5% of total sales and we deliver innovation. And yet, we have Innovation Powerhouse initiatives to make R&D more efficient overall. So CEBIT, our main indicator is, so contributive EBIT is up 16% like-for-like, as Pierre said. CEBIT margin, as you can see, improved to 17.9% on a reported basis, which you can break down as 160 basis point improvement on the like-for-like FX and scope compare constant, which -- plus impact of foreign exchange, which was actually a negative EUR 33 million due to the strength of the euro currency against many other currencies. And we can -- we'll come back to FX later on this presentation. And also a second effect, which is the effect of acquisitions, maybe mainly the impact of SpinChip, in which we invest a lot of about EUR 20 million. So altogether, we publish 100 basis points of margin improvement on a reported basis. With that, turning to the rest of the P&L. So the operating income, the reported one was impacted by VITEK REVEAL impairment that we had already reported and explained in first half this year. Just to remind, it's a lower-than-expected commercial start of this fast AST product. Yet, we still believe in this product. We believe there are high unmet medical needs on this product, and we continue to invest. But we also decided in H2 to close the site of San Jose of SPECIFIC REVEAL and to combine the teams under our Microbiology franchise in St. Louis in the U.S. We took the associated charges, let's say, impairment and restructuring charges that you see in the nonrecurring line for EUR 40 million. Our net financial results improved from minus EUR 9 million to plus EUR 4 million. This was -- it's mainly linked to the positive impact of euro increase on our internal cash flow, so more technical topics. Income tax is at 24.5% effective tax rate, down from 26% last year, but very stable when you look at the recurring part of effective income tax rate. And so overall, our net income group share reported is down 8% due to the REVEAL impairment and associated charges. We have decided with the Board to publish for the first time, an adjusted net income and therefore, an adjusted EPS. We decided that to align with market practice. And actually, some of the -- our investors were asking for that. So basically, the adjusted net income excludes the amortization of acquired intangibles and nonrecurring, but we are very tight on nonrecurring. So with that, adjusted net income and adjusted EPS is up 9% in 2025. By the way, the decision of the Board is to propose a dividend to be voted at the AGM of 0.98% -- sorry, EUR 0.98 per share, which is exactly a 9% increase, in line with the increase of the adjusted EPS. Turning to free cash flow. And Pierre said it earlier, we had a really strong free cash flow generation in 2025, up 40% at EUR 462 million, driven first by an increase in EBITDA, pretty close to EUR 1 billion of EBITDA for bioMerieux now, EUR 960 million, up 5%. Working capital was a negative consumption of EUR 66 million, linked to mainly activity, actually, a small increase of inventory. Almost EUR 30 million increase of receivables. So we collected better when we look at days or overdue, we collect it better from our customers. But of course, we had the higher activity at the very end of the year, so ended up the year with this higher receivables. And in other working capital, we had more payments of social debt, means mainly variable compensation in 2025. Tax. So I commented on the P&L tax with no major change on the tax rate. On the cash tax, there is a major positive impact of the changes of U.S. tax regulation. It's a bit technical, but basically a more acceleration of R&D expense deduction, which drives a significantly lower tax payment in the U.S. in '25 and probably more of the same in '26, and then it will come back to more normal in 2027. In terms of CapEx, we will zoom on it in the next page, but EUR 328 million and 8% of sales. So overall, EUR 462 million, again, free cash flow that you saw. You see we invested about EUR 155 million in business development and financing activities. So business development was SpinChip, Neoprospecta and Day Zero Diagnostics acquisition. And overall, bioMerieux turned now officially into a net cash positive situation on the balance sheet at EUR 108 million net cash. With that, we wanted to give you a zoom on CapEx. So this EUR 328 million is split, just to remind everyone between about 2/3 in what is the usual manufacturing CapEx, as you can see, which supports capacity increase for future growth. Automation, that Pierre mentioned, for especially the manufacturing automation in Salt Lake City, and also internalization. You see here, I have a photo of our ongoing work of a new building in Marcy-l’Etoile, for enzyme manufacturing that were previously built outside. 1/3 of our CapEx is actually instrument placement. So it means it's our investment to put instruments, let's say, for free, more or less, at our customers. Of course, with a slightly higher reagents price, that was total EUR 110 million in 2025. M&A. So we have announced earlier, and its opportunity to discuss a bit more, the acquisition in January of Accellix, a company which strengthens our offering in the Pharma Quality Control segment for the cell and gene therapy market. And we believe it will address new applications and unmet needs in this market. It's basically a point of need. So it's not like clinical. Where we say point-of-care here, we say point of need instruments, which delivers an automated results in less than 30 minutes with lab like quality. It will be used in cell and gene therapy, both upstream when the -- to send the patient blood into production and downstream to verify the success of the operation and thus release the batches. It's a company that we knew. We've been working with them since 2021. We had a minority investment and a targeted distribution of their product. We believe this product range will serve as an accelerator for the Pharma Quality Control franchise inside our GO.28 plan and even beyond. You see the price that we paid, about EUR 45 million for 100% value of the company. And it should be basically around 2029, around EUR 20 million sales and breakeven by that year. And with that, I hand over back to Pierre. Pierre Boulud: Thank you, Guillaume. So it's now a moment to talk a little bit about 2026 outlook. And of course, key product launches to start with. So beyond Accellix, that we are excited to launch the pharma customers, we are finalizing following the acquisition of SpinChip, the CE filing to be CE marked. We expect by the end of the year that we can do a commercial launch end of the year, Q4 '26, maybe Q1 '27. We also wanted to update you on the fact that we have initiated already the clinical study in the U.S. so that we are -- the objective, as we said at the time of the acquisition of SpinChip, to be ready for a commercial launch in 2028 for hs-cTnI with SpinChip in the U.S. The second big launch that we expect in 2026 relates to SPOTFIRE. It's a bit of a strategic launch for us because it will be the first time we go into women's health with vaginitis. It will also be an opportunity to expand the use of the SPOTFIRE platform beyond respiratory and sore throat. The plan is to file during the summer, so that we -- again, depending on the length of the regulatory review, we can launch at the end of 2026, early 2027. Last piece of launch, we had SPOTFIRE available in Europe with what we call the high-plex panel for respiratory and sore throat. We are expecting to have in H1 2026, the CE marking for the low-plex panel, 5 targets, nasal swab, that will allow for European customers to address new opportunities and to use this point-of-care solution with a lower plex panel. And for instance, in France, we had in February, a new decree that allows to do point-of-care testing under certain conditions for certain diseases and the financing still needs to be refined, but it's now regulatory approved to have those panels used outside of the hospital and the labs. So guidance for 2026. We plan to grow between 5% and 7%, so around 6% with an improvement of the EBIT of at least 10%. And if we go to the details of the performance, we expect non-RP to grow around 10%, building on the cross-selling and out of U.S. expansion, knowing that we are, at the end of 2025, we've been growing the non-RP panels 13%. So very much since 2023, so very much in line with the guidance. For SPOTFIRE, we expect to grow our sales by between 40% and 60%, which is very much in line with the trajectory that we have to reach EUR 450 million by 2028. Microbiology, we expect to grow between 3% and 5% with China still declining, but softer than what we experienced in 2025. We are expecting mid-single-digit China decline. That will also come together with a high comparison basis in terms of new instruments, as I said, in Microbiology, we grew instrument sales by 14% in 2025. Industrial Applications, very much in line with the plan between 7% and 9% sales growth. Moving on to respiratory panels. We are actually expecting between minus 3% and 2% and plus 3% evolution, knowing that we had a very strong Q1 2025. So we have a very high comp basis. We were -- just to remind you, we were growing 21% respiratory sales in Q1 2025. So to be -- to keep in mind, for those of you who look at quarterly evolutions, Q1 '26 is expected to be very much impacted by this. In immunoassays, minus 5% to 0% and still a little bit of the same story of PCT in China decline. And finally, last but not least, we expect currency effects to have an impact on the CEBIT. Our estimate at this stage, and we update on a regular basis during the quarter earnings calls, is EUR 50 million to EUR 60 million negative impact. So I leave Guillaume to give you a bit more color on this one. Guillaume Bouhours: Thank you, Pierre. So we tried to update you on our FX exposure. And we know it's a complex topic. So as you all have in mind, we have a very high exposure to U.S. dollar on revenues. But much smaller net of cost on the CEBIT because we have a high cost base in the U.S. We try to give -- and again, its estimates, of course, the impact of a 5% variation versus the euro on the CEBIT. And it's, for example, on U.S. dollar, you can see that if you compare U.S. to India exposure, it's 12x more U.S. than India on the revenues, but it's only 3x more on the CEBIT. So keep in mind that we are much more sensitive to the rest of the world than the U.S. And now beyond this, let's say, theoretical variation, we try to give you a bit of a view on the right on where the current rates and some -- depending on the currency, these are the current rates for the spot ones or the forward rates for the more volatile currencies versus the '25 average. So you see the changes, and therefore, how it translates into a forecasted FX impact. Again, bear with me, they are estimates. So the total today is actually pretty negative, very negative, due to the really, really high euro currency strength against most of the world. And so a guidance which we estimate today between minus EUR 50 million and minus EUR 60 million. And as Pierre said, we will do our best to update regularly these figures during the year. Pierre Boulud: Thank you, Guillaume. And as we have -- we have now, as I was sharing earlier, we have 2 years into the plan. We felt good opportunity to give you an update on our GO.28 ambition. So first of all, I mentioned the CSR new conditions and milestones. We are very much in line, in some cases, above the plans that we articulated before. So we decided, especially on 2 pillars of our CSR ambitions to review towards the ambition. So on the planet side, what we want to do is to expand beyond Scope 1 and 2, which is, as you know, very much the control zone of the companies wanted to add a target with regards to Scope 3, which is the CO2 emissions of our suppliers and our clients. So we'll work on helping them to reach minus 35% by 2034. And we've added, it was approved by the Board, a CO2 net zero objective by 2050, including Scopes 1, 2 and 3. On the health side, we wanted to strengthen the dimension of accessibility in our CSR ambition. So we wanted to make sure that for antimicrobial resistance impacts, we're capable to improve for low-end middle-income countries the results that we provide. As you know, in those countries, there are significant challenges with antibiotics resistance. We want to make sure that bioMerieux solutions are well available there. As well as we've increased the coverage of antibiotics from 80% to 90% because it's very relevant, again, in the spirit of making sure that antibiotic resistance is well managed everywhere in the world. So that's for the CSR ambition. With regards to the more financial ambition, by building on the performance '24-'25 and the guidance that we gave for '26, we are very comfortable to confirm the ambition in terms of sales growth, 7% on average between 2023 and 2028. For the EBIT improvement, we said we would grow at least 10% every year. So for the years to come, we -- based on what we've already initiated in the context of the efficiency program that we have, we are also very comfortable to confirm at least 10% every year. Now with regards to the margin improvement, as you can see, when you put together 2024, 2025 and 2026, we are almost after 3 years, at the level of 340 basis points improvement versus 2023. So we have upgraded it to around 500 basis points to be reached by 2028. I'll remind you, at constant exchange rates at constant scope. And this is pretty much what I wanted to share with you before we go into the Q&A session. Operator: [Operator Instructions] The next question comes from Kavya Deshpande from UBS. Kavya Deshpande: I've just got 2, please. So first, just looking at your group organic revenue growth guidance and comparing it to the flu headwind you've estimated in a very weak respiratory scenario. Is it fair to say that the bottom end of your 5% to 7% range is driven mostly by the flu? And in that case, you would expect no sort of underlying slowdown in the rest of the business? And then just also on your EBIT guidance, so you're guiding in line with your GO.28 plan for at least 10% organic EBIT growth even though the floor of the top line guidance is a bit lower at 5%. So would you be able to share the levers that you have that give you confidence you can sustain that level of profitability, especially if we do end up at sort of the lower end of the revenue guide because of weaker flu and lower contribution from high-margin RP sales? Guillaume Bouhours: Yes. So on the top line, definitely respiratory season that, let's say, decreased, and it's visible in the stats in January. And again, as Pierre said, we are comparing to Q1 2025, which was a high comp basis for respiratory. So yes, when we look at our guidance and the range between 5% and 7%, the main element that could change between the lower or higher performance in this range is definitely the strength of the respiratory season, which we have to remember is actually throughout the year, yes. We see January and February, let's say, lower than last year, but I mean it varies quite a lot. 2 years ago, we were surprised by strength in Q2, Q3. Last year, October, November were pretty low and then December super, super high. So yes, let's see throughout the year overall, and that's what we, let's say, try to take in our assumptions, as you could see on RP between minus 3% and plus 3% depending on the full year. On EBIT guidance, thank you for the question. Yes, definitely, we commit to -- we want to confirm we commit to the at least 10% organic CEBIT growth with sales that can be between plus 5% and plus 7%. So even with plus 5%, it's more difficult. But even with plus 5%, we would commit to plus 10%. Why do we feel confident? Because of our GO.28 plans. As said and as illustrated by Pierre, we have quite a lot of initiatives ongoing, efficiency improvements that we believe we can push, and that will continue to deliver in our third year of GO.28 in 2026. Operator: The next question comes from Aisyah Noor from Morgan Stanley. Aisyah Noor: My first one is on BIOFIRE, specifically the 1,800 placements you made in 2025. This number was strongly ahead of your 2024 number of 1,350. We know that your European competitor also launched a multiplex system in the U.S. in mid-2024. So could there be a dynamic here where you lost some customers to this competitor last year, and they've now come back because those 1-year contracts have run out? I'm just trying to understand if the 450 run rate per quarter for BIOFIRE is sustainable for 2026 or if there were any one-off dynamics here? My second question is on the flu season. So your U.S. competitor has called out a 20% decline in respiratory sales for the first quarter. Does that sound realistic to you? I understand you don't guide on quarters, but given the flu volatility, it would be great to get your insights here. And then my third question is on China. You are guiding to a mid-single-digit decline in 2026. How does this compare between the Immunology and Microbiology business? And what gives you confidence that the decline is due to a weak market and not market share loss to local competitors? I asked this because some of your Chinese -- or some of the Chinese IVD companies are forecasting positive growth in 2026? Pierre Boulud: Thank you. So I can start with the first 2 ones, and maybe we can together with Guillaume and so on the third one. So the 1,800 installation that we've seen, and I remind you, it's a net on, so it's between the tenders we lose and the tenders we win. Very strong performance, but we are not seeing what you are suggesting, i.e., customers would have left in 2024 and come back in 2025. What we're seeing is it's either new customers or customers who increase capacity in terms of testing units in their labs. So it's primarily a signal of competitiveness, I would say, of our solutions in the context of competition that you're describing. So for us, now we don't project, you know, It also depends on the market dynamics. We don't give estimate, as you know, in terms of installations from 1 year to another. But it's definitely a positive. As I shared earlier positive signal on our capacity to grow sales on BIOFIRE in general in the next few years. Flu season, yes, it's complicated to comment the impact of the flu season in the middle of the flu season. But for sure, as Guillaume was alluding to, we are seeing, especially in the U.S., a level of flu season which is below what we've seen in 2025, and I think we should account for that. And by the way, very similar when you look at the data from the CDC website, very similar to the '23, '24 respiratory season, probably mimics this one. So this is what we're looking at. But of course, when we publish the results for Q1, we'll be in a position to share more perspective on what the flu season looks like for Q1. And finally, on China. What we -- maybe 2 words. As you know, it's mostly Microbiology, I would say, in China. We are not seeing a significant shift in market share, to be honest. It's really a market decline. By the way, we've also seen, if you look at the Q4 results, China declining around 5%, mid-single digits. So very much in line with the projections for 2026. So we're seeing the stabilization of the market. So -- but unfortunately, still declining mid single digits. So as we speak, this is what we plan for 2026. I don't know, Guillaume, if... Guillaume Bouhours: Just on the majority of sales, as Pierre mentioned, it's actually 90%, 9-0, Microbiology. So it's really a vast majority, Microbiology versus Immunoassay in China. Operator: The next question comes from [ Rashid Anwar from Infi ]. Pierre Boulud: Let's move to the next. Operator: The next question comes from Hugo Solvet from BNP Paribas. Hugo Solvet: Just on pricing, please, to get a bit more details, what does the FY '26 guide imply for respiratory and non-respiratory, and Microbiology pricing? Have you seen also reagent pricing getting worse, probably sequentially in Q4, Q1, given replacement cycle competitions, and competitors launching products? And second on immunoassays, when do you think would be a realistic timeline for the business to go back to growth again? Guillaume Bouhours: Thank you, Hugo. So the first question is easier than the second one. The first question, pricing erosion. Basically, for respiratory panel, which is the most competitive panel, we have a price erosion, which is below 2% in 2025. For non-respiratory, it's below 1%. It's been -- I mean, as you follow us, it's been very stable actually in the last couple of years, so we don't expect a significant degradation on these front. And beyond BIOFIRE on Microbiology or Industry Applications, we are working on pricing improvement in the same order of magnitude as what we've seen in 2025. So that's for the pricing questions. With regards to immunoassays coming back to flat, but actually Q4 was better. It's only 1 quarter. It's also -- we are still suffering the -- even though it's, we are still suffering the PCT decline, even though it's 17% of immunoassay sales, it's still impacting us significantly less than in the past, but it's still there. And it's still impacting us in China. So we have those 2 headwinds. So as I said, the guidance is minus 5% to 0%. So there is still -- we are still seeing a realistic option to stabilize sales for immunoassays in 2026. But a midpoint, if you wish, for immunoassays is minus 2.5%. Operator: The next question comes from Jan Koch from Deutsche Bank. Jan Koch: I would like to try my luck with the flu season again. Could you help us with the phasing of your sales guidance in 2026? So is it fair to assume that sales growth in H1 and especially in Q1 is below the lower end of your sales guidance, given the tough comps? And then secondly, on the planned launch of the vaginitis panel and the point-of-care market, could you speak a bit about the size and the dynamics of this market? And how does your test compete with existing solutions? And if I remember correctly, your midterm targets for SPOTFIRE only include RP sales. So should we assume that sales from vaginitis come on top of your targeted number? And then lastly, on syndromic testing, one of your competitors has recently received FDA clearance for a GI panel, which detects 11 different pathogens. Since your panel is able to do test for 22 targets, I'm wondering how important are these additional 11 targets you have which your competitors does not have? Pierre Boulud: On the flu season, you want to give a try? Guillaume Bouhours: Yes. On the phasing of sales guidance, so definitely not balanced. It was not in -- because it was not on the -- the comparative basis is not balanced. We had a very strong Q1 last year, so a very high comp basis in Q1. So obviously, yes, Q1 should be lower than the full year guidance, of course. And then Q2, Q3, Q4 should -- we will see in these quarters, but should be higher than the average overall. That's very clear. Point-of-care, maybe the prospects, Pierre? Pierre Boulud: Yes, vaginitis and, high-sensitivity troponin. So what we have said is when we get very close to the launch, at the time of the launch, we'll probably update the market on the expectations in terms of sales, in terms of market share, and giving a sense of how our products compare with the competition. Obviously, it's also depending upon the label that we get from the regulatory authorities. So as soon as we are ready to launch, we'll share with the market perspective. We don't expect a significant impact of vaginitis in our sales forecast for SPOTFIRE. GI panel, I was not sure I was fully getting the question because there are a number of GI panels in the market actually. What we've done last year, actually, what we did in 2025 was we launched a midplex, so 11 targets panel on GI, and we had a 22 panel for higher plex, when we need to have -- when the doctors want to have a more comprehensive review of the potential pathogens. So we believe we have the portfolio for GI that allows to compete and to address the competition. Yes, that's basically what I can share on the GI panel. Operator: The next question comes from the Natalia Webster from RBC. Natalia Webster: The first one on microbiology. You reported double-digit growth in blood culture, reagent sales and mid-teens sales growth in instruments. How much of these are coming from competitive wins? And are you able to provide more detail on the wider market environment for blood culture? And if there's been a change to the lower utilization that you reported previously? And then the second question, just on that 3% to 5% Microbiology guidance. Do you see this as conservative given the 8% growth that we saw in Q4? And sort of how much of that range is dependent on China performance specifically? And then finally, on SPOTFIRE, on your 900 placements in Q4. Have these predominantly been driven by McKesson versus those in hospital settings? And are you able to provide an update in terms of what you're seeing in the uptake of 5 versus 15 plex panels? Pierre Boulud: Let me start with the Microbiology questions. So yes, we're very pleased with the good dynamics in terms of instruments, which we believe confirm the leadership that we have taken in Microbiology. There is within those numbers, competitive wins, but to be transparent, especially since we have a leadership position, a number of those installations are also replacement of all the instruments. So we don't communicate or share exactly what's the split, but it's definitely good dynamics in terms of future reagent growth. The 3% to 5% guidance, you're right, we did actually a very strong performance in Q4 with 8% growth. But there was a little bit of a rebalance with China, which was declining less. And also, as I said, very strong instrument sales that we don't expect to happen again. So we are very comfortable with the 3% to 5% guidance for Microbiology. That's what we believe should -- we should see in 2026. Finally, SPOTFIRE placements, 900 installations, Guillaume? Guillaume Bouhours: So overall in the U.S., for the U.S. part, yes, the majority, about 2/3 were actually driven by McKesson. You've seen we put on the slides that in terms of installation, we put on the slide that in terms of sales, the indirect channel is now 60%. It grew very nicely. It's a successful partnership. It grew very nicely, this part in 2025. And I think the second part of your question, if I heard correctly, was about the mix effect inside SPOTFIRE. We have now a balanced sales, 50-50 between the 15-plex -- with therefore a growth of the share of 5 plex in '25. Pierre Boulud: Okay. Yes, please. Natalia Webster: Sorry, just to follow up on the Microbiology blood culture as well, whether you're seeing an improvement in utilization there? Pierre Boulud: Sorry, your question is, do we see a degradation? Improvement? Yes, it's too early to say. As you know, I think you probably referred to the Waters closing the acquisition of BD. You know, we are obviously, we're watching it, and it's a bit early because it just closed. We'll see what's the impact in terms from a commercial perspective with regards to new deals. But as we speak, what we're seeing is very much the continuity of very strong performance. Just to highlight, our 8% growth in Microbiology, I mean, I don't think we have the details for BD, but I think they've communicated a decline of diagnostics business by 10% in Q4. So we see the performance, even though we are disappointed with the overall performance in 2025 in Microbiology, which as you know, it's below initial guidance. We're seeing it as actually a very positive competitive evolution in the market. Okay, moving to some online questions. So we have 4 questions from Christophe Ganet of ODDO. Inflation of personnel cost, what should be the most likely pace of evolution for 2026 and 2027? What is the installed base of BIOFIRE FILMARRAY full year? What is the level of price effect on FILMARRAY in Q4 and full year? And the last one, can we have an update on savings efficiency plans in terms of million euros? And what is the rest of the journey up to 2028? Guillaume Bouhours: So I can take some of those. Thank you, Christophe Raphael. So inflation of personnel cost. So basically, with our global footprint and of course, more weight of U.S. and France, we see kind of average, we call it merit increase or I think inflation of personnel cost around 3.5%, to give you an idea. To come back to the other question, the level of price effect on FILMARRAY. So as we said earlier and just to repeat on the respiratory panels, we see a price erosion below 2%, and that's been -- there's no significant acceleration on the quarter. It's a regular and consistent trend. And on non-respiratory, the price erosion is actually very minimal. It's below 1%. Savings and efficiency plans due linked to GO.28. So actually, we have never reported in million euros. As we said from the start, we measure it through our CEBIT margin increase. You saw that, as Pierre said, after 2 years and when we had our target of '26, we will have likely, let's say, delivered the 340 basis point of organic margin improvement that we were targeting in 3 years instead of 5. So as Pierre stated, we have actually logically increased the 5-year target to 500 basis points organic improvement versus 340. So we still have -- it's also to be very clear. It's not the end of the journey after very well delivering in '24, '25 and likely, '26. It's not the end of the journey. We still have a lot of topics ongoing. Some of our initiatives have delivered earlier than expected. I'd like to mention in '25, the procurement savings. We gave the numbers, it's quite a number of millions delivered in 2025. Some of those were ahead of our plans. There are other topics that are more, let's say, going to produce their effects in '26, even some in '27, and we have plans even, I can tell you, for initiatives that are in the making that have preparation steps in '26 that will actually deliver full year '28. So with that, I would say, rest assured that we still have a number of positive effects from GO.28 plants that are to come in this 500 basis points improvement. Pierre Boulud: And the installed base of BIOFIRE is 28,500, right? End of '25. Guillaume Bouhours: One question from Arnaud Cadart, CIC. What about the recent decree authorizing the point-of-care testing in France? What are the business opportunities for bioMerieux and what could be the update? Pierre Boulud: Yes. So it's a very recent development, very French, but very recent development where we are seeing that's good news, good news for the patients, good news for the business. That is now in France a decree that allows to do point-of-care testing. So it's organized, and it depends on the disease. It also depends on the settings. It's not -- yes, it's a very regulated and organized way, but still allows to do testing outside of the lab. There are 2. Obviously, SPOTFIRE is impacted, but also SpinChip for myocardial infection could be authorized, but also the respiratory test, especially for elderly patients in the -- we call them EHPAD, in the houses for elderly patients. So there are -- those opportunities are opening. The decree was published actually 2 weeks ago. So we still need to work together with our clients on what it means. And as it sometimes happens in France, it's authorized, but it's not funded. So there is a funding mechanism to also organize and refine. So we are working on it, but it's very positive news that the market is opening outside of the U.S. and Japan to point-of-care testing. So we see how it goes. Guillaume Bouhours: Another question from Arnaud. What loss to expect in 2026 at the CEBIT level from the recently acquired company? It was around minus EUR 20 million in 2025. Pierre Boulud: So basically, the company is acquired in '25 and especially SpinChip, which is a major one, was in January 2025. So it's now embedded as an organic contribution in 2026. So it's fully embedded in our figure and in the target of plus 10% organic in 2026. The one that will be on the scope change is actually Accellix, which will be a loss for the first year, probably a few million euros of losses contribution in 2026. I remind you, we have said that we will target a breakeven in 2029 for this group.. Guillaume Bouhours: Okay. One question -- 2 questions from Charles Pitman-King from Barclays. The first 1 is on the BIOFIRE non-respiratory panels. With the increase in competition in the U.S., will the recent launches of the GI Mid and WATCHFIRE panels be sufficient to maintain double-digit growth as the installed base matures? So this is the first question. The second one is on tariffs and pricing. So we are projecting for 2026, a negative currency impact of minus EUR 50 million to minus EUR 60 million on CEBIT. We assume the 15% U.S. tariff rate, and we mentioned the procurement savings in full year 2025. So the question is, could you elaborate on the mitigating actions being explored to protect margins? And to what extent price increase could be further leveraged in a more cautious hospital spending environment? Pierre Boulud: I'll take the first one, Guillaume, you take the second one. For non-respiratory panels. So basically, the -- you're right to say that the recent launches of GI Mid and WATCHFIRE are not going to be sufficient to maintain high -- to maintain double-digit growth. And I mentioned, we've actually grown the installed base by 7% in '25 only. So the main driver for growth, actually not market share, it's market growth. We expect the market on non-respiratory panels to keep growing, be it meningitis, be it blood-culture infections, be it GI, pneumonia. So all those markets are growing actually faster than regulatory panel. We are the only ones with such a broad menu of panels. Best competitors have 3 to 4 panels. We have 7. So we keep working on cost savings, expanding the market and the growth of the installed base, which is, again, 7% in 2026 versus 2025. Guillaume Bouhours: So that's tariffs pricing. Actually, there are a lot of sub-questions in this question. So I think FX impact, we give visibility. Tariffs, we have not discussed. So thank you. It's a good opportunity. The impact in 2025 was approximately EUR 10 million, EUR 11 million exactly in our P&L of additional U.S. tariffs that we had to pay, mainly in H2. What we see for 2026 and that we have embedded in our guidance is about a bit more than double that, EUR 20 million, EUR 24 million. This impact is after the negotiation with our suppliers who take, let's say, their own share and we take out. But it's before, let's say, the effects of price increases, which are not specific to tariffs, of course. On price increases, just to mention that we have, as Pierre said earlier, you know that where we can push on price is in Microbiology and Industry Applications. It's not easy, but we are disciplined to do that. Around 2% in Microbiology and Industry Applications in '25, and we should be ballpark in the same target in 2026. And then there are many other, let's say, actions on the margin improvement, we call them efficiency improvements, as part of our GO.Simple pillar of GO.28. And as I mentioned earlier also, they are part of the margin improvement that we have that we have in our guidance, and that we have even improved for the 2028 target to 500 basis points over the 5 years. Okay. Moving to the live question. That should be a question. Operator: The next question comes from Philip Omnou from JPMorgan. Philip Omnou: Can I just ask, given your net cash position, can you share an update on your capital allocation priorities? And then how are you thinking about opportunities for larger scale M&A? And then my second question, maybe going back to your comments on the margin. But if we just think about the bridge for '26, how should we think about that balance of margin improvement coming from operating leverage or mix and cost efficiencies? Pierre Boulud: So I can start with the capital allocation and M&A. Basically, our strategy is very much to continue what we've been doing, i.e., we call them bolt-on acquisitions. We have strong balance sheet. So we are looking at companies that bring differentiated solutions that support our core business. And that's very much the continuity of it. We are very much in that spirit. And Guillaume mentioned it, we are going to increase our dividends by 9%, which is also a way to give cash back to the shareholders. So it's the other element I would mention on capital allocation. With regards to 2026 margins improvement? Guillaume Bouhours: So it's actually mainly a cost efficiency initiative on top of, of course, of volume growth and, let's say, the scale effect that comes with it. We'll see on the mix. But when you look at it overall, especially with the RP, that could be, again, around neutral. It's not the mix effect that drives the margin improvement. It's mainly our own initiatives. And let's say, yes, proper cost management and cost control. Okay. One question from Maja Pataki. On the vaginitis panel, can you share how it compares to what is in the market now? And how should we see about the pace of uptake? What's the biggest difficulty with the rollout? Pierre Boulud: So it's too early to share the details of the vaginitis panel, and we'll -- when we get closer to first of all, the filing and then the approval, we'll share more details. But what I can share is we're excited actually with the vaginitis panel because it will be an opportunity to leverage the very unique features of SPOTFIRE outside of respiratory and sore throat. So we expect time to results to be very competitive, and we expect the plexing capacity of SPOTFIRE to bring an additional differentiation to what exists in the market. So time to result, point-of-care, plexing capacity, as you know, we like to launch products at bioMerieux that are differentiated. So we'll come back to that, but we expect to launch a differentiated solution in the field of vaginitis. Guillaume Bouhours: Okay. And with that, we can close the call. So we'll be on the [ road ] next week, so we will have the opportunity to meet with some of you. And our next call will be on April 23 to comment on Q1 sales performance. Pierre Boulud: Thank you, everyone. Guillaume Bouhours: Thank you. Bye-bye.
Jose Domecq: Good morning, ladies and gentlemen. Welcome to the ACCIONA's 2025 Results Presentation. Let me first introduce my colleagues. On the table to my left: Arantza Ezpeleta, CEO of ACCIONA Energia; to her left Raimundo Fernandez Cuesta, Chief Financial Sustainability Officer at ACCIONA Energia; to my right, Jose Angel Tejero, Chief Operating Officer at ACCIONA; and to his right; Jose Entrecanales, CFSO, Chief Financial and Sustainability Officer of ACCIONA. Before reviewing the performance of each division, let me briefly frame the environment in which we're operating. It is a volatile and fragmented context with shifting trade dynamics and technological anxiety. Governments continue to prioritize energy security, climate adaptation and investment in critical infrastructure, which translate into a stronger, more investable pipeline across our core business. Infrastructure including energy, of course, is no longer only about development. It has become a cornerstone of competitiveness and resilience. Energy security, cost and availability are the main constraints to industrial and technological development, while water and transport are critical in helping societies withstand climate-related disruptions and sustained growth. This is not a cyclical rebound but a structural shift. Rapid urbanization, accelerating electrification, digitalization and the renewal of aging assets are converging into what may be described as a global infrastructure super cycle. Estimates suggest that closing the global infrastructure gap will require several trillion dollars per year through 2040 across our main strategic segments, energy, transport, water and social infrastructure. At the same time, public budgets are constrained while private capital continues to seek long-duration derisked opportunities, supporting infrastructure as a mature and attractive asset class. ACCIONA is one of the few players with an end-to-end platform spanning development, engineering, construction, operation and long-term ownership across multiple infrastructure and energy solutions. This is already translating into strong results and record backlog visibility. 2025 was a good year, where we achieved record EBITDA of EUR 3.2 billion, representing a 31% year-on-year increase and exceeding the EUR 2.7 billion to EUR 3 billion target range set at the beginning of the year. This was driven primarily by a very strong performance of Nordex, together with a solid contribution from our Infrastructure division and the successful execution of our asset rotation strategy. In this regard, ACCIONA Energia to be a structural pillar of the group, generating EBITDA of over EUR 1.5 billion. Our infrastructure aggregated backlog exceeds EUR 120 billion with a particularly strong increase in future concessions, driven by managed lanes in the U.S. and is expected to grow further in the coming months following the pre-award of a 35-year water sanitation concession in Brazil. In energy, fundamentals remain supportive. Electricity demand is rising. Energy security is now a political priority. And what was once a green premium is increasingly becoming a green discount as renewables combine lower LCOE, levelized cost of energy, and less fuel price volatility than fossil generation in many markets. ACCIONA Energia has an approximately 22 gigawatt pipeline, while Nordex reached an all-time high backlog of EUR 16 billion, positioning the group to capture demand selectively and profitably while providing a clear example of how structural demand is translating into tangible results. The same demand for wind continues to be structurally supported by electrification, rising global power consumption, repowering mature markets and the growing strategic imperative for secure, locally sourced and independent energy supply, which more than offset somewhat weaker climate policies, particularly in the U.S. And the numbers back it up. Global wind turbine order intake reached 215 gigawatts in 2025, which is the second highest level ever recorded. In this context, Nordex is today the undisputed leader in Europe with almost 50% market share and the second largest global wind turbine manufacturer outside China. But let's not forget, Chinese competition is harsh and not always playing by the same rule book than European or Western manufacturers. We need to bear that in mind when protecting and promoting our few industrial champions. Those structural tailwinds continue to support our renewables platform, ACCIONA Energia. In 2025, we met our EBITDA target for the year and delivered strong progress in value crystallization with asset rotation transactions totaling EUR 3.2 billion and approximately EUR 900 million in capital gains since we launched our rotation program in 2024. Electricity demand is increasing well above historical averages driven by electrification, data centers, artificial intelligence, electric mobility and the reshoring of industrial activity. Renewables are indeed the cheapest and quickest to deploy source of new power in many markets. Improving storage economics are expanding the bankability of hybrid solutions and supporting more dispatchable renewable energy, reinforcing energy security and long-term investment effectiveness. This momentum is translating into tangible progress across our pipeline. We secured awards in PPA auctions in the Philippines and Italy. We reached financial close on 2 wind projects in South Africa with strong returns and improving battery economics enabled and attractive large-scale storage project in Chile. Beyond storage, we are actively advancing opportunities in repowering and data centers, strengthening the quality and optionality of our development pipeline and as always, prioritizing profitable growth. Despite the combination of extraordinary effects, including weaker-than-expected resource, some COD delays and the accelerated execution of our asset rotation, which resulted in a lower EBITDA contribution from the assets sold during the year, overall, our energy business performance was resilient. And we strengthened our portfolio quality, the visibility of our results while deleveraging and maintaining our credit ratings. Looking ahead, our strategy continues to evolve from capacity buildup to a more selective growth strategy. 1.3 gigawatts of projects already are committed until the end of 2027 while crystallizing value through asset rotation. Turning to Infrastructure. Population growth, as I was saying, urbanization, decarbonization and aging assets in general continue to drive demand across transport, water and social infrastructure. In this environment, the market favors integrated, technically led partners with proven global execution capacity, rigorous risk control and balance sheet strength. ACCIONA Infraestructuras performed strongly in 2025 with the largest project pipeline in its history. Construction maintained solid profitability with margins between 6% and 7% and around 80% of the order book with risk mitigation clauses supporting our healthy outlook. We achieved key milestones across our priority markets. As in North America, we reached the financial close of the SR-400 Managed Lanes project in Atlanta, and we were awarded the Eglinton Crosstown West light rail Extension in Toronto under a collaborative contracted model consistent with our disciplined risk approach. In Australia, we reached financial close of Central West Orana and continued progress in the Western Harbour tunnel, reinforcing the scale and complexity of our platform. In Latin America, we advanced flagship projects such as the Line 6 in the Sao Paulo Subway Grid and expanded our concession portfolio in Peru. Water also made very strong progress with EBITDA growing 50% in the year, driven by the efficient and faster-than-expected execution of key projects such as the Collahuasi and Casablanca desalination plants that's Collahuasi in Chile and Casablanca in Morocco. In Brazil, in sewage and water, we continue to build a strong platform with a pre-award of the Pernambuco concession alongside additional awards that reinforce the country as a strategic market for our Water business. Taken together, these results confirm our ability to translate structural demand into delivered complex projects, supported by disciplined execution and rigorous risk management. Other businesses also delivered solid progress with Bestinver managing EUR 8 billion in assets, supported by positive net inflows and continued progress in the alternative asset portfolio and top-tier investment performance. In Real Estate, we continue to rationalize our capital employed asset classes and geographical focus, while delivering record returns. Silence, while still far from breakeven, increased its unit sales by 41% in 2025 and continue to lead its categories, both in electric scooters and micro cars. Our Services business has reached a record level of activity, delivering all-time highs in both sales and margin contribution. In an environment where skilled labor in the Western economies is becoming increasingly scarce and costly, a trend that I expect will continue to intensify. Our services platform, with a workforce of more than 20,000 employees, provides a significant competitive advantage serving not only our own projects but also acting as a trusted workforce partner to third parties across multiple sectors and regions. In summary, demand for our assets and for our solutions remains very strong. We operate at the heart of structural trends, supported by an integrated platform, record backlog visibility and the capabilities required to convert opportunities into sustained long-term value. With that overview, let me now hand over first to the management team of ACCIONA Energia, followed then by the rest of the group, who will take you through a detailed operational and financial performance of '25. Thank you very much. Arantza, please. Arantza Ezpeleta Puras: Thank you, Jose Manuel. Good morning. 2025 has been a year of good progress across many fronts, particularly on asset rotation, credit rating protection and preparing the company for a new and more balanced period of growth. On the less positive side, output has been much lower than expected due to the ramp-up of new capacity, lower wind resources on markets and some asset rotation deals closing ahead of the schedule. This has translated into EBITDA from operations somewhat below our initial targets. The priorities we set for 2025 were aligned with our strategic adaptation announced in early 2024 around a more flexible and sustainable growth pace, asset rotation as a new business and source of funding and the protection of our investment-grade credit profile. With respect to asset rotation, our target for the period 2024-2025 was to deliver EUR 3 billion of disposals in total. In 2025, the objective was to complete the sale of the hydro assets to Endesa signed at the end of 2024 for around EUR 1 billion and agree and complete another EUR 1.5 billion to EUR 1.7 billion worth of additional transactions. All of this was oriented towards reducing our leverage and stabilizing the credit ratios within investment-grade threshold as well as generating significant P&L gains and show through the value of our asset base. In 2025, we signed incremental transactions of EUR 1.9 billion, two of which will close in 2026. Overall, disposals completed during the year amount to approximately EUR 1.8 billion, including the sale of the hydro assets to Endesa signed at the end of 2024. The impact on our headline net debt was EUR 1.1 billion when we take into account the debt that was already classified as held for sale at the end of 2024. EBITDA from asset rotation in 2025 amounted to just over EUR 600 million. All in all, that is EUR 3.2 billion of disposal during the last 2 years generating approximately EUR 900 million in total gains. The only caveat is that the U.S. Mexico transaction with Mexico infrastructure partners and the sale of our interest in our two South African operating assets will close in 2026. The timing of these 2 transactions has resulted in net debt at year-end not fully reflecting the huge effort made on the asset protection front. Both rating agencies, DBRS and Fitch, maintained their investment-grade ratings. This was another key target for the year. Still Fitch moved its outlook from stable to negative, reflecting the delay in materializing the disposal proceeds and the somewhat weaker cash flow due to the low output. This is something we will address in the current financial year. The other key chapter in our priority list was the addition of close to 1 gigawatt of new capacity during the year and the commissioning of approximately 2 gigawatts of capacity constructed the year before, reducing our work in progress. Here, we installed 532 megawatts of new capacity, having decided to put on hold construction of 2 U.S. battery storage projects representing 400 megawatts and which were expected to add 350 megawatts in 2025. Key highlights here include the completion of Tahivilla, our second wind repowering project in Spain, the construction of our 50-megawatt biomass plant, Logrosan, the completion of Aldoga PV in Australia, Forty Mile wind in Canada and progress in the construction of Pedro Corto in the Dominican Republic. We are somewhat down on our adjusted target of 300 megawatts of new capacity a year without the U.S. battery projects due to the slower progress on Kalayaan II in the Philippines and Pedro Corto in Dominicana. On the commissioning side, the ramp-up phase has proven more complex and difficult than expected, particularly in MacIntyre. The initial contribution from these assets has fallen significantly short of our expectations as a result. We have faced technical problem in some assets like MacIntyre, Forty Mile and a faulty transformer at Juna in India and several climate-related events. Most issues have been already resolved, and we will work through the rest over the course of 2026. Commissioning of the Logrosan biomass plant is underway and MacIntyre is undoubtedly our biggest task for the year. MacIntyre has been going through the complex outselling grid compliance process with many whole points to pass. And recently, that issues have surfaced that we believe are related to damage costs during transport. We have already started to repay the first test of blades while we continue with inspection across the wind farm to assess the full extent of the problem, and we are also developing a recovering plan. And our objective would be to commission the plant in full by year-end. In summary, the slow ramp-up, together with a low wind results in some markets and the closing of asset rotation transactions ahead of schedule have resulted in consolidated production of 24.4 terawatt hours, and EBITDA from operations below our target even if average capture prices of EUR 62 per megawatt hour were higher than expected, thanks to Spain. A very healthy level of capital gains from asset rotation of more than EUR 600 million has resulted in satisfactory total EBITDA above EUR 1.5 billion within the range we set at the beginning of the year. Finally, in our priority list, we also wanted to secure a good set of development opportunities to fuel our growth in 2026 and provide as much visibility as possible for 2027. We think 2025 has been a good year for us on this front with 1.3 gigawatts of projects under FID, with FID under construction already or soon going into the construction phase. On the next slide, you can find a summary of the main asset protection figures for the period 2024 and 2025 for your reference. Let me move to the next slide. In this slide, we have laid out where we see the main opportunities and priorities for the year. On the opportunity side, we see a gradual acceleration in our growth with around 700 megawatts of expected capacity additions in the year relative to the 500 megawatts the year before. This is part of the current batch of projects with FID currently under construction or about to start, which add up to over 1.3 gigawatts of capacity to be installed during this year and next. During the last 3 months, we have been revisiting our project pipeline and reevaluated our development strategy. I will cover the new development strategy and some delays in a minute. On the priorities, a key objective for the year is to regain our stable outlook with Fitch ratings, and we have next 10 months or so to achieve this target. Critical for this objective is to close the transaction that were announced at the end of 2025, the U.S., Mexico deal and the sale of the South African assets, but also signing and closing an additional around EUR 1 billion of disposals, taking the total debt reduction from rotation to around EUR 2 billion. We're going to put a strong focus on the delivery of the projects under construction on budget and schedule. The full commissioning of MacIntyre and other assets like Logrosan are very high on our priority list. With respect to Southeast Asia, we acquired the majority of The Blue Circle last summer, and our key focus is on the Philippines with 2 assets under construction and a development pipeline including offshore wind awaiting for coming up auctions and PPAs opportunities. We are constructing wind in Thailand and facing regulatory challenges in Vietnam. Efficiency is also an important part of our focus in 2026 with a plan to cut corporate overheads in a material way. We are also reevaluating some of our nongeneration businesses from a strategic and financial perspective apart from the new plans that we have for the energy services activity. We're also considering selected opportunities to invest in battery storage. In Chile, we are about to start construction of the Malgarida, 200-megawatts, 5 hours battery and have the rest of our PV plants to consider hybridizing with returns that look very attractive, given the reduction in the battery storage CapEx cost and the night and day price different sales and capacity payments and curtailments faced in the North of Chile. On the repowering, we continuously review the older section of our asset fleet for opportunities without estranging from our core and distinctive life extension strategy. In the next slide, I want to briefly talk about the streamlining of our development pipeline and our new strategy for the development activity. With respect to the pipeline, we have optimized our development pipeline to 20 gigawatts. It builds upon high quality of projects, geographical and technology diversification and aims at preserving ample flexibility to adapt to quickly changing trends in markets and growing renewable energy saturation. This pipeline, we believe, is an excellent base from which to build upon under new strategy for development activity. Our aim is to attain a level of 1.8 gigawatts of investment opportunities per annum over time, whether these opportunities are for our own book or for third parties. This should allow for ACCIONA Energia to extract full value from its development footprint and expertise and provides the opportunity to maximize early stage development and greenfield opportunities independently of ACCIONA Energia investment capacity or strategy at any given time. And besides, if we have more capital, we can fully utilize this development capacity for ourselves. In the next slide, you can see the projects that we will be delivering capacity during 2026 and support further growth acceleration beyond 2026. These projects totaled 1.3 gigawatts and have contained FID with a strong return expectations at the upper part of our spread over WACC thresholds. We've tied and succeeded in recent government auctions in Italy and the Philippines: a 20-year Italian state contract for differential with no curtailment support the construction of Panbianco and Benante PV plants. On the Philippines green energy auction, also with 20-year contracts, we'll give visibility to Kalayaan II wind projects and Daanbantayan solar PV. We have also managed to structure one of the first set of private wind energy PPL base in South Africa with Zen and Berg River, which recently completed a lengthy and complex financial process. The Promina PV plant in Croatia is starting its construction and is supported by a government 12-year PPA award at the 2024 auction. In the Dominican Republic, the Pedro Corto PV plant is underway, also covered by a 15-year PPA with one of the local distribution companies. And finally, we are back to investing in Chile with the 1,000 megawatt hour battery storage project at our Malgarida PV site that I was referring before, which expect to deliver double-digit project returns and an excellent fit within our generation portfolio risk profile in Chile. All in all, without wanting to sound overly optimistic, we detect some improvement in investment conditions for renewable energy as long as you have the ability to move fast from a market to another and are happy to discard projects that are subpar. We have also renegotiated a number of PPAs related to a project under construction and 2 development projects, resulting in a satisfactory and balanced outcome for all parties. Challenges remain. This is intrinsic to our business, and we will have to control increase in module prices resulting from Chinese changing government policies and constructing some of our projects in more complex locations, like Southeast Asia. And with that, let me now hand over to Raimundo. Raimundo Laborde: Thank you, Arantza. I wanted to start with our priorities in terms of leverage and credit ratings. In this next slide, we show you our indicative uses and sources of funds for 2026. We expect to generate around EUR 0.5 billion of operating cash flow, and we target proceeds from asset rotation of EUR 2 billion. With CapEx below EUR 1 billion and very limited dividend distribution this year, we target reducing debt by around EUR 1.5 billion, which would allow us not only to protect our ratings but to return to stable outlook with Fitch, which, as Arantza just said, is one of the key priorities we laid out for the year. In terms of asset rotation, as discussed, we're expecting to close the South Africa and the joint U.S. Mexico asset deal during 2026, which will bring around EUR 900 million of incremental debt reduction, and we plan to agree and close another EUR 1 billion or so in new asset rotation transactions during the year. These additional transactions are already in the market or we are preparing to launch several others to ensure we have good headroom and flexibility to deliver the targeted amounts. We are considering assets both in Spain and abroad across different technologies and transaction structures, whether this is outright sales or minority partnerships. With respect to CapEx, we estimate it will amount to around EUR 900 million, which compares to EUR 1.4 billion in 2025, which also included a significant net CapEx deferrals, including the payment for the Green Pastures wind farms acquired at the end of 2024. In 2026, there is limited net CapEx deferral as levels of activity have moderated and investment converges more closely with capacity additions. CapEx related to projects under construction should be somewhere between EUR 0.5 billion and EUR 600 million or so. This is what is committed. We're budgeting another EUR 200 million or so for new projects for '26 and '27. So this is projects that don't have an FID yet, but we're assuming that we will have FID by year-end and start spending some CapEx. And this is over and above the 1.3 gigs that we already have committed. And apart from CapEx related to identified and yet to be approved projects, there is investment in the development pipeline as well as in energy services, EV charging networks, IT and other. So let's move to the next slide with the 2025 results highlights. Consolidated capacity fell by 5% from 13.6 gigs to 12.9 gigs with capacity additions of 0.5 gigawatts and asset disposals of 1.25 gigawatts. Revenues are down 4% to EUR 2.925 billion, of which EUR 1.5 billion correspond to generation revenues, which fell 8% year-on-year on lower average prices at EUR 62 per megawatt hour. This was down 10% year-on-year and consolidated output of 24.4 terawatt hours, which is 2% higher than the previous year. Total EBITDA reached EUR 1.546 billion. This is 38% higher than the previous year. EBITDA from operations is down 11% to EUR 932 million, while EBITDA from asset rotation amounted to EUR 614 million. This compares to EUR 73 million in 2024. The rotation gains correspond for the most part to the Spanish hydro and wind disposals completed during the year. Profit attributable to the shareholders of ACCIONA Energia reached EUR 655 million. This is up 83% year-on-year. In terms of cash flow and net debt, net investment cash flow amounted to EUR 372 million with CapEx of over EUR 1.4 billion compensated with approximately EUR 1.1 billion of asset rotation proceeds. Net debt stood at just under EUR 4.2 billion. This compares with EUR 4.1 billion at the end of the previous year with debt associated to assets held for sale at the time of EUR 821 million. These assets have been sold already, and the net debt held for sale at the end of 2025 is just EUR 50 million. So there is a very significant reduction in underlying net debt. Moving to the ESG results and highlights for the year. I would highlight that 100% of the CapEx continues to be aligned with the EU Taxonomy. On the environmental side, our Scope 1 and 2 emissions have fallen by 12%, reflecting, in part, our efforts to decarbonize our vehicle fleet through electrification and use of HVO. We have avoided also significant new emissions by using HVO in the Lograsan biomass plant, which was firing its boiler to clean and test it. We have also reduced 100% of slag and ashes from our biomass plants, this is the primary source of our waste, and this represents almost 85% of what we do. With respect to social, we are pleased to report no fatal accidents, whether our own employees or contractors. And the frequency index stood at 0.37, which is below our 0.4 target for the year. On the next slide, on summary of investment, you can find the detail of our investment during the year, EUR 1.4 billion, as we discussed, including EUR 505 million of net CapEx deferrals including the price for the Green Pastures wind farms acquired the previous year as well as the tail end of payments for projects such as Aldoga, Forty Mile and MacIntyre. Investment has been concentrated in North America; also in Australia, Aldoga and MacIntyre as mentioned, the Tahivilla and repowering in the Logrosan biomass plants in Spain; and elsewhere, we have the Juna plant in India and Kalayaan II in the Philippines as well as the acquisition and consolidation of the other half of The Blue Circle joint venture in Southeast Asia that we did not own. On the next slide with the net debt evolution. With respect to the cash flow movements that drive net debt, here, we show operating cash flow of EUR 373 million, net investment of EUR 372 million, which is made up as discussed of EUR 1.1 billion of net disposal proceeds and EUR 1.4 billion of CapEx. Dividend last year amounted to EUR 143 million. And all of this resulted in EUR 4.2 billion of net debt at year-end. It's important to highlight the reduction in debt associated to work in progress, which stood at EUR 1.8 billion at the end of '25. And here, MacIntyre represents around EUR 1.1 billion of work in progress, and Logrosan plant which has been commissioned right now, that is another EUR 190 million. So as these assets come online, we expect a further significant reduction in work in progress. Moving to the operating results of the Spanish and International fleets, starting with Spain. In this slide, you can find the revenue drivers for the Spanish business. Volumes fell by 24%. This is mostly the result of the hydro asset disposal in late 2024 and early 2025. Disposals in Spain detracted more than 2.2 terawatt hours of output, and we also had lower wind resource, which meant a reduction of 0.5 terawatt hours relative to where we should have been. Merchant output represented 165 gigs of consolidated production. In terms of prices, the average recorded price amounted to EUR 76.7 per megawatt hour. This is flat year-on-year and higher than we expected initially. We have particularly good covariance in 2025, including very high capture prices in the hydro output while we had these assets with us and also in the wind perimeter. And also, the regulatory accounting contributed more than expected, including some EUR 20 million of positive one-offs in the banding mechanism. You can see that hedging is less of a driver as our short-term and long-term hedges have converged to prices more consistent with the current power price environment. Whereas last year in 2024, we still benefited from short-term hedges closed in the tail end of the energy crisis at more than EUR 90 per megawatt hour. In the next slide with the Spanish operating results. Revenues in generation fell by 24% to EUR 648 million. In this slide, you can see generation EBITDA of EUR 341 million, down 26.6%, and total EBITDA from operations at EUR 327 million relative to EUR 443 million the previous year. In the chart, you can see how EBITDA was impacted primarily by the loss of output and contribution from the large asset disposal transactions and, to a lesser extent, by the lower output on a like-for-like basis. Including asset rotation gains, EBITDA in Spain reached EUR 933 million, which compares against EUR 504 million the previous year. On the next slide, on the International revenue drivers. Output increased by 26% to almost 16 terawatt hours, principally due to new capacity in operation, which added 2.6 terawatt hours of production. And this is some improvement in output as well in the existing operating asset base during the year. Key growth assets include Forty Mile, Green Pastures, Union and Red-Tailed Hawk in North America. This is the region which shows the largest increase in output, and MacIntyre and Aldooga in Australia, which increased its output by more than 80%. In terms of prices, average capture prices fell by 12% to EUR 54.1 per megawatt hour with lower prices in most regions, particularly the U.S. and Australia, which saw very high prices in 2024. The underlying performance of Chile is very good. As last year, the average price contained extraordinary recovery of PEC tariff deficits for around $40 million embedded in that price. So the underlying performance is quite good, actually. International generation revenues increased 10% by EUR 862 million. And on the last slide in the ACCIONA Energia section, international operating results. Generation EBITDA increases by 5.6% to EUR 605 million, better output and contribution from the new assets, and we had negative impact from FX. In terms of the key geographies that are notable, we have the U.S., which grows on the large increase in new capacity, and that is despite the lower prices. Mexico grows on better prices and output, and 2024 production was very weak. Chile has performed well, again, taking into account extraordinary PEC revenues of $40 million in the previous year. Output was poor, but we have seen better PPA margins and slightly higher injection prices in PV. Australia improved, thanks to the large increase in volumes and despite lower prices, but should have been better. While Aldoga reached COD ahead of schedule, MacIntyre was behind us as discussed. And this concludes the review of ACCIONA Energia operating results, and let me hand over to Jose Angel Tejero. Jose Angel Santos: Thank you, Raimundo. We will now turn to present ACCIONA 2025 results. Starting with Infrastructure, 2025 has been another year of solid execution across our core activities, supported by a healthy backlog and a clear strategic focus. In Construction, profitability has been maintained at solid levels, reflecting a strong focus on OECD countries, contracts with appropriate risk-sharing mechanisms and an execution model that prioritizes predictability and margin protection. This allows us to convert backlog into earnings with high degree of visibility even in a volatile macro environment. Turning to Water. EBITDA has grown to close to 50% compared to last year, being one of the standout contributors in 2025, reflecting both operational leverage and an efficient and faster-than-expected execution of several key projects. In December, we have been selected as preferred bidder for a major contract in Brazil, the Pernambuco project, which further strengthens our positioning in this market and supports future growth. In Concessions, 2025 marked an important milestone with the signing of our first managed lane project in the United States, the SR-400, as well as the Central West Orana transmission line in Australia. These are highly relevant steps, not only because of these project themselves, but because it validates our integrated construction plus concession model. Our ability to structure, finance and operate complex assets and our ambition to grow selectively in markets with loan duration and stable cash flows. Looking ahead, our priorities for 2026 are very clear, to maintain profitability in Construction, to start operations of relevant water contracts as the first segment of Line 6 in Sao Paulo and to continue advancing transmission lines in Australia and Peru while exploring new opportunities in other markets and to remain highly active in management opportunities in the U.S. with 2 tenders expected next year. Going to the next slide. Moving to Nordex. 2025 marks a very strong year with both financial and operational targets achieved or even exceeded, including the medium-term margin target ahead of our schedule. Nordex continues to strengthen its competitive fair position, increasing market share and consolidating its leadership in Europe, where it is now the #1 player with a 48% market share and ranking second globally excluding China. This performance highlights the strength of our product offering, execution capabilities and customer relationships. A key driver of stability and visibility is the service business in Nordex. Service backlog has reached already EUR 6 billion, setting a solid foundation for stable recurring growth. Nordex has now 48 gigawatts under active service with an average contract tenor of 13 years and availability rate of over 97% in the fourth quarter, reflecting the quality and reliability of the fleet under management. Looking ahead to 2026, the focus remains on maintaining financial flexibility supported by strong balance sheet and ample liquidity, while targeting an EBITDA margin between 8% to 11% on sales of EUR 8.2 billion to EUR 9 billion. In addition, Nordex has introduced its first shareholder remuneration policy, targeting a minimum annual shareholder return of EUR 50 million to be delivered either through dividends or share buybacks and always subject to regulatory approvals, capital structure priorities and stable market conditions. Moving to the next slide and looking at other activities, mainly Bestinver and Real Estate. I would like to briefly highlight the performance of these two activities. Starting with Real Estate, 2025 has been an excellent year. We delivered 1,244 units, beating the guidance and continuing to optimize our portfolio through the disposal of nonstrategic land plots and the office building in Madrid. This performance has resulted in a record EBITDA of EUR 84 million. Looking ahead to 2026, our priorities are to maintain annual deliveries between 1,000 to 1,200 units, continue optimizing the land bank through selective disposals and pursue targeted investments aligned with our long-term strategy. In Asset Management, Bestinver has delivered a very strong year, maintaining an excellent performance in its liquid funds with a total year assets under management of EUR 7.7 billion. And Bestinver Bolsa has ranked as Spain top-performing equity fund in 2025 with 58% return. Looking at our 2026 priorities, one of our key initiatives is the planned launch in 2026 of our first fixed income fund for institutional investors in Luxembourg, which will further broaden the product offering and support growth. And with that, I will now hand over the floor to our CFO, Jose. Jose Carrion: Thank you, Jose Angel. Good morning, everyone. Let me walk you through ACCIONA's financial results for the full year 2025. Starting with the key financial highlights. We delivered solid full year 2025 results, beating guidance across the main metrics. EBITDA increased by 31%, profit before taxes by 82% and attributable net profit by 90%, primarily driven by the results from asset rotation in ACCIONA Energia, strong performance of Nordex and together with a solid contribution from the Infrastructure business. EBITDA contribution was well balanced across activities with 48% coming from ACCIONA Energia, 25% from Infrastructure and 23% from Nordex, reflecting the good diversification of the group. Net investment cash flow amounted to EUR 1.1 billion, supported by a reduction in ordinary CapEx to EUR 2.25 billion compared to EUR 2.8 billion in 2024 and EUR 1.1 billion in proceeds from asset rotation in ACCIONA Energia and a positive net cash flow contribution of around EUR 110 million from property development. As a result, we closed the year with a robust balance sheet and a significant reduction in leverage with our net debt-to-EBITDA ratio declining from 2.9x in December 2024 to 2.2x at the end of 2025, which is well ahead of our target of remaining below 3.5x. With regards to nonfinancial results. Our total workforce increased by 3.8% to more than 68,000 employees. Health and safety indicators also improved this year, and the number of social impact programs implemented across ACCIONA's projects increased, reaching 2.2 million beneficiaries in 31 countries. The group's Scope 1 and 2 greenhouse gas emissions amounted to 205,000 tonnes of CO2 equivalent, which represents a 4% increase year-on-year. Nevertheless, the company remains within its Science-Based Targets initiative trajectory, which aims to reduce emissions by 60% by 2030 compared to our 2017 baseline and by 90% by 2040. Circular economy indicators improved significantly, largely due to construction projects in Australia, which were able to recover a substantial portion of excavated materials, which are the company's main waste product as of today. Investment levels aligned with EU Taxonomy remain comfortably above our 90% target, and this has enabled the issuance of 37 new green financings amounting to EUR 2.4 billion, bringing the proportion of the group's debt classified as either green or sustainability-linked to around 84%. During 2025, the group recorded EUR 2.25 billion of gross investments, mainly across ACCIONA Energia and our Infrastructure division. Energy investments were concentrated in projects such as MacIntyre and Aldoga in Australia, Green Pastures and Forty Mile in the U.S. and Canada as well as the Tahivilla repowering project and the Logrosan biomass plant in Spain. Infrastructure investments amounted to EUR 624 million, mainly related to construction machinery, equity and equity contributions to concessions, particularly in the Line 6 project in Sao Paulo and Lima's Peripheral Ring Road as well as the CapEx of transmission lines in Peru. Divestments reached EUR 1.1 billion, thanks to 4 main transactions: the sale of the hydro assets, which Arantza mentioned at the beginning of the year, the wind assets in Peru, Spain and Costa Rica in the second half of 2025. On this slide, you can see the main drivers behind the evolution of net debt for the group during 2025. Operating cash flow reached EUR 2 billion with a positive working capital contribution for the third year in a row of EUR 656 million in 2025, mainly driven by Infrastructure due to a very good performance in terms of execution, advanced payments and collections. Net investment cash flow was EUR 1.1 billion and financing and other cash flows amounted to EUR 830 million, including approximately EUR 180 million invested in the acquisition of an additional 2.8% stake of ACCIONA Energia. As a result, net debt closed slightly below EUR 7 billion, including IFRS 16 adjustments, which is EUR 139 million reduction year-on-year. It is important to highlight that a significant portion of this debt, EUR 2.7 billion, is associated with energy assets under construction or not yet fully in operation as well as that linked to the Real Estate projects under development. Given that Raimundo has already covered ACCIONA Energia's financial performance, I will move straight to Infrastructure. In our Infrastructure division, 2025 was a good year in terms of execution and growth. Revenues increased by 6.7% with 82% of those revenues coming from OECD countries, reflecting the quality and geographic diversification of the portfolio. Australia remains our main region, accounting for approximately 38% of revenues followed by Spain, LatAm and EMEA. In terms of backlog, we reached a historically high level of EUR 30 billion in terms of global backlog and EUR 120 billion in terms of aggregate backlog, which includes our portion of long-term revenues expected to be generated by the concessional assets that we report on an equity-accounted basis. This aggregate backlog is up 124% year-on-year, driven mainly by the SR-400 project, which added about EUR 60 billion to it. The average life of the construction D&C backlog is around 2.5 years, which is consistent with the project-based nature of the activity. In Water operations & maintenance, the average backlog life extends to approximately 5.4 years, which reflects the more stable and recurring nature of those contracts. And lastly, our concessions asset portfolio has an average life of around 50 years. Geographically, aggregate backlog is highly diversified with a strong presence in North America and a clear focus on OECD markets. In the appendix of the full presentation, you have extensive details of the largest construction and concession projects in our backlog. Turning to Construction. Profitability remained resilient with EBITDA margins remaining at around 7%, in line with the previous year and reflecting a disciplined approach to project selection and strong risk control measures. Australia stood out with 13% revenue growth, driven by good progress in the execution of projects like the Western Harbour Tunnel, M-80 Ring Road or Central West Orana and Suburban Rail Loop. Construction backlog reached EUR 18.1 billion, which is up 2.6% versus 2024, which reflects a moderate year-on-year increase despite the relevant awards added during the year mainly due to ForEx impact. Beyond the sheer size of the backlog, equivalent approximately 2.5 years of activity, what stands out is the strong geographic diversification of it and it's increasingly derisked profile with 81% of the total incorporating some sort of contractual risk mitigation mechanisms, whether it is collaborative contracts, contracts related to our own concession projects or contracts with price protection clauses. Moving to concessions. The portfolio remains young with 90% of it remaining under construction and therefore, with limited P&L impact today. Sales grew by 103% and EBITDA reached EUR 160 million, driven by the financial close of the SR-400 project in Atlanta and the financial close of Central West Orana in New South Wales, Australia. The good performance of the Peruvian transmission lines also contributed and the commissioning of the Kwinana waste-to-energy plant in Australia was also an important factor. Equity invested in Concessions assets reached EUR 704 million with EUR 1.6 billion of equity commitments between 2026 and 2035. The portfolio remains well balanced with 54% of it with demand risk and 46% with availability-based payments. In 2025, our Water division delivered remarkable growth with revenues up 16.5% and EBITDA increasing by around 50%, driven by good execution in Collahuasi and the Casablanca desalination plants. Backlog also increased by approximately 11% to EUR 7.7 billion with key awards such as the Sanepar and Cesan projects in Brazil. And these backlog figures do not include the preaward of Pernambuco, which has already been mentioned and will add around EUR 30 billion to the aggregate concessions backlog. Given how relevant our Concessions business has become for the group and, more importantly, how relevant we expect it to become in the next decade, let we spend a few minutes going into more detail. Over the last few years, ACCIONA has emerged as one of the leading global players in greenfield infra concessions with particularly strong growth over the last 3 years. Between 2023 and 2025, we were awarded 17 new projects with total associated investments of EUR 27 billion and an average project size of EUR 1.6 billion. EUR 27 billion is total or 100% of these projects, not a share. Since 2019, our average project size has quadrupled and the average remaining life of our portfolio has tripled, which highlights the improvement in the quality of the portfolio over the period. 2025 was particularly significant with important milestones such as the financial close of SR-400 and the financial close of Central West Orana in Australia as well as the acquisition of transmission lines in Peru and major water awards in Brazil. The strategy underpinning our business model is to operate as an integrated development and asset platform, combining global expertise and structuring capabilities with strong local construction execution capacities. This differentiated approach allows us to originate, develop, finance, build and operate large-scale infrastructure projects while maintaining control over the risks that we are taking and the value that these projects generate throughout their life cycle. It is our key competitive advantage in this respect. Our growth strategy is clearly focused on a number of priority segments, including managed lanes and toll roads, urban rail and metro systems, transmission lines, high-speed rail as well as our selected -- or selected social and water concessions. Geographically, our efforts are concentrated on the U.S., Australia, Brazil and Peru, and Chile, which is where we see the strongest pipeline and the most attractive risk return profiles. A key feature of our model is the ability to take relevant equity stakes, either with control or with strong governance rights, combined with a flexible approach to asset rotation, allowing us to transform assets from greenfield to brownfield and optimize capital allocation over time. Looking ahead, growth opportunities are substantial. We have identified a pipeline of approximately 130 greenfield opportunities, which represent around EUR 300 billion of associated investment expected to be tendered in the coming years. Within this pipeline, managed lanes will be a major growth driver. We have identified 7 projects with high visibility that alone represent over $80 billion of total investment and around $30 billion of total equity investments. Over the next 2 years, we expect to submit more than 49 proposals across our core markets. The opportunity, therefore, is compelling, and we believe we are very well positioned to capture this growth. Our current concessions portfolio includes 78 assets in 11 countries with total investment for 100% of the projects of more than EUR 36 billion. On this slide, you can see both the geographical diversification of our portfolio with a clear focus on OECD countries and a strong presence in Europe, North America, Australia and LatAm and the well-balanced nature of our portfolio, which spans transport infrastructure, water concessions, transmission lines and waste-to-energy plants, combining different sectors and stages of development. Total equity investment to date amounts to EUR 879 million as of 31st of December '25, And we have additional equity commitments of approximately EUR 1.9 billion between 2026 and 2035, which will take the total equity invested at the end of 2035 with the projects that we currently have in our portfolio to EUR 2.7 billion. As you can see in the next slide, these investments are well spread out over the next 7 years with no significant concentration in any particular year. The average remaining life of this portfolio is around 50 years, and it is expected to generate approximately EUR 60 billion in dividends and cash distributions for ACCIONA over the period. With respect to Nordex, since the team presented results 2 days ago, outstanding results, if I may say so, I will not go into the details. I will highlight, however, that Nordex contributed EUR 749 million to ACCIONA's EBITDA which includes EUR 118 million from the reversal of provisions, which relate to the updated view of Nordex's quality cost program. That is on top of the EUR 631 million EBITDA that Nordex reported. Moving to Other Activities. Living, our real estate development business, has achieved extraordinarily good results in 2025 with an EBITDA that almost doubled versus 2024. Since Jose Angel has already gone through the highlights of '25 and priorities for 2026, I will not go into more details. But let me just highlight that our gross asset value at the end of 2025 stood at EUR 1.5 billion, which is an 8.4% decrease compared to '24, just consistent with the high number of units delivered and the asset sales and the strategy of land bank optimization through the sale of old stock. And finally, Bestinver also delivered a solid year with revenues increasing by 4.4%, EBITDA by 8% to EUR 55 million driven by higher average assets under management, which grew by 10% (sic) [ 9.8% ] year-on-year. And at year-end assets under management reached EUR 7.7 billion, up EUR 870 million as a combination of positive net inflows for another consecutive year and an outstanding performance of most of our funds with a particular really good performance of Bestinver Bolsa, which ranked in Spain's top-performing equity fund in 2025, delivering a 58% return. With that, let me thank you for your attention. And I will hand the floor back to Jose Manuel for the outlook and opening of the Q&A session. Jose Domecq: Okay. Thank you, Jose. Very briefly. I will do a 2026 outlook, where we expect a stable operating EBITDA, bringing total group EBITDA to a range of between EUR 2.8 billion and EUR 3.1 billion. For ACCIONA Energia, the outlook is exceptionally volatile and difficult to predict due to uncertainties in the timing of asset rotation and extraordinary weather conditions with very high hydrological inflows and reserves in Spain with FX volatility and timing of new assets reaching COD, which is, as you know, commercial operation date. However, given all these caveats, we would expect about EUR 1.2 billion total EBITDA for ACCIONA Energia. And we -- a month ago or a couple of weeks ago, we were finishing our final budget for the year, which I would have said comfortably flat operational EBITDA. At this stage with the exceptional rain and hydrological reserves in Spain, I would dare say that it's going to be a small decrease expectation for the year. And for ACCIONA Group, 2026, we will also expect an investment cash flow of between EUR 2.2 billion and EUR 2.5 billion, net debt-to-EBITDA to remain below 3x supported by asset rotation and CapEx discipline, basically in order to continue to maintain investment grade and a dividend per share of EUR 5.65, which we aim to maintain a stable with a small growth in the coming years. Beyond '26, volatility may persist, Geopolitics may remain unpredictable, and the execution environment will continue to be demanding. Our strategy, however, is focused on what we can control, which is disciplined capital allocation and operational excellence. We are, as I was saying in the beginning, globally diversified. Our integrated model is built for resilience. Demand is not a question. Obviously, the question is execution with selectivity and discipline and scale. Our strong asset base, deep technical capabilities and record backlog allow us to remain focused and selective on projects with sustainability, complexity and attractive returns genuinely reinforcing each other. ACCIONA enters in this new phase, better than ever, positioned to translate structural demand into long-term shareholder value by delivering essential infrastructure to what society needs. Thank you very much. And we will now enter the Q&A session, for which I anticipate my appreciation and thanks for the many questions we have received, which we will, in some cases, bundle together in order to save time. Jose Domecq: To start with, we will handle the energy questions, Energia questions. The first one comes from a number of market analysts from Caixa, JPMorgan, RBC, Kepler, JBCM, Santander and HSBC, thank you all. And the question is, can you please clarify the target EBITDA for 2026 excluding asset rotations as well as giving guidance post 2026. Arantza, please? Arantza Ezpeleta Puras: Thank you, Jose Manuel. So in relation to 2026 EBITDA and most completely in the operating EBITDA, first of all, we have to take into consideration that the most relevant factor to do that is the timing of the closing of the asset disposals as this can affect the perimeter, but also the contribution to the EBITDA that we have incorporated. If we leave this aside and excluding the asset rotation gains, a couple of weeks ago, I would have said flat. But now given the heavy rains that we have seen suffering in Spain in the last couple of weeks, I would have said that the -- and the impact that this must have on the Spanish prices, I would now say that probably we could expect a small single-digit decline versus 2025. Regarding the asset from operation -- asset rotation EBITDA, what I would expect is a more normalized amount than 2025, which was an extraordinary year in that front. And post 2026, looking at more midterm 2030, you should take into consideration a consolidated output of around 30 terawatt hours, coming up from the 24.4 terawatt hours we had last year. And this means around 1 terawatt hour per year of production contribution. With this and your assumption in prices and generation, you will see that this would guide you to an increase in our operating EBITDA, a CAGR of around mid-single digits. Jose Domecq: Thank you, Arantza. Let me make a very general rule of thumb, 2030, 30 terawatt hours. So it's kind of easy to remember. As things stand now, obviously, that target is subject to improvement if we would have the ability to do so in terms of capital and balance sheet capacity. Question number two, impact of efficiency measures. What do you estimate to be the impact of the efficiency measures in an annual EBITDA? This is from Flora at CaixaBank. Arantza, please, or Raimundo, whatever. Raimundo Laborde: Okay. I'll take that up if you want, Jose Manuel. We prepared a plan to address some of the key structural cost categories starting 1st of January 2026. But when we look at the run rate, which should be achieved during 2027, we are considering around -- or targeting around EUR 35 million of structural cost reductions. During 2026, it would be a part of it. Half or more than half, we think it will be achieved during the current year. Arantza Ezpeleta Puras: Yes. Jose Domecq: Thank you. Question number three from Flora, Italian proposal on energy prices. Can we make a comment on the Italian proposal to decouple CO2 prices from power prices? Arantza Ezpeleta Puras: Yes. So I'll take this one. I think, first, we have to take into consideration that our exposure to Italy is really limited. We have only 0.2 terawatt hours and, in terms of revenues, around EUR 30 million. Having said that, last week, the Italian government announced a Decree Law that incorporated some measures to reduce the electricity and gas cost and support the households and industry prices for the sake of competitiveness of the industry. The key proposal that was included in this Decree Law was to compensate the thermal generation for the CO2 allowance cost, preventing them from passing this into the auctions into the market prices. This could lower approximately -- in an initial estimation, this could lower the price around EUR 30 per megawatt hour. However, these measures would not enter into effect until January 1, 2027. And it has to pass the usually complex process of the European Commission stated approval. But also given the potential conflicts with the EU ETS and the internal market rules might be a little bit challenging. Having said that, from our perspective, we do not support the interventions in the generation market, especially those that weaken the signals -- the decarbonization signals by sealing emitting technologies from CO2 costs. Jose Domecq: Yes. Let me just underwrite that comment from Arantza. We find it somewhat surprising that we have -- sending the market decarbonization signals through carbon pricing and then offsetting those signals through opposite policies in the member states. It doesn't make a lot of sense. It would make a lot more sense to help out, as Arantza mentioned, the energy-intensive industries or needed households, whatever, but on the demand side, not on the supply side as we understand it, however. Question number four from Beatrice Gianola, Mediobanca and Flora at Caixa Bank. What are our expectation for asset rotations this year in terms of timing and geography? Let me just beyond -- besides Raimundo's specific answer to that question, let me say that as a rule of thumb, you should be aware that we are extremely selective in the transactions we close in the matter of price. So we have more transactions in the market than we need, and we will be selective and differentiate those which are more attractive. Therefore, it is difficult to predict. Having said that, please, Raimundo. Raimundo Laborde: Thank you so. Just to recap. On the one hand, we have to close the transactions that were signed at the end of 2025. This is basically South Africa plus the U.S. PV minority, which is also combined with the sale of 2 wind farms in Mexico. This is roughly in terms of incremental debt reduction as we said throughout the presentation, around EUR 900 million of additional proceeds. And we want to close another EUR 1 billion, EUR 1.1 billion of opportunities. As Jose Manuel was saying, we are managing our portfolio that is in terms of opportunities to sell that is larger than what we need, as we did last year. And at the moment, it's approximately 2.5 gigawatts of capacity in different stages of negotiation and process. We cannot be too specific on the particular assets that are in our list. But in Spain, perhaps we can be a bit more specific on -- we have potentially another large portfolio win in the market. We could also consider the sale of our residual or remaining hydro assets. In the international business, we're looking across all the continents. We have a very wide portfolio of assets, as you know, in present. And here, we're looking in some cases at selling out right 100% of these assets and, in other cases, a large minority holding in there. And with respect to what we're going to do beyond '26 and '27 and beyond, we would expect that the level of asset rotation is not as extreme or as high as what we've done in '24, '25 and we will need to do also in '26, but it will be more normal. We've indicated that this is part of our ongoing business. This is a source of funding for our growth. This is a source of capital gains, arbitrage between trading share prices and what we think the value of our assets is. So this is going to continue happening, although probably in the 400 to 500-megawatt per annum range. Jose Domecq: Thank you. Question number five. Question comes from Flora. Why do we find -- why do we think it's so critical to maintain the rating and the consequences of losing it? Quite frankly, I don't think maintaining the rating is critical. I think it's important. I think it's a commitment we've made to the market, and it improves our weighted average cost of capital, it improves our liquidity and it's very good to have, a very nice to have. We will try to maintain it and we will do our efforts to maintain it. Frankly, at this stage, we believe maintaining this -- and this, we expect this to remain this way, we think maintaining the rating is the best option. Anything to add, Raimundo, Arantza? Raimundo Laborde: No, I think this is pretty much it. Excess Liquidity, gives us access to the market. It reduces our cost of borrowing and it's something that gives us very good support to our plans. Jose Domecq: Very good. Thank you. As for question number six, from JPMorgan, Javier Garrido; Alvaro Soriano, Alantra; and Charles Swabey from HSBC. Within the 26 terawatt hour production target for '26, how many correspond to assets that are planned to be sold? Does it include any contribution from assets that will be commissioned during 2026? I guess the answer to that is the 26 terawatt hours are net of negative or reductions in rotated assets. But I don't know if there's anything to add to that. Arantza Ezpeleta Puras: No. What I would say is that, yes, it's precisely what you were mentioning. The guidance included -- these 26 terawatt hours were included were net of the reduction from the asset rotation but also incorporating the contribution of the new assets that are going to be put into operation during the years. Of course, the final figure will depend on the schedule of the timing of the disposals, which, as I was mentioning before, will, of course, might have a significant impact of the operating EBITDA. As a general rule of thumb, what I would say is that you should expect that -- I was mentioning before, this 30 terawatt hours for by 2030, which approximately will grow at 1 terawatt hour per year. And I think that's what you should use for your calculations. Jose Domecq: Thank you. Question number seven is from Javier Garrido at JP. What is our current open position in Spain and expectations for 2027? Raimundo? Raimundo Laborde: Okay. Yes, in 2027, our production in Spain should be somewhere around 8 to 8.5 terawatt hours, taking into account potential incremental rotation during 2026 and also the increased contribution from Logrosan biomass plant and other assets that although they're not huge, but they contribute to growth in output as well from new capacity. So let's just say 8.5. Out of that, we will have, including the Logrosan plant and assuming some of these wins that will be regulated that we sell, around 2 terawatt hours of regulated output. Our long-term and medium-term contracts amount to around 4 terawatt hours. So that's 6 out of 8, 8.5. So that would give you the portion that is contracted. Jose Domecq: Thank you. Question number eight, what is our sensitivity of Spanish power prices in 2026 EBITDA -- impact in EBITDA if prices were to move minus EUR 5 a megawatt hour versus our assumption? Arantza or Raimundo? Arantza Ezpeleta Puras: Yes. Well, our merchant position in Spain for 2026 is around 2.5 terawatt hours, in addition to some of adjustments due to the [ ban ] mechanisms of the regulated assets that are also exposed to changes in the pool price. Taking all things into consideration, the impact should be around EUR 20 million. Jose Domecq: Next question from Fernando Garcia at RBC, is how have you started in terms of output versus UP50 in January and February? And is your output guidance versus UP50 or incorporates the evolution of these 2 months? Arantza, Raimundo? Arantza Ezpeleta Puras: Yes. Well, I'll take this one. So in terms of the generation of the production, as I was mentioning before, the year has started very well, particularly in Spain due to the strong resource and rains that has driven an above-expectation in terms of production. This has been somehow offset by a more normal contribution for the international side. That's on the production side. On the other side, the prices have been, and particularly in Spain, precisely because of that, somehow below, what we were expecting. But in general and answering to the question, the guidance that we have given for the production of the year fully incorporates the performance of these first 2 months. Jose Domecq: Thank you, Arantza. Next question from Jose Porta of Kepler; Fernando Garcia of RBC; and Oscar Najar at Santander is a Classic is update on strategic optionality. My answer there is the same as has been over the years, which is there is an intrinsic value on the optionality of maintaining ACCIONA Energia publicly traded. The options, the many options are constantly analyzed. Maybe the only minor caveat that I may say there is that we have retained a bank to help us in that process of analyzing all the different alternatives. But the situation remains to be the same as usual. Thank you very much. Number 11, merchant exposure -- Pablo Cuadrado, JBCM, merchant exposure for this year in Spain and international markets. I think we've answered that question. So international markets, Raimundo? Raimundo Laborde: Yes. Spain is very much the same as we just discussed, and international markets tends to be around 17% hedged. And overall, we want to have roughly an 80-20 hedging across the portfolio. Jose Domecq: Yes. Thank you. MacIntyre, when do we expect the MacIntyre to be 100% commissioned? Did you find out the problem of the blades? And could you be compensated for that? Are you seeing any further delays in the commissioning of assets? From Pablo Cuadrado and Oscar Najar. Arantza? Arantza Ezpeleta Puras: Yes. So MacIntyre is currently going under the commissioning process. We successfully passed Hold Point 3 and we got the authorization to go through the testing process for Hold Point 4. During the commissioning process, we found damage associated to a significant number of blades. According to the preliminary analysis underway, we believe it is related to the transportation to site. We continue carrying out the delivery. And in the meantime, we're working, on the one side, on the insurance recovery. And on the other side, we are also working on having blades -- repair plan blades on site, which is already taking place. And also, we are incorporating accelerating and mitigating measures. With all in mind, we have a target of having the wind farm fully commissioned by year-end. Jose Domecq: Thank you. Question number 13 is from Pablo Cuadrado and Oscar Najar. Is the downgrade on gross installations guidance for the year a transitory decision to refocus on the leverage? Or shall we assume a slowdown in the gross installation targets for the next few years? I guess, is why not becoming ambitious again post balance sheet improvement? Well, yes, let me take that one, indeed, why not? We are, as you say, balancing out our balance sheet, and therefore, '25 and '26 installations are, I would say, somewhat lower than normal. In the coming years, I would expect installation or new capacity additions of between 1 and 2, 1.5 and reductions of anywhere around 0.5 gigawatt a year, so rotations of 0.5 gigawatt a year, to give a net of, whatever 0.7 0 8. The logic there is obviously that we are generating a significant value in putting up new assets and rotating more mature ones, why forgo -- that will, in itself, maintain our balance sheet capacity. So it's a good balance. This last 2 years have been more tilted towards asset rotations because we haven't rotated any assets in many years. So the balance sheet balancing out process has to be charged in the beginning. Anyway, so your comment is right, or I agree with it. We agree with it. That should be expected in the coming years. As for last policy, the decision to cut the dividend -- from Beatrice, Mediobanca, the decision to cut the policy, the dividend was being aimed at preserving investment-grade credit metrics. Could you elaborate on the specific factors that prevented the approval of the previous dividend level? Yes. Well, why don't you take that one, Raimundo? Raimundo Laborde: Thank you. Yes. So the decision to reduce the dividend that we propose to the Board and the Board, in turn, is proposing to the AGM is driven by the rating agency discussions. This is one of the mitigating measures that we have agreed. It doesn't have a massive impact on leverage, but it's a strong signal, I think, to the rating agencies, and I think, generally to our lenders that we are serious about returning to a stable outlook. So this is, in terms of dividends going forward, I guess, Jose Manuel, we would have the -- we would want to resume a more normal dividend level post achieving the stable outlook and the rate. Jose Domecq: Yes. Thank you very much. So that does with questions on ACCIONA Energia. We go on to the questions on ACCIONA Group, the rest of the company. The first one from Flora, Fernando and Oscar, RBC and Santander. Well, we have many questions about Nordex, one of which is considering the strong performance of Nordex, should a placement make sense? Are we comfortable with the high exposure? Is this exposure in industrial fit an industrial company and in our strategy to invest and develop operating infra assets? What would be -- and this is, I guess, it's 4 questions in 1. What would be the minimum level of stake that allows you to maintain consolidation. Let me answer the first part of it. We are very comfortable with Nordex. Nordex is an integral part of the group. It's an integral part of the company. I understand that the market or the analyst community often see Nordex as a financial investment, but I think you should change your approach because that's not how we see it. It's an integral part of the group. We were there when it needed help some years ago. We're there when it's producing excellent results. And that's what business is about. The alternative that subliminally many people or you are suggesting is trading, and we're not into that business. The other questions were whether we would sell 5%. I guess, it doesn't change much and it would be a significant change in our policy towards Nordex to start trading stakes. Let me remind you that we started the OEM industry 25 years ago and Nordex is a result of the ACCIONA Windpower merger with Nordex in 2016. As a matter of fact, it's called ACCIONA Nordex, ACCIONA Windpower. Therefore, our affinity to Nordex is the same as we have had to this industry for many years. Let me then end the answer to this question on a very important -- what I consider to be a very important comment that I somewhat made in my introductory words, which is the importance of maintaining industrial capacities within the European Union. And Nordex is a success story of industrial capacity, of industrial success, and we're very proud to be an integral part of that. And I believe that needs to be protected and needs to be enhanced and encouraged. The next question from Pablo is, could you clarify the criteria for provision reversal at Nordex EBITDA? Do further provisions remain that could be reversed in the following years? Jose. Jose Carrion: So no more. We don't have any more provisions on our balance sheet, on ACCIONA's balance sheet related to Nordex's nonquality costs. There are some negligible provisions related to other risks. And the reversal is mainly due to the fact that Nordex has already incorporated these expenses into the results, and therefore, we can't have them also on ACCIONA's books. And so we need to revert them. That is the underlying reason. Jose Domecq: Next question is from Flora at CaixaBank. Can you please share the list of potential awards in concessions? Okay. I don't have that list, but maybe you have it, Jose? Jose Carrion: Happy to take this one. In the short term, over the next 12 to 18 months, we're going to be tendering around 14 projects in our core markets, so heavy award or heavy activity on new award, new auctions and new projects. There's a strong focus in the U.S. both on managed lanes, where we will be tendering in Tennessee the I-24 managed lane project, in Georgia the I-285 projects and, shortly thereafter, the I-77 project in North Carolina. And we expect awards of at least the first 2 within 2026 or resolution of the participation in 2026 and the I-77 shortly thereafter. Also in the U.S., we will be participating in transmission line bidding for 2 projects, one in MISO, one in SPP. And there's also heavy activity in the short term in Brazil related to both metro lines and the extension of Line 6 and other metro lines that are being developed in Sao Paulo as well as the water concessions with a particular focus in Pernambuco, which we have our preferred bidders for, and we need to sign in the coming months. Jose Domecq: Thank you. Next question is an update on our asset divestment plans ex energy, including waste or water treatment plans or real estate. Jose, why don't you take that? Jose Carrion: We're always analyzing different options and not only divestments but also acquisitions. In our Real Estate business, it is business as usual or it is our day-to-day business. And our portfolio of concession assets, the portfolio is still very young. So 90% of it is still under construction, and therefore, we're not considering -- we don't think it is the optimal point for considering asset rotation. That is beyond the potential transaction around part of our waste-to-energy portfolio in Australia, which, as you will have seen, is part of the debt that is currently held for sale given that it's one of the most immediate transactions that we are considering in the group outside of our -- ex ACCIONA Energia. Jose Domecq: Thank you. Next question from Jose Porta at Kepler are on property development outlook, the EBITDA and the property development in our Living department. Jose, why don't you take that one? Jose Angel Santos: Yes. This year has been affected by the result coming from the Ombu transaction. That's an office building that we have obtained around EUR 37 million of capital gain, but we still expect revenues and EBITDA to improve significantly like-for-like in 2026, basically, on the delivery of the similar number of units but with a higher price per unit. And the average selling price for these deliveries will be consistently high because the product mix is a high-end product mix. We are talking about properties located in Marbella, [indiscernible] and also Catalonia and Madrid. Jose Domecq: Yes. Let me add to that, that the Ombu transaction shouldn't be considered as a extraordinary event or extraordinary sale. The Ombu transaction is a classic case of a multiyear normal operational transaction, by which we have reaped an urban facility and improved it and sold it. But that's obviously a more than 1-year process, which will be, I guess, recurrent maybe not every year, but it's a recurring activity. It's an important activity in our Living division. Next question is from Oscar Najar. What is the improvement in net debt, mainly working capital? Why is it so positive, almost EUR 1 billion in second half '25. Jose? Jose Carrion: The typical seasonality of our working capital profile usually shows better performance in the second half of the year than in the first of the year. And the movement that we've seen in the second half of 2025 is, in fact, quite similar to what we had in the second half of 2024. In -- the last 3 years have been -- working capital performance in the last 3 years has been particularly good in infrastructure with positive working capital for third consecutive year in 2025. In the case of 2025, it has been mainly driven by good management of advanced payments in Australia and the U.S. and good progress in some pending collections in the Infrastructure business. And going forward, for 2026, we should expect the working capital to normalize and reach more moderate levels for the year ahead. Jose Domecq: Thank you. Next question from Oscar is our expected net debt for 2026. Assuming the disposals in ACCIONA Energia, as I've said in my introduction, we will remain below 3, maybe lower. But our expectation is that -- our aim is to stay below 3. So if the debt levels are temporarily lower than 3, which maybe the case, we would use that additional slack to further investments. So yes, the target is to be below 3. Next question from Oscar Najar. When will you host the CMD on Infrastructure and Concessions? Who wants to take that one? When are we holding a CMD? Jose Angel Santos: Soon. Well, I think that the answer to that is that we want to have more visibility on the outcome of the bids of this year, and second, our portfolio is very young. And we would like to show a showcase an operating portfolio and probably will be soon by the end of this year or maybe beginning of next year. Jose Domecq: Yes. I mean I'd like to have one, but there are some moving targets that I think is best if we have them tied down. Question number eight from Oscar. What assets are held for sale in the balance sheet of ANA [indiscernible] ACCIONA Energia? Only South Africa or something else, how much? Jose? Jose Carrion: Besides the assets held for sale in ACCIONA Energia, which are our South African assets and our 2 wind assets in Mexico, the only asset held for sale in the rest of the business is the Kwinana waste-to-energy plant, which has associated debt of EUR 322 million. And it is what I was referring to on my previous question regarding potential transactions this year. Jose Domecq: Very good. Well, that does with all the questions we've received. Any doubts or further questions, kindly address us in - through our Investor Relations group or our financial department. I thank you very much for your attendance, and look forward to seeing you in the Capital Markets Day or sooner in the next report or on our road shows in the next few months. Thank you very much. Goodbye.
Operator: Good day, and thank you for standing by. Welcome to the Prosegur Cash Full Year 2025 Results Presentation. [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, Miguel Bandres, Head of IR. Please go ahead. Miguel Ángel Bandrés Gutiérrez: Good morning to everyone, and thank you for joining today's call. I'd like to welcome you to our 2025 Q4 and full year results presentation that will be presented by Jose Antonio Lasanta, our CEO; Javier Hergueta, our CFO; and myself. The presentation shall take around 30 minutes in which we will share the most relevant events that have taken place in the period for our business as well as our performance. We'll comment on our key financials, our geographical performance and our transformation effort as well as our sustainability initiatives and will end with key concessions. After, we will open a Q&A session. Should we not get to respond to everything in today's session, we'll get back on any open topics on an individual basis. I want to again thank you all for your attendance and just remind everyone that this presentation has been prerecorded and is available via webcast on our corporate web page that you can find at www.prosegurcash.com. But before I hand the floor to Jose Antonio, I'd like to share some news regarding cash that have lately appeared in the media. They cover interesting topics such as the importance of cash for lower income families in the U.K., the stance towards cash of North Americans, how often cash is used in Colombia or the resilience of cash payments in the Eurozone. There are all cases that show the relevance of cash in different geographies and for different purposes, be it privacy, inclusion or budgeting or expense control. In the first news we can read from the BBC that the UK government will grant cash payments to people that happen to be in financial need. This new funding scheme will provide emergency funds for low-income individuals across England. This highlights how important cash is for all segments of society, especially for those that are most vulnerable. To reach them effectively and to allow them to buy their expenses accordingly, no other payment means is as effective and as inclusive as cash is. In the second year, we crossed Continue continent towards the U.S. We read from MoneyWise, that 84% of Americans oppose having a cashless country, citing privacy and spending control as key reasons for their positioning. Once again, in different places around the world, citizens are rising to defend their privacy and their right to control their personal spending. 84% is more than a relevant amount as we take into consideration when regulators are working on warrantying basic economic premium for which cash, its acceptance and its availability are crucial. Next, and moving down to Colombia, we can read from the [indiscernible] that this country stands out amongst cash users since 7 out of 10 daily payments are made with physical money. Here, we can see that in Colombia, consumers stand behind their payment choice, backing cash as their most preferred option. When doing this, they show with their example, the relevance of cash for Latin American economies and the preference citizens have for it. And lastly, and coming back to Europe, we can read from Euronews that Europeans pay for more than half of their purchases in cash. In 14 of the 20 countries in the Eurozone, cash is the most widely accepted method of payment accounting for between 45% and 55% of all transactions. Again, here, we can see that because of the many positive attributes cash has, it's the preferred payment means in over 70% of Eurozone countries. All the above are a reflection of the many events and news that take place in the world regarding cash that underscore its unique attributes and the endorsement it gets from consumers and authorities alike. We are proud to assure that the availability of cash in society continues to run smooth and effectively in close collaboration with other relevant stakeholders such as financial institutions, retailers or regulators. After this news update, I will share today's agenda. Firstly, Jose Antonio will review the period's highlights. Second, Javier will share with us the key financials for the year, after which Jose Antonio will take the floor again to reflect our transformation initiatives, and then I'll share key developments per region. Finally, Jose Antonio will update us on the latest sustainability developments before sharing key conclusions and open the Q&A session. This being said, Jose Antonio, the floor is yours. José Antonio Lasanta Luri: Thank you, Miguel, for sharing interesting news in the world of cash. Good morning to everyone, and thank you for attending. 2025 has been a challenging year for our company, in which despite an unfavorable exchange rate environment in Argentina, a key market for us, having taken decisive steps towards its macro normalization we have managed to maintain a relative operating margins and improve our bottom line in relative and absolute terms based on our determined transformation and a sequential improvement in Europe and a strong performance in Asia. All of this demonstrates our business model resilience. Our top line has shown organic growth of over 5%, which has been tainted by an 11.1% currency impact that accelerated as the year progress. We must remember that 70% of our revenue is not in euros and is hence affected both by the evolution of U.S. dollar versus the euro and by local currency fluctuations versus the U.S. dollar. Combining both elements, sales declined by 4.9%. Despite the above, we have been able to maintain a 12% EBITDA margin, I would like to here highlight that the nonrecurring efficiency program we have carried out since Q2 to improve our operations and in which we have invested more than EUR 15 million has been finalized and offset by positive extraordinary items. To end the year, our EBITDA margin has improved in Q4 by 30 basis on a quarter-on-quarter basis, reaching 12.5% on sales. Net profit has increased by 3.3% and 30 basis points versus 2024 to EUR 94 million, showing the improved performance of the bottom part of our P&L. Regarding Transformation, we continue to advance at a very strong pace. Sales for these solutions now account for 35.2% of total revenue and the penetration has increased by 300 basis points year-on-year. Of particular relevance has been the performance of our Cash Today solutions that have behaved very well in our geographies. In terms of cash flow, our free cash flow reached EUR 108 million on the back of disciplined CapEx control as well as in strict working capital management. With this, we have been able to reduce our total net debt by EUR 36 million year-on-year, which is a clear proof of our commitment to debt reduction. Lastly, I want to share that we have effectively repaid the EUR 600 million bond we've had out outstanding and that our balance sheet is strong, flexible and well funded on to 2030. As well, our Board has proposed a EUR 62.5 million dividend for the year 2025 to be paid in 2026, which implies maintaining the same dividend per share as the prior year. Lastly, it's important for us to highlight that Standard & Poor's has included us in the demanding Global Sustainability Yearbook for 2026, which recognize our constant effort to have a sustainable company. With this, I'd like to hand over to Javier so he can share with us our key financials. Javier Hergueta Vázquez: Thank you, Jose Antonio. First, looking at our profit and loss account. Revenue has reached EUR 1,987 million. As we can see on the right-hand side of the page, Organic growth reached 5.3%, while inorganic at almost 1%. However, as Jose Antonio pointed out in the prior slide, foreign exchange has negatively affected us by 11.1%. When totaling all these effects, our overall sales have decreased by 4.9% in the year. Asia continues to be clearly our organic growth leader, and we foresee that to continue into the future. Our EBITDA totals EUR 356 million, which, together with depreciation of EUR 118 million in the period makes us reach an EBITDA of EUR 238 million, 5% less than in 2024. It is important to highlight that despite both the currency and Argentina's normalization impact on our country mix, we've been able to maintain our 12% relative margin. Looking at the bottom right-hand side of the page, the one-off impact from the extraordinary efficiency program that summed EUR 50 million and for which we expect a payback of 18 months has been offset by other positive extraordinaries fundamentally related to prior acquisitions deferred payments. As we continue down our P&L, amortization of intangibles reached EUR 22 million, EUR 3 million less than last year and with which we reached an EBIT of EUR 260 million, 10.9% of sales, which is 10 basis points improvement versus 2024. It is important as well to note that the financial results totaled EUR 47 million, EUR 13 million less than in 2024, mainly on lower currency impact with which we reached an earnings before taxes of EUR 169 million, EUR 3 million more than 1 year ago and allows us to improve our margin over sales by 60 basis points to 8.5%. Taxes totaled EUR 75 million in line with last year in absolute terms and results in a reduction of 60 basis points in the tax rate to 44.4%, a trend that should continue into the future. With that all, our net profit reaches EUR 94 million, growing 3.3% versus one year ago and represents 4.7% of total sales, a 30 basis points improvement year-on-year. I want to underline the resilience of our P&L that shows especially in its bottom part towards net profit. This all allows us to deliver earnings per share of EUR 0.0607, 1.2% better than the one achieved a year ago. Even in such an adverse environment, we have been able to not only protect but improved profitability for our shareholders. If we go to Page 5, we can review our cash flow and net debt position. Starting from the EBITDA I shared in the prior page of EUR 356 million for the year, provisions and other items deduct EUR 69 million, EUR 34 million more than the prior year, explained by the difference year-on-year in extraordinaries and other noncash items. Income tax implied a cash outflow of EUR 83 million, EUR 19 million more than in 2024 while CapEx has totaled EUR 82 million, showing our discipline towards CapEx management, which we aim at maintaining in relative terms over sales. Investment in working capital has totaled EUR 14 million despite growing organically at 5.3%, as we've seen earlier and representing a substantial reduction of EUR 21 million year-on-year as a result of an effective DSO and DPO management. With this all, our free cash flow reaches EUR 108 million, implying a 77% conversion over EBITDA in the year, improving 300 basis points over 2024. Interest payments reached EUR 19 million, slightly over a year ago despite the refinancing program carried out throughout the last part of the year. And M&A payments have totaled EUR 52 million contributing to reduce the M&A-related outstanding debt by EUR 70 million. Dividend outflow totaled EUR 61 million and treasury stock some EUR 8 million in 2025. Our net financial position at the beginning of the period was at EUR 643 million, to which we shall decrease the net cash flow and as well deduct the EUR 10 million negative impact from foreign exchange rate. These results in the net financial position for the end of the period of EUR 711 million, increased fundamentally due to M&A payments made and extraordinary efficiency costs to which we must add EUR 98 million of IFRS 16 debt, EUR 55 million in deferred payments and EUR 40 million positive of treasury stock achieving a total net debt of EUR 850 million, reducing EUR 36 million year-on-year and taking it below 2023 levels. Our resulting leverage ratio has reached 2.4x, 0.1x more than 2024 fundamentally driven by the effect of currencies on our EBITDA levels. As said, we are confident that into 2026, we will be able to continue our deleveraging. With this, I would like to hand over to Jose Antonio, so he can share with us on Transformation. José Antonio Lasanta Luri: Thank you, Javier. Looking into Transformation, I'm very happy to share that these solutions now represent 35.2% of our total sales. In 2025, revenue of our Transformation solutions reached EUR 700 million, which is a 4.1% increase in relative terms. Once again, this underlines that our products are very well received by our customers and continue to trust in us as a key service provider. This growth over 2024 is especially relevant if we take into account that in 2024, we undertook very relevant nonrecurring projects of ATMs in Latin America that have not been repeated into 2025. Together with the already mentioned currency impact that, of course, as well affects the sales. Penetration of our total sales, as I said, now reached 35.2%, implying an increase of 300 basis points year-on-year. If I am to highlight one especially key performer, this has been our Cash Today solutions but continue to deliver extraordinary growth in our geographies and to which we have increased our product type range. We are determined to continue the transformation of our company into the future, focusing on our key solutions. Cash Today, ATMs, banking correspondence and ForEx business. With this, I would like to pass over to Miguel, so he can share with us the key highlights of our performance by region. Miguel Ángel Bandrés Gutiérrez: Thank you, Jose Antonio. I would like to first start sharing with you the key developments in Latin America, our main region that accounts for 58% of group sales. Revenue in the region totaled EUR 1,145 million in 2025 and this implies a decline of 11.5% versus the same period achieved a year ago, driven fundamentally very strongly adverse 17% currency effect. The evolution of the U.S. dollar versus the euro as well as the local currency versus the U.S. dollar have taken negative toll on our sales. Very important to note that underlying organic growth has been 5.4%, which reflects a positive evolution overall in the region, save Argentina. Different elections that have taken place in the later part of the year and the measures taken in order to balance public spending have affected consumption as reflected in our figures. We're confident that as the country continues its change efforts, growth will restart, and we'll see strong activity back. Transformation products have experienced as well a very positive year despite the currency effect and they've managed to grow versus the prior year, reaching EUR 435 million, which is 38% of total sales, increasing thus the penetration by 490 basis points. Growth in the region has been fueled by strong performance of Cash Today and banking correspondent initiatives. In terms of margins, pro forma EBITDA, which excludes the one-off impact of the EUR 50 million efficiency program carried out in the region in the last three quarters and other extraordinary items related to prior acquisitions, payments has reached 16.1% of sales. That is an 80 basis point reduction versus one year ago, fundamentally due to the Argentina normalization as well as the effect of currencies and the country mix. we believe this margin should expand into 2026. Turning now to Page 8. Europe accounts for 33% of group sales. Revenue in the region has reached EUR 662 million. That's a 1.4% or EUR 9 million increase over a year ago. This growth is backed on an organic positive 1.5% growth that has been slowly by receiving the accelerating quarter-on-quarter and that we believe will continue into 2026. The region experienced a minor 0.1% drop back from currency effect. We have to underline that this growth has taken place in a year where Spain and Portugal have seen modest 2% increases in GDP terms, and Germany, our biggest market in the region has experienced no growth. Transformation in the region now reaches 33% of total sales, a 10 basis point improvement over one year ago. The main contributor to this Transformation product growth continues to be Cash Today, which we believe still has a lot of room for growth from our expanded product range. When we look at margins, pro forma EBITDA, which excludes extraordinary positive impacts due to prior M&A payments, has improved by 15.6% to reach EUR 35 million and in relative terms, totals 5.4% of sales, 70 basis points better than in 2024. We're confident that on a pro forma basis, the margins of the region will continue to grow and will actively contribute to the company's more balanced growth and margin profile. We now turn to Asia Pacific, a region that now represents 9% of group sales, up from 7% in 2024. Sales in this geography have reached EUR 180 million, a significant 26.4% improvement year-on-year. It's particularly important to note that this growth has been propelled by a 21.7% organic growth, which continues strong across the region. Such a growth is backed from strong economies, a significant outsourcing still to be developed and an increasingly high adoption of our transformation products. However, as we've already seen in prior quarters, currencies have reduced our revenue by 8.1% in euro terms. They've been affected by the decline in both local currencies versus the U.S. dollar and U.S. dollar versus the euro throughout the year. Looking at Transformation. These products have grown by 53.9% to reach EUR 47 million in 2025. The penetration achieved is of 25.8% of sales, a significant increase of 460 basis points year-on-year. Especially noteworthy, considering the strong push of the core business. This growth has been driven fundamentally by the ForEx business. In terms of margins, as anticipated, EBITDA significantly improved to double the territory, reaching 10.4% of sales and EUR 19 million in absolute euro terms. Thank you for your attention, and now I'll turn it to Jose Antonio. José Antonio Lasanta Luri: Thank you, Miguel. I would like to now share our key sustainability-related development. Regarding the environment, I am glad to share our achievements in terms of decarbonization. We have reached our goal of reducing our carbon footprint by 8.4% versus a reference year of 2023, and clearly beating our yearly target of 1.7% reduction. This shows our commitment to reducing the impact of our business and the environment in an always economically meaningful manner without jeopardizing quite the opposite of our financials. As well, I am pleased to let you know that we have been ranked in Standard & Poor's 2026 Global Sustainability Yearbook, it is noteworthy to reckon that this list recognizes a select group of companies recognizing us in the top 15% amongst over 8,000 candidates for outstanding sustainability performance. Turning to our people. I'm very happy to share that we've been able to reduce our workplace accident frequency rate by 9% versus 2024 as a result of the multiple initiatives in terms of training and prevention we have invested in over time and to continue improving our team's safety, reflecting the above rate, we have launched a Road to Safety training targeted at our fleet teams taking into account that a large portion of our colleagues are in the logistics area and that this is where most accidents take place. We are sure that this initiative will have a very positive impact. Lastly, in the governance area, I am proud to share that we maintained the highest rating on the AENOR Good Corporate Governance index reaching G+++ rate, a level granted only to the best-performing companies. And as well, I want to share that almost 2,500 employees have achieved our corporate compliance certification that assures that we are a more robust and trustworthy company. Lastly, this year, we have improved in almost all key ESG ratings we are in. We can see particularly significant improvements in the S&P Global and MSCI ratings showing that third-party independent agencies ratify our efforts and achievements in the matter. We are sure that by taking care of our people by decreasing accidents, reducing our impact on the environment and improving our governance, we build a more sustainable company. And now I would like to summarize my main conclusions. 2025 has been a very demanding year in which we've been able to improve our bottom line profitability as well as continue to transform in an adverse exchange rate environment. Our business has weathered the normalization actions undertaken by the Argentina authorities as well at the dollar and other currencies devaluation. In this difficult environment, we have been able to both implement the efficiency program and capture growth and profitability in Europe. We have been showing a resiliently accelerating quarter-on-quarter improvement, while Asia continues to show a strong growth. We foresee these trends to continue into the future. Transformation has been at the forefront of our strategy where we are to focus on our four key families of solutions. Cash Today, ATMs, CORBAN and the ForEx business. Regarding them, we will continue to enlarge our offering and digitalize our portfolio. These efforts have resulted in improving our net profit by 3.3%, demonstrating our strong commitment to creating shareholder value and maintaining a strong shareholder remuneration while we reduce debt. In all, as said, 2025 and despite the evolution of currencies in Argentina's normalization, has been a transformative year for us. We have improved our bottom line, made our operations more efficient and continue to transform our company. We are sure that we are best prepared to face 2026, a year in which we are already working hard to continue delivering and where you should see an improved LatAm business and continued profitability and growth in Europe and a consolidation of our Asian performance. Thank you very much again for your attention. And now I would like to open the floor to any questions that you might have. Operator: [Operator Instructions] We will not take the first question from the line of Alvaro Bernal from Alantra. Alvaro Lenze Julia: I have three. The first one is regarding LatAm. We have seen it has suffered significantly this quarter with declines in organic growth. If you can explain a bit better the underlying behind this? Is it solely because of Argentina or Brazil is also suffering? And your view on this going forward into 2026, do you expect a recovery here? And also, if you can shed some light regarding the margins in the region, it would be very helpful. That's the first question. The second one is regarding investments. We have seen muted investments in both CapEx and leases this year. How do you see this going forward? Do you expect them to jump again as you renew, for example, opening stores for the ForEx business? Or if you can give us some color, it would be very helpful. And lastly, how do you see net debt for 2026? Do you have a specific target in mind? Leverage or whole number? It would be very helpful. José Antonio Lasanta Luri: Thank you, Alvaro. Going to your first question, it's true what you're saying. If we take out Argentina, the growth of LatAm has accelerated in the fourth quarter. So it's been mostly Argentina, I would say, 100% of the issue in the fourth quarter. How do we see it in the future? We see that is going to be an important improvement in Argentina back to the relative performance that was before year 2025. So we see margins stabilizing and getting to where we were in 2024. It's true that the mix is going to change in the mix of countries. So there will be some change in there, but there is going to be an improvement, and it's going to be an important improvement there in Latin America. Second question on CapEx. Again, it's true what you are saying. This year, we've been quite shy on the CapEx of ForEx. But this year, we are going to have a stronger boost where we have won two big airports, Frankfurt new terminal and JFK Terminal 1, Terminal 6. So we'll be investing on those two airports, and we'll keep investing on new retail branches. So there's going to be some boost in CapEx there on the ForEx business. At the same time, we are going to keep optimizing our CapEx in the rest of the areas. So I think we are going to see that there is going to be optimization on the -- what we call infrastructure CapEx. And we see some improvements there. But as you said, totally overcome by the CapEx we are going to undertake on the ForEx business. And on the third question, our commitment is to deleverage to keep bringing down the debt of the company. So we believe there is going to be a delivery on relative terms, but also in absolute terms as we have seen this year. This year has been mainly focused on three areas. And this year, I think it's going to be -- we are going to see deleveraging on banking debt as well. The bank also -- Yes. I think that's more or less the answer to your three questions. Operator: We will now take the next question from the line of Enrique Yaguez from Bestinver Securities. Enrique Yáguez Avilés: A bunch of questions about Argentina and then a couple of them [ other ] issues. Regarding Argentina, I don't know if you could give us what kind of organic declines suffered last year, how much are the Argentina worth over the total group revenue? In the first quarter, you see some signs of recovery. I mean, in the medium term, probably we will stabilize, but how is the situation now? Then on the restructuring plan announced in LatAm last year, I would like to know if all the costs have been already [ incurred ] or just provision and how would that cope with the recent labor reform announcing Argentina? If you could save some money or not [indiscernible] on this. Sorry, I was late at the conference, but I didn't now if you provided what was the net extraordinary impact of EUR 12 million in Q4 because I think on a gross basis, it could be higher here because probably more restructuring costs we are improving in LatAm. Thank you very much. José Antonio Lasanta Luri: Thank you, Enrique. Regarding your first question, in Argentina, there were three things that happened. The first one was a consumption came down because of the policies of the government, and although you see an increase on GDP of the country, the GDP growth has been mainly focused on the energy and our cultural sector. But the internal economy and the [ consumption ] is very depressed right now. Although the government has stated that this year is going to be a much better year. To tell you the truth, we have seen very small recovery. There's been some recurring but really small and not at such extent as government has stated. The second event that has happened is that the valuation has been much worse than inflation. So [indiscernible] more accounts of the valuation has been quite important. And then the third one has been the monetary policy restrictions that the government has put a constraint on the money that the banks have to hold that has been at 58% compared to 13% that is in Europe north of 58%. I think the government has said that we are going to open this year and they want to really make the internal growth, internal consumption growth much higher. And we are going to be very -- we are going to be expecting or looking forward to this very early. Although I think we have -- what has been really an achievement for us is that after some of the restructuring costs, we are now at the same relative terms than we were before 2025. So I think the country has done a tremendous effort in adjusting the cost structure, which is really difficult in our business. And really, the country has done very, very well on that front. Restructuring cost, it's true that it's been incurred like 90%, 95% of the whole program. So in February, we are going to do the last few weeks, but it's [ small bit ]. And why not in January? It's because non-January is a very strong month in Latin America and also a lot of people take holidays. So it's very difficult to adjust your last weeks during January and where we've done it during February, but everything is done in February. The plan is to have a payback of around 18 months. So we are going to see the -- all the savings, we are going to harvest the savings of this program during the year, we are going to see at the late part of the year, a very important kick back for the savings. And then the third question was about -- is we mainly -- some deferred payments that we have in some of the M&As. You know that whenever we do a transaction, we try to -- we record the business plan given by the sellers and normally is quite bullish. And there's been some adjustments on the deferred payments of [ the tail ] of the acquisition that we've done that we did in 2023 and then [ 2022 ]. Enrique Yáguez Avilés: [ The compensation growth from M&A ] José Antonio Lasanta Luri: Yes. Do you want to... Javier Hergueta Vázquez: Just to clarify, if you still have [ that ] it's basically the adjustment on the pending payments, which are recognized in our balance sheet. So as Jose Antonio was saying, we are typically recognizing it on the initial business case and there are typically some adjustments between that scenario and the actual performance, and this is reflecting that. So lower level of pending payments going forward in our balance sheet. Enrique Yáguez Avilés: Okay. And how much was the restructuring cost in Q4 in LatAm just to have the... Javier Hergueta Vázquez: So in Q4, we've undertaken EUR 3 million more of efficiencies programs in Latin America. So when you see the LatAm figures, I mean, in the adjustments, EUR 3 million come from the efficiencies program, EUR 3 million come from the M&A arena. Operator: We will now take the next question from the line of Joaquin Garcia-Quiros from JB Capital. Joaquin Garcia-Quiros: So the first one is in Europe, we've seen some recovery or acceleration throughout the quarters. Now the growth is almost up 3% for the fourth quarter. What can we expect for this year? Should we see this 3% more or less now as the trend going forward? Or was it just something specific for this quarter and Germany should continue to weigh down of that growth? And then for Asia Pacific, it's been growing fairly positive throughout this year. Should that growth continue? Or should we expect already a slowdown in 2026? And then lastly, assuming that Argentina recovers, would mid-single-digit EBITDA growth be achievable? Thank you. José Antonio Lasanta Luri: Thank you, Joaquin. How do we 2026 by region, as you said, I think the global business, we are going to see a growth of mid-single digits in terms of sales and some profitability enhancement above that. So I think that's the global picture. If we go by region, I think Latin America is going to improve, mainly because of Argentina. We are positive on that one because of the restructuring program. So we are going to see some earnings enhancing there. Then Europe, we are going to see some growth in the business. I think the 3% growth, I think, is going to be beaten this year. It's going to be a bit higher and also some earnings enhancing there. And in Asia, still a small region, but we are very positive on it. Indonesia is doing a fantastic job and also the Philippines, India -- we have seen a very strong growth there. And then I think the Australian issue that we have has been more or less solved. It will be completely resolved hopefully in June to September 2026, which will be signed a deal with the major customers for medium-term for medium term. So I think that's going to give us a lot of stability. And if we look at the lower part of the P&L, I think we are going to have also good news on the financial cost on the tax and the tax rate both in the P&L and in the cash flow because, as you know, in Argentina, taxes are paid -- made on previous year profits. So this year, our taxes have been -- our tax bill has been quite high for the profit that we have had in Argentina. So next year, we are going to have some tax bill cut because of that. So that will improve also our cash flow. So I think we are positive on the -- of achieving the mid-single digit growth in global terms then some earnings enhancing at EBITDA level has been a much better increase on the net profit level. I that's going to be more or less the summary. And this is going to be reflected on cash flow because of this tax bill that we just mentioned. So that's our -- and we will use this cash flow to deleverage a bit more. So this is more or less the summary that we have for 2026. Operator: There are no further questions at this time. I would now like to turn the conference back to Jose Antonio Lasanta, for closing remarks. José Antonio Lasanta Luri: Thank you very much for your attendance and for your questions, investing questions as always and we'll meet next year and as I said, I think we are very positive on 2026 because of the trends of the market. And because of the last issues on the industry that you know that yesterday, Brink's announced the acquisition of NCR. And I think this is going to be the confirmation of a strategy that we are seeing that CAD companies are going to take the lead and the forefront for bank ATM [indiscernible] of outsourcing that we are seeing in the market. So thank you very much for your attendance. Thank you very much. Operator: This concludes today's conference call. Thank you for participating. You may now disconnect.
Operator: Hello, everybody, and welcome to the AmRest FY 2025 Results. My name is Elliot, and I'll be coordinating your call today. [Operator Instructions] I'd now like to hand over to Lukasz Wachelko with WOOD & Company. Please go ahead. Lukasz Wachelko: Good afternoon, ladies and gentlemen. My name is Lukasz Wachelko. I'm representing WOOD & Company. And I have, again, the pleasure to moderate the call of AmRest after the quarterly results. The company is being represented by CEO, Mr. Luis Jimenez; CFO, Mr. Eduardo Zamarripa; and Chief of IR, Mr. Santiago Camarero Aguilera. Without further ado, guys, the mic is yours. Luis Comas: Good afternoon, and thank you for joining us. We appreciate your time and continued interest in AmRest. I'm Luis Jimenez, CEO of AmRest, and I'm delighted to be with you today. Joining me are our CFO, Eduardo Zamarripa; and our Head of Strategy and IR, Santiago Camarero. Today's call has 2 clear objectives. First, we want to give you a transparent view of the work delivered over the last 12 months, how we have executed and what we have strengthened and what we have learned. Second, we will share our perspective on 2026, our expectations, the main opportunities we see to accelerate performance and obviously, the challenges we are navigating in a dynamic environment. At the heart of our message is confidence in the fundamentals we are building. We believe we are laying the foundations for a compelling value creation story, maintaining disciplined profitable organic growth across the portfolio and improving consistency and execution, so discipline and the financial approach. With that, let's turn to the materials. Let's move on what we would like to share with you today. Let's move to Slide 2, please. AmRest is a truly pan-European company with a broad and diversified footprint across 22 countries in Europe, China and the Middle East. With 2,139 restaurants and a portfolio of 8 brands spanning quick service, fast casual, casual dining and coffee, we serve more than 30 million customers every month across multiple locations and channels with offerings tailored to local preferences. Our scale is a clear competitive advantage. It allows us to replicate best practices across markets drive efficiencies and continuously enhance the guest experience while focusing our resources where demand is the strongest. And what truly powers that scale is our local expertise, more than 44,000 colleagues who understand their markets and execute with discipline every day. Taken together, this combination of geographic reach, brand breadth and operational know-how underpins our ability to identify and capture attractive growth opportunities. Moving to Slide 3. Let me remark the most relevant milestones for 2025 that I would like to try to summarize in 7 points. On a like-for-like basis, the group revenues increased by 2.4% year-on-year, reaching almost EUR 2.6 billion. The group's EBITDA generation during 2025 reached EUR 407 million, representing an EBITDA margin of 15.9% with a clear divergence in the performance across countries. Third, despite a challenging operating environment throughout the year, particularly in the fourth quarter, the profit of the company increased to EUR 18 million compared to EUR 13.5 million last year, supported by lower impairments and interest charges. In addition, the company made a dividend payment in the amount of EUR 15 million or a 7% share, which was paid on the 22nd of December '25. In terms of new openings, during the year, we opened 92 units, and we also renovated 213 restaurants. From a leverage perspective, the group remains prudent with leverage at 2.3x at the year-end within our internal target range. And finally, during 2025, we also advanced our strategic road map throughout a meaningful step in our operating model with the disposal of our 51% stake in SCM and the termination of our mutual commercial agreements and obligations. This milestone supports our ambition to strengthen value creation through a more integrated and efficient platform, enabling AmRest to conduct supply chain management and product quality assurance services internally going forward and identified additional synergies that can support future growth, opening up a significant avenue for value creation throughout the supplies of our more than 2,000 restaurants. With this context, I invite you in the Slide 4 to review the performance in 2025 versus the expectations that we shared with you 1 year ago. First, revenues grew in the low single-digit range despite an operating environment marked by moderate growth in Europe and declining inflation alongside elevated trade policy and geopolitical uncertainty, which continue to weigh on consumers' confidence while easing inflation supported a gradual improvement in financing conditions. Household purchasing decisions remain cautious in several markets. Second, on profitability, we experienced a decline of 0.8% points in our EBITDA margin, affected by the deconsolidation of the SCM business, temporary business affection in the Czech market during the latest month of the year and to still elevated operating cost pressures. most notably labor costs in certain markets, while absolute food prices remain also elevated despite lower inflation rates. With respect to CapEx, we significantly reduced our capital intensity, fully consistent with our guidance. CapEx stood at EUR 158 million in the year compared to EUR 194 million in 2024, while we have maintained the number of new equity stores opened. The total number of openings reached 92 restaurants in 2025 versus 109 in 2024. And finally, as I already mentioned, the leverage continues at the low end of our internal target range. Moving to Slide 5. Let's now focus on what we expect for 2026. From a sales perspective, we are facing a challenging start of the year. However, we expect 2026 to be a period of progressive improvement, building momentum throughout the year with a very clear second half stronger than the first. Overall, our guidance is for mid-single-digit growth. Second, as trading momentum improves, we also expect this to translate into better profitability, supported by an ongoing discipline on cost and continuous focus on operational execution. Third and very importantly, we expect a strong increase in free cash flow generation, driven by both higher operating cash generation and tighter control of investment levels, including continued CapEx optimization. In addition, we plan to maintain a similar level of gross openings to 2025. However, the growth is expected to remain modest as we plan to accelerate our portfolio optimization, including a higher level of closures of restaurants that are not strategically aligned or are structurally underperforming so that they no longer dilute the group's profitability. And finally, we will continue to preserve a prudent risk profile, keeping leverage at the low end of our target range. If we move to Slide 6, we would like also to share with you our midterm expectations. Over the last few years, a combination of temporary factors has meant that the group's revenue growth, both at the sales line and across other income streams has not progressed at the pace we believe the business is capable of delivering. Looking ahead, we see a clear path to reaccelerate our return to a high single-digit growth profile over time. That acceleration should, in turn, restore operating leverage and support a meaningful uplift in profitability, targeting around 2 to 3 percentage points of margin recovery versus current levels. This, combined with a disciplined investment framework that will translate into a strong increase in free cash flow generation, supported by a stronger operating cash flow and continued focus on capital allocation. Finally, our ambition is to keep strengthening our portfolio by incorporating new concepts and brands so we can address emerging customer needs, broaden occasions of use and remain highly relevant to local preferences across our markets. If we move now to Slide 7, I would like also to share with you some key strategy considerations. Digital transformation remains a key enabler of efficiency, engagement and growth across AmRest. In 2025, we continue to scale a more unified and data-driven operating model centered on 4 pillars. AI agents supports almost all AmRest employees in central services, streaming daily operation and improving productivity in all business areas. We have also rolled out a comprehensive customer care solution, seamlessly integrated feedback from every channel and enabling efficient resolution of customers' inquiries and issues. Our digital platforms are continually refined to meet changing customer expectations, offering features like personalized kiosk offers in Central Europe or table payment capabilities at La Tagliatella. Ongoing systems standardization ensures agile and modern technology environments. And finally, we have implemented an intelligence platform that empowers daily restaurants and organizational decisions, support targeted marketing, boost customer retention, streamlines resource management and enhances pricing strategy, so enable self-service analytics for all teams. These initiatives improve efficiency and scalability by automating central services, unifying customer interaction across channels and enabling faster and more accurate data-driven decisions, very important. In summary, these initiatives are providing a tangible improvement in the quality and speed of decision-making. So on Slide 8, we can provide some examples of how advanced analytics translate into tangible commercial outcomes, driving traffic, improving financial performance through data-driven pricing, menu simplification and smarter promotion optimization. Data-driven decisions based on advanced analytics allow us to drive traffic and improve financial performance across our portfolio. By applying data-driven pricing tailored to local demand and competition landscape and so simplifying menus to strengthen margins and optimizing promotions based on the incremental impact, we are attracting more customers while improving the efficiency and returns of our commercial investments. Now changing topics. Let me take you to Slide 9, where we can summarize the evolution of our restaurant portfolio for your convenience. While we have already discussed our short and midterm expectations, this slide provides a clear view of the underlying openings, closures and the resulting net change. Finally, if we move to Slide 10, our commitment to sustainability continues to be a part of our long-term value creation. And as it is stated in the headline of this slide, our sustainability agenda remains integral to how we build long-term value. In 2025, we advanced our environmental and social priorities, including a significant reduction of energy and water consumption in our restaurants by 11% and 4% comparing to last year. We also continue to embed ESG criteria into our supply chain processes, including suppliers evaluation and tender processes. Beyond metrics, our people brought up our values to life across markets as set in the fifth edition of the Foodsharing Day initiative delivered across multiple brands and countries, reflecting our continued commitment and connection to the communities where we serve. And saying this, with this, Eduardo, if you can cover the main financial highlights, please. Eduardo Zamarripa: Thank you, Luis, for your insights. Good afternoon, everyone, and thank you for joining us. It is a pleasure to be with you again to share a summary of the results delivered by AmRest team during the last year. 2025 was marked by ongoing geopolitical uncertainty and a consumer backdrop shaped by persistent cost of living pressures. Against this backdrop, AmRest once again demonstrated the resilience of its business model, supported by disciplined execution across markets and routes. Throughout the year, we continue to adapt to a more precise conscious consumer, delivering a compelling and consistent value proportion across brands and geographies that remain central to sustaining traffic and protecting profitability. At the same time, technology and digitalization have become increasingly important enablers of this ambition, enhancing convenience for guests while supporting operational execution and data-driven decisions making at scale. Luis already covered the key full year highlights, so I will skip Slide 2 (sic) [ 12 ] and move directly to Slide 13 to walk you through the main financial highlights for the fourth quarter. Turning to the fourth quarter. Revenues amounted EUR 636 million, representing a 1% increase versus the fourth quarter of 2024 and the same-store sales index stood at 96. We have already discussed the temporary factors behind this performance in addition to the underlying macro backdrop. We also faced an external headwinds. However, we are not satisfied with this. We want to be clear that we are taking decisive actions to improve, and we are already seeing the situation improve progressively. It is also important to highlight the divergence we continue to see across markets. Most of our core markets delivered solid progress, most notably Poland, where quarterly revenues increased by almost 6% year-on-year in the fourth quarter or by 9% on a full year basis. On profitability, the sales evolution meant that we kept the EBITDA margin close to 17% in the quarter, resilient but still clearly below the group's potential and objective. We continue to view the drivers of largely temporarily as we expect a gradual improvement in profitability as sales trends recover and operating cost pressures eases over time, both on food and labor. As you can see on the slide, fourth quarter EBITDA amounted to EUR 106 million, while EBITDA non-IFRS 16 was almost EUR 58 million, implying a margin of over 9%. On the other hand, the operating profit for the quarter reached EUR 26 million. Finally, cash generation remains strong. Operating cash flow in the quarter was EUR 109 million, while investing cash flow was below EUR 46 million, reflecting the continued decline of investment intensity and our disciplined approach to capital allocation. Moving to Slide 14, please. On this slide, you can see the evolution of the group's quarterly revenues over time, reflecting the natural seasonality of our business. At the same time, digital sales gained relevance, particularly in the QSR segment. Excluding our casual dining brands, digital sales represented a primary route to market in 2025, reaching around 62% of total sales. We see this as a very exciting opportunity. It strengthens the way we interact with our guests, enhances convenience and give us additional levers to build loyalty and improve our commercial effectiveness through a more personalized and data-driven consumer engagement. With that backdrop on revenues and the growing weight of digital channels, let me move to Slide 15. where we summarize the evolution of our profitability, tracking EBITDA and EBIT and how margins progressed through the year. As discussed, EBITDA in the fourth quarter was over EUR 106 million with almost 17% margin, broadly stable versus the recent quarters. In terms of EBIT, the generation was EUR 26 million with a 4.1% margin. The key message from my side is the resilience of profitability with our focus on gradually restoring operation leverage. Now moving to Slide 16. Let's look at our cash and debt evolution and more broadly, our liquidity and leverage position. At year-end, AmRest net financial debt stood at EUR 518 million. Leverage increased to 2.3x as expected, sitting at the low end of our internal target range, an area where expected to operate over the coming quarters. Finally, the group's liquidity at year-end was over EUR 146 million, a decrease of EUR 7 million versus the prior year. This reflects an efficient liquidity position, supported by the additional unused committed lines in more than EUR 140 million. This financial risk profile provides a prudent use of resources and a solid liquidity that we consider to be efficient, fully aligned with the group's operating needs. In summary, keeps us well positioned to support the business while maintaining disciplined capital allocation. With this balance sheet context, let me now turn to the operating view by geography. Turning to Slide 17, you can see the breakdown of revenue, EBITDA and restaurant count across our segments. These segments span our footprints across 22 countries. And after several years of broadly synchronized trends, we are seeing a more differentiated set of dynamics across markets. In other words, performance is increasingly driven by local market dynamics, which also creates opportunities to allocate resources more selectively and accelerate improvement where the upside is the strongest. Turning to Slide 18 and 19, we present the key metrics of Central and Eastern Europe, our largest segment. In 2025, annual sales in this segment amounted to EUR 1.6 billion, representing a year-on-year growth of 6.5%. At country level, Hungary posted double-digit growth of 10.2%, while Poland also achieved a strong performance with almost 9% increase in revenues. EBITDA generated reached EUR 306 million, representing an EBITDA margin of over 19%. Profitability remains solid and broadly consistent across regions, with Hungary posting the highest margin at almost 21%, while other markets delivered comparable levels. Looking at the fourth quarter, revenues totaled EUR 394 million, 1.2% higher than in the same quarter of 2024. EBITDA was over EUR 78 million, representing an EBITDA margin of almost 20%, broadly flat year-on-year. Finally, the restaurant portfolio in the region reached 1,283 units after increasing by 55 restaurants with the opening 28 units during the last quarter of the year. With this, let's now move to Western Europe in Slide 20 and 21 to discuss the performance and key dynamics of that region. Revenues in this segment amounted to EUR 870 million for full year 2025. This represents a 3% year-on-year decline. EBITDA generated amounted to EUR 121 million, resulting in an EBITDA margin of 14.8%, 0.3 percentage points lower than the prior year. Performance diverged significantly by country. Spain, AmRest's second largest market, delivered flat sales versus last year, while Germany recorded almost 5% growth, supported by continued momentum in the market. By contrast, France experienced a 13% decline, reflecting a more challenging trading environment and weaker consumer confidence. In the fourth quarter, sales reached EUR 221 million, a decrease of 4%, which represents to the same period of 2024. EBITDA stood at EUR 33.5 million. This is an EBITDA margin of 15%, more than 1 percentage points below the prior year. Finally, the total number of restaurants in the region stood at 771 units after 19 openings and 32 closures. Approximately half of the closures occurred in France, reflecting ongoing portfolio optimization efforts and a focus on improving the quality and profitability of the market. With that, let me move to the next slide and briefly comment on China, where we operate the Blue Frog portfolio. This segment is smaller in scale, but strategically important, and we remain focused on protecting relevance and profitability while navigating a more volatile consumer backdrop. Revenues generated during the year stood at EUR 85 million, which is 8% lower than in 2024. The depreciation of the Chinese yuan against the euro was the key headwind. In local currency, sales decreased by 4%. Despite the softer top line, EBITDA amounted over EUR 16 million, implying a solid EBITDA margin of over 19%. In the fourth quarter, revenues were EUR 20 million and EBITDA reached almost EUR 4 million. With this, EBITDA margin improved to over 18%, almost 0.5 percentage point higher than 1 year ago, reflecting ongoing cost discipline and operational focus despite the more challenging trading environment. The restaurant portfolio closed 2025 with 85 restaurants in the region after no openings during the last quarter of the year. And with this, Luis, I believe we are ready to take questions from the audience. Many thanks. Luis Comas: Thank you, Eduardo. Operator: [Operator Instructions] Santiago Aguilera: We're going to start perhaps with some questions that we have received in the box. The first one is asking about the situation in Hungary during the 4Q of the year if the performance that we have seen in the market and the strong revenue growth is coming from any one-off in this market? Luis Comas: No. Hungary has been last year and so previous years as well, a growing market. I think we have been very pleased with the performance, customer confidence and traffic has been growing. And so it has been one of the best years as we have seen in the percentage of margin that Eduardo just mentioned, reaching to almost 21%. So it was a great one and nothing as one-off. It was a continuous operation. Santiago Aguilera: Thanks, Luis. We have the next question referring to Czechia. Do you see already the normalization of sales in Czechia following the allegations of food safety? Luis Comas: Yes, Santiago. And let me be very transparent on this issue. AmRest performance sales in Czechia were negatively affected in the final months of 2025, following misleading allegations about food safety spread through social media. We at AmRest take food safety very seriously. And always, we are fully committed to rigorous food safety standards, and we conduct comprehensive reviews across our network. We do combine robust internal controls and also independent third-party audits. And saying that in this context, AmRest has also submitted itself to hundreds of additional audits and inspections conducted by both the respective brand owner and the competent health and hygiene authorities. And gladly, the results of this out is identified, no systemic issues and all restaurants continue operating normally. So after this event, I think we are observing now a progressive recovery, Santiago. Santiago Aguilera: Thank you, a very detailed answer for this issue. The next question is related to CapEx. This says what CapEx levels do you expect to reach in 2026 and 2027? Eduardo Zamarripa: In terms of CapEx, we addressed the topic during the call. And we expect similar levels to the ones that we had in the previous year. And we want to be very objective on this and focus on 2 main topics. openings, and we are doing a very detailed procedure in terms of getting sure that those openings give the returns that are expected by the company. And on the second topic is very important, the renovations that we are doing across the organization. This is very important to us because it's part of the service level that we give to our consumers. So it's important to have updated the restaurants to have a very good experience in our consumers. And also, this drives additional transactions and sales during the reopening of those restaurants. Luis Comas: Eduardo, let me jump in because I think it's also significant that the usage of CapEx this year has been outstanding and greater to previous years. I would like to highlight the efforts made by the teams into how to improved efficiency of the jobs of the construction of the supply, everything, all the parts related to CapEx investment has really saw an improvement. And I think the efficiencies that we are observing will stay even improve for longer. So those are good signs and good data that really allow us to be more positive about how the -- we're flying in the same level of CapEx be more effective on the usage of the capital. Santiago Aguilera: Okay. Thank you very much, gents. The next question that we have is related to the dividends. And they are asking if AmRest is planning to establish an official dividend policy, and we can expect or we have any guidance with respect to next year's dividends? Eduardo Zamarripa: We are focusing on the cash flow of the company, mainly enhancing the operating part of it. So at this moment, the results are the one that mark the dividend that we can share. So our focus right now is on cash flow and the Board of Directors will take the decision depending on the level that we generate as a company. Santiago Aguilera: Okay. Thank you very much. I don't know if we have any further questions, operator? Lukasz Wachelko: Maybe I will take the privilege of moderator and ask a couple of follow-up questions. First of all, I would like to ask about Czechia. You said that you are seeing gradual improvement. Can you share with us what kind of same-store sales are you observing in Czech Republic in the first quarter of this year? Luis Comas: As I said, after this impact on the last month of last year and let's say, the customers has been more aware of the real status of our safety and our conditions and the restaurants, the trust is recovered and the granted operation trust and confidence is showing back. So the performance is gradually recovering. It may take some time. We don't have a clear vision on that. But definitely, we see just positive week-on-week. So this is good news. Lukasz Wachelko: Okay. And in the presentation, you also shared with us that you are considering new brands and new concepts. Can you shed more light on that? What kind of a brand, what kind of concept, just even the direction, where are going? Luis Comas: Sure. Sure, Lukasz. The company has been always evaluating and assessing different perspectives of how to improve and grow our portfolio. And in that regard, we continue doing that. Obviously, we are looking forward to onboard brands that increase our reach through different business proposals. And that's an important thing because I think the diversified portfolio of brands that we operate is one of the strengths of AmRest. So we want to keep expanding that and from there, looking forward. When I cannot disclose that, but we are seriously working on that topic. Lukasz Wachelko: Okay. And on the flip side, you are still in a cleanup at closing down the less efficient part of your network. And as I understand that's also the plan for 2026. Can you tell us which restaurants, which markets are under your consideration? Luis Comas: Yes. This is also as well a dynamic exercise and a dynamic assessment. And as you can imagine, there are brands and territories and customer dynamics that are changing in the years. We expect to keep running in the same level of closures as we saw in the last years. This is a discipline that we are taking to really be present where the consumer occasions are now and also to be sure that our profitability is not dragged out by underperforming stores. So probably the same level. I expect that for a couple of years, we still have some areas to keep working on, and that will be the reference as same as we did this past year. Lukasz Wachelko: Can you give us any details on the markets or brands or you will like to say as you are now? Luis Comas: Well, probably, this is a variety of actions because not all markets do have a continuous trend. And saying that, what one market was a target 1 year, another one will be next. This is on many occasions also related to leases agreements with landlords. So it's not geographically driven and some occasions are regulated by contracts, disposals and so on. Santiago Aguilera: We have received in our box an additional question that is asking about the evolution of the EBITDA margin in Germany during the fourth quarter of the year. I don't know if perhaps Eduardo, you can answer this. Eduardo Zamarripa: Yes. Thank you, Santiago. There's an important extraordinary element in there. We registered a fire, and we needed to make some bookings in the fourth quarter of 2024. But the good news on that topic is that now that is normalized and the market is recovering. Santiago Aguilera: Thank you very much, Eduardo. Operator: [Operator Instructions] Santiago Aguilera: Okay, if there is no further questions. I don't know is... Luis Comas: No. Thank you for joining the call today. I think it has been a challenging year, no doubt. I think the markets across the different geographies we are facing are in different momentums of their evolutions. Gladly, AmRest's diversity in brands and geographies allow us to compete heavily where we have bad wins. The good thing is I think the company has gone through a very, very selective exercise of how fine-tuning our processes. We have kept investing in good systems. Our profitability keeps moving up and the margins are also solid. I have good feelings, and I think this is a topic Santiago, no one mentioned that I think second half of the year their forecast in this industry about some commodity or goods prices that are looking to go down as chicken, beef and coffee that as you know very well, these 3 in the last 2, 3 years were very volatile. And I think we are observing potential decreases in prices, especially on the coffee side because great harvest in different territories, but also beef that we name internally deflation seems to be now stabilizing. And those 3 things have no more than positive forecast outcomes to our business. So I'm also expecting those to land in reality somewhere in the second half of the year. Saying that, thank you very much for the coordination of the call on the other end and looking forward to share with you more news in very short. Thank you, everybody. Lukasz Wachelko: Thank you very much. Operator: Ladies and gentlemen, today's call has now concluded. We'd like to thank you for your participation. You may now disconnect your lines.
Operator: Thank you for standing by. At this time, I would like to welcome everyone to the Energy Fuels Annual Earnings Conference Call and Webcast. [Operator Instructions] I would now like to turn the conference over to Mark Chalmers, CEO of Energy Fuels. Sir, the floor is yours. Mark Chalmers: Okay. Well, thank you, Morgan. And again, my name is Mark Chalmers, CEO of Energy Fuels. Thank you for joining the call today to discuss our financial and operational results for year ending December 31, 2025. 2025 was truly a breakout year for Energy Fuels. We achieved numerous operational ramp-up growth milestones, and we believe set the stage for significant future cash flow generation, market differentiation and competitive advantages in the critical materials space. We also believe that we are showing the market that we have the financial, technical, commercial capabilities to execute our aggressive plans. I'm just going to touch on a few highlights. In short, we exceeded guidance on all fronts in 2025. Not many in the uranium space can say that. And we even upgraded our guidance during the course of the year, and we beat that guidance. We mined -- newly mined ore over 1.7 million pounds of uranium, and we processed over 1 million pounds of finished U3O8. And it's important to note that there's a bit of a lead lag between when we mine and we process. So really, the processing has to catch up with the amount of uranium we mine. And we also started ramping up our sales volumes. Looking to 2026, we plan to materially increase uranium mining production and sales. We made remarkable progress on our rare earth segment, including pilot production of dysprosium and soon to be terbium oxides and announced plans to expand our commercial heavy production in mid-2027. Our NdPr and Dy products have been qualified for use by major automobile manufacturers and some of that product has gone into electric vehicles and hybrid vehicles as we speak. We received all government approvals for the development of our Donald joint venture project in Australia. We completed feasibility studies for the Phase 2 expansion of the rare earth processing at our mill in Utah and the Vara Mada project, which was formerly called Toliara Critical Minerals Project and demonstrated that the combined net present value of those 2 projects could be in the order of $3.7 billion. We significantly bolstered our balance sheet by completing an upsized $700 million convertible note at a 0.75% coupon rate back in October. And at the end of the year, we had nearly $1 billion of working capital, and the company has never been stronger financially. In short, 2025 was an extremely productive year. And really, Energy Fuels has solidified its position as the largest and lowest cost U.S. uranium producer and emerging large-scale, low-cost rare earth and critical mineral producer. So joining me today on this call and presenting will be Ross Bhappu, our President; Nate Bennett, our CFO; and also Curtis Moore, our Senior VP of Marketing, Corporate Development; and Nathan Longenecker, our Senior VP and General Counsel. Following the presentation, our conference call will have replays that will be available on our website. And as always, there will be time for questions at the end of the presentation. So let's get going. So I know every time I do a conference call, I start off with this slide and comment how beautiful it is down in San Juan County. And again, I love it. So -- but as I said from the beginning and as I said for multiple calls, we're building a globally significant critical materials company and are continuing to make great strides. Slide 2, I may be making some forward-looking statements, and those are included on Page 2. So again, when you look at our company, our company based in the U.S. has built a very significant critical mineral company on the foundation of our core uranium business. Uranium, we are the leading producer of uranium in the United States. The rare earths, which also contain uranium that can be processed at the White Mesa Mill and the heavy mineral sands will provide us a source of rare earth feeds that we can process at the mill, and they all have a common denominator, which is they contain natural uranium that, again, we can recover at the White Mesa Mill, and that is a significant differentiator. This slide. And this slide is getting pretty busy. I don't think anybody can say that Energy Fuels is not an asset-rich company. And I think that would be a real understatement. And so when you look at the world and you look at the number of uranium and vanadium deposits that we have in the Western U.S., several of them are producing, several of them are permitted, and we're ramping up our production of our uranium assets. And then in addition to that, when you look at the heavy mineral sands projects that we have, both Donald, Vara Mada and Bahia in Brazil, Madagascar and Australia, it's getting to be quite an impressive list. And I think when you look at the past few years when we were acquiring projects around the world, it couldn't be better timing. In addition, look at the proposed assets with the acquisition of ASM in Australia. That's we have a scheme document that we're executing as we speak. We hope to close by June of 2026. But also in addition to these mining properties and deposits that we've secured would have the Korean metal plant in South Korea, the Dubbo Project, which is another source of feed in New South Wales, Australia and also potentially a metals plant in the United States, which we call the AMP. So the list is getting long. And what's really exciting is when people ask us how we're going to fund this, we've been able to demonstrate in 2025, the great strides that we've made along that path, and we hope to have more updates in this year on how we're going to continue to move forward with this very aggressive strategy that is well funded. So this next slide just sort of highlights how we can take the uranium ores that we have that are currently producing or will be producing in the not-too-distant future, how we can process those through the White Mesa Mill and come up with uranium and vanadium and potentially medical isotopes. Well, then on the other hand, when we secure the monazite that we will get from these heavy mineral sands projects and including from Chemours in Florida and Georgia, we can stop producing uranium and we can start producing rare earths in the current mill, which we call Phase 1, and that is a dual facility can do uranium or the rare earths. But when you go over to the far right and you see this list of the end products, we have the capability of commercially producing at least 10 critical materials or minerals, and that can expand based on the markets that are available to us at the time that we need to produce things. So it's a very impressive list, and I've said this many times, that many companies in the critical minerals space are dependent on one element. And Energy Fuels is not. And we've seen the advantages of that when you look at -- if you have a high uranium market or low uranium market, same thing on vanadium, rare earths and/or some of the titanium zircon markets. They can fluctuate quite materially. So 2025 was absolutely a breakout year, and I'll provide some of the highlights. We are producing more uranium than any U.S. company today in the United States. And it's interesting because even a year or 2 ago, people thought we were getting out of the uranium business. And guess what, we haven't. And we're actually beating everybody in the United States and a number of companies around the world that are trying to restart their uranium production. Uranium mining, and we've been focused in '25 and '26, mainly on conventional production from the La Sal Complex and the Pinyon Plain Mine, we produced over 1.7 million pounds, as I previously mentioned, at an average grade at Pinyon of 1.6% and those grades are continuing. The White Mesa Mill produced about 1 million pounds or processed 1 million pounds of finished product, and that was really driven on the amount of time the mill ran. And we really went through a processing run in Q4 of 2025, and we expect to continue that processing through Q2 of 2026 or longer. And we can produce about 250,000 pounds per month on average. But in December alone, we produced 350,000 pounds of uranium. So it really shows the capability of the White Mesa Mill depending on when it's running and what feeds we have. When you look at the uranium inventories, at the end of December, we had over 2 million pounds of total inventories. And a lot of that was made up of uranium contained in raw ore and raw materials that will be processed this year or later but including over 800,000 pounds of finished uranium and over 100,000 pounds of work-in-progress. So what does this all mean in terms of cost? It means that our costs are dropping materially, and we still are on course to have production costs. And actually, the current production costs at Pinyon Plain are in that $23 to $30 a pound. We're seeing our cost of goods sold decreasing from $53 a pound to currently at the end of 2025, we're $43 a pound. And as Pinyon Plain ore is processed and mined, those costs will continue to drop. So we currently have 6 long-term contracts. We added a couple of contracts late last year. And those contracts combined equal about 50% of our uranium production capabilities. So we are definitely not over-contracted, but we definitely have enough contracts to give us a base load, which is required. You cannot run a company with just no contracts and trying to depend on the spot market. So we're really excited about where we are there. In '25, we sold 650,000 pounds at an average price of $74.20 per pound. We're seeing stronger fundamentals when it comes to uranium prices, long-term prices. and the growth of uranium demand looking out to the future. So this will be the last slide I'll talk about at the moment before I turn it over to Ross. The White Mesa Mill is truly a remarkable asset. We've taken a uranium-vanadium project and turned it into a critical mineral hub. And we see that as a very unique accomplishment over the last few years. It is the only operating conventional uranium mill in the United States. It is the largest uranium processing facility in the United States, fully licensed, permitted producing licensed capacity of 8 million pounds, and we have the operational and expertise to both process the uranium, the rare earths and the rare earths. It is the only facility that can process what we call alternate feeds. It is the largest primary vanadium production facility, and we're getting a lot of additional inbounds now on our vanadium production capabilities, and it is the only facility in the U.S. with the ability to process monazite, and that is a material differentiator. So now I would like to turn it over to my good colleague, Ross, to talk further about the company's activities. Ross Bhappu: Great. Thank you, Mark. Look, as Mark said, the White Mesa Mill, it's the jewel in the crown of our portfolio. It's the only operating conventional mill for processing uranium, but it's also got the capability of processing commercial quantities of monazite producing meaningful amounts of NdPr. We can -- we have a current capacity of 1,000 tonnes per annum of NdPr, but we can also process samarium concentrates, samarium plus concentrate, so the heavies. We've demonstrated the use of our NdPr in various applications. Most importantly, it's been qualified and validated. It's even in some operating electric vehicles and hybrid electric vehicles coming out of Asia. So it's an exciting aspect of our business. Late last year, we reported that we produced 29 kilograms of dysprosium oxide, and that's been validated by rare earth permanent magnet manufacturers as well. Next month, we plan to produce our first kilogram of terbium oxide. And then following that, we plan to produce pilot circuits for both samarium, europium as well as gadolinium oxides. Europium as well as gadolinium oxides. So we're doing some incredible things at the White Mesa Mill, and it's a credit to our incredible team that we have on the ground there. This year, we're working on our Phase 1 expansion, and that's going to allow us to produce commercial quantities of both mid and heavy REE oxides. That again includes dysprosium, terbium, samarium, europium and gadolinium. We also could possibly produce yttrium. We're planning to install equipment this year that will allow us to produce and process MREC material, mixed rare earth carbonates. So as you can see, we have not only an incredible facility there, but we have an incredible team of scientists and engineers that are allowing us to do some truly groundbreaking work at the mill. Just a few weeks ago, we released the feasibility study of our Phase 2 expansion at the mill. This is separate from the Phase 1 expansion that I was talking about just a minute ago. This Phase 2 expansion is going to allow us to process up to 50,000 tonnes of additional monazite. That will allow us a capacity of 5,500 roughly tonnes per annum of NdPr plus approximately 50 tonnes per annum of terbium and another 165 tonnes per annum of dysprosium. Phase 2 is going to allow for a dedicated rare earth circuit that will be separate from uranium, so we can simultaneously produce both uranium and rare earth minerals. And we've already applied for our permits for this expansion, and we're hoping to get those permits sometime next year with planned commissioning in late 2028 or early 2029. Just some highlights. It's a pretty impressive feasibility study. The results of the feasibility study include about a $1.9 billion NPV. That equates to almost $8 per share. We have a 33% IRR on the project. We'll generate over $300 million a year of EBITDA over the first 15 years. And all that's being done with a CapEx of only $410 million. With the inclusion of a feedstock of our monazite from the Vara Mada project, that feed will result in NdPr costs of under $30 per kilogram, truly revolutionary and making us competitive anywhere in the world, including China. One of the interesting things that we are seeing is the trend in rare earth oxide prices. This slide shows the oxide prices for NdPr for dysprosium and for terbium. These are the non-Chinese prices. And it's interesting that there's a slight premium for the prices outside of China for NdPr. But when you look at the Dy and Tb prices, there's over a 400% premium to the Chinese prices. At our projected Phase 2 volumes and at these prices, we will generate almost $1.2 billion per year of annual revenue. So truly remarkable for our company. As Mark mentioned, we've got a proposed acquisition of Australian Strategic Materials, ASM, In January, we announced this acquisition, and we're making good progress. Again, as Mark mentioned, we're hoping to close on that acquisition in June. It's a great acquisition for our shareholders, for our customers and for National Security. For our shareholders, it provides enhanced margin capture. It's accretive on an NAV per share basis. It accelerates our ambition to become a mines to metal and alloys producer, and it positions us to capitalize on reshoring of U.S. magnet manufacturing with a strong customer base. For our customers, it significantly expands our product capabilities. We'll be the lowest cost producer and have ability to deliver oxides, metals or alloys depending on customer needs. The company has a proven track record and an ability to meet Western demand, and it's already got a number of top-tier customers acquiring or treating their metals and alloys. From a national security perspective, we'll be able to deliver ex-China supply chain. We'll have unmatched technical capabilities in solvent extraction and metal and alloy making and the vertical integration allows us and supports supply chain resilience with U.S. -- with 100% U.S. controlled supplies. It's also an additional source of rare earth feedstock from our Dubbo project in Australia, as Mark mentioned earlier. So this next slide kind of shows how it all fits together. With the ASM acquisition, we create a near-term mine to metals and alloy supply chain. We now have 4 owned or controlled mining assets, including the Donald Project and the Dubbo Project, both in Australia, the Bahia project in Brazil and of course, our Vara Mada Project in Madagascar. All of these supply high-quality rare earth feed to the White Mesa Mill in Blanding, Utah and all of the rare earth oxides from the mill will supply feed for either the existing Korean Metals Plant that we'll be acquiring from ASM or to our newly planned American Metals Plant where we will produce metals and alloys here in the United States. As you can see, we're truly a global rare earth supplier that's 100% U.S. controlled. I'd like to get a little more detail now on the Korean Metals Plant that we're acquiring. This slide provides a pretty good summary of what the capabilities are at that facility. It's located in the Ochang Foreign Investment Zone in South Korea, and it has a current capacity of 1,300 tonnes per annum of neodymium iron ore and alloy plus NdPr metal. Today, it has 4 furnaces and 1 strip casting machine, but we've got a Phase 2 plant expansion that will include 18 furnaces and 2 strip casters. That will give us about 3,600 tonnes per annum of neodymium iron boron alloy manufacturing capability. We're planning to expand our product mix by producing heavy rare earth metals and alloys, including Dy metal and Tb metal in the future. And then for even going beyond that, we have a Phase III plant expansion, which takes us to 30 furnaces with 3 strip casters, and that gets us to a capacity of 5,600 tonnes per year of neodymium iron boron alloy. Our AMP facility will replicate what we have in Korea, and it will give us the ability to produce all these metals right here in the United States. We currently have sales and offtake partnerships with Vacuumschmelze (VAC) with Neo Performance Materials and with Noveon. So you can see that the relationships are with the very top-tier producers of magnets, and we're very, very happy to be acquiring this asset. The Donald project is our shovel-ready project. It's the first mine that will supply heavy and light rare earth minerals to our White Mesa Mill. It's in Australia. We are getting very close to making a final investment decision, perhaps as early as the end of March. This project provides exceptional sources of heavy rare earth oxides, and it will provide feedstock to White Mesa by 2027 -- late 2027 or perhaps early 2028. The attractiveness of the Donald project is the very high levels of dysprosium, terbium and samarium. It's also in a great jurisdiction. The project is fully permitted. And as I said, it's shovel-ready. I think most people are aware this project is in a joint venture with Astron. We are earning a 49% interest in the project. But importantly, we're going to receive 100% of the rare earth offtake. Projects received conditional support from the government of Australia through Export Finance Australia and total funding required for the project is about USD 340 million. The final slide I'm going to talk about is Vara Mada, which we used to call Toliara. It's our heavy mineral sands and rare earth project in Madagascar. In January, we released the feasibility study results, and it's truly one of the largest and highest-grade heavy mineral sands and rare earth projects in the world. It will produce titanium products that include rutile, ilmenite as well as zircon, and it will produce high-quality monazite that gets fed to the White Mesa Mill. Again, very attractive project economics. It's got a $1.8 billion NPV, a 25% IRR, CapEx of just under $800 million and EBITDA generation of about $500 million per year. The mine has a 38-year life, but there's additional resources there that we haven't put in the reserve category. It's got the potential to go well over 100 years. So it's truly a world-class project, and we're currently working now to convert our MOU to an investment agreement so that we can advance that project. With that, I'm going to turn it over to Nathan Bennett, and he'll talk about our financials for the year. Nathan Bennett: Thank you, Ross, and good morning, everyone. I'll start with our balance sheet and liquidity, followed by a discussion of our financial performance for the fiscal year '25. So we ended the year in a very strong financial position as we prepare to develop our long-term projects, finishing with $1.4 billion in total assets. Our working capital was $927 million, which includes $862 million of combined cash and marketable securities with the majority of our marketable securities being excess cash invested in highly liquid interest-bearing securities. This also reflects the $621 million in net proceeds received from the convertible note offering completed at the beginning of the fourth quarter. This liquidity and profile provides substantial flexibility to fund ongoing operations, advance our strategic projects and remain opportunistic as market conditions evolve. Now turning over to the income statement. For the year, we reported a net loss of $86 million or $0.38 per share compared to a net loss of $47 million or $0.28 per share in fiscal 2024. Now this year-over-year increase in net loss was anticipated and primarily reflects higher ongoing costs with the expansion of our global operations following the acquisition of Base Resources in the fourth quarter of 2024 as well as continued investment in our core projects. Specifically, we incurred approximately $15 million higher ongoing SG&A expenses, largely driven by our expanded workforce to support the execution of our global strategy. In addition, exploration and development expenses included an increase of $9 million as we advanced priority projects across our portfolio, including the Juniper Zone at Pinyon Plain, La Sal, Bahia and delineation drilling at Nichols Ranch. It also included an increase of $7 million in noncash write-downs related to changes in tax laws and exploration projects that we're no longer pursuing. Finally, market conditions also impacted the results. The average month in uranium spot prices were approximately 13.8% lower in 2025 compared to 2024, which reduced our revenue per pound and our gross margin percentage, which was 31% in 2025. We did increase uranium sales year-over-year by 200,000 pounds to 650,000 pounds, which was an $11.8 million increase in uranium revenue year-over-year. Now as we continue to mine and process ore at the mill, and increased uranium sales throughout 2026, we expect our gross margin to increase to 50% and above as our finished inventory weighted average cost continues to decrease from $43 per pound to the low 30s and as uranium prices continue to strengthen during 2026. Now turning to the next slide. I will briefly touch on our $700 million convertible note offering that was highly successful being oversubscribed by more than 7x and closed at the beginning of the fourth quarter. Now without going through all the details of the terms, I just wanted to mention that overall, the offering places us in a strong financial position to fund our expansions of the White Mesa Mill and our Donald project joint venture and doing it with very low-cost debt. Now with that, I'll turn it back over to Mark, who will discuss our 2025 and 2026 guidance. Mark Chalmers: All right. Thanks, Nate. Look, as I've mentioned earlier, we're really excited that we exceeded guidance for mined uranium, processed uranium and sales of uranium in 2025. And I think it would be very rare for a uranium company to do that. And really, it's because we have experience of producing uranium. It was a transition year for us because we were ramping up back into commercial uranium production, and that kind of leads us into our guidance for 2026. And you can see that our projected guidance for mined uranium is increasing materially from 2 million to a low of 2 million to 2.5 million pounds. And I know that for a lot of time, I've been telling people that our first goal is to get to 2 million pounds of production and then go and increase from there. The processed uranium also increasing materially from 1.5 million pounds to 2.5 million pounds. And that really is just a function of how long we run the White Mesa Mill. I talked about the mill produces about 250,000 pounds per month. So you can see that if we ran for, say, 10 months, we would get to the 2.5 million pounds. And I also highlighted that we did 350,000 pounds in December of 2025. And then on sales pounds, we'll have the ability -- well, we certainly have the ability with the process and finished goods to cover all our contracts and also figure out where we're going to find home for those residual pounds, but we can also keep them in inventory. We can also sell them or go into other long-term contracts. So it is materially changing. Our cost of goods sold is going to decrease as we ramp up the production, and we still are focused on basically using our uranium business to fund a lot of the company's expenditures going forward over the next several years while we build out this world significant critical mineral company. So before we go to questions, I just want to talk a bit about CEO transition. And I just want -- and I'm going to tag team this with Ross. So Ross, you just jump in wherever, but I want to just tell people that, that succession plan is proceeding as expected. We've had this in place over the last couple of years. Ross is anticipated to become the President -- well, he's the President, current President. He's worked with us for 7 months and to become CEO in April, and I will be retiring. But I plan to stay around as a consultant exclusively to help Ross, and I'm excited about that. I'll never really -- I mean, I may be shifting from a full-time role to a consulting role, but I'm not retiring as a professional because I still want to give more, but I also want to spend more time in Australia in the coming years. So Ross, I don't know if you want to add anything. Ross Bhappu: Yes. Look, I just want to express my gratitude to Mark. He's -- when I look at where this company has come from over the last, well, 10 years, but really over the last couple of years, you think about it being a single product, single jurisdiction sort of company to now very much a global company with over a $5 billion market cap. It's a tremendous credit to Mark and his leadership that we've been able to grow. And we've been able to do it without taking on debt, and we've been able to do it with limited resources to grow this company into a truly world-class company with amazing assets. But the other part of it is the team. Mark has been incredibly successful at putting a team together that has been able to execute to this stage. So it's an exciting company, exciting time, but it's a tremendous credit to Mark and his leadership in getting us to where we are today. So thank you, Mark. Look forward to continuing to work with you. Mark Chalmers: Yes. Thank you, Ross. And we are building that team out even further. I mean, with our office here in Denver, Lakewood, in Australia, in Perth and some of these operations around the world, we're able to attract some remarkable people to grow with the company. And I can say this that we have an aggressive strategy that we're not slowing down. We're not slowing down. There are not enough hours in the day. People are calling us. People are watching us. I was at the BMO conference in Florida earlier this week. And it is amazing how many people are watching Energy Fuels, and they see the progress we're making. So anyways, I'll stop on that note and open it up for questions. Operator: [Operator Instructions] Your first question comes from Brian Lee with Goldman Sachs. Brian Lee: I guess, first off, Mark, we'll miss your leadership, Ross, looking forward to working with you closely going forward. But as you think about the projects and having put them kind of in position to ramp up here over the next few years, kudos to you guys for all the work through this point. I guess the question I had would just be around the time lines. Has anything shifted on your heavy mineral sands projects? I know looking through the decks and you guys have some of the most detailed decks out there, it looks like some of the time lines may have shifted out a little bit. I don't know if that's a more updated view or if that's something that it sounds like you may have expressed earlier this month in an updated corporate deck. But can you just kind of talk about what's happening with the project time lines for the heavy mineral sands projects and if there's any significant drivers of the updated views on kind of maybe pushing out the time lines a smidge? Mark Chalmers: Yes. Look, the Donald Project is our shovel-ready project. I mean, really, the focus there is coming to a final investment decision on that. We're very, very buoyant that the timing of a shovel-ready project like Donald with the -- particularly the heavies in addition to the lights is really optimal, and it's very important for not just the company, but for the United States of America and the world in general. So yes, it's shifted a little bit, but we're very confident that we're very close to making a decision there. We still got to look at sort of the final numbers and looking at homes for the product that is produced there. Vara Mada, we're still making significant progress with the government. We've had meetings even this week with the Madagascar government. We've been working with the communities and kind of rebranding that project. But we're really taking maybe a little slower in the fact that we want to make sure that, that project has all the -- certainly the permits, but also the social license to operate because it's an exceptional extraordinary project. But we couldn't be more excited about it because it's a game changer in the whole rare earth business. Bahia, we're making progress there with -- coming up with a resource there. And then you got Dubbo now another one in the queue. So Ross, I don't know if you want to add anything to that. Ross Bhappu: No. Look, I completely agree with what Mark has said. I think Vara Mada maybe slowed down by a quarter with the change in government, but this government, we've met with, as Mark said, this week, and they are -- they seem to be very supportive and recognize the value that a project like that brings to the country. So yes, no, I think we're progressing pretty well on all fronts there, Brian. Brian Lee: Okay. That's great. I appreciate the color. And then I guess in terms of timing, Donald, like you said, is shovel-ready. It doesn't sound like anything is really shifting out there. So is the time line still for FID here in the early part of '26 and then deliveries in late '27. Any kind of updated thoughts around the time line for getting volume out of that project? Mark Chalmers: Yes, that's still the time line. And as we said, it's a very important first major step for us in the rare earth space. And to put it into context that the expected heavies from the Donald project is equivalent to about 25% of the U.S. requirements, and that's the first phase. And the second phase could be up to 50% of the heavies required for the United States. So yes, we're on that time line. We've been doing things behind the scenes to make sure that we can maintain that time line. But we've got to just look at the final numbers and make a decision at Board level on how we proceed. Brian Lee: Okay. Great. Last one for me, and I'll pass it on. Mark, you mentioned you've obviously got a very unique asset, and you just alluded to the fact that you could represent a significant percentage of the heavies for the U.S. With Project Vault having been officially announced recently, what have your discussions with your government contacts? How have they evolved? Sort of where do you sit in the positioning of potentially having some sort of government support or offtake given that heavies exposure in your asset mix? Mark Chalmers: Look, everyone in the critical minerals space is spending a lot of time in D.C. and -- including Energy Fuels, I can't go into too much detail. But I can say one thing. When people look at the number of assets that we've acquired and how we're advancing, it's getting noticed by everyone, everyone around the world, end users, upstream, downstream, midstream and with the Australian government and the U.S. government. So I mean, I think that the differentiator for us is the quantum and scale of what we put together. I mean, I think a lot of people are used to small little fragments in the business, and we don't have fragments. When you look at the potential acquisition of ASM with up through alloys and you look at the multiple projects, it's just -- it's a good look for the right reasons. Let's leave it at that. And Ross, I don't know if you have anything to add. Ross Bhappu: No, I think -- well, I would just say that I think -- yes, we -- the attraction for us is that we have a real facility. We have the White Mesa Mill that you can go out, you can see. We have bags of NdPr that are sitting there. We have monazite on the ground there. We are for real. And I think that's caught the attention of a lot of people. And so we're hoping that we'll continue to progress in that area. But no -- nothing definitive on that end yet, Brian. Mark Chalmers: Yes. One other comment, Brian, but it's not just the rare earths. People are looking at our uranium production and our vanadium production. So there really isn't anybody else that they can compare to that has this multi-element Really, everything we're doing is in the wheelhouse of the U.S. government and these OEMs and stuff in terms of how to re-shore some of these elements and final products. So yes, we're in a good spot, I think. Operator: Your next question comes from Anthony Taglieri with Canaccord Genuity. Anthony Taglieri: Maybe starting at White Mesa. Given your uranium production guidance of 1.5 million to 2.5 million pounds, what factors sort of drive the potential high end of that range, maybe producing for 10 months versus the low end, around 6 months? And if you process uranium for 10 months in 2026, would you still switch over back to uranium in Q1 '27? Or could this be pushed back a bit? Mark Chalmers: Yes. The -- it's really a function of the run time of the mill. And we also have to be mining fast, too, because the mill is very hungry. When we're doing a uranium run, we really don't want to switch the mill on and off very much because once it gets to equilibrium, it perpetuates, and you get the efficiencies of just continuous operations. So I mean, one of the things that we've -- and we've talked about the Phase 1 -- we have what we call Phase 1b and Phase 1c that will allow us to commercially produce both the lights and heavies in 2027. So we've always given ourselves some flexibility that we can shift the mill to rare earth run if need be. And we're trying to -- well, we are showing the world that we have that flexibility. So I would say it's really a function of the critical mass and maximizing the economics of running longer if required. So we're just giving ourselves some maneuvering room there in that regard. Anthony Taglieri: Okay. Great. Understood. Maybe switching gears a bit. So with your '26 uranium sales guidance, there's obviously some room there for some spot sales. We all know where spot prices are right now, around $87, $88 a pound. Are we at levels where you guys would consider selling more into the spot market? Or do you want to see prices reach a certain threshold before you do that? Could the decision to sell more or less on the spot market be tied to a potential strategic uranium reserve? We talked about Project Vault earlier. Maybe some color there would be great. Mark Chalmers: Yes. I mean we certainly don't want to sell a significant amount of uranium at low prices on the spot, and we really haven't. I mean if the prices go low, we're a buyer. Prices go high, that helps us with our contract pricing because of the formulas in 5 out of the 6 contracts that we have. And so we always want to try to time spot sales when it makes the most sense. So we have sold a bit under $80, like $77, $70, a little bit here and there, but we're always targeting higher prices. So right now, I still believe that the true replacement value on a pound of uranium is still in excess of where the spot is right now, and we always keep that in mind if we do make a sale. But I also think that companies need to show they're building the revenue and they're moving towards profitability. And so we're not just going to not sell uranium just because we're not happy with the price. If we've got a margin on it and we do have a material margin, when you look at our production cost, we want to keep growing our revenue, our profitability and reducing the burn as we build out the rest of our strategy. So -- and we're in a unique position with the ability to use this uranium business to provide a material bridge for the next few years. Ross Bhappu: Yes. I would just add, when you look at the long-term supply and demand fundamentals, you can't help but be pretty bullish on uranium. And so we're trying to maintain good optionality between our spot and our term contracts that give us that optionality to play it if it does go stronger like we think it will. Operator: Your next question comes from Heiko Ihle with H.C. Wainwright. Heiko Ihle: Mark, congratulations on your retirement and on that same token, Ross, congratulations on your appointment here. Mark has done a wonderful job with the firm. Ross, I actually just looked this morning, and we initiated coverage of the company on June 29, 2015, with a $6.30 price target. So that's 10.5 years ago. Mark Chalmers: We've come a long way, fantastic. Heiko Ihle: Shows you where we've come. I was a little bit hesitant to ask this question on a public call, but I just can't help myself. The firm has changed so much since then. And presumably, with the near-term appointment of you, some changes will be in the air. And I assume that most of these changes are going to be minor given how well the old company "has done." But do you want to just give us a touch of color on your expectations for the company going forward, maybe things that are not as obvious in press releases or in guidance or anything along the lines of that you think you're going to bring your expertise and maybe change things around just a touch? Mark Chalmers: I'm letting Ross answer that question. Ross Bhappu: Yes, it's a great question. And look, when you look at our growth plans, they're pretty ambitious. We're going to have 4 major construction projects going on simultaneously. So I think the key is we're going to have some significant additions to the team that are around execution in multiple geographies. So it's really setting the company up for execution success with some very diverse geographically and commodity projects. So it's all about execution going forward and ensuring that we have the right additions to the team. Heiko Ihle: Fair. And then just on guidance, and you sort of hinted at this in the prepared remarks. You're building off of a good year. But I mean, the 2.5 million pounds, can you go through some of the factors that could get you all the way to 2.5 million? You mentioned earlier in the prepared remarks that it's obviously dependent on the mill. But besides that, anything that we should be looking out for in our models, please? Mark Chalmers: Look, I think it's -- we're getting Pinyon Plain into more of a routine when it comes to the mining rate. So we're very confident that we can be in that range or even beat it potentially. And the same thing is happening at La Sal. We've got miners and trained a lot of miners because one of our impediments was getting miners that know how to mine conventionally. So -- but at the same time, we'll have Whirlwind. We're planning to do more work to get it back up and into production. Actually, first time, it's never been in production in 2026, it'd be in 2027. The same thing with Energy Queen. We're still doing drilling and looking at when to start up Nichols Ranch in Wyoming. So it's really with the conventional mining, it's really about having more work areas, more miners, and we can ramp up accordingly. So it's pretty low risk for us right now when it comes to getting there. And also what you're seeing, Heiko, is that we're mining more than we typically plan to either process or sell. So we plan to be building inventories that are quite material. And those inventories, particularly the unprocessed uranium, can be turned into finished goods pretty quickly with the mill restart or if the mill is running at the time. So we have a lot of flexibility that others won't have, and we plan to use that to its fullest. Operator: Your next question comes from Noel Parks with Tuohy Brothers Investment Research. Noel Parks: I just had a couple of things. The additional oxides you're going to be pursuing in Phase 1 that you announced last night, is it -- is that essentially sort of the Phase 1c that you've been mentioning late last year? Mark Chalmers: Yes. I mean one of the things that we're doing with our Phase 1, which is the existing constructed and operable rare earth SX circuit is we're adding what we call 1b. And I know it gets a little confusing because we got a lot of Phase 1s and 2s and -- but we've got Phase Ibs and cs. So the Phase 1b is to allow us to take the SM+, which is samarium plus is really heavy concentrate and go ahead and separate out the Dy, Tb, and some of these other rare earths as well. And so we see that as a real differentiator to have a commercial plant in the United States and have it quicker, faster than others. The 1c really kind of emerged last year, mid-late last year, and it is really focused on being able to take IMREC. And that is sort of an intermediate product that could come from either other cracked and leached monazite, but it also could come from potentially ionic clays or other sources, which will allow us to maximize the usage of that Phase 1 infrastructure for the rare earths, both for lights and heavies with 1b for the heavy separation and 1c for an IMREC. So it's really giving significant flexibility quicker, faster. And when we talk to people, whether it's the OEMs or government agencies, they want fast. And 1b, 1c is something that we see as fast and quick. Now looking to Phase 2, which should be approved in '27 and going into construction '27 with the FID decision, that will be scaled up about 5x greater and will be the more permanent facility, even though we're planning to continue to have that 1b and 1c for the long haul. Noel Parks: Great. And I just wanted to ask about the progress with -- or toward closing of ASM. And any updates you can give on that? And I was wondering, do you need specific South Korean regulatory approval for the plant there? And also -- I mean, for the sale of the plant there. And also, just wondering if you have any ballpark on the capital requirements for the future phases of the Korea plant. Mark Chalmers: I'll answer some of it, but also have Ross jump in. We have a scheme document that we're executing that was signed by ASM. And again, we're planning to close June of this year. We have to get the FIRB approval, which is Foreign Investment Review Board in Australia. We had to do the same thing for Base Resources. So the good news is we've gone through the scheme process recently in Australia. We still got to get shareholder vote. We've got to get all the various other approvals in the jurisdictions that they have assets in. So we're advancing that. Ross, do you want to add on things like capital or approvals? Ross Bhappu: So yes, I should have mentioned this Phase 2 is already funded for ASM. So that's adding the 18 different additional furnaces and the additional strip caster. So that is already budgeted and funded. Yes. And then going forward, if we do Phase 3, we don't have numbers around that just yet, but they're relatively modest numbers. I think the key time line, as Mark mentioned, is really getting the FIRB approval and the scheme document approved by the shareholders in Australia. So it's something we've done recently with the base acquisition, and I think we're pretty familiar with the process there. Operator: Your next question comes from Joseph Reagor with ROTH Capital Partners. Joseph Reagor: I think most of them might have already been answered, but a couple of small things. I guess on the uranium sales guidance, what's the breakdown there between existing contracts and spot sales for this year? And then if you guys can give any color on what we should expect for pricing either over the remaining, call it, 3.5 million pounds you have under contract or just for 2026 for those contract pounds? Mark Chalmers: Yes. Look, at this one, I'm going to flip to Curtis because he's on the call here, and he's in charge of our uranium sales. But go ahead, Curtis. Curtis Moore: Sure. Glad to hear from you. So we have -- this year, I believe the number was about 650,000 to 880,000 pounds of total contract sales of which we've already done some here in Q1. So that's the number. And that range, we offered some flex on those contracts. These were some of our first contracts that we signed back in 2022 that -- where we had to offer some flex in order to get those contracts in place. But keeping in mind as well as those contracts enable us to get the Pinyon Plain Mine going, which, of course, is the largest, lowest cost mine in the United States today. So yes, the rest would theoretically be on spot, midterm, maybe there's -- sold on the forward price curve or something like that this year. And again, we're not going to -- if the price drops, as Mark said, we're probably going to be buyers of uranium to help replenish inventories. But I'd say we're likely to be price-sensitive sellers. Joseph Reagor: Okay. And can you give any color on what the contract pricing is kind of set around either for this year or if you are more comfortable just over the remainder of the book? Curtis Moore: Yes. We haven't put any guidance out on that. If you look at our contract pricing from the last couple of years, that's a pretty good indication of where the prices are for our first sort of tranche of contracts. We have 3 contracts, 3 were signed kind of in early to mid-2022. And we got a little better pricing on those contracts than what was reported at the time, but they weren't high-priced contracts. And the base and the fixed price component on those contracts, they're hybrid contracts, it has been escalating with inflation. But then we've signed 3 more contracts here in the last 18 months or so, which obviously has some higher prices. And so we still have those 2022 contracts that we're delivering into this year. But we also have -- I believe it's one of the more recent contracts that has deliveries this year. So I think you're going to probably hopefully see our contract pricing increase throughout the year, though Q1 is likely to have a little lower because that's when we had, again, one of our other 2022 contracts come into place. And so we made a delivery there, but that one will be done for the year. So you'll see Q1 come out, but then it will probably start going up pretty significantly after that. Mark Chalmers: But I will say this, it will be in the $70s plus, okay? And depending on how uranium prices are, it can go into the $80s. So -- but it's not in the $60s, Joe. A lot of people have $60s, and we're not in the $60s. Joseph Reagor: Okay. That's very helpful. And then -- you guys also provided updated reserves and resources with the K. It looks like numbers went up a little bit. Can you kind of talk through what some of the gains were from? Was there some just stuff that came into resource because of higher pricing or any other revisions? I know Pinyon was a big part of it, but just overall. Mark Chalmers: Yes. I don't have my geologists here. He's in transit on a plane, I think. But looking on Pinyon, when you look at Pinyon originally, and that's -- at least right now, that's the one that's generating cash flow. The original estimate on the -- what we call the upper zone main zone was like 1.6 million pounds in this most recent estimate, they increased that two, threefold greater on the main zone. And it's really hard. And what's interesting is that main zone that the SLR did the estimate on was the most drilled-out zone I've ever seen in my entire career, and they were off by an order of 2 or 3 or greater. So it's hard to really get what I can say -- I believe is accurate estimates, particularly in the Juniper zone. But -- so what we're seeing is we saw the substantial increase in the main zone, substantial grade. The grade was almost double. So that was one of the reasons that it was off so much as the grade was higher. And in the Juniper, we have an area in the Juniper, which is 600 feet, and we're currently mining the top 200 feet, which is above that. So there's 800 feet of total area to mine. And I see a lot of exploration potential in the Juniper Zone. We already know that we have some very, very high-grade intercepts in the Juniper Zone, but it doesn't have a lot of drilling, particularly 200, 300 feet below the Juniper Zone. It's very open ended. So it's going to be kind of work in progress. I've worked at a couple of mines over my career that had 1 year of resource or reserve, and it just went and went and went. We know that Pinyon Plain isn't going to go for 20 years, but I'm still very optimistic it's going to go for a number of years and going to really materially keep our costs very low because of the grades. Operator: Your next question comes from Matthew Key with Texas Capital. Matthew Key: I wanted to drill down a little bit on the 2026 guide on mined U3O8. I was wondering if you could provide maybe an asset breakdown on that total, particularly as it relates to Pinyon Plain. Should we be expecting a similar run rate in 2026 that we saw in late 2025? Obviously, that mix would be important just as we kind of model out costs. So just trying to get a sense of the breakdown there. Mark Chalmers: Yes. Look, we're pretty comfortable with Pinyon Plain on its own will do at least 2 million pounds plus just as Pinyon Plain. And so the residual of that would be made up from the La Sal Complex, which is currently 2 mines. And so we do have another mine at La Sal that we're looking at refurbishing and startup, and then we have the Whirlwind mine. So the bulk of the pounds are coming from Pinyon Plain. But it's also interesting to note that the La Sal Complex, right now, all we're doing is recovering the uranium. We're not recovering the vanadium. And the vanadium is about 5x the grade of the uranium. And if the price of vanadium keeps going up, we may start talking about recovering the vanadium and getting another byproduct that drives our costs down even further on the La Sal Complex in our uranium vanadium mine. So what I think you can see is that we're comfortable with that range with probably Pinyon being around 2 million plus and the La Sal Complex topping that up. And then you can see that with Energy Queen, Whirlwind and even Nichols Ranch, you can see we're -- it's really quite possible we can get up towards 3 million pounds if we elect to. And again, this is 3 million pounds with limited capital. We don't need a lot of capital. We need basically working capital to get there. But you could also -- if the price of vanadium starts continues to increase, you could see us getting a credit for vanadium production as well, which can drive costs down a lot because it's significant when the price is up. Matthew Key: Got it. No, that's super helpful. And I just wanted to talk a little bit about the medium-term projects there as well. What market signals would you need to see to make that go-ahead decision on Nichols Ranch and Whirlwind? Would you say it's likely those assets come online sometime in 2027? And if you could just remind me just at a high level, the CapEx requirements to kind of bring online those medium-term uranium projects. Mark Chalmers: Yes. I think it's very high probability in 2027 that Whirlwind comes on as well, Energy Queen and really depending on uranium prices, Nichols Ranch. So I mean, the capital cost, I mean, if you look at Whirlwind and you look at Energy Queen, I mean, it's like $5 million, $10 million each. It's very, very small. When you look at Nichols Ranch, it's really about putting in the well fields and you're probably talking $25 million or something and thereabouts for Nichols Ranch. And most of that capital is going into the well fields, which is really the mining process, okay? So you put that -- those wells in and then you extract the uranium. So between all 3 of them, it's really small compared to others. And -- but I do think very high probability that a couple more conventional mines come on and Nichols Ranch, I think, is a very good probability it could come on in 2027. Operator: This concludes the question-and-answer session. I will now turn the conference back over to Mark Chalmers for any closing remarks. Mark Chalmers: No, thank you, everyone, who are listening in and asked questions. I think in closing, we've -- and I've always said this that we've had an aggressive but not reckless strategy. We want to keep a strong balance sheet. We need good people to advance the strategy. We're working on that. And we're really getting a lot of attention globally. And it's really been a pleasure to be a part of this over the last 10 years. I plan to continue to be available to work with Ross and the others because I've spent a fair amount of time with a lot of these assets over the years. But I'm really excited and there's more to come. There is so much going on. I don't want investors to think like we've reached some peak because we're still driving this company to become a $10 billion-plus company. And I'm just looking forward to not working 7 days a week and having a little bit more time to have more fun, to go skiing, to spend time with my grandkids and family and friends, which over the last 10 years has been a little bit short of supply. So Ross, do you want to say anything else to that or... Ross Bhappu: Well, again, I'd just reiterate that Mark is going to be on a 2-year contract going forward, and I fully intend to utilize his expertise. He brings such an incredible wealth of knowledge. But look, the company is set up for just incredible success, incredible continued growth. To Mark's point, we have a lot of exciting things on our plate right now. And yes, excited for the future of this company. Mark Chalmers: Thank you everybody. Operator: This concludes today's call. Thank you for attending. You may now disconnect and have a wonderful rest of your day.
Operator: Thank you for standing by. This is the conference operator. Welcome to Extendicare Inc. Fourth Quarter 2025 Analyst Conference Call. [Operator Instructions] The conference is being recorded. [Operator Instructions] I would now like to turn the conference over to Jillian Fountain, Vice President, Investor Relations. Please go ahead, ma'am. Jillian Fountain: Thank you, operator, and good morning, everyone. Welcome to Extendicare's 2025 Fourth Quarter and Full Year Results Conference Call. Joining me today are Extendicare's President and CEO, Michael Guerriere; and Executive Vice President and Chief Financial Officer, David Bacon. Our Q4 results were released yesterday and are available on our website as is a live audio webcast of today's call, along with an accompanying slide presentation. An archived recording will also be available on our website following the call today. As well, replay numbers and pass-codes have been provided in our press release to access an archived recording by phone until midnight of March 13. Before we get started, please be reminded that today's call may include forward-looking statements and non-GAAP and other financial measures. Such forward-looking statements involve known and unknown risks and uncertainties that may cause actual results to differ materially from those expressed or implied today. We have identified such factors as well as details of non-GAAP and other financial measures in our public filings with the securities regulators and suggest that you refer to those filings. With that, I'll turn the call over to Michael. Michael Guerriere: Thank you, Jillian, and good morning. 2025 was a very successful year for Extendicare, marked by strong organic growth in ParaMed and SGP, higher margins in all 3 operating segments and 2 acquisitions that we closed midyear that augmented our long-term care and home health platforms. Taken together, these developments resulted in overall adjusted EBITDA for the quarter of $45.6 million. This is an increase of 36.4% from the prior year after adjusting for out-of-period items. The integration of the long-term care homes acquired from Revera is now complete and the Closing the Gap integration is well underway and expected to finish in Q3. Both acquisitions are performing ahead of the pro forma financial information shared at the time the acquisitions were announced. AFFO per share is up 6% over the prior year quarter, with the earnings improvement moderated by a catch-up in maintenance CapEx in the last quarter of the year. Our payout ratio for the quarter was 42% and 46% for the full year, both numbers adjusted for out-of-period items, providing us with considerable flexibility in our capital allocation options. ParaMed delivered 15.3% organic volume growth over the prior year quarter. The continued strength of demand for our home health services is supported by strong demographic trends and ongoing long-term care capacity constraints. This strong organic growth combined with the contribution from Closing the Gap and the scalability of our technology-enabled back office drove an NOI margin of 13.2% after adjusting for out-of-period items. This represents a 280 basis point improvement over the prior year quarter. Our long-term care NOI margins in the quarter improved by 90 basis points to 10.9% over the prior year after adjusting for out-of-period items, and our occupancy remained consistent at 98%. Managed service revenues declined in the second half as Revera sold the remainder of its C bed portfolio, some to Extendicare and others to a large operator that took operations in-house. Nonetheless, third party and joint venture beds served by SGP grew to over 153,500, up 5% from the prior year quarter. Managed services NOI margins were 55.5% this quarter and remain in line with our long-term expectations of 50% to 55% for this segment. Finally, we announced a 5% increase to our monthly dividend to $0.0441 effective with the dividend to be declared in March. This is the second year that we have increased the dividend reflecting our sustained financial and operating performance, sound capital structure and prospects for growth. Operational momentum augmented by organic growth, acquisitions and prudent management of our balance sheet will enable us to consider further dividend increases as we make capital allocation decisions in future years. Turning to Slide 4. As previously announced, in November 2025, we entered into an agreement to acquire the CBI Home Health business for $570 million. CBI Home Health is highly complementary to ParaMed as it gives us an expanded presence in Western Canada and new business models that offer new avenues for organic growth. The combination of the 2 companies provides an opportunity to achieve significant synergies as we scale up the volumes we drive through our technology platform. The added scale will also support the continued investment in technology, enabling us to provide reliable high-quality services more efficiently to the thousands of people that rely on us for care. The transaction is expected to add approximately 10 million hours and 8,500 team members to our home health segment, contributing an estimated $478 million in revenue and $61.9 million in pro forma adjusted EBITDA, the transaction is 9% accretive to earnings per share at the outset, growing to 15% when anticipated synergies of $7.4 million are realized. The regulatory approval process is progressing well, and we hope to close the acquisition in early Q2. In December, we completed our $200 million bought deal private placement generating net proceeds of $191.5 million. Together with the $214.5 million committed expansion to our senior secured credit facilities and cash on hand, we are positioned to close the transaction, while preserving flexibility in our capital structure. Turning to Slide 5. We continue to advance our Ontario redevelopment agenda in Q4 by commencing preliminary construction of a 320-bed home in Sudbury, which will replace a 278-bed Class C home we operate nearby. This brings to 7, the number of homes we have under construction for a total investment of $692.3 million. We continue to use our joint venture platform to fund our redevelopment projects to preserve our balance sheet while retaining a 15% managed interest. We are awaiting final regulatory approval to sell the new Sudbury project into the joint venture and expect to close in the coming weeks. Recovering the capital we invested in the project to date and realizing a gain on the sale. We remain on track to open 2 new homes in 2026, Extendicare Beauclaire, a 320-bed home in Ottawa and Extendicare Forest Trail, a 256-bed home in Peterborough. After year-end, we completed the sale of our vacated West End Villa C bed home in Ottawa for proceeds of $12.5 million, resulting in an after-tax gain of $10.1 million. This home was vacated earlier in 2025 following the opening of Extendicare Crossing Bridge, a joint venture home. Consistent with recent projects, the proceeds from this sale will enable further investment to advance our redevelopment pipeline. We continue to progress on additional 17 projects which are at varying stages of planning and development under the Ontario government Long-Term Care Home Capital development policy. We also continue to advocate for additional funding and other considerations for certain projects, particularly in Northern Ontario that we need to execute on our full redevelopment agenda. I'll now turn the call over to our CFO, David Bacon, to discuss our financial results in more detail. David Bacon: Thanks, Michael. I'll start with a brief overview of our consolidated results and then talk about our individual business segments and our liquidity. Our consolidated results for the quarter, Q4 NOI was impacted by approximately $3.9 million in net favorable out-of-period items related primarily to workers' compensation rebates received in LTC and home health, offset by retroactive wage adjustments in LTC. The impact of the out-of-period items is summarized in the appendix for the presentation. Our consolidated Q4 revenue increased by 18% to $462 million driven by the full quarter contribution from the acquisitions of Closing the Gap and the 9 LTC homes acquired from Revera earlier in 2025, contributing $61.8 million in revenue. 15.3% organic growth in our home health care volumes, along with bill rate increases, long-term care funding increases partially offset by the closure of the Class C LTC homes that were vacated following the opening of the newly redeveloped long-term care homes in the Axium joint venture and lower management fees as a result of the sale by Revera of the LTC homes we previously managed. Excluding out-of-period items, our Q4 NOI improved by $14.3 million or 30.2%, reflecting the revenue growth and a contribution of approximately $8.6 million to NOI from the 2 acquisitions, partially offset by higher operating costs. Excluding the impact of out-of-period items, our Q4 adjusted EBITDA increased by $12.2 million or 36.4% reflecting the improvement in our NOI, partially offset by higher administrative costs. Q4 AFFO per share is $0.337, down slightly from the prior year with the improved after-tax earnings this quarter, partially offset by higher maintenance CapEx compared to the same period last year due to the timing and size of maintenance projects in LTC in the quarter, and additional maintenance CapEx from the LTC homes we acquired earlier in the year. When out-of-period items are excluded from both this year and last, our AFFO per basic share improved 6% to $0.301 per share. The equity issuance completed in December of 2025 had an approximately $0.01 per share impact on both our reported AFFO per share and our earnings per share in Q4. Turning to our individual segments. Home health care continues to deliver exceptional performance. Q4 revenue increased by $49.7 million or 33.6% year-over-year driven by the $26.6 million contribution from Closing the Gap and 15.3% organic growth. Q4 NOI, excluding the net impact of the year-over-year change and out-of-period items, improved by $11.2 million or 75.3% driven by the organic volume growth and approximately $3.8 million in NOI from Closing the Gap. On the same basis, excluding the out-of-period items, NOI margins increased 280 basis points to 13.2% in the quarter. Turning to our Long-Term Care segment. The Q4 results were impacted by out-of-period costs of $1.6 million this year compared to out-of-period funding of $1.9 million in the prior year period. Excluding out-of-period impacts, revenue increased by $26.3 million or 11.8%, driven by the full quarter contribution of $35.2 million from the 9 LTC homes acquired from Revera, the timing of envelope spending, partially offset by a loss of approximately $7.6 million in revenue from the closure of the 2 redeveloped Class C homes that were replaced by the new homes in the JV. Excluding the net impact of the out-of-period items, NOI increased by $4.9 million or 22%, driven by the increases in revenue and approximately $4.8 million in NOI contribution from the 9 LTC homes acquired partially offset by higher operating costs and the loss of approximately $500,000 in NOI related to the closed Class C homes. Corresponding NOI margins increased 90 basis points over the prior year period to 10.9% in the quarter. And our full year NOI margins adjusted for out-of-period items is also 10.9%, up 50 basis points from the full year 2024. Turning to our Managed Services segment. The decline in revenue and NOI this quarter reflect the termination of the management contracts resulting from the sale by Revera of the 30 LTC homes, 9 of which were sold to us in Q2 and are now in our LTC segment. Our managed service revenue decreased $3.6 million to $15.3 million and NOI declined $1.8 million to $8.5 million. Despite the reduction in the number of managed homes, earnings benefited from our 5% organic growth in our SGP clients and the increased management fees from the newly homed open -- homes in the JV. Turning to the balance sheet. With our successful equity offering in December, we ended the year with $348 million in cash on hand and $154 million of available lines of credit and strong credit metrics. As Mike mentioned earlier, we have secured a committed $214.5 million upsizing of our senior secured credit facility to help fund the CBI acquisition. This consists of an incremental $154.5 million in delayed draw term loan and $60 million in our revolving credit facility. Furthermore, this upsized facility will have a new 3-year term extending the maturity to 2029. We intend to fund the CBI acquisition by drawing the incremental $154.5 million delayed draw term loan and approximately $154 million drawn on the revolving credit facility with the balance coming from cash on hand. Based on this, our pro forma total debt to adjusted EBITDA will be approximately in the 2.7 to 2.9x range at closing based on the financing plan and the $228 million in estimated pro forma adjusted EBITDA previously disclosed in our CBI acquisition announcement, which is ahead of our estimated leverage at the time of announcement. We're pleased with the strength of our capital structure and are well positioned to continue to pursue our growth agenda. We will remain disciplined in our approach to allocating capital, balancing our objectives to drive growth and create shareholder value. With that, I'll pass it back to Mike for his closing remarks. Michael Guerriere: Thank you, David. 2025 was a milestone year for Extendicare. The benefits of our compelling strategy are clearly evident in our results for the fourth quarter and the full year. The demographic realities of an aging population continue to drive demand for our services and the scale and efficiency of our operations position us well to answer the call. We are excited about the prospects that 2026 will bring, most notably the completion of the CBI Home Health acquisition. This transaction combined with our achievements of the last several years, position Extendicare to make a significant contribution to building capacity in the Canadian health care system. Given the ongoing challenges faced by the health care sector, we are confident that our scale and mix of services will relieve pressure on hospitals by providing care in more appropriate and cost-effective settings. We will continue to build capacity to ensure that everyone in Canada receives the care they need to live their best lives. My sincere thanks to our growing team including the new team members, we will soon welcome from CBI for their commitment to advancing this important mission. And with that, we welcome any questions that you might have. Operator: [Operator Instructions] The first question will come from Kyle McPhee with ATB. Kyle McPhee: First one for me. Just on your home health care segment, the organic volume growth, the service hours provided up organically 15% in Q4. That figure just keeps climbing quarter-after-quarter. So great to see. But wondering do you have anything to call out as kind of a onetime tailwind? Or is this performance just reflective of demand tailwinds you're experiencing for home health care as a key supplier to the provinces? Michael Guerriere: Thanks, Kyle. The pace of growth continues to surprise us, frankly and certainly more than what we've been expecting. The demographic -- the underlying demographic growth in the populations we serve drives about a 4% growth pace and then we've been noting the fact that long-term care capacity is not growing in keeping with the demographics. And so governments are turning to home health care to fill in that gap, which is what we think is driving the outsized increases. It's interesting that in Ontario, we've seen statistics that the number of people inappropriately in acute care hospitals waiting to go home or waiting to go to long-term care has been declining for the first time in many years. It's dropped about 14% from the prior year. And so we think that the home care volumes are helping that kind of decompression of the hospital sector to happen. So all that said, it's hard to know how long these really rapid growth rates will continue. We continue to believe that the growth rates will moderate back to a mid- to high single-digit kind of pace. But we really don't know when that's going to happen. So we take it quarter-by-quarter and make sure that our recruiting and training capabilities are calibrated to changes in demand in the marketplace. So I continue to think that this kind of pace cannot continue at this rate indefinitely. Kyle McPhee: Got it. Okay. That's very helpful color. I appreciate all that. Second one for me. Thanks for the messaging that the Sudbury redevelopment project will go into the JV in the coming weeks. Is it still the plan to do all future Class C redevelopments using the JV structure as you opt to save your capital for other sources of growth? Or will that playbook maybe evolve over time to include wholly owned redevelopment projects, notably giving you up so much capital access and free cash flow continuing to roll. David Bacon: Yes. Kyle, I think it is our intent to continue with the strategy we have to date. So at the moment, we do view the Ontario redevelopment agenda as squarely being done in partnership with capital partners. And to date, it's been Axium. And so we don't see us changing that viewpoint at the moment. So I think you'd see us being consistent going forward. Kyle McPhee: Got it. Okay. And one last quick one. Just on the CBI acquisition closing, is there any risk to closing? Or is this just a basic delay as you go through the closing process. Maybe you can provide some color on the source of the delay versus the original timing expectation. Michael Guerriere: Well, look, the regulatory approval process is real. So we do need to get those approvals and work with our various government partners to make sure that we're aligned on the path forward. That said, the process is going very well. There's been no unexpected developments. So we have no reason to think that we won't be successful in getting to conclusion in Q2. Operator: The next question will come from Tom Callaghan with BMO Capital Markets. Tom Callaghan: Maybe just building on some of those home health questions there. Appreciate the color. I guess, one of the things you mentioned was just making sure recruiting and training capabilities are appropriately calibrated. And I understand kind of the view that eventually this growth kind of starts to decelerate. But assuming we work through a good part of '26 of these elevated ADV growth levels. Like is there any constraint from a labor perspective? Or do you feel pretty good about where you sit today from that end? Michael Guerriere: Right now, I'd say we feel pretty good. We're not seeing any headwinds in the labor market that suggests that we would have challenges fulfilling most of our human resources needs. That said, we are in a world where labor markets are changing quite significantly as a result of changing immigration policies. So that is a file that we're watching carefully. We've seen no impact on our ability to deliver, our ability to recruit to date as a result of that. But I would also say that the rules seem to be changing on a weekly and monthly basis. So it may have an impact on the broader market. The other comment that I would make is that although we are largely able to meet demand, in certain geographies where we operate in rural parts of the provinces in more remote places. We continue to have constraints on our ability to recruit enough caregivers. So the big municipalities, no problem meeting demand, but there are still parts of the province of Ontario, where we are not able to accept all the referrals that come our way. So managing labor supply and building our own capabilities to train people to provide care continues to be a key part of our strategy. Tom Callaghan: Maybe just one follow-up on the home health side. Just in terms of like, I guess, incremental delivery models. I saw Ontario launched a high-intensity bundled home care program. Appears to me at least more of a trial around here in early '26. But just any thoughts there to that program specifically or maybe other initiatives that could come through that maybe set you up for incremental volume as opposed or when compared to years past? Michael Guerriere: Yes. That procurement was an example of something that has been developing and growing over the last several years of hospitals partnering more closely with home care operators to streamline the hand-off of patients that are discharged from hospital and make sure that they get continuity of care as they go home. And we're certainly involved with a whole number of hospitals in those kinds of projects. The other trend, I mean, you pointed out that, that particular one was high intensity. We are seeing more in the way of 7x24 home care services where it's a little bit more wraparound and providing support at all hours, including weekends to allow people to stay in their own homes. So when we look at our volume growth, some of it is because we have more patients and some of it is because we're just providing a higher number of hours for some of the new patients that we're taking on in that high-intensity category. So I think we're going to continue to see those kinds of activities. And both Closing the Gap and CBI were very good in very competitive in those 2 spaces, which is one of the things that made it quite attractive for us. Tom Callaghan: Okay. Great. Maybe if I could just sneak one more in on the housekeeping or modeling side. David, just in terms of cash taxes for '26, is a similar range to '25 in terms of percentage of pretax FFO a good way to think about it? Or are there any impacts from the CBI acquisition? David Bacon: No, I think you're still going to look at the taxes in the sort of 24% to 27% range from a percentage basis. So that's the guidance we've put in the MD&A for next year. Operator: Next question will come from Giuliano Thornhill with National Bank. Giuliano Thornhill: I just kind of want to start with the home health care segment. What's kind of the ceiling, do you think, on the margin performance in that business? David Bacon: Yes. I think a few thoughts, Giuliano there. I think if you look at our normalized full year for 2025, we're at 12.8%. I think as we've said, I think, on past calls, we do believe there is still margin expansion in this business. And as we grow volumes, look for continued development of technology solutions in the back office that we still think there's opportunities, especially in home care on added technology that can help with the productivity efficiency. So I think looking forward, there'll be some improvement into that 12.8% as we go forward. But we are, as Mike mentioned, it's been this sustain this high level of the organic growth gets sustained like it is for a period of time, there is going to be some step change needed in the cost structure in the business that could temper some of the margin improvement. So there is still improvement. It could just be tempered a little bit if we have a continued run at this level. But -- so I think as we've said before, this should be a 13%-plus margin business. But when we hit that on a sustained basis is still to come. Giuliano Thornhill: Okay. And then how much is the labor side out of the OpEx, if they're getting -- if think average wage is around $23 or so. That means there's around half of the OpEx is not related to labor. So I'm just wondering, out of that half, how much is fixed and really driving that scaling? David Bacon: Yes, we -- I mean we don't really break that out, Giuliano. Like I think -- We focus on the NOI margins. So -- but I mean labor is generally 75%, 80% of our cost structure, but those splits it out between back office, front office, it's not something we split out. Giuliano Thornhill: Okay. Moving on to the volumes, how many kind of contract wins did you get this quarter out of the share that were offered. Michael Guerriere: We're not sharing that information. You're talking about our win rate in terms of contracts. So the first thing I would say is that the volume that comes from some of those new contracts is not material. It takes a long time for those contracts to turn into anything that would even come into 100 basis points impact on our volume. So that's the first thing. But the second thing is that we're not sharing that kind of competitive information. Giuliano Thornhill: Right. Okay. And then just moving to the kind of CapEx. I'm wondering how many more projects need to be sold from the old homes remaining and -- yes. David Bacon: Yes. I think with the sale of the Stittsville home in Q1 just after year-end, like every -- we've now sold the 3 projects for the 3 homes that have opened. So we have 7 homes now in construction. The next 2 to open is in Peterborough and in -- just in Ottawa. So we're readying the legacy C homes related to those 2 to go to market. We tend to kind of go to market as we're getting ready to transition into the new home. So we'll be looking to sell these gear up so that we minimize the gap between closing and selling so that we're not sitting on that capital tied up in the vacant home. So everything we've opened, we've now sold the homes and the next wave, we're getting ready on the marketing. Giuliano Thornhill: Okay, just the last question for me is with CBI kind of being acquired, does this really round out your platform to go for, for the smaller acquisitions that tend to have higher accretion? David Bacon: Yes. I think -- I mean, it would be market by market. I think is the way to answer that. Certainly, this transaction will give us substantial presence in Ontario. But that's not to say in certain markets still, we're going to have -- we'll be light on nursing or light on the allied Physio-type services. So there's definitely infill opportunities. The CBI gives us a beachhead across the West with a strong presence in Alberta. So I think those markets are opportunity. And lastly, there's adjacencies, which I think we've talked about before. There's other markets that we could look to that still can leverage our back office and how we work and sort of workers' compensation, private insurance type market. So all of those are still opportunities for us, something sizable in Ontario is probably the one thing that is now done with CBI. And I would just remind everybody, too, and I think we've said this for the next foreseeable time, our focus is going to be on integrating finishing CTG and integrating CBI. So there is going to be a pause on the M&A for '26 until we get into '27 and well underway on CBI. But there's still a lot of opportunity in Home Care still very fragmented, we're just going to take a bit of a beat before we're back. Operator: The next question will come from Pammi Bir with RBC. Pammi Bir: Maybe just coming back to ParaMed. And aside from the acquisition of Closing the Gap, is it fair to say that are you gaining share from your competitors? Or are you seeing their volumes grow perhaps at similar clips? Michael Guerriere: Based on the information we have about the growth in the market, we think that this is predominantly a market expansion and that our share is staying quite consistent. David Bacon: And you can see that even in CTG, right? Where CTG itself has been outperforming our original pro forma information, but it's just another data point. So that supports that. Pammi Bir: And I guess, maybe just building on that is the trend line for CPI to date, I guess, through Q4 and pretty much consistent with what you've seen from CTG and your existing platform. David Bacon: Yes. I think we don't have -- we're still looking for updated financial information from them. They're still working through their year-end audits, but I don't think we have any expectation that they're not enjoying some of the similar performance. But yes, we wouldn't be able to comment specifically on their numbers at the moment. Pammi Bir: Okay. And I guess I think you mentioned that you're really not going to be looking to do anything of significance from any sort of additional capital deployment on acquisitions in home care. But are you seeing more home care providers perhaps looking to monetize and capitalize on this momentum in the space. Just wondering if there's other deals out there that you may just perhaps pass on just because you have obviously a very substantial acquisition that works. David Bacon: Yes, I'd say there's -- we still -- there's still activity for sure. We do have a pipeline. We do have discussions going on. We did before CBI, we still do now. So certainly, over the last 12 to 18 months, the sector has had a lot of activity, like our transactions as well, the Spectrum transaction. But there is opportunity, as we said, out there, people looking to monetize all sorts of different reasons. Some of the smaller ones are your traditional single operator, lack of succession planning or opportunities, et cetera. So -- but I think that there's lots of opportunity there, but likely no nothing of a scale or as big as a CBI, but lots of other opportunities. Pammi Bir: Okay. And then just lastly, David, I mean these out-of-period funding amounts and the workers comp rebates. I recognize these amounts can be lumpy, but they do seem to recur on a fairly consistent basis. So is it fair to assume that maybe these amounts perhaps just continue going forward? Or do you think it's kind of done at this point? David Bacon: Honestly, Pammi, I wish we knew to some extent. I don't think we came into '25 thinking we'd have 2 installments of workers' comp. I don't think anybody expected that. What I'd say, I'd like to think those types will go away and at some point stop. I do think the one place where we will continue to potentially have kind of catch up is on the funding announcements because we just know historically some of the various provincial announcements come late. They don't come ahead of April 1. They come a little later with retro components that I think will always be there to some extent. But the WSIB has been unusual. Didn't think it was going to continue to the extent it did in 2025. And as you know, it's not just us, that's a sector thing like an employer thing, that's happening. So -- but yes, hard to predict, hard to say. Pammi Bir: Okay. I mean it's a good thing to have, but that's all fair. Operator: [Operator Instructions] Seeing no further questions, this will conclude our question-and-answer session. I would like to turn the conference back over to Jillian Fountain for any closing remarks. Jillian Fountain: Thank you, operator. That concludes our call for today. This presentation is available on our website, along with a link to a replay of the call. Thank you all for joining us. And please don't hesitate to reach out if you have any further questions. Goodbye. Operator: This brings to a close today's conference call. You may now disconnect your lines. Thank you for participating, and have a pleasant day.
Operator: Good morning, and thank you for joining Becle's Fourth Quarter Unaudited Financial Results call. During this call, you may hear certain forward-looking statements. These statements may relate to our future prospects, developments and business strategies and may be identified by our use of terms and phrases such as anticipate, believe, could, estimate, expect, intend and similar terms and phrases and may include references to assumptions. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those in forward-looking statements. Before we begin, we would like to remind you that the figures discussed on this call were prepared in accordance with International Financial Reporting Standards, or IFRS, and published in the Mexican Stock Exchange. The information for the fourth quarter of 2025 is preliminary and is provided with the understanding that once financial statements are available, updated information will be shared in the appropriate electronic formats. [Operator Instructions]. Now I will pass the call on to Becle's CEO, Mr. Juan Domingo Beckmann. Juan Legorreta: Good morning, everyone, and thank you for joining us today as we discuss Becle's Fourth Quarter and Full Year 2025 results. 2025 was a year of navigating challenges across our key markets. However, we defended or expanded our leadership position in Tequila across our main regions, protected pricing better than the industry average by leveraging our strong brand equity, and delivered solid financial performance supported by the decisive actions and disciplined execution. We are proactively assessing market conditions to reinforce our strong foundation for sustained long term growth. At the same time, it is important to put the current environment into perspective. Spirits continue to take share from other alcoholic beverages, underscoring the structural strength of the segment. Within that context, Tequila continues to outperform other full-strength spirits categories with solid price mix growth, and premiumization trends remaining intact, favoring our core strengths. Cautious of shifting consumption trends, we believe the current slowdown is mostly cyclical, driven by macroeconomic headwinds and inflationary pressures. Historically, the spirits industry has experienced periods of expansion and contraction, and we expect demand to recover as consumers' confidence improves. In the U.S. and Canada, we are implementing changes to better capture both portfolio and route-to-market opportunities. We recently announced a full realignment of our U.S. distribution network with the transition beginning on February 1. In Mexico, we continue to advance premiumization, strengthening our on-premise capabilities and sharpen marketing through innovation. Even in a cautious demand environment, we remain confident in our ability to defend our market leadership and compete effectively. In Rest of the World, we are focusing on our core brands and strengthening our premium portfolio. We continue to execute with discipline as we navigate evolving consumer behavior and macro conditions, and we continue to capture a relevant position in strategic growth markets in the region. 2025 evidenced an unusually complex global spirits sector likely to remain in 2026. However, we've consistently shown that we can drive competitive advantage through uncertain times by focusing on what matters most, the strength of our brands, the discipline of our strategy and the quality of our people. We are entering 2026 with a healthy mix of realism and optimism as we anticipate that the years ahead will continue to require bold adjustments to position us better for 2027 and beyond. Thank you. And with that, I'll turn it over to Mauricio to discuss our U.S. and Canada results. Mauricio Herrera: Thank you, Juan, and good morning, everyone. Our fourth quarter performance in the U.S. and Canada region reflected a combination of continued industry-wide headwinds and delivered commercial actions taken to position the business for long-term success. As full-strength spirits demand decelerated through the back of the half year, we remain focused on the areas firmly within our control: execution, disciplined pricing, targeting investment behind our brands and a thoughtful management of shipments and inventory across the system. U.S. spirits trends deteriorated sequentially in 2025, with a slowdown, particularly evident to our year-end. Against this backdrop, tequila continues to stand out as the most resilient full-strength spirits category, delivering volume growth of 2.3% in the year, according to Nielsen data. While growth in the broader spirits market has skewed towards prepared cocktails, tequila has transitioned from a high-growth phase to a more normalized stabilization phase. It remains an attractive category and continues to outperform other spirits. Within this environment, our own portfolio continues to outperform the market, excluding prepared cocktails. [indiscernible] data for the 3-month period ending in November shows that Proximo continued to outperform the broader industry in value growth within full-strength spirits and more specifically within the tequila category. Nielsen data for 2025 further supports this performance showing that Proximo's volume declined 2.5%, outperforming the overall market by approximately 100 basis points. Pricing discipline remains a defining feature of our approach in the quarter. As demand moderated, competitive behavior intensified with the overall tequila category experiencing a price decline of approximately 9.2%. By contract, our average pricing decline was limited to 5.1%. While this discipline can create short-term volume pressure, we believe avoiding aggressive discounting is critical to protecting long-term brand equity and margin integrity, particularly in an environment where several competitors have leaned more heavily into aggressive pricing actions. At the same time, we continue to invest behind our brands. Our advertising and marketing investment as a percentage of sales remains above peer levels. Reflecting our conviction and sustained brand support is essentially in peers of category softness. These investments are tightly focused on expanding points of distribution, opening new on-premise accounts and improving in-store performance. From a category standpoint, strengthening our leadership position in Tequila continues to be our top priority. At the same time, RTDs represent one of the most attractive growth opportunities where we are currently underrepresented. During the second half of 2025, we increased our focus and investment behind RTDs and delivered solid double-digit growth. To further accelerate performance in this segment, we are building a stronger innovation pipeline and evaluating route-to-market alternatives that enhance coverage and execution. Turning to shipments and inventory. We took deliberate actions during the quarter to ensure healthy alignment across the system. In response to the broader slowdown in consumer takeaway, we adopted a measured approach to shipments with the aim of avoiding further inventory build. This resulted in shipments declining more sharply than depletions on a quarterly basis. Our inventory levels vary significantly across distributors with our highest level sitting in what were RNDC markets. We will actively be working on balancing inventory levels as part of the transition into our new distributors during the first half of 2026. In the quarter, retailers continue to reduce inventory to historically low levels. And in turn, distributors also actively work to reduce their own inventory levels. In addition, we had already anticipated our planned exit from RNDC, well ahead of the formal announcement, and we made a conscious decision to moderate shipments into RNDC during the end of the year to facilitate a smoother transition and mitigate disruption at the time of execution. As previously announced, we have recently completed a comprehensive review of our route-to-market strategy across the United States. As a result of this evaluation and while we value the relationships and history we've built with RNDC, we decided to transition our distribution away from them in all current markets, except for Georgia and New Mexico, effective February 1, 2026. This decision reflects our performance first mindset, aligning our brand with partners who demonstrate strong execution, focus on accountability. And while these transitions may introduce some near-term volatility, particularly in the first half of the year, we believe this change will significantly strengthen our commercial foundation and position us to compete more effectively in an increasingly dynamic U.S. marketplace. Looking beyond current market cycles, the long-term fundamentals of the U.S. spirits market remains strong. We believe tequila is positioned to be the industry's main growth category over the next decade, a trend that directly benefits Proximo as a category leader. We continue to see durable consumer appetite for premiumization and authenticity, reinforcing our confidence in the long-term trajectory of the business. I will now turn the call over to Olga Limon to discuss Mexico and the Latin America results. Olga Montano: Thank you, Mauricio, and good morning, everyone. Moving to our performance in Mexico. I would like to frame our 2025 results within the context of the broader industry landscape. While the spirits industry remained in contraction, it is important to highlight that the pace of decline moderated meaningfully compared to 2024. Within this context, Tequila continues to prove its status as a clear outperformer. Our brands not only held their ground, but consistently gained market share across both Tequila category and Total Spirits. According to [ NisCom ] data through November, our performance in Mexico clearly outpaced the industry. While Total Spirits volume declined 1.4%, our portfolio delivered a 2.5% volume increase. In value terms, we grew 2.0% against an industry decline of 1.6%. The Tequila category specifically remains a growth engine. While the category grew 2.5% in volume, we outperformed with 3.9% growth. These results underscore the continued strength of our portfolio and our undisputed leadership position in our home market. When evaluating our performance, it is essential to look beyond the quarterly volatility and focus on a full year trajectory. Additionally, moving forward to provide a more accurate reflection of our underlying business, it is important to look at results, excluding the b:oost brand. On a full year basis and excluding our b:oost brand, Mexico delivered a 1% volume growth, broadly in line with depletions. We which decreased 1% versus the previous year. While our fourth quarter volumes decreased by 10.3%, depletions declined 7.1%. These figures follow an exceptionally strong third quarter where depletions grew by 5.2%. We evaluated -- when evaluated on a second half basis, shipments increased 0.5%, while depletions decreased by 2.5%. It is also important to note that we are lapping a particularly strong fourth quarter seen in 2024, which created a high bar for comparison. In response to softer depletions observed late this year, we intentionally moderated shipments to ensure that we close 2025 with healthy inventory levels across the system. This disciplined approach to inventory management provides us with a clean runway as we enter 2026. Throughout the year, our shipments and depletions remain well aligned confirming that the underlying consumer demand for our brands remains robust. Looking at the global picture, Mexico continues to be one of the best performing regions for Tequila and for the company as a whole. Overall, our leadership in Tequila and our ability to gain share in a challenging market gives us great confidence. By prioritizing disciplined execution and protecting the long-term health of our equity, we believe we are well positioned to continue building value in Mexico and across the region. I will now turn the call over to Shane Hoyne, Managing Director of EMEA and APAC region. Shane Hoyne: Thank you, Olga, and good morning, everyone. In the fourth quarter of '25, the region sustained its positive momentum with both shipments and depletions growing. APAC continued to deliver double-digit depletions growth while EMEA recorded positive depletions compared to the same period last year. For the full year '25 shipments in the EMEA and APAC region were flat versus '24, while depletions increased by 1.5%, reflecting continued underlying demand despite a challenging trade environment. Inventory remained a key factor throughout the year. Particularly in the first half, elevated inventory levels across the broader industry impacted shipment patterns as distributors and retailers focused on reducing working capital and operating with lower inventory levels. These dynamics were evident across multiple markets and remained a consistent theme over the course of the year. Pricing conditions in '25 remained highly competitive with aggressive discounting across money markets as peers sought to defend volumes. While pricing pressure remains elevated, discounting activity appears to have largely stabilized. From a category standpoint, Tequila is gaining momentum across the region, driven by growing consumer interest and a deeper understanding of the category. And increasingly, tequila expanding into new occasions positioning itself as a more sophisticated option for cocktails and early evening parties. We also see tequila switch consumers from traditional brand spirits such as cognac and whiskey with many entering directly into the aged tequila segment, reinforcing the category's long-term premiumization opportunity. Overall, while the region is operating in a complex and uncertain environment, Becle continues to perform resiliently and underlying category dynamics remain constructive. Looking ahead to '26, we remain optimistic with Tequila offering significant long-term volume and value growth potential across multiple markets. Our portfolio strength and established route-to-market strategy position us well to capitalize on these trends. I'll now hand you over to Rodrigo, who will take you through the financial results. Rodrigo de la Maza Serrato: Thank you, and good morning, everyone. I will now walk you through the financial results for the fourth quarter and full year 2025. In the fourth quarter, the company reported consolidated net sales of MXN 11.1 billion, reflecting a 14% decline year-over-year and an 8.4% decline on an FX adjusted basis. This and other reported results were negatively impacted by the appreciation of the Mexican peso in Q4. Operationally, results were impacted by deliberate inventory rebalancing actions in the U.S., mainly due to a softer demand environment into the year-end. Our price/mix increased 0.4%, reflecting our ability to sustain pricing even under extreme competitive environment, leveraging our brand equity and portfolio. However, this was more than offset by 5.7 points of unfavorable currency translation. This quarter marks our eighth consecutive quarter of year-over-year gross margin expansion, a significant achievement given an unfavorable regional mix and the appreciation of the Mexican peso, which represented a significant drag on margins. We continue to benefit from lower agave-related input costs and ongoing cost efficiencies from strategic sourcing and manufacturing operations, resulting in a gross margin of 55.2%, an expansion of 110 basis points versus a year ago. While net sales remained under pressure, we maintained investment behind our brands to protect long-term equity and ensure we are well positioned for a better time. We have done so while remaining highly selective and focused on investment efficiency. Turning to operating expenses. Distribution costs declined 6.5% and SG&A expenses decreased 6.2%, reflecting continued discipline on overheads and strong cost control across the organization. Other income increased by MXN 438 million during the quarter, primarily driven by anticipated contractual settlements related to U.S. distribution agreements. As a result, EBITDA for the fourth quarter was flat year-on-year, with EBITDA margin expanding 340 basis points to 24.4%. Net income for the quarter was MXN 1.4 billion, benefiting from MXN 148 million year-over-year foreign exchange gain as the appreciation of the Mexican peso positively impacted our net U.S. dollar debt exposure. This benefit was partially offset by a retroactive full year effective tax rate increase to 27%, which was recorded in the fourth quarter. As of December 31, 2025, cash and cash equivalents totaled MXN 10.8 billion, while total debt was MXN 18.9 billion, a decrease of MXN 7.4 billion compared to the prior year. In 2025, the company generated MXN 8.1 billion in net cash from operating activities driven primarily by the setup in underlying operating profit and continued working capital and CapEx discipline. Our balance sheet remains very strong with adjusted net leverage of 0.9x, slightly below our targeted range of 1 to 1.5x. We remain confident in our long-term free cash flow generation and have ample balance sheet capacity to execute our capital allocation agenda, which prioritizes reinvesting in the business and returning capital to shareholders. Before moving to guidance, I want to take a step back and highlight the progress we have made over the past several years. Using 2019 as a pre-Covid reference point, net revenues are up 45%, driven by 10% volume growth and a 35% increase in average price per case. This reflects the significant premiumization of our portfolio with average price per case growing at a 5% CAGR since 2019. Importantly, our Rest of the World business has doubled in size since 2019 in net sales value, reinforcing that tequila remains a high-growth category with substantial long-term potential, particularly in markets where penetration remains low. Gross profit has grown at a 7.5% CAGR since 2019 and gross margin is now 320 basis points above 2019 levels. At the same time, marketing expenses as a percentage of net sales have declined by 90 basis points versus 2019 while consolidated net sales value has grown at a 6.4% CAGR, reflecting a more efficient and disciplined investment approach. Importantly, these improvements were not driven by foreign exchange movements as the average effects in 2019 was broadly the same as in 2025. From a working capital standpoint, we have improved our cash conversion cycle. Total inventory days are back to 2019 levels, even though we have significantly premiumized our portfolio since then. Payables have improved from 36 days to 56 days and receivables have shortened from 110 days to 100 days as of year-end 2025. CapEx has also declined both in absolute terms and as a percentage of net sales from 6.9% to 3.4%. We have continued to deliver consistent dividends and free cash flow has strengthened, improving from a 4% free cash flow yield in 2019 to 14% at the end of '25. When you look at our performance over the past 6 years, the company has evolved into a more mature and resilient business, one that has strengthened its ability to premiumize consistently, invest efficiently, improve cash conversion and capital return to shareholders through a sustainable and disciplined financial model. Finally, moving on to 2026 guidance. This will be a transition year for our business as we execute the previously announced realignment of our U.S. distribution network. Changes of this scale take time to fully stabilize and may create temporary disruptions, shipment volatility, inventory realignment and added complexity. Our priority is to start this new partnerships the right way by maintaining clear communication, aligning closely on execution standards and managing inventories carefully to avoid unnecessary stock build. At the same time, we expect the broader operating environment in 2026 to remain challenging with limited visibility given macroeconomic volatility and continued consumer uncertainty. Considering these factors, we expect net sales value to decline in the low single-digit range in 2026 on a constant currency basis. Additionally, we expect A&P as a percentage of NSV to be in the range of 19% to 21% and our capital expenditures to be in the range of $90 million to $110 million. We are not providing specific guidance on operating income, particularly as we will be lapping nonrecurring gains recorded in 2025 related to the sale of b:oost and distributor contractual settlements. While we recognize the near-term complexity, we believe the actions we are taking are necessary to build a more effective commercial platform positioning us for improved performance in 2027 and beyond. I will now turn the call back to the operator for questions-and-answer session. Operator: [Operator Instructions] Our first question comes from the line of Lucas Mussi. Lucas Mussi: I have one on margin performance this quarter. Gross margin was up about 100 bps year-over-year. And as you mentioned, Rodrigo, on your remarks, it was still heavily impacted by FX dynamics in the quarter, geographical mix. So I wanted to see if you could share more details on the drivers behind the quarter. That would be my first question. So how much could we think about as it pertains to agave contributing to your margin on a year-over-year basis? How much came from headwinds related to FX? So any color on that front would be welcomed. And my second question still on margin is how to think about 2026 from your main drivers, mainly raw material related. As we think about agave, how you're thinking about the spot price in the market today? Has it been stable throughout the year? Do you see -- do you still see more downside to market prices? So any color on how you're thinking about your raw materials into 2026 would also be very helpful? Rodrigo de la Maza Serrato: Thank you, Lucas, for the question. From a gross margin perspective, which was your focus, what I can share is that foreign exchange was a drag in terms of our ability to expand further by 170 basis points. So pretty much all components of gross margin equation worked favorably, the most important driver being the agave input costs which continue to be favorable to us, plus the productivity initiatives that I did mention on my script. So other than FX, the gross margin expansion could have been 280 basis points in the quarter. And looking forward, at this point in time, we don't expect major changes to this environment. Obviously, we rely on volatility from FX, which could continue to play a role. Operator: Our next question comes from the line of Nadine Sarwat. Nadine Sarwat: This is Nadine Sarwat from Bernstein. Two questions from me. The first on your guidance, you talked about this being a transition year to set up your business for the future. So related to that, can you unpack that transition that you referred to? How much of that is a weak macro versus deliberate strategy. And then if we look beyond 2026, are you expecting to return to solid growth? And then just one additional shorter-term question. In the Nielsen data over the last couple of weeks, we've been seeing an underlying improvement in the U.S. spirits market. Are you seeing that in your business? And if so, what do you think is behind that? Rodrigo de la Maza Serrato: So thank you, Nadine. On your first question, I think the way we see it in -- why we mentioned this is a transition year is mostly related to the realignment of distributor network in the U.S. It's mostly that where we expect conditions in terms of macro, et cetera, to remain challenging. Having said that, I'll pass it along to Mauricio to take you through the transition and expectations for 2026 and beyond. Mauricio Herrera: Nadine, it's Mauricio. From a transition perspective, I would make reference to the distributor changes we're making. So I do believe those changes, even though I have stated during the script will cause short-term disruption, they are definitely setting us for sustainable growth in the future. We are aligning with what we believe are the best distributors in each of the states. So as we go through that transition in H1, I think as we go into the second half of the year and especially into 2027, that should actually be reflected in improved performance in a sustainable way for the future. Regarding your question on share, we do see it. What I would say is if you could see the second semester of the year in the U.S., tequila started to decelerate even further. One of the things we have remained extremely disciplined is in managing prices. If you look at our average price has decreased a lot less than our competitors, and we continue to invest behind our brands ahead of industry benchmarks. So I think the combination of 3 things: very disciplined focus on execution, driving investment behind our brands and being able to balance pricing through promotional activity to stay competitive while still not being as aggressive to undermine long-term rapid equity, I think those things combined is what is actually driving our improvement in share in the short term. Nadine Sarwat: Got it. And just to clarify on that medium term looking past 2026, potential to return to growth. I appreciate everything you said on the distributor transitions and distractions this year. But just thinking longer term, you had that slide up that showed your historical growth. So trying to get a sense of what investors can expect after the transition? Mauricio Herrera: So look, from the U.S. perspective, leaving aside the transition in terms of distributors, I think what we will continue to do in 2026 and beyond, we'll continue to invest behind the brands to be perfectly positioned to capture growth as the category returns into growth. We do expect that in 2026, the category will continue to see compression. And what we want to do is make sure we're setting all the fundamentals in place in terms of route-to-market, brand health investment and being very strategic on pricing to actually start capturing, I would say, or disproportionate growth of the industry as it returns into growth, which I do believe we should start to expect happening in 2027. Operator: Our next question comes from the line of Rodrigo Alcantara. Rodrigo Alcantara: I guess the first one would be -- it's Rodrigo Alcantara at UBS. The first one would be follow-up on the RNDC transition in the U.S. We get this transition period, right? But any rough estimate or any number you can give us in terms of how much volume we're talking about that could be impacted just as a way of trying to quantify this transition period. That would be my first question. And the other one, if we could reflect a bit on the performance in Mexico, right? I mean you gave the figures there from a sell-in perspective, right? Just judging looking at performance of beer in Mexico in 4Q, it was not that -- the contraction was not as high, right, as what we saw today. So I mean, if you can help me here, understand, reconciliate the difference in the magnitude of contraction of other categories like beer versus the one we saw at spirits in Mexico? Those will be my 2 questions. Mauricio Herrera: Thank you, Rodrigo. On the first question you had in terms of the RNDC transition, I think providing a number would be very difficult to really estimate what the impact from a number perspective would be. All these transitions really have a very short-term impact, that we will manage. We have a PMO -- very disciplined PMO office in place to try to minimize the disruption. We did see, as I mentioned in my script, that because of this lower depletion, especially in RNDC markets at the end of the year, that's where our highest level of inventories were. So we will be working as part of this transition to rebalance that as we go to the new distributors. So that, combined with a very volatile environment in an industry that continues to actually experiment contraction, it's very difficult to understand or predict what volume impact will be from the transition, industry contraction and competitive dynamics. So for now, what we're focused on is executing this transition in the most disciplined way, making sure that -- and actually, we feel very confident that we have the right distributor in each market. In each of the new distributors, we are, if not the biggest, one of the biggest suppliers there that will guarantee more focus and attention behind our portfolio that gives a lot of confidence that once that transition is behind us, we should start to see improved performance. Olga Montano: Rodrigo, this is Olga. From the Mexico part, regarding the 7.1% decline in Mexico depletions this quarter, I would like to reinforce that we are seeing an improvement in consumer trends. In fact, the industry remains -- while the industry remains in contraction, the pace of decline has moderated significantly compared to 2024. And we continue to gain market share within this context. But I would like to talk about 2 factors that bridge the gap between the minus 7% and the reality of our business. There are 2 specific factors that accounted for nearly the entire decline. As we finalize the exit of the b:oost brand, we focused on clearing remaining inventory rather than commercial prioritization. These brands decline alone created a 200 basis point drag on our total Mexico depletions. The second factor is that we are being disciplined in not engaging in value-destroying activities. We intentionally chose not to participate in specific [indiscernible] promotions where we felt discounting in depth compromised our brand equity. This disciplined approach to price integrity impacted our quarterly depletions by almost 500 basis points. So when you strip away these 2 tactical factors, we are effectively flat. So basically, that would be my answer. Rodrigo Alcantara: That's a good point. So just to clarify, excluding the -- I mean, not participating in [indiscernible] had this 500 basis points impact. Did I get that correct? Olga Montano: Yes, that's correct, Rodrigo. Operator: Our next question comes from the line of Antonio Hernandez. Antonio Hernandez: This is Antonio Hernandez from Actinver. Just wanted to get a sense on nonalcoholic beverages and others that are also declining. Are these following similar trends, a competitive environment? How are you seeing there? And maybe you could provide an outlook on those? And if there are any organic or inorganic opportunities there? Mauricio Herrera: Sorry, Antonio, thank you for your question. If I understood correctly, you're talking about nonalcoholic beverages and how they may be... Antonio Hernandez: Exactly. Yes, how they performed this last quarter and throughout the year underperforming as well and your expectations going forward? Bryan Carlson: Antonio, this is Brian. So that's probably related to the b:oost brand. That was a significant impact for us in the quarter, and that's within the nonalcoholic beverages part that we report in the press release. That's a big portion of it. So it's probably related to that. Antonio Hernandez: Okay. And going forward, do you expect more stable, of course, excluding that comp from the b:oost brand? Olga Montano: Yes, we do. Operator: Our next question comes from the line of Froylan Mendez. Fernando Froylan Mendez Solther: Froylan Mendez from JPMorgan. On the gross margin effect during the quarter and going forward, I read the transcript from 1 year ago, and we were speaking about positive effect from agave. 2025, you also have positive effect from agave. So it's 1 year with positive effects from agave. Should we assume that the positive impact from lower agave in 2026 should be much lower than what we have seen in the past 2 years given just the lapping of the benefit now that your inventory probably reflects a much lower average cost of agave. That's my first question. And secondly, can you provide with some directional color on your top line guidance if it is coming from volume drops similar to last year, but with better pricing or the other way around. And within the different regions, which one are the ones growing a little bit better than the other? Which one is dragging? How you created that guidance of low single-digit drop for next year, please? Rodrigo de la Maza Serrato: Thank you, Froylan, for those questions. Regarding your first on gross margin, yes, in fact, we -- since last year, second -- last quarter of last year, we reported benefits on agave. As you see, overall, agave cost continues to benefit result this year. Excluding FX, as I mentioned, it was a significant contributor to positive gross margin expansion. We don't provide specific guidance on this topic. However, what I can say is that a lot of the -- let's say, extra benefit we've had this year and in particularly Q4, is related to simply higher agave sugar content on agave. And we expect that, that trend should continue going forward. So there is no changes necessarily expected there on agave cost from the market. And regarding your second question on top line guidance, the guidance, it's a combination, of course, in terms of volume, price mix, et cetera. So the guidance is general. We would like to stick with that guidance as it is because considering the volatility in the environment, we continuously manage those levers to deliver on the low single-digit decline that we announced. Fernando Froylan Mendez Solther: And sorry, my ignorance, but the low -- the higher agave sugar content, does that mean that, I don't know, the crop that you are having from agave, it contains higher sugar and so it will remain -- like you have an inventory with high efficiency for the next year? So how does that work? I'm sorry if this is a stupid question. Just to understand. Rodrigo de la Maza Serrato: Yes, no problem, Froylan. I think what's important to say is that market conditions on agave should remain similar. Internally, we do expect some further pressure on agave cost. As we balance the equation out, we have some, let's say, extraordinary, let's say, benefits this year that may not be replicable next year. So we should not expect, let's say, improvement over this year necessarily. But this is obviously something we manage on a day-to-day basis, and we expect to deliver the best possible results given that the market conditions will be similar. Operator: Our next question comes from the line of Nicolas Rodrigues. Nicolas Rodrigues: Nicolas Rodrigues from Citibank. My first question is regarding GLP-1. As the adoption continues to expand across key markets such as U.S., have you observed any change in consumption behavior, particularly in tequila. And my second question is about GLP-1 -- not GLP-1, about development in Jalisco. Could you comment how and if these events have any impact on Cuervo operations? Mauricio Herrera: Thank you, Nicolas. It's Mauricio. And I'll take a question on GLP-1. Look, it is very difficult, almost impossible to estimate what an impact on tequila is on GLP-1. We do see evolving consumer trends. I think there's a lot of different things happening in the market at the moment that consumers are looking for different alternatives. We see the emergence of RTD, we see changes in patterns of consumption. So attributing any sort of impact to GLP-1 becomes, I would say, almost impossible. So it's something that we do monitor closely, but at this point, attributing any impact to that is really difficult. Regarding the incidents in Jalisco, as of today, we have not seen any impact in our operations, and we don't foresee that happening. . Operator: [Operator Instructions] We have not received any further questions at this point. So that concludes today's call. You may now disconnect.
Jose Domecq: Good morning, ladies and gentlemen. Welcome to the ACCIONA's 2025 Results Presentation. Let me first introduce my colleagues. On the table to my left: Arantza Ezpeleta, CEO of ACCIONA Energia; to her left Raimundo Fernandez Cuesta, Chief Financial Sustainability Officer at ACCIONA Energia; to my right, Jose Angel Tejero, Chief Operating Officer at ACCIONA; and to his right; Jose Entrecanales, CFSO, Chief Financial and Sustainability Officer of ACCIONA. Before reviewing the performance of each division, let me briefly frame the environment in which we're operating. It is a volatile and fragmented context with shifting trade dynamics and technological anxiety. Governments continue to prioritize energy security, climate adaptation and investment in critical infrastructure, which translate into a stronger, more investable pipeline across our core business. Infrastructure including energy, of course, is no longer only about development. It has become a cornerstone of competitiveness and resilience. Energy security, cost and availability are the main constraints to industrial and technological development, while water and transport are critical in helping societies withstand climate-related disruptions and sustained growth. This is not a cyclical rebound but a structural shift. Rapid urbanization, accelerating electrification, digitalization and the renewal of aging assets are converging into what may be described as a global infrastructure super cycle. Estimates suggest that closing the global infrastructure gap will require several trillion dollars per year through 2040 across our main strategic segments, energy, transport, water and social infrastructure. At the same time, public budgets are constrained while private capital continues to seek long-duration derisked opportunities, supporting infrastructure as a mature and attractive asset class. ACCIONA is one of the few players with an end-to-end platform spanning development, engineering, construction, operation and long-term ownership across multiple infrastructure and energy solutions. This is already translating into strong results and record backlog visibility. 2025 was a good year, where we achieved record EBITDA of EUR 3.2 billion, representing a 31% year-on-year increase and exceeding the EUR 2.7 billion to EUR 3 billion target range set at the beginning of the year. This was driven primarily by a very strong performance of Nordex, together with a solid contribution from our Infrastructure division and the successful execution of our asset rotation strategy. In this regard, ACCIONA Energia to be a structural pillar of the group, generating EBITDA of over EUR 1.5 billion. Our infrastructure aggregated backlog exceeds EUR 120 billion with a particularly strong increase in future concessions, driven by managed lanes in the U.S. and is expected to grow further in the coming months following the pre-award of a 35-year water sanitation concession in Brazil. In energy, fundamentals remain supportive. Electricity demand is rising. Energy security is now a political priority. And what was once a green premium is increasingly becoming a green discount as renewables combine lower LCOE, levelized cost of energy, and less fuel price volatility than fossil generation in many markets. ACCIONA Energia has an approximately 22 gigawatt pipeline, while Nordex reached an all-time high backlog of EUR 16 billion, positioning the group to capture demand selectively and profitably while providing a clear example of how structural demand is translating into tangible results. The same demand for wind continues to be structurally supported by electrification, rising global power consumption, repowering mature markets and the growing strategic imperative for secure, locally sourced and independent energy supply, which more than offset somewhat weaker climate policies, particularly in the U.S. And the numbers back it up. Global wind turbine order intake reached 215 gigawatts in 2025, which is the second highest level ever recorded. In this context, Nordex is today the undisputed leader in Europe with almost 50% market share and the second largest global wind turbine manufacturer outside China. But let's not forget, Chinese competition is harsh and not always playing by the same rule book than European or Western manufacturers. We need to bear that in mind when protecting and promoting our few industrial champions. Those structural tailwinds continue to support our renewables platform, ACCIONA Energia. In 2025, we met our EBITDA target for the year and delivered strong progress in value crystallization with asset rotation transactions totaling EUR 3.2 billion and approximately EUR 900 million in capital gains since we launched our rotation program in 2024. Electricity demand is increasing well above historical averages driven by electrification, data centers, artificial intelligence, electric mobility and the reshoring of industrial activity. Renewables are indeed the cheapest and quickest to deploy source of new power in many markets. Improving storage economics are expanding the bankability of hybrid solutions and supporting more dispatchable renewable energy, reinforcing energy security and long-term investment effectiveness. This momentum is translating into tangible progress across our pipeline. We secured awards in PPA auctions in the Philippines and Italy. We reached financial close on 2 wind projects in South Africa with strong returns and improving battery economics enabled and attractive large-scale storage project in Chile. Beyond storage, we are actively advancing opportunities in repowering and data centers, strengthening the quality and optionality of our development pipeline and as always, prioritizing profitable growth. Despite the combination of extraordinary effects, including weaker-than-expected resource, some COD delays and the accelerated execution of our asset rotation, which resulted in a lower EBITDA contribution from the assets sold during the year, overall, our energy business performance was resilient. And we strengthened our portfolio quality, the visibility of our results while deleveraging and maintaining our credit ratings. Looking ahead, our strategy continues to evolve from capacity buildup to a more selective growth strategy. 1.3 gigawatts of projects already are committed until the end of 2027 while crystallizing value through asset rotation. Turning to Infrastructure. Population growth, as I was saying, urbanization, decarbonization and aging assets in general continue to drive demand across transport, water and social infrastructure. In this environment, the market favors integrated, technically led partners with proven global execution capacity, rigorous risk control and balance sheet strength. ACCIONA Infraestructuras performed strongly in 2025 with the largest project pipeline in its history. Construction maintained solid profitability with margins between 6% and 7% and around 80% of the order book with risk mitigation clauses supporting our healthy outlook. We achieved key milestones across our priority markets. As in North America, we reached the financial close of the SR-400 Managed Lanes project in Atlanta, and we were awarded the Eglinton Crosstown West light rail Extension in Toronto under a collaborative contracted model consistent with our disciplined risk approach. In Australia, we reached financial close of Central West Orana and continued progress in the Western Harbour tunnel, reinforcing the scale and complexity of our platform. In Latin America, we advanced flagship projects such as the Line 6 in the Sao Paulo Subway Grid and expanded our concession portfolio in Peru. Water also made very strong progress with EBITDA growing 50% in the year, driven by the efficient and faster-than-expected execution of key projects such as the Collahuasi and Casablanca desalination plants that's Collahuasi in Chile and Casablanca in Morocco. In Brazil, in sewage and water, we continue to build a strong platform with a pre-award of the Pernambuco concession alongside additional awards that reinforce the country as a strategic market for our Water business. Taken together, these results confirm our ability to translate structural demand into delivered complex projects, supported by disciplined execution and rigorous risk management. Other businesses also delivered solid progress with Bestinver managing EUR 8 billion in assets, supported by positive net inflows and continued progress in the alternative asset portfolio and top-tier investment performance. In Real Estate, we continue to rationalize our capital employed asset classes and geographical focus, while delivering record returns. Silence, while still far from breakeven, increased its unit sales by 41% in 2025 and continue to lead its categories, both in electric scooters and micro cars. Our Services business has reached a record level of activity, delivering all-time highs in both sales and margin contribution. In an environment where skilled labor in the Western economies is becoming increasingly scarce and costly, a trend that I expect will continue to intensify. Our services platform, with a workforce of more than 20,000 employees, provides a significant competitive advantage serving not only our own projects but also acting as a trusted workforce partner to third parties across multiple sectors and regions. In summary, demand for our assets and for our solutions remains very strong. We operate at the heart of structural trends, supported by an integrated platform, record backlog visibility and the capabilities required to convert opportunities into sustained long-term value. With that overview, let me now hand over first to the management team of ACCIONA Energia, followed then by the rest of the group, who will take you through a detailed operational and financial performance of '25. Thank you very much. Arantza, please. Arantza Ezpeleta Puras: Thank you, Jose Manuel. Good morning. 2025 has been a year of good progress across many fronts, particularly on asset rotation, credit rating protection and preparing the company for a new and more balanced period of growth. On the less positive side, output has been much lower than expected due to the ramp-up of new capacity, lower wind resources on markets and some asset rotation deals closing ahead of the schedule. This has translated into EBITDA from operations somewhat below our initial targets. The priorities we set for 2025 were aligned with our strategic adaptation announced in early 2024 around a more flexible and sustainable growth pace, asset rotation as a new business and source of funding and the protection of our investment-grade credit profile. With respect to asset rotation, our target for the period 2024-2025 was to deliver EUR 3 billion of disposals in total. In 2025, the objective was to complete the sale of the hydro assets to Endesa signed at the end of 2024 for around EUR 1 billion and agree and complete another EUR 1.5 billion to EUR 1.7 billion worth of additional transactions. All of this was oriented towards reducing our leverage and stabilizing the credit ratios within investment-grade threshold as well as generating significant P&L gains and show through the value of our asset base. In 2025, we signed incremental transactions of EUR 1.9 billion, two of which will close in 2026. Overall, disposals completed during the year amount to approximately EUR 1.8 billion, including the sale of the hydro assets to Endesa signed at the end of 2024. The impact on our headline net debt was EUR 1.1 billion when we take into account the debt that was already classified as held for sale at the end of 2024. EBITDA from asset rotation in 2025 amounted to just over EUR 600 million. All in all, that is EUR 3.2 billion of disposal during the last 2 years generating approximately EUR 900 million in total gains. The only caveat is that the U.S. Mexico transaction with Mexico infrastructure partners and the sale of our interest in our two South African operating assets will close in 2026. The timing of these 2 transactions has resulted in net debt at year-end not fully reflecting the huge effort made on the asset protection front. Both rating agencies, DBRS and Fitch, maintained their investment-grade ratings. This was another key target for the year. Still Fitch moved its outlook from stable to negative, reflecting the delay in materializing the disposal proceeds and the somewhat weaker cash flow due to the low output. This is something we will address in the current financial year. The other key chapter in our priority list was the addition of close to 1 gigawatt of new capacity during the year and the commissioning of approximately 2 gigawatts of capacity constructed the year before, reducing our work in progress. Here, we installed 532 megawatts of new capacity, having decided to put on hold construction of 2 U.S. battery storage projects representing 400 megawatts and which were expected to add 350 megawatts in 2025. Key highlights here include the completion of Tahivilla, our second wind repowering project in Spain, the construction of our 50-megawatt biomass plant, Logrosan, the completion of Aldoga PV in Australia, Forty Mile wind in Canada and progress in the construction of Pedro Corto in the Dominican Republic. We are somewhat down on our adjusted target of 300 megawatts of new capacity a year without the U.S. battery projects due to the slower progress on Kalayaan II in the Philippines and Pedro Corto in Dominicana. On the commissioning side, the ramp-up phase has proven more complex and difficult than expected, particularly in MacIntyre. The initial contribution from these assets has fallen significantly short of our expectations as a result. We have faced technical problem in some assets like MacIntyre, Forty Mile and a faulty transformer at Juna in India and several climate-related events. Most issues have been already resolved, and we will work through the rest over the course of 2026. Commissioning of the Logrosan biomass plant is underway and MacIntyre is undoubtedly our biggest task for the year. MacIntyre has been going through the complex outselling grid compliance process with many whole points to pass. And recently, that issues have surfaced that we believe are related to damage costs during transport. We have already started to repay the first test of blades while we continue with inspection across the wind farm to assess the full extent of the problem, and we are also developing a recovering plan. And our objective would be to commission the plant in full by year-end. In summary, the slow ramp-up, together with a low wind results in some markets and the closing of asset rotation transactions ahead of schedule have resulted in consolidated production of 24.4 terawatt hours, and EBITDA from operations below our target even if average capture prices of EUR 62 per megawatt hour were higher than expected, thanks to Spain. A very healthy level of capital gains from asset rotation of more than EUR 600 million has resulted in satisfactory total EBITDA above EUR 1.5 billion within the range we set at the beginning of the year. Finally, in our priority list, we also wanted to secure a good set of development opportunities to fuel our growth in 2026 and provide as much visibility as possible for 2027. We think 2025 has been a good year for us on this front with 1.3 gigawatts of projects under FID, with FID under construction already or soon going into the construction phase. On the next slide, you can find a summary of the main asset protection figures for the period 2024 and 2025 for your reference. Let me move to the next slide. In this slide, we have laid out where we see the main opportunities and priorities for the year. On the opportunity side, we see a gradual acceleration in our growth with around 700 megawatts of expected capacity additions in the year relative to the 500 megawatts the year before. This is part of the current batch of projects with FID currently under construction or about to start, which add up to over 1.3 gigawatts of capacity to be installed during this year and next. During the last 3 months, we have been revisiting our project pipeline and reevaluated our development strategy. I will cover the new development strategy and some delays in a minute. On the priorities, a key objective for the year is to regain our stable outlook with Fitch ratings, and we have next 10 months or so to achieve this target. Critical for this objective is to close the transaction that were announced at the end of 2025, the U.S., Mexico deal and the sale of the South African assets, but also signing and closing an additional around EUR 1 billion of disposals, taking the total debt reduction from rotation to around EUR 2 billion. We're going to put a strong focus on the delivery of the projects under construction on budget and schedule. The full commissioning of MacIntyre and other assets like Logrosan are very high on our priority list. With respect to Southeast Asia, we acquired the majority of The Blue Circle last summer, and our key focus is on the Philippines with 2 assets under construction and a development pipeline including offshore wind awaiting for coming up auctions and PPAs opportunities. We are constructing wind in Thailand and facing regulatory challenges in Vietnam. Efficiency is also an important part of our focus in 2026 with a plan to cut corporate overheads in a material way. We are also reevaluating some of our nongeneration businesses from a strategic and financial perspective apart from the new plans that we have for the energy services activity. We're also considering selected opportunities to invest in battery storage. In Chile, we are about to start construction of the Malgarida, 200-megawatts, 5 hours battery and have the rest of our PV plants to consider hybridizing with returns that look very attractive, given the reduction in the battery storage CapEx cost and the night and day price different sales and capacity payments and curtailments faced in the North of Chile. On the repowering, we continuously review the older section of our asset fleet for opportunities without estranging from our core and distinctive life extension strategy. In the next slide, I want to briefly talk about the streamlining of our development pipeline and our new strategy for the development activity. With respect to the pipeline, we have optimized our development pipeline to 20 gigawatts. It builds upon high quality of projects, geographical and technology diversification and aims at preserving ample flexibility to adapt to quickly changing trends in markets and growing renewable energy saturation. This pipeline, we believe, is an excellent base from which to build upon under new strategy for development activity. Our aim is to attain a level of 1.8 gigawatts of investment opportunities per annum over time, whether these opportunities are for our own book or for third parties. This should allow for ACCIONA Energia to extract full value from its development footprint and expertise and provides the opportunity to maximize early stage development and greenfield opportunities independently of ACCIONA Energia investment capacity or strategy at any given time. And besides, if we have more capital, we can fully utilize this development capacity for ourselves. In the next slide, you can see the projects that we will be delivering capacity during 2026 and support further growth acceleration beyond 2026. These projects totaled 1.3 gigawatts and have contained FID with a strong return expectations at the upper part of our spread over WACC thresholds. We've tied and succeeded in recent government auctions in Italy and the Philippines: a 20-year Italian state contract for differential with no curtailment support the construction of Panbianco and Benante PV plants. On the Philippines green energy auction, also with 20-year contracts, we'll give visibility to Kalayaan II wind projects and Daanbantayan solar PV. We have also managed to structure one of the first set of private wind energy PPL base in South Africa with Zen and Berg River, which recently completed a lengthy and complex financial process. The Promina PV plant in Croatia is starting its construction and is supported by a government 12-year PPA award at the 2024 auction. In the Dominican Republic, the Pedro Corto PV plant is underway, also covered by a 15-year PPA with one of the local distribution companies. And finally, we are back to investing in Chile with the 1,000 megawatt hour battery storage project at our Malgarida PV site that I was referring before, which expect to deliver double-digit project returns and an excellent fit within our generation portfolio risk profile in Chile. All in all, without wanting to sound overly optimistic, we detect some improvement in investment conditions for renewable energy as long as you have the ability to move fast from a market to another and are happy to discard projects that are subpar. We have also renegotiated a number of PPAs related to a project under construction and 2 development projects, resulting in a satisfactory and balanced outcome for all parties. Challenges remain. This is intrinsic to our business, and we will have to control increase in module prices resulting from Chinese changing government policies and constructing some of our projects in more complex locations, like Southeast Asia. And with that, let me now hand over to Raimundo. Raimundo Laborde: Thank you, Arantza. I wanted to start with our priorities in terms of leverage and credit ratings. In this next slide, we show you our indicative uses and sources of funds for 2026. We expect to generate around EUR 0.5 billion of operating cash flow, and we target proceeds from asset rotation of EUR 2 billion. With CapEx below EUR 1 billion and very limited dividend distribution this year, we target reducing debt by around EUR 1.5 billion, which would allow us not only to protect our ratings but to return to stable outlook with Fitch, which, as Arantza just said, is one of the key priorities we laid out for the year. In terms of asset rotation, as discussed, we're expecting to close the South Africa and the joint U.S. Mexico asset deal during 2026, which will bring around EUR 900 million of incremental debt reduction, and we plan to agree and close another EUR 1 billion or so in new asset rotation transactions during the year. These additional transactions are already in the market or we are preparing to launch several others to ensure we have good headroom and flexibility to deliver the targeted amounts. We are considering assets both in Spain and abroad across different technologies and transaction structures, whether this is outright sales or minority partnerships. With respect to CapEx, we estimate it will amount to around EUR 900 million, which compares to EUR 1.4 billion in 2025, which also included a significant net CapEx deferrals, including the payment for the Green Pastures wind farms acquired at the end of 2024. In 2026, there is limited net CapEx deferral as levels of activity have moderated and investment converges more closely with capacity additions. CapEx related to projects under construction should be somewhere between EUR 0.5 billion and EUR 600 million or so. This is what is committed. We're budgeting another EUR 200 million or so for new projects for '26 and '27. So this is projects that don't have an FID yet, but we're assuming that we will have FID by year-end and start spending some CapEx. And this is over and above the 1.3 gigs that we already have committed. And apart from CapEx related to identified and yet to be approved projects, there is investment in the development pipeline as well as in energy services, EV charging networks, IT and other. So let's move to the next slide with the 2025 results highlights. Consolidated capacity fell by 5% from 13.6 gigs to 12.9 gigs with capacity additions of 0.5 gigawatts and asset disposals of 1.25 gigawatts. Revenues are down 4% to EUR 2.925 billion, of which EUR 1.5 billion correspond to generation revenues, which fell 8% year-on-year on lower average prices at EUR 62 per megawatt hour. This was down 10% year-on-year and consolidated output of 24.4 terawatt hours, which is 2% higher than the previous year. Total EBITDA reached EUR 1.546 billion. This is 38% higher than the previous year. EBITDA from operations is down 11% to EUR 932 million, while EBITDA from asset rotation amounted to EUR 614 million. This compares to EUR 73 million in 2024. The rotation gains correspond for the most part to the Spanish hydro and wind disposals completed during the year. Profit attributable to the shareholders of ACCIONA Energia reached EUR 655 million. This is up 83% year-on-year. In terms of cash flow and net debt, net investment cash flow amounted to EUR 372 million with CapEx of over EUR 1.4 billion compensated with approximately EUR 1.1 billion of asset rotation proceeds. Net debt stood at just under EUR 4.2 billion. This compares with EUR 4.1 billion at the end of the previous year with debt associated to assets held for sale at the time of EUR 821 million. These assets have been sold already, and the net debt held for sale at the end of 2025 is just EUR 50 million. So there is a very significant reduction in underlying net debt. Moving to the ESG results and highlights for the year. I would highlight that 100% of the CapEx continues to be aligned with the EU Taxonomy. On the environmental side, our Scope 1 and 2 emissions have fallen by 12%, reflecting, in part, our efforts to decarbonize our vehicle fleet through electrification and use of HVO. We have avoided also significant new emissions by using HVO in the Lograsan biomass plant, which was firing its boiler to clean and test it. We have also reduced 100% of slag and ashes from our biomass plants, this is the primary source of our waste, and this represents almost 85% of what we do. With respect to social, we are pleased to report no fatal accidents, whether our own employees or contractors. And the frequency index stood at 0.37, which is below our 0.4 target for the year. On the next slide, on summary of investment, you can find the detail of our investment during the year, EUR 1.4 billion, as we discussed, including EUR 505 million of net CapEx deferrals including the price for the Green Pastures wind farms acquired the previous year as well as the tail end of payments for projects such as Aldoga, Forty Mile and MacIntyre. Investment has been concentrated in North America; also in Australia, Aldoga and MacIntyre as mentioned, the Tahivilla and repowering in the Logrosan biomass plants in Spain; and elsewhere, we have the Juna plant in India and Kalayaan II in the Philippines as well as the acquisition and consolidation of the other half of The Blue Circle joint venture in Southeast Asia that we did not own. On the next slide with the net debt evolution. With respect to the cash flow movements that drive net debt, here, we show operating cash flow of EUR 373 million, net investment of EUR 372 million, which is made up as discussed of EUR 1.1 billion of net disposal proceeds and EUR 1.4 billion of CapEx. Dividend last year amounted to EUR 143 million. And all of this resulted in EUR 4.2 billion of net debt at year-end. It's important to highlight the reduction in debt associated to work in progress, which stood at EUR 1.8 billion at the end of '25. And here, MacIntyre represents around EUR 1.1 billion of work in progress, and Logrosan plant which has been commissioned right now, that is another EUR 190 million. So as these assets come online, we expect a further significant reduction in work in progress. Moving to the operating results of the Spanish and International fleets, starting with Spain. In this slide, you can find the revenue drivers for the Spanish business. Volumes fell by 24%. This is mostly the result of the hydro asset disposal in late 2024 and early 2025. Disposals in Spain detracted more than 2.2 terawatt hours of output, and we also had lower wind resource, which meant a reduction of 0.5 terawatt hours relative to where we should have been. Merchant output represented 165 gigs of consolidated production. In terms of prices, the average recorded price amounted to EUR 76.7 per megawatt hour. This is flat year-on-year and higher than we expected initially. We have particularly good covariance in 2025, including very high capture prices in the hydro output while we had these assets with us and also in the wind perimeter. And also, the regulatory accounting contributed more than expected, including some EUR 20 million of positive one-offs in the banding mechanism. You can see that hedging is less of a driver as our short-term and long-term hedges have converged to prices more consistent with the current power price environment. Whereas last year in 2024, we still benefited from short-term hedges closed in the tail end of the energy crisis at more than EUR 90 per megawatt hour. In the next slide with the Spanish operating results. Revenues in generation fell by 24% to EUR 648 million. In this slide, you can see generation EBITDA of EUR 341 million, down 26.6%, and total EBITDA from operations at EUR 327 million relative to EUR 443 million the previous year. In the chart, you can see how EBITDA was impacted primarily by the loss of output and contribution from the large asset disposal transactions and, to a lesser extent, by the lower output on a like-for-like basis. Including asset rotation gains, EBITDA in Spain reached EUR 933 million, which compares against EUR 504 million the previous year. On the next slide, on the International revenue drivers. Output increased by 26% to almost 16 terawatt hours, principally due to new capacity in operation, which added 2.6 terawatt hours of production. And this is some improvement in output as well in the existing operating asset base during the year. Key growth assets include Forty Mile, Green Pastures, Union and Red-Tailed Hawk in North America. This is the region which shows the largest increase in output, and MacIntyre and Aldooga in Australia, which increased its output by more than 80%. In terms of prices, average capture prices fell by 12% to EUR 54.1 per megawatt hour with lower prices in most regions, particularly the U.S. and Australia, which saw very high prices in 2024. The underlying performance of Chile is very good. As last year, the average price contained extraordinary recovery of PEC tariff deficits for around $40 million embedded in that price. So the underlying performance is quite good, actually. International generation revenues increased 10% by EUR 862 million. And on the last slide in the ACCIONA Energia section, international operating results. Generation EBITDA increases by 5.6% to EUR 605 million, better output and contribution from the new assets, and we had negative impact from FX. In terms of the key geographies that are notable, we have the U.S., which grows on the large increase in new capacity, and that is despite the lower prices. Mexico grows on better prices and output, and 2024 production was very weak. Chile has performed well, again, taking into account extraordinary PEC revenues of $40 million in the previous year. Output was poor, but we have seen better PPA margins and slightly higher injection prices in PV. Australia improved, thanks to the large increase in volumes and despite lower prices, but should have been better. While Aldoga reached COD ahead of schedule, MacIntyre was behind us as discussed. And this concludes the review of ACCIONA Energia operating results, and let me hand over to Jose Angel Tejero. Jose Angel Santos: Thank you, Raimundo. We will now turn to present ACCIONA 2025 results. Starting with Infrastructure, 2025 has been another year of solid execution across our core activities, supported by a healthy backlog and a clear strategic focus. In Construction, profitability has been maintained at solid levels, reflecting a strong focus on OECD countries, contracts with appropriate risk-sharing mechanisms and an execution model that prioritizes predictability and margin protection. This allows us to convert backlog into earnings with high degree of visibility even in a volatile macro environment. Turning to Water. EBITDA has grown to close to 50% compared to last year, being one of the standout contributors in 2025, reflecting both operational leverage and an efficient and faster-than-expected execution of several key projects. In December, we have been selected as preferred bidder for a major contract in Brazil, the Pernambuco project, which further strengthens our positioning in this market and supports future growth. In Concessions, 2025 marked an important milestone with the signing of our first managed lane project in the United States, the SR-400, as well as the Central West Orana transmission line in Australia. These are highly relevant steps, not only because of these project themselves, but because it validates our integrated construction plus concession model. Our ability to structure, finance and operate complex assets and our ambition to grow selectively in markets with loan duration and stable cash flows. Looking ahead, our priorities for 2026 are very clear, to maintain profitability in Construction, to start operations of relevant water contracts as the first segment of Line 6 in Sao Paulo and to continue advancing transmission lines in Australia and Peru while exploring new opportunities in other markets and to remain highly active in management opportunities in the U.S. with 2 tenders expected next year. Going to the next slide. Moving to Nordex. 2025 marks a very strong year with both financial and operational targets achieved or even exceeded, including the medium-term margin target ahead of our schedule. Nordex continues to strengthen its competitive fair position, increasing market share and consolidating its leadership in Europe, where it is now the #1 player with a 48% market share and ranking second globally excluding China. This performance highlights the strength of our product offering, execution capabilities and customer relationships. A key driver of stability and visibility is the service business in Nordex. Service backlog has reached already EUR 6 billion, setting a solid foundation for stable recurring growth. Nordex has now 48 gigawatts under active service with an average contract tenor of 13 years and availability rate of over 97% in the fourth quarter, reflecting the quality and reliability of the fleet under management. Looking ahead to 2026, the focus remains on maintaining financial flexibility supported by strong balance sheet and ample liquidity, while targeting an EBITDA margin between 8% to 11% on sales of EUR 8.2 billion to EUR 9 billion. In addition, Nordex has introduced its first shareholder remuneration policy, targeting a minimum annual shareholder return of EUR 50 million to be delivered either through dividends or share buybacks and always subject to regulatory approvals, capital structure priorities and stable market conditions. Moving to the next slide and looking at other activities, mainly Bestinver and Real Estate. I would like to briefly highlight the performance of these two activities. Starting with Real Estate, 2025 has been an excellent year. We delivered 1,244 units, beating the guidance and continuing to optimize our portfolio through the disposal of nonstrategic land plots and the office building in Madrid. This performance has resulted in a record EBITDA of EUR 84 million. Looking ahead to 2026, our priorities are to maintain annual deliveries between 1,000 to 1,200 units, continue optimizing the land bank through selective disposals and pursue targeted investments aligned with our long-term strategy. In Asset Management, Bestinver has delivered a very strong year, maintaining an excellent performance in its liquid funds with a total year assets under management of EUR 7.7 billion. And Bestinver Bolsa has ranked as Spain top-performing equity fund in 2025 with 58% return. Looking at our 2026 priorities, one of our key initiatives is the planned launch in 2026 of our first fixed income fund for institutional investors in Luxembourg, which will further broaden the product offering and support growth. And with that, I will now hand over the floor to our CFO, Jose. Jose Carrion: Thank you, Jose Angel. Good morning, everyone. Let me walk you through ACCIONA's financial results for the full year 2025. Starting with the key financial highlights. We delivered solid full year 2025 results, beating guidance across the main metrics. EBITDA increased by 31%, profit before taxes by 82% and attributable net profit by 90%, primarily driven by the results from asset rotation in ACCIONA Energia, strong performance of Nordex and together with a solid contribution from the Infrastructure business. EBITDA contribution was well balanced across activities with 48% coming from ACCIONA Energia, 25% from Infrastructure and 23% from Nordex, reflecting the good diversification of the group. Net investment cash flow amounted to EUR 1.1 billion, supported by a reduction in ordinary CapEx to EUR 2.25 billion compared to EUR 2.8 billion in 2024 and EUR 1.1 billion in proceeds from asset rotation in ACCIONA Energia and a positive net cash flow contribution of around EUR 110 million from property development. As a result, we closed the year with a robust balance sheet and a significant reduction in leverage with our net debt-to-EBITDA ratio declining from 2.9x in December 2024 to 2.2x at the end of 2025, which is well ahead of our target of remaining below 3.5x. With regards to nonfinancial results. Our total workforce increased by 3.8% to more than 68,000 employees. Health and safety indicators also improved this year, and the number of social impact programs implemented across ACCIONA's projects increased, reaching 2.2 million beneficiaries in 31 countries. The group's Scope 1 and 2 greenhouse gas emissions amounted to 205,000 tonnes of CO2 equivalent, which represents a 4% increase year-on-year. Nevertheless, the company remains within its Science-Based Targets initiative trajectory, which aims to reduce emissions by 60% by 2030 compared to our 2017 baseline and by 90% by 2040. Circular economy indicators improved significantly, largely due to construction projects in Australia, which were able to recover a substantial portion of excavated materials, which are the company's main waste product as of today. Investment levels aligned with EU Taxonomy remain comfortably above our 90% target, and this has enabled the issuance of 37 new green financings amounting to EUR 2.4 billion, bringing the proportion of the group's debt classified as either green or sustainability-linked to around 84%. During 2025, the group recorded EUR 2.25 billion of gross investments, mainly across ACCIONA Energia and our Infrastructure division. Energy investments were concentrated in projects such as MacIntyre and Aldoga in Australia, Green Pastures and Forty Mile in the U.S. and Canada as well as the Tahivilla repowering project and the Logrosan biomass plant in Spain. Infrastructure investments amounted to EUR 624 million, mainly related to construction machinery, equity and equity contributions to concessions, particularly in the Line 6 project in Sao Paulo and Lima's Peripheral Ring Road as well as the CapEx of transmission lines in Peru. Divestments reached EUR 1.1 billion, thanks to 4 main transactions: the sale of the hydro assets, which Arantza mentioned at the beginning of the year, the wind assets in Peru, Spain and Costa Rica in the second half of 2025. On this slide, you can see the main drivers behind the evolution of net debt for the group during 2025. Operating cash flow reached EUR 2 billion with a positive working capital contribution for the third year in a row of EUR 656 million in 2025, mainly driven by Infrastructure due to a very good performance in terms of execution, advanced payments and collections. Net investment cash flow was EUR 1.1 billion and financing and other cash flows amounted to EUR 830 million, including approximately EUR 180 million invested in the acquisition of an additional 2.8% stake of ACCIONA Energia. As a result, net debt closed slightly below EUR 7 billion, including IFRS 16 adjustments, which is EUR 139 million reduction year-on-year. It is important to highlight that a significant portion of this debt, EUR 2.7 billion, is associated with energy assets under construction or not yet fully in operation as well as that linked to the Real Estate projects under development. Given that Raimundo has already covered ACCIONA Energia's financial performance, I will move straight to Infrastructure. In our Infrastructure division, 2025 was a good year in terms of execution and growth. Revenues increased by 6.7% with 82% of those revenues coming from OECD countries, reflecting the quality and geographic diversification of the portfolio. Australia remains our main region, accounting for approximately 38% of revenues followed by Spain, LatAm and EMEA. In terms of backlog, we reached a historically high level of EUR 30 billion in terms of global backlog and EUR 120 billion in terms of aggregate backlog, which includes our portion of long-term revenues expected to be generated by the concessional assets that we report on an equity-accounted basis. This aggregate backlog is up 124% year-on-year, driven mainly by the SR-400 project, which added about EUR 60 billion to it. The average life of the construction D&C backlog is around 2.5 years, which is consistent with the project-based nature of the activity. In Water operations & maintenance, the average backlog life extends to approximately 5.4 years, which reflects the more stable and recurring nature of those contracts. And lastly, our concessions asset portfolio has an average life of around 50 years. Geographically, aggregate backlog is highly diversified with a strong presence in North America and a clear focus on OECD markets. In the appendix of the full presentation, you have extensive details of the largest construction and concession projects in our backlog. Turning to Construction. Profitability remained resilient with EBITDA margins remaining at around 7%, in line with the previous year and reflecting a disciplined approach to project selection and strong risk control measures. Australia stood out with 13% revenue growth, driven by good progress in the execution of projects like the Western Harbour Tunnel, M-80 Ring Road or Central West Orana and Suburban Rail Loop. Construction backlog reached EUR 18.1 billion, which is up 2.6% versus 2024, which reflects a moderate year-on-year increase despite the relevant awards added during the year mainly due to ForEx impact. Beyond the sheer size of the backlog, equivalent approximately 2.5 years of activity, what stands out is the strong geographic diversification of it and it's increasingly derisked profile with 81% of the total incorporating some sort of contractual risk mitigation mechanisms, whether it is collaborative contracts, contracts related to our own concession projects or contracts with price protection clauses. Moving to concessions. The portfolio remains young with 90% of it remaining under construction and therefore, with limited P&L impact today. Sales grew by 103% and EBITDA reached EUR 160 million, driven by the financial close of the SR-400 project in Atlanta and the financial close of Central West Orana in New South Wales, Australia. The good performance of the Peruvian transmission lines also contributed and the commissioning of the Kwinana waste-to-energy plant in Australia was also an important factor. Equity invested in Concessions assets reached EUR 704 million with EUR 1.6 billion of equity commitments between 2026 and 2035. The portfolio remains well balanced with 54% of it with demand risk and 46% with availability-based payments. In 2025, our Water division delivered remarkable growth with revenues up 16.5% and EBITDA increasing by around 50%, driven by good execution in Collahuasi and the Casablanca desalination plants. Backlog also increased by approximately 11% to EUR 7.7 billion with key awards such as the Sanepar and Cesan projects in Brazil. And these backlog figures do not include the preaward of Pernambuco, which has already been mentioned and will add around EUR 30 billion to the aggregate concessions backlog. Given how relevant our Concessions business has become for the group and, more importantly, how relevant we expect it to become in the next decade, let we spend a few minutes going into more detail. Over the last few years, ACCIONA has emerged as one of the leading global players in greenfield infra concessions with particularly strong growth over the last 3 years. Between 2023 and 2025, we were awarded 17 new projects with total associated investments of EUR 27 billion and an average project size of EUR 1.6 billion. EUR 27 billion is total or 100% of these projects, not a share. Since 2019, our average project size has quadrupled and the average remaining life of our portfolio has tripled, which highlights the improvement in the quality of the portfolio over the period. 2025 was particularly significant with important milestones such as the financial close of SR-400 and the financial close of Central West Orana in Australia as well as the acquisition of transmission lines in Peru and major water awards in Brazil. The strategy underpinning our business model is to operate as an integrated development and asset platform, combining global expertise and structuring capabilities with strong local construction execution capacities. This differentiated approach allows us to originate, develop, finance, build and operate large-scale infrastructure projects while maintaining control over the risks that we are taking and the value that these projects generate throughout their life cycle. It is our key competitive advantage in this respect. Our growth strategy is clearly focused on a number of priority segments, including managed lanes and toll roads, urban rail and metro systems, transmission lines, high-speed rail as well as our selected -- or selected social and water concessions. Geographically, our efforts are concentrated on the U.S., Australia, Brazil and Peru, and Chile, which is where we see the strongest pipeline and the most attractive risk return profiles. A key feature of our model is the ability to take relevant equity stakes, either with control or with strong governance rights, combined with a flexible approach to asset rotation, allowing us to transform assets from greenfield to brownfield and optimize capital allocation over time. Looking ahead, growth opportunities are substantial. We have identified a pipeline of approximately 130 greenfield opportunities, which represent around EUR 300 billion of associated investment expected to be tendered in the coming years. Within this pipeline, managed lanes will be a major growth driver. We have identified 7 projects with high visibility that alone represent over $80 billion of total investment and around $30 billion of total equity investments. Over the next 2 years, we expect to submit more than 49 proposals across our core markets. The opportunity, therefore, is compelling, and we believe we are very well positioned to capture this growth. Our current concessions portfolio includes 78 assets in 11 countries with total investment for 100% of the projects of more than EUR 36 billion. On this slide, you can see both the geographical diversification of our portfolio with a clear focus on OECD countries and a strong presence in Europe, North America, Australia and LatAm and the well-balanced nature of our portfolio, which spans transport infrastructure, water concessions, transmission lines and waste-to-energy plants, combining different sectors and stages of development. Total equity investment to date amounts to EUR 879 million as of 31st of December '25, And we have additional equity commitments of approximately EUR 1.9 billion between 2026 and 2035, which will take the total equity invested at the end of 2035 with the projects that we currently have in our portfolio to EUR 2.7 billion. As you can see in the next slide, these investments are well spread out over the next 7 years with no significant concentration in any particular year. The average remaining life of this portfolio is around 50 years, and it is expected to generate approximately EUR 60 billion in dividends and cash distributions for ACCIONA over the period. With respect to Nordex, since the team presented results 2 days ago, outstanding results, if I may say so, I will not go into the details. I will highlight, however, that Nordex contributed EUR 749 million to ACCIONA's EBITDA which includes EUR 118 million from the reversal of provisions, which relate to the updated view of Nordex's quality cost program. That is on top of the EUR 631 million EBITDA that Nordex reported. Moving to Other Activities. Living, our real estate development business, has achieved extraordinarily good results in 2025 with an EBITDA that almost doubled versus 2024. Since Jose Angel has already gone through the highlights of '25 and priorities for 2026, I will not go into more details. But let me just highlight that our gross asset value at the end of 2025 stood at EUR 1.5 billion, which is an 8.4% decrease compared to '24, just consistent with the high number of units delivered and the asset sales and the strategy of land bank optimization through the sale of old stock. And finally, Bestinver also delivered a solid year with revenues increasing by 4.4%, EBITDA by 8% to EUR 55 million driven by higher average assets under management, which grew by 10% (sic) [ 9.8% ] year-on-year. And at year-end assets under management reached EUR 7.7 billion, up EUR 870 million as a combination of positive net inflows for another consecutive year and an outstanding performance of most of our funds with a particular really good performance of Bestinver Bolsa, which ranked in Spain's top-performing equity fund in 2025, delivering a 58% return. With that, let me thank you for your attention. And I will hand the floor back to Jose Manuel for the outlook and opening of the Q&A session. Jose Domecq: Okay. Thank you, Jose. Very briefly. I will do a 2026 outlook, where we expect a stable operating EBITDA, bringing total group EBITDA to a range of between EUR 2.8 billion and EUR 3.1 billion. For ACCIONA Energia, the outlook is exceptionally volatile and difficult to predict due to uncertainties in the timing of asset rotation and extraordinary weather conditions with very high hydrological inflows and reserves in Spain with FX volatility and timing of new assets reaching COD, which is, as you know, commercial operation date. However, given all these caveats, we would expect about EUR 1.2 billion total EBITDA for ACCIONA Energia. And we -- a month ago or a couple of weeks ago, we were finishing our final budget for the year, which I would have said comfortably flat operational EBITDA. At this stage with the exceptional rain and hydrological reserves in Spain, I would dare say that it's going to be a small decrease expectation for the year. And for ACCIONA Group, 2026, we will also expect an investment cash flow of between EUR 2.2 billion and EUR 2.5 billion, net debt-to-EBITDA to remain below 3x supported by asset rotation and CapEx discipline, basically in order to continue to maintain investment grade and a dividend per share of EUR 5.65, which we aim to maintain a stable with a small growth in the coming years. Beyond '26, volatility may persist, Geopolitics may remain unpredictable, and the execution environment will continue to be demanding. Our strategy, however, is focused on what we can control, which is disciplined capital allocation and operational excellence. We are, as I was saying in the beginning, globally diversified. Our integrated model is built for resilience. Demand is not a question. Obviously, the question is execution with selectivity and discipline and scale. Our strong asset base, deep technical capabilities and record backlog allow us to remain focused and selective on projects with sustainability, complexity and attractive returns genuinely reinforcing each other. ACCIONA enters in this new phase, better than ever, positioned to translate structural demand into long-term shareholder value by delivering essential infrastructure to what society needs. Thank you very much. And we will now enter the Q&A session, for which I anticipate my appreciation and thanks for the many questions we have received, which we will, in some cases, bundle together in order to save time. Jose Domecq: To start with, we will handle the energy questions, Energia questions. The first one comes from a number of market analysts from Caixa, JPMorgan, RBC, Kepler, JBCM, Santander and HSBC, thank you all. And the question is, can you please clarify the target EBITDA for 2026 excluding asset rotations as well as giving guidance post 2026. Arantza, please? Arantza Ezpeleta Puras: Thank you, Jose Manuel. So in relation to 2026 EBITDA and most completely in the operating EBITDA, first of all, we have to take into consideration that the most relevant factor to do that is the timing of the closing of the asset disposals as this can affect the perimeter, but also the contribution to the EBITDA that we have incorporated. If we leave this aside and excluding the asset rotation gains, a couple of weeks ago, I would have said flat. But now given the heavy rains that we have seen suffering in Spain in the last couple of weeks, I would have said that the -- and the impact that this must have on the Spanish prices, I would now say that probably we could expect a small single-digit decline versus 2025. Regarding the asset from operation -- asset rotation EBITDA, what I would expect is a more normalized amount than 2025, which was an extraordinary year in that front. And post 2026, looking at more midterm 2030, you should take into consideration a consolidated output of around 30 terawatt hours, coming up from the 24.4 terawatt hours we had last year. And this means around 1 terawatt hour per year of production contribution. With this and your assumption in prices and generation, you will see that this would guide you to an increase in our operating EBITDA, a CAGR of around mid-single digits. Jose Domecq: Thank you, Arantza. Let me make a very general rule of thumb, 2030, 30 terawatt hours. So it's kind of easy to remember. As things stand now, obviously, that target is subject to improvement if we would have the ability to do so in terms of capital and balance sheet capacity. Question number two, impact of efficiency measures. What do you estimate to be the impact of the efficiency measures in an annual EBITDA? This is from Flora at CaixaBank. Arantza, please, or Raimundo, whatever. Raimundo Laborde: Okay. I'll take that up if you want, Jose Manuel. We prepared a plan to address some of the key structural cost categories starting 1st of January 2026. But when we look at the run rate, which should be achieved during 2027, we are considering around -- or targeting around EUR 35 million of structural cost reductions. During 2026, it would be a part of it. Half or more than half, we think it will be achieved during the current year. Arantza Ezpeleta Puras: Yes. Jose Domecq: Thank you. Question number three from Flora, Italian proposal on energy prices. Can we make a comment on the Italian proposal to decouple CO2 prices from power prices? Arantza Ezpeleta Puras: Yes. So I'll take this one. I think, first, we have to take into consideration that our exposure to Italy is really limited. We have only 0.2 terawatt hours and, in terms of revenues, around EUR 30 million. Having said that, last week, the Italian government announced a Decree Law that incorporated some measures to reduce the electricity and gas cost and support the households and industry prices for the sake of competitiveness of the industry. The key proposal that was included in this Decree Law was to compensate the thermal generation for the CO2 allowance cost, preventing them from passing this into the auctions into the market prices. This could lower approximately -- in an initial estimation, this could lower the price around EUR 30 per megawatt hour. However, these measures would not enter into effect until January 1, 2027. And it has to pass the usually complex process of the European Commission stated approval. But also given the potential conflicts with the EU ETS and the internal market rules might be a little bit challenging. Having said that, from our perspective, we do not support the interventions in the generation market, especially those that weaken the signals -- the decarbonization signals by sealing emitting technologies from CO2 costs. Jose Domecq: Yes. Let me just underwrite that comment from Arantza. We find it somewhat surprising that we have -- sending the market decarbonization signals through carbon pricing and then offsetting those signals through opposite policies in the member states. It doesn't make a lot of sense. It would make a lot more sense to help out, as Arantza mentioned, the energy-intensive industries or needed households, whatever, but on the demand side, not on the supply side as we understand it, however. Question number four from Beatrice Gianola, Mediobanca and Flora at Caixa Bank. What are our expectation for asset rotations this year in terms of timing and geography? Let me just beyond -- besides Raimundo's specific answer to that question, let me say that as a rule of thumb, you should be aware that we are extremely selective in the transactions we close in the matter of price. So we have more transactions in the market than we need, and we will be selective and differentiate those which are more attractive. Therefore, it is difficult to predict. Having said that, please, Raimundo. Raimundo Laborde: Thank you so. Just to recap. On the one hand, we have to close the transactions that were signed at the end of 2025. This is basically South Africa plus the U.S. PV minority, which is also combined with the sale of 2 wind farms in Mexico. This is roughly in terms of incremental debt reduction as we said throughout the presentation, around EUR 900 million of additional proceeds. And we want to close another EUR 1 billion, EUR 1.1 billion of opportunities. As Jose Manuel was saying, we are managing our portfolio that is in terms of opportunities to sell that is larger than what we need, as we did last year. And at the moment, it's approximately 2.5 gigawatts of capacity in different stages of negotiation and process. We cannot be too specific on the particular assets that are in our list. But in Spain, perhaps we can be a bit more specific on -- we have potentially another large portfolio win in the market. We could also consider the sale of our residual or remaining hydro assets. In the international business, we're looking across all the continents. We have a very wide portfolio of assets, as you know, in present. And here, we're looking in some cases at selling out right 100% of these assets and, in other cases, a large minority holding in there. And with respect to what we're going to do beyond '26 and '27 and beyond, we would expect that the level of asset rotation is not as extreme or as high as what we've done in '24, '25 and we will need to do also in '26, but it will be more normal. We've indicated that this is part of our ongoing business. This is a source of funding for our growth. This is a source of capital gains, arbitrage between trading share prices and what we think the value of our assets is. So this is going to continue happening, although probably in the 400 to 500-megawatt per annum range. Jose Domecq: Thank you. Question number five. Question comes from Flora. Why do we find -- why do we think it's so critical to maintain the rating and the consequences of losing it? Quite frankly, I don't think maintaining the rating is critical. I think it's important. I think it's a commitment we've made to the market, and it improves our weighted average cost of capital, it improves our liquidity and it's very good to have, a very nice to have. We will try to maintain it and we will do our efforts to maintain it. Frankly, at this stage, we believe maintaining this -- and this, we expect this to remain this way, we think maintaining the rating is the best option. Anything to add, Raimundo, Arantza? Raimundo Laborde: No, I think this is pretty much it. Excess Liquidity, gives us access to the market. It reduces our cost of borrowing and it's something that gives us very good support to our plans. Jose Domecq: Very good. Thank you. As for question number six, from JPMorgan, Javier Garrido; Alvaro Soriano, Alantra; and Charles Swabey from HSBC. Within the 26 terawatt hour production target for '26, how many correspond to assets that are planned to be sold? Does it include any contribution from assets that will be commissioned during 2026? I guess the answer to that is the 26 terawatt hours are net of negative or reductions in rotated assets. But I don't know if there's anything to add to that. Arantza Ezpeleta Puras: No. What I would say is that, yes, it's precisely what you were mentioning. The guidance included -- these 26 terawatt hours were included were net of the reduction from the asset rotation but also incorporating the contribution of the new assets that are going to be put into operation during the years. Of course, the final figure will depend on the schedule of the timing of the disposals, which, as I was mentioning before, will, of course, might have a significant impact of the operating EBITDA. As a general rule of thumb, what I would say is that you should expect that -- I was mentioning before, this 30 terawatt hours for by 2030, which approximately will grow at 1 terawatt hour per year. And I think that's what you should use for your calculations. Jose Domecq: Thank you. Question number seven is from Javier Garrido at JP. What is our current open position in Spain and expectations for 2027? Raimundo? Raimundo Laborde: Okay. Yes, in 2027, our production in Spain should be somewhere around 8 to 8.5 terawatt hours, taking into account potential incremental rotation during 2026 and also the increased contribution from Logrosan biomass plant and other assets that although they're not huge, but they contribute to growth in output as well from new capacity. So let's just say 8.5. Out of that, we will have, including the Logrosan plant and assuming some of these wins that will be regulated that we sell, around 2 terawatt hours of regulated output. Our long-term and medium-term contracts amount to around 4 terawatt hours. So that's 6 out of 8, 8.5. So that would give you the portion that is contracted. Jose Domecq: Thank you. Question number eight, what is our sensitivity of Spanish power prices in 2026 EBITDA -- impact in EBITDA if prices were to move minus EUR 5 a megawatt hour versus our assumption? Arantza or Raimundo? Arantza Ezpeleta Puras: Yes. Well, our merchant position in Spain for 2026 is around 2.5 terawatt hours, in addition to some of adjustments due to the [ ban ] mechanisms of the regulated assets that are also exposed to changes in the pool price. Taking all things into consideration, the impact should be around EUR 20 million. Jose Domecq: Next question from Fernando Garcia at RBC, is how have you started in terms of output versus UP50 in January and February? And is your output guidance versus UP50 or incorporates the evolution of these 2 months? Arantza, Raimundo? Arantza Ezpeleta Puras: Yes. Well, I'll take this one. So in terms of the generation of the production, as I was mentioning before, the year has started very well, particularly in Spain due to the strong resource and rains that has driven an above-expectation in terms of production. This has been somehow offset by a more normal contribution for the international side. That's on the production side. On the other side, the prices have been, and particularly in Spain, precisely because of that, somehow below, what we were expecting. But in general and answering to the question, the guidance that we have given for the production of the year fully incorporates the performance of these first 2 months. Jose Domecq: Thank you, Arantza. Next question from Jose Porta of Kepler; Fernando Garcia of RBC; and Oscar Najar at Santander is a Classic is update on strategic optionality. My answer there is the same as has been over the years, which is there is an intrinsic value on the optionality of maintaining ACCIONA Energia publicly traded. The options, the many options are constantly analyzed. Maybe the only minor caveat that I may say there is that we have retained a bank to help us in that process of analyzing all the different alternatives. But the situation remains to be the same as usual. Thank you very much. Number 11, merchant exposure -- Pablo Cuadrado, JBCM, merchant exposure for this year in Spain and international markets. I think we've answered that question. So international markets, Raimundo? Raimundo Laborde: Yes. Spain is very much the same as we just discussed, and international markets tends to be around 17% hedged. And overall, we want to have roughly an 80-20 hedging across the portfolio. Jose Domecq: Yes. Thank you. MacIntyre, when do we expect the MacIntyre to be 100% commissioned? Did you find out the problem of the blades? And could you be compensated for that? Are you seeing any further delays in the commissioning of assets? From Pablo Cuadrado and Oscar Najar. Arantza? Arantza Ezpeleta Puras: Yes. So MacIntyre is currently going under the commissioning process. We successfully passed Hold Point 3 and we got the authorization to go through the testing process for Hold Point 4. During the commissioning process, we found damage associated to a significant number of blades. According to the preliminary analysis underway, we believe it is related to the transportation to site. We continue carrying out the delivery. And in the meantime, we're working, on the one side, on the insurance recovery. And on the other side, we are also working on having blades -- repair plan blades on site, which is already taking place. And also, we are incorporating accelerating and mitigating measures. With all in mind, we have a target of having the wind farm fully commissioned by year-end. Jose Domecq: Thank you. Question number 13 is from Pablo Cuadrado and Oscar Najar. Is the downgrade on gross installations guidance for the year a transitory decision to refocus on the leverage? Or shall we assume a slowdown in the gross installation targets for the next few years? I guess, is why not becoming ambitious again post balance sheet improvement? Well, yes, let me take that one, indeed, why not? We are, as you say, balancing out our balance sheet, and therefore, '25 and '26 installations are, I would say, somewhat lower than normal. In the coming years, I would expect installation or new capacity additions of between 1 and 2, 1.5 and reductions of anywhere around 0.5 gigawatt a year, so rotations of 0.5 gigawatt a year, to give a net of, whatever 0.7 0 8. The logic there is obviously that we are generating a significant value in putting up new assets and rotating more mature ones, why forgo -- that will, in itself, maintain our balance sheet capacity. So it's a good balance. This last 2 years have been more tilted towards asset rotations because we haven't rotated any assets in many years. So the balance sheet balancing out process has to be charged in the beginning. Anyway, so your comment is right, or I agree with it. We agree with it. That should be expected in the coming years. As for last policy, the decision to cut the dividend -- from Beatrice, Mediobanca, the decision to cut the policy, the dividend was being aimed at preserving investment-grade credit metrics. Could you elaborate on the specific factors that prevented the approval of the previous dividend level? Yes. Well, why don't you take that one, Raimundo? Raimundo Laborde: Thank you. Yes. So the decision to reduce the dividend that we propose to the Board and the Board, in turn, is proposing to the AGM is driven by the rating agency discussions. This is one of the mitigating measures that we have agreed. It doesn't have a massive impact on leverage, but it's a strong signal, I think, to the rating agencies, and I think, generally to our lenders that we are serious about returning to a stable outlook. So this is, in terms of dividends going forward, I guess, Jose Manuel, we would have the -- we would want to resume a more normal dividend level post achieving the stable outlook and the rate. Jose Domecq: Yes. Thank you very much. So that does with questions on ACCIONA Energia. We go on to the questions on ACCIONA Group, the rest of the company. The first one from Flora, Fernando and Oscar, RBC and Santander. Well, we have many questions about Nordex, one of which is considering the strong performance of Nordex, should a placement make sense? Are we comfortable with the high exposure? Is this exposure in industrial fit an industrial company and in our strategy to invest and develop operating infra assets? What would be -- and this is, I guess, it's 4 questions in 1. What would be the minimum level of stake that allows you to maintain consolidation. Let me answer the first part of it. We are very comfortable with Nordex. Nordex is an integral part of the group. It's an integral part of the company. I understand that the market or the analyst community often see Nordex as a financial investment, but I think you should change your approach because that's not how we see it. It's an integral part of the group. We were there when it needed help some years ago. We're there when it's producing excellent results. And that's what business is about. The alternative that subliminally many people or you are suggesting is trading, and we're not into that business. The other questions were whether we would sell 5%. I guess, it doesn't change much and it would be a significant change in our policy towards Nordex to start trading stakes. Let me remind you that we started the OEM industry 25 years ago and Nordex is a result of the ACCIONA Windpower merger with Nordex in 2016. As a matter of fact, it's called ACCIONA Nordex, ACCIONA Windpower. Therefore, our affinity to Nordex is the same as we have had to this industry for many years. Let me then end the answer to this question on a very important -- what I consider to be a very important comment that I somewhat made in my introductory words, which is the importance of maintaining industrial capacities within the European Union. And Nordex is a success story of industrial capacity, of industrial success, and we're very proud to be an integral part of that. And I believe that needs to be protected and needs to be enhanced and encouraged. The next question from Pablo is, could you clarify the criteria for provision reversal at Nordex EBITDA? Do further provisions remain that could be reversed in the following years? Jose. Jose Carrion: So no more. We don't have any more provisions on our balance sheet, on ACCIONA's balance sheet related to Nordex's nonquality costs. There are some negligible provisions related to other risks. And the reversal is mainly due to the fact that Nordex has already incorporated these expenses into the results, and therefore, we can't have them also on ACCIONA's books. And so we need to revert them. That is the underlying reason. Jose Domecq: Next question is from Flora at CaixaBank. Can you please share the list of potential awards in concessions? Okay. I don't have that list, but maybe you have it, Jose? Jose Carrion: Happy to take this one. In the short term, over the next 12 to 18 months, we're going to be tendering around 14 projects in our core markets, so heavy award or heavy activity on new award, new auctions and new projects. There's a strong focus in the U.S. both on managed lanes, where we will be tendering in Tennessee the I-24 managed lane project, in Georgia the I-285 projects and, shortly thereafter, the I-77 project in North Carolina. And we expect awards of at least the first 2 within 2026 or resolution of the participation in 2026 and the I-77 shortly thereafter. Also in the U.S., we will be participating in transmission line bidding for 2 projects, one in MISO, one in SPP. And there's also heavy activity in the short term in Brazil related to both metro lines and the extension of Line 6 and other metro lines that are being developed in Sao Paulo as well as the water concessions with a particular focus in Pernambuco, which we have our preferred bidders for, and we need to sign in the coming months. Jose Domecq: Thank you. Next question is an update on our asset divestment plans ex energy, including waste or water treatment plans or real estate. Jose, why don't you take that? Jose Carrion: We're always analyzing different options and not only divestments but also acquisitions. In our Real Estate business, it is business as usual or it is our day-to-day business. And our portfolio of concession assets, the portfolio is still very young. So 90% of it is still under construction, and therefore, we're not considering -- we don't think it is the optimal point for considering asset rotation. That is beyond the potential transaction around part of our waste-to-energy portfolio in Australia, which, as you will have seen, is part of the debt that is currently held for sale given that it's one of the most immediate transactions that we are considering in the group outside of our -- ex ACCIONA Energia. Jose Domecq: Thank you. Next question from Jose Porta at Kepler are on property development outlook, the EBITDA and the property development in our Living department. Jose, why don't you take that one? Jose Angel Santos: Yes. This year has been affected by the result coming from the Ombu transaction. That's an office building that we have obtained around EUR 37 million of capital gain, but we still expect revenues and EBITDA to improve significantly like-for-like in 2026, basically, on the delivery of the similar number of units but with a higher price per unit. And the average selling price for these deliveries will be consistently high because the product mix is a high-end product mix. We are talking about properties located in Marbella, [indiscernible] and also Catalonia and Madrid. Jose Domecq: Yes. Let me add to that, that the Ombu transaction shouldn't be considered as a extraordinary event or extraordinary sale. The Ombu transaction is a classic case of a multiyear normal operational transaction, by which we have reaped an urban facility and improved it and sold it. But that's obviously a more than 1-year process, which will be, I guess, recurrent maybe not every year, but it's a recurring activity. It's an important activity in our Living division. Next question is from Oscar Najar. What is the improvement in net debt, mainly working capital? Why is it so positive, almost EUR 1 billion in second half '25. Jose? Jose Carrion: The typical seasonality of our working capital profile usually shows better performance in the second half of the year than in the first of the year. And the movement that we've seen in the second half of 2025 is, in fact, quite similar to what we had in the second half of 2024. In -- the last 3 years have been -- working capital performance in the last 3 years has been particularly good in infrastructure with positive working capital for third consecutive year in 2025. In the case of 2025, it has been mainly driven by good management of advanced payments in Australia and the U.S. and good progress in some pending collections in the Infrastructure business. And going forward, for 2026, we should expect the working capital to normalize and reach more moderate levels for the year ahead. Jose Domecq: Thank you. Next question from Oscar is our expected net debt for 2026. Assuming the disposals in ACCIONA Energia, as I've said in my introduction, we will remain below 3, maybe lower. But our expectation is that -- our aim is to stay below 3. So if the debt levels are temporarily lower than 3, which maybe the case, we would use that additional slack to further investments. So yes, the target is to be below 3. Next question from Oscar Najar. When will you host the CMD on Infrastructure and Concessions? Who wants to take that one? When are we holding a CMD? Jose Angel Santos: Soon. Well, I think that the answer to that is that we want to have more visibility on the outcome of the bids of this year, and second, our portfolio is very young. And we would like to show a showcase an operating portfolio and probably will be soon by the end of this year or maybe beginning of next year. Jose Domecq: Yes. I mean I'd like to have one, but there are some moving targets that I think is best if we have them tied down. Question number eight from Oscar. What assets are held for sale in the balance sheet of ANA [indiscernible] ACCIONA Energia? Only South Africa or something else, how much? Jose? Jose Carrion: Besides the assets held for sale in ACCIONA Energia, which are our South African assets and our 2 wind assets in Mexico, the only asset held for sale in the rest of the business is the Kwinana waste-to-energy plant, which has associated debt of EUR 322 million. And it is what I was referring to on my previous question regarding potential transactions this year. Jose Domecq: Very good. Well, that does with all the questions we've received. Any doubts or further questions, kindly address us in - through our Investor Relations group or our financial department. I thank you very much for your attendance, and look forward to seeing you in the Capital Markets Day or sooner in the next report or on our road shows in the next few months. Thank you very much. Goodbye.